Sunday, November 4, 2012

Burger King Rises as McDonalds Fails

English: A selection of value-menu hamburgers ...
English: A selection of value-menu hamburgers from American fast food chains. Clockwise from left to right: McDonald's McDouble, Burger King Buck Double, Sonic Drive-In Jr. Deluxe Burger, Wendy's Double Stack. (Photo credit: Wikipedia)
In the last quarter it was shown in a recent quarterly report that Burger King (BKC) performed better in sales than rival McDonald's.

BKC executives did not reveal whether the higher restaurant sales, along with new customers transferring business from McDonald's or other fast food restaurants were the reasons for this change.

CFO, Daniel Schwartz announced that they are expecting to maintain their share of business growth and indeed, sales have continued to rise during the month of October.

One strategic change in operations is the value menu which focuses on making food affordable for families. Promotions such as the barbecue menu have also attracted many new customers over the past summer.

This fast food restaurant has made a point of attracting elderly and senior customers, both men and women. Offering salads, wraps and smoothies which are popular menu items for these demographics.

This fast food business has traditionally been known to be mainly popular with young males, 20-26. Making changes to the menu, gearing it toward the McDonald's style gives them a wider range of customers to sell to.

Earnings for Burger King went up by seventeen cents a share, exceeding the fifteen cents analysts had predicted for the period.

In June, the company paid out a quarterly dividend at four cents per share.

Burger King was a private company before it was purchased for more than three billion dollars by 3G Capital Management in Brazil.

A shell company, Justice Holdings, acquired BKC via a reverse merger and then the company went public through an IPO.

Last summer, the shares became available on the market first at $14.50. Last Friday the share price went to $14.95. Because of Hurricane Sandy, the NYSE was closed on Monday and Tuesday.

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