Retail Latin America: Burger King

Mostrando las entradas con la etiqueta Burger King. Mostrar todas las entradas

2015/10/29

Burger King just added this spicy new menu item

It’s only available for a limited time.

Burger King is giving the world “a better way to Buffalo” with its new Buffalo Chicken Fries.

The French fry-shaped fried chicken strips will be seasoned with Buffalo spices rather than slathered in sauce so you get the flavor without having to get messy. Burger King’s chief marketing officer, Eric Hirschhorn, said in a statement: “It sets your fingers free from mess while allowing for better dipping and easier handling.”

Chicken Fries were originally introduced in 2005 and graced the fast food chain’s menu until they were removed in 2012. Burger King reintroduced them for a limited time last summer. When the menu item received significant attention on social media, thanks to BuzzFeed and reinforced by One Direction member Liam Payne, they were brought back permanently.

This will be the second time since the Chicken Fries’ reintroduction that the fast food chain offers a spicy limited edition. Burger King announced in August that it would be selling Fiery Chicken Fries, likely an attempt to capitalize on the spicy food trend.

Chicken Fries have become one of the more popular menu items at the restaurant, helping Burger King BKW 0.00% report its best performance in almost 10 years. The company hopes that diversifying the product will help it compete with other fast food options.

An order of Buffalo Chicken Fries, available for a limited time at participating restaurants, will consist of nine pieces and cost $2.89.

2014/08/25

Burger King Wants to Cut its Exposure to Hamburgers, Not Just Taxes

While all the focus is on the tax savings Burger King could enjoy through a Canadian inversion, the real benefit of buying Tim Hortons is boosting breakfast and coffee sales.

Burger King Might Become a Canadian Company

U.S. Banks Have Reached Near-Record Profit Levels, Study Says U.S. Regulators: Wall Street’s Largest Banks Still Too Big To Fail Watch Full Coverage: Big Names Honor Michael Brown at Funeral NBC News Syria: Foley Rescue Might Have Worked With Our Help NBC News Shaken: Battered Bay Area Digs Out After Quake NBC News

In reality, Burger King BKW 19.6606% may be more interested in turning its back on the hamburger.

POPULAR AMONG SUBSCRIBERS

Inside the Tragedy of Ferguson

The New Rules of Viral Fundraising

The Evolution of a Narcissist

The $11 billion burger chain is in talks to buy Tim Hortons THI 21.6184% , Canada’s biggest fast-food chain with a market value of around $10 billion. The deal would reportedly involve a so-called inversion, where Florida-based Burger King would for tax purposes be headquartered in Canada, where the top corporate tax rate is 15%, versus 35% in the U.S.

But as The New York Times pointed out, Burger King’s tax rate is actually closer to 27%, and this inversion really wouldn’t cut its taxes that much because the majority of its revenues are generated in the U.S. Even if it moved to Canada, BK would still be on the hook for U.S. taxes on sales made on American soil.

No, there’s something else driving this deal, and it could be that Burger King wants to abdicate its rule over burgers and switch kingdoms.

As Americans’ tastes have changed, burger sales, which have long dominated the fast-food landscape, have started to stall. Last year, for instance, revenues at Burger King restaurants in the U.S. that have been open for at least a year fell 0.9%, while U.S. same-store sales at McDonald’s slumped 0.2%. By comparison, Starbucks SBUX 0.9187% reported an 8% rise in comparable store sales in fiscal 2013 while Dunkin’ Brands DNKN 0.3657% , the parent company of Dunkin’ Donuts, enjoyed a 3.4% rise in revenues.

This isn’t just a short-term problem. Analysts at Janney Montgomery Scott recently noted that while three of the five biggest fast-food chains in the U.S. are still hamburger joints (McDonald’s, Wendy’s, and Burger King), by 2020 that number should drop to just one: McDonald’s.

Meanwhile, coffee chains Starbucks and Dunkin’ Donuts are expected to move up the ranks. And McDonald’s is itself doubling down on coffee, pushing more java not just in its restaurants but also on supermarket shelves.

Noticing a common theme here?

