A Burger King sign outside a restaurant in Glendale, California.
Robyn Beck | AFP | Getty Images
Burger King’s sales in the same store in the US are tending flat as customers return to their locations for whoppers and fries.
The Brands International Restaurant The chain saw a drop in sales in the same business as that in March mid-1930s Coronavirus pandemic caused consumers to stay at home and cook. But now, even though many of its North American dining rooms are closed or offer limited seating, Burger King is seeing customers come back and order through the thoroughfares. A meatless breakfast sandwich with the Impossible Sausage was recently launched nationwide.
The burger chain’s sales trend reflects that of the broader fast food segment, which has recovered from the pandemic faster than the entire restaurant industry. According to the NPD group, fast food chain transactions decreased only 13% in the week of June 7th compared to the same period last year.
Burger King’s sister chain, Popeyes, saw a slight decline in sales growth in the same store. In the third week of May, sales in the US in the same business increased by more than 40%. But when the chain started its round of strongest results last year before the national launch of its popular chicken sandwich, sales in the same store in the US just increased last week by the “very high 20s.” In mid-June, Popeyes began testing the sandwich in Canada.
Canadian coffee chain Tim Hortons, the third chain in Restaurant Brands’ portfolio, has seen a drop in sales in the same business among negative high teenagers since last week. In the third full week in May, sales in the same business shrank in the mid-20s. Around 90% of the locations are open in Canada.
The shares of the parent company Restaurant Brands rose less than 1% on the early trading day.
In its sales calculations for the same store, Restaurant Brands does not take into account locations that are closed for a “substantial part of a month”. “Almost all” of its US locations for Popeyes and Burger King are open, but other markets such as Latin America have seen major closings.
CEO Jose Cil also said the company will repay all outstanding amounts from its revolving credit facility this week, citing its steady business improvements and strong financial position. Restaurant Brands pulled its $ 1 billion revolver down “out of caution” in late March.
The company is expected to release its full second quarter results in early August.