Burger King had a somewhat challenging 2024. Multiple franchise operators went bankrupt, forcing the company to take over some operations while also seeing hundreds of stores close.
The chain also worked to rebuild its business under its “Reclaim the Flame” initiative, where it invested hundreds of millions in advertising and store remodels.
Related: Popular burger chain closing dozens of restaurants
Burger King did see some positive signs that its investments were working. Restaurant Brands International (QSR) CEO Josh Kobza spoke positively about the chain’s progress.
“Turning now to Burger King in the U.S. and Canada, which grew comparable sales 1% in 2024. In the fourth quarter, Burger King U.S. outperformed major burger QSR peers with a 1.5% increase in comparable sales, a solid achievement following last year’s 6.4% increase. Tom, his team, and our dedicated franchisees are executing the multi-year Reclaim the Flame Plan and providing guests exciting menu innovation, compelling value offerings, and improved overall experience,” he said during the company’s fourth-quarter earnings call.
💸💰 Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💰
Burger King relies on new menu items more heavily than its chief rivals, McDonald’s and Wendy’s. It has leaned heavily into pushing new Whopper gimmicks and trying to be innovative in all areas of its menu.
The chain has done that again to begin March as it’s not only launching a new Whopper, it has added another signature sandwich and side dish.
Burger King has seen its sales rise in a very challenging market.
Image source: Chen Jianli/Xinhua via Getty
Burger King keeps evolving its menuÂ
Burger King gets the biggest headlines for its endless innovation around The Whopper, its signature sandwich. The chain has released everything from novelty versions of the sandwich to permanent menu items including the Impossible Whopper, a rare plant-based burger which has become a successful menu item.
The chain’s most-recent menu item is also a Whopper.
“The Steakhouse Bacon Whopper combines premium and signature steakhouse favorites – including A1 Thick & Hearty Sauce, crispy onions, bacon, Swiss cheese and creamy peppercorn aioli with all of the original flame-grilled Whopper fixings,” according to the burger chain.
That’s the headline new offering, but it’s not the only one. With Easter and Lent approaching, Burger King has a new fish sandwich.
“The Fiery Big Fish features panko-crusted fillet with tartar sauce, pickles, and lettuce on a brioche bun,” it added in a press release.
Most fast-food chains bring out fish sandwiches in March ahead of the period where some Americans stop eating meat.
More Food News:
McDonald’s, Starbucks targeted by rival fast-food chain’s takeoverPopular retailer unveils affordable line with unexpected brandOreo celebrates 113th birthday bringing back fan favorite
Burger King has also been an innovator in side dishes. Whereas McDonald’s just offers fries, Burger King has onion rings and mozzarella sticks on its permanent menu, It has not added another side dish choice as part of its latest limited-time-offer.
“Jalapeno Cheddar Bites are filled with melty cheddar cheese & spicy jalapeno pieces” according to the company.
The chain also offers a premium side for the price of fries with a combination meal for a limited time. Customers can select French fries, onion rings, “have-sies” (half fries, half onion rings), Chicken Fries, Mozzarella Fries, or Churro Fries.
Here’s what’s next for Burger King
Kobza made it clear that Burger King remains a work in progress.
“For 2025, we’ll continue leading into our key differentiators of Flame Grilling, the Whopper, and ‘Have it your way,’ while enhancing quality and consistency through menu renovation and operational improvements. Operational excellence remains a key pillar of our strategy,” he shared.Â
The CEO made it clear that improving operations would be a major focus.Â
“In 2024, our A operators achieved average four-wall EBITDA of over $275,000, that’s 35% higher than the system average. This is one of the most compelling metrics we can share with our franchisees, as it demonstrates the direct impact of operational excellence on running a healthy and growing business,” the CEO shared.
That should serve as a model for operators who have yet to update their stores.
“It also reinforces our ongoing efforts at the corporate level to raise the bar, transitioning disengaged franchisees out of the system, and attracting dedicated operators who share our vision for brand excellence,” he added.
Related: Forget the egg crisis, key breakfast drink maker nears bankruptcy
Remodeling restaurants also remains a key driver for the brand.
“Our commitment to modernizing the Burger King system remains very strong. In 2024, we completed 370 remodels…bringing the system to 51% modern image. We have about 220 remodels that have been open for more than six months now, and they continue to deliver an average of mid-teens year one sales uplifts, net of control, and even stronger improvements in franchisee profitability,” Kobza said.