In the fast food realm, there are three buzzy trends right now. There’s the rise of the higher-end “fast-casual” restaurants such as Chipotle Mexican Grill CMG -0.2172% . There’s the explosion of cafe coffee shops, which according to the consulting firm Technomic was the fastest-growing part of the fast-food industry last year, with growth of 9%.

Darren Tristano, executive vice president at Technomic, recently noted that “the segment continues to be the high-growth industry leader with Dunkin’ Donuts and Tim Hortons rapidly expanding.”

He added:

[The] coffee-café segment competition will heat up, and new national chain, regional chain and independent units will increase major market penetration. Smaller rural and suburban markets will be getting more attention. Fast-casual brands in the bakery-café segment like Panera Bread, Einstein Bros. Bagels and Corner Bakery will also create new options for consumers as more locations open. Quick-service brands like McDonald’s will provide lower-priced, drive-thru convenience that provide value-seekers with a strong level of quality that is also affordable.

And the third area of growth in fast food is breakfast. According to The NPD Group, while total “quick serve” restaurant traffic fell by 1% at lunch and dinner time in 2013, business at breakfast time rose 3%.

“Breakfast continues to be a bright spot for the restaurant industry as evidenced by the number of chains expanding their breakfast offerings and times,” says Bonnie Riggs, NPD’s restaurant industry analyst.

Now, while Burger King isn’t really positioned to go after the Chipotles of the world, the acquisition of Tim Hortons could quickly make it a bigger player in the coffee and breakfast markets, where it has languished far behind McDonald’s and Dunkin’ Donuts.

Tim Horton’s already controls 75% of the Canadian market for caffeinated beverages sold at fast-food restaurants, according to Morningstar, and more than half the foot traffic at the key morning rush hour.

Morningstar analyst R.J. Hottovy noted recently that same-store sales throughout the chain are expected to rise 3-4% over the next decade, which would be a marked improvement over the same-store declines that Burger King has been witnessing lately.

Even though Burger King is a bigger company by market capitalization, it generates less than half the $3 billion in annual revenues that Tim Hortons does. This means that by buying the Canadian chain, Burger King will be able to buy the type of same-store growth that it could not muster with hamburgers and fries.

So the next time you go to Burger King, don’t be surprised if they ask you “would like some coffee to go with that?”

Burger King Is Going Bananas

Presenter and showmaster of the German TV program "Wetten Dass" (take a bet) Thomas Gottschalk holds up a cap of U.S. fast-food company Burger King during the show in Berlin in 1999.

Burger King shares opened up 14% Monday on news the fast-food chain was in talks to buy Canadian donut giant Tim Hortons in a deal that would see Burger King headquarters move to Canada to avoid U.S. taxes.

The Wall Street Journal reported late Sunday that the home of the Whopper was hoping to execute a "tax inversion" deal that would allow for savings on foreign earnings and cash and in some cases a lower overall corporate tax rate.

Tax inversion deals have surged this year as cash-flush companies prioritize acquisition targets beyond the reach of U.S. levies. The Obama administration is well aware of the strategy and has urged Congress to pass legislation that would disincentivize businesses from trying to pull it off. Here's the chart:

Goldman Sachs

If consummated, the deal would create the world's third-largest fast-food chain.

Tim Hortons was up 18%.

Burger King Just Issued A Direct Challenge To The White House

JOE WEISENTHAL

The big corporate news of the day is that Burger King is in talks to acquire Canadian coffee and donut chain Tim Hortons.

Besides the possible linking up of two iconic brands, each strongly associated with its home country, the deal is significant because it would be a tax inversion for Burger King. If the deal is consummated, Burger King would become a Canadian company and pay a lower tax rate.

Tax inversions have been a big theme of 2014, as several companies (largely in the pharmaceutical space) have acquired foreign rivals to move their tax base elsewhere.

Goldman Sachs

Tax inversions have been soaring in 2014, prompting talk of new legislation.

These deals have infuriated some in Washington, and the loss of an iconic brand only adds fuel to the fire. There has been talk of legislation to limit tax inversions, but in this political climate, the idea of anything actually passing both houses of Congress seems very slim. So earlier this month, the White House said it may use an executive order to limit tax inversions, though it remains unclear how much teeth any executive order would have.

