Burger King’s US Growth Tops Estimates after Adding Menu Items
Published on Nov 4 2014 2:10 PM in Restaurant
Burger King Worldwide Inc., which is buying coffee chain Tim Hortons Inc. in a bid to become the world’s third-largest fast-food chain, reported US sales growth that topped estimates, lifted by new menu items.
Third-quarter same-store sales in the US and Canada rose 3.6 per cent, the Miami-based company said today in a statement. That topped the 2.5 per cent projected by analysts, according to Consensus Metrix. Global comparable sales growth was 2.4 per cent, matching projections.
Burger King is advertising new foods and promotions to draw American diners amid tough industry competition. The chain, which said in August that it’s buying Tim Hortons, recently advertised a 10-pack of chicken nuggets for $1.49.
Burger King’s shares have climbed 41 per cent this year through yesterday’s close, outpacing the 1.9 per cent decline for the Standard & Poor’s 500 Restaurants Index.
The sales gain in the US and Canada compared with a 0.3 per cent same-store decline a year earlier. The latest quarter also outshined the performance of rival McDonald’s Corp., which last month reported a 3.3 per cent decline at US stores open at least 13 months.
Bloomberg News, edited by Hospitality Ireland