Either way, this warning (or threat) apparently is not much of a deterrent to deals being commenced.

Greg Valliere of Potomac Research says that Burger King's actions are a direct statement to the White House and the Treasury, basically daring them to back up their warning with action:

So much for the theory that Treasury could chill future inversion deals by hinting of possible action. The Burger King deal throws down the gauntlet, and Treasury almost certainly will have to respond by proposing curbs on interest payment deductions. We still don't expect regulations to be finalized until early next year, after a deliberative comment period, but we think there's a good chance that Treasury will get a phone call today from the White House, urging quicker action.

Meanwhile, the news gives Democrats another talking point. The potential departure of an iconic American company because of "corporate greed" will be trotted out on the campaign trail.

Burger King in talks for a whopper of a deal

by

Dan Primack

Burger King is in talks to buy Canada’s Tim Horton’s, in order to create an $18 billion company with an artificially low tax bill.

Fast-food chain Burger King BKW 14.75% is in talks to buy Canadian coffee-and-doughnut chain Tim Horton’s THI 19.46% , in a massive merger that would substantially lower Burger King’s tax bill, according toThe Wall Street Journal.

Burger King currently is based in Miami, but reportedly would move its headquarters north of the border in a so-called “tax inversion” deal.

Most tax-inversions have involved large U.S. companies buying substantially smaller foreign companies, but Burger King and Tim Horton’s are fairly comparable in size. Burger King’s current market cap is $9.55 billion, while Tim Horton’s is valued at $8.35 billion. Moreover, Tim Horton’s actually generates more than three times Burger King’s revenue, and also has more profit.

A few quick issues to consider while this all plays out:

1. McDonald’s has got to be loving it. Just imagine all of the passive-aggressive patriotic advertising its marketing gurus would come up with.

2. What would Warren say? Burger King is majority owned by 3G Group, a Brazilian private equity firm that last year partnered with Warren Buffett to buy Heinz. Buffett has publicly lauded 3G, and said he’d like to work with them again. But he’s also said that U.S. companies are not unduly burdened by taxes, when asked about the inversion issue. Seems something may have to give here.

3. Will Canadians revolt? Tim Horton’s is to Canadians what Dunkin’ Donuts is to Bostonians — not just their morning jolt, but part of their identity. The company already spent many years owned by Wendy’s — and even was incorporated in Delaware for a short period — and it’s hard to imagine that there is much enthusiasm for yet another American chain taking control.

4. Tipping point. Most proposed tax inversions so far have been for healthcare-related companies that don’t have much consumer brand awareness. Burger King, however, is much different. Got to wonder if this could be the spark that lights some congressional action (now that Walgreens has abandoned its own attempt)…

UPDATE: The two companies have issued a lengthy joint statement confirming the talks. Here it is:

In response to media reports, Tim Hortons Inc. (THI: TSX; NYSE) and Burger King Worldwide Inc. (BKW: NYSE) today confirmed that they are in discussions regarding the potential creation of a global leader in the quick service restaurant business. The new publicly-listed company would be headquartered in Canada, the largest market of the combined company.

3G Capital, the majority owner of Burger King, will continue to own the majority of the shares of the new company on a pro forma basis, with the remainder held by existing shareholders of Tim Hortons and Burger King. 3G Capital and its affiliates have a demonstrated track record of managing international expansion of iconic brands around the globe.

Within this new entity, Tim Hortons and Burger King would operate as standalone brands, while benefiting from shared corporate services, best practices and global scale and reach. A key driver of these discussions is the potential to leverage Burger King’s worldwide footprint and experience in global development to accelerate Tim Hortons growth in international markets.

The new company would be the world’s third-largest quick service restaurant company, with approximately $22 billion in system sales and over 18,000 restaurants in 100 countries worldwide. Tim Hortons and Burger King each have strong franchisee networks and iconic brands that are loved by their respective consumers. Any transaction will be structured to preserve these relationships and deepen the connections each brand has with its guests, franchisees, employees and communities.

The transaction remains subject to negotiation of definitive agreements. There can be no assurance that any agreement will be reached or that a transaction will be consummated.

Tim Hortons and Burger King do not intend to comment on this matter further unless and until a transaction is agreed or discussions are discontinued, and specifically disclaim any obligation to provide further updates to the market.

2014/05/19

Burger King Ditches 'Have It Your Way' Slogan After 40 Years

ASSOCIATED PRESS

Burger King is scrapping its 40-year-old "Have It Your Way" slogan in favor of the more personal "Be Your Way."

The chain says the new tag line will roll out across its marketing in the U.S., including in a TV ad that will begin airing Monday night. The line made its first appearance in an online video last month.

Burger King says that the new motto is intended to remind people that "they can and should live how they want anytime. It's ok to not be perfect ... Self expression is most important and it's our differences that make us individuals instead of robots."

It may seem odd for a fast-food company to champion individuality, but Burger King isn't the only one trying to project a hip attitude to gain favor with customers. Since 2012, Taco Bell has been touting its "Live Mas" slogan, which means "live more" in Spanish. Executives at the Mexican food chain say they've made it a mantra in how they operate the company.

Starbucks and Chipotle have also gained popularity in part by cultivating decidedly non-corporate images.

Fernando Machado, Burger King's senior vice president of global brand management, noted in an interview that "Have It Your Way" focuses on only the transaction — the ability to customize a burger. By contrast, he said "Be Your Way" is about making a connection with a person's greater lifestyle.

"We want to evolve from just being the functional side of things to having a much stronger emotional appeal," said Machado, who joined the company in March.

The new slogan was developed with ad agency David, a unit of WPP.

Machado noted that Burger King hasn't been actively using the "Have It Your Way" slogan for some time in the U.S. The company, which is based in Miami, Florida, also will stop using its more recent "Taste Is King" motto.

It's the latest change for Burger King, which has been undergoing a series of marketing and menu changes under new management. The chain was bought by investment firm 3G Capital in late 2010, then taken public again in 2012. Soon after, 3G replaced the chain's CEO and early this year, Axel Schwan was appointed as global chief marketing officer.

In the latest quarter, Burger King said sales at U.S. restaurants open at least a year edged up 0.1 percent. The company said that results were hurt by bad weather. But Burger King Worldwide Inc. and rival McDonald's Corp. have been struggling to boost domestic sales for more than a year now.

2014/01/10

Why Burger King Gave Away Free Big Macs And Asked 'Sellouts' To Unlike Its Facebook Page

By AARON TAUBE

Burger King Whopper Sellout smaller thumb

For all the time brands spend begging social media users to like and share their latest topical jokes about the weather or the latest television show, marketers themselves are still figuring out how to measure the actual value of these interactions to their companies.

After all, just because I "liked" IHOP's Facebook post wishing me "A Merry Little Breakfast" doesn't mean I'm about to ditch out on Christmas morning to grab a Rooty Tooty Fresh 'N Fruity combo.

In a refreshing bit a of self-awareness, Burger King's Norway division made light of the frivolousness of some of these interactions with a campaign that actually encouraged people to "unlike" the brand's Facebook page.

After discovering that many of its 38,000 Facebook "fans" were posting derogatory messages about its brand or praising arch rival McDonald's, Burger King Norway chose to weed out these fly-by-night followers.

To do so, it asked Facebook users to choose one of two options: "like" the new Facebook page and declare yourself a "true fan" or accept a coupon for a free Big Mac and be banned from Burger King's Facebook page forever.

Here's what happened next, as told by DIST Creative, the Oslo ad agency that created the "Whopper Sellout" campaign:

Burger King Norway gave away all 1,000 of its Big Macs within a week and lost about 30,000 Facebook fans from the stunt.

However, DIST Creative reports that the new Facebook page wound up with 8,481 loyal followers, who engage with the brand five times as much as users did on the old page. And Burger King got additional free advertising every time someone accepted the Big Mac and declared themselves a "Whopper Sellout" on their Facebook page.

And yet, for all of the creativity of its Norwegian brethren, Burger King's U.S. page continues to go about engaging its disloyal "fans" the same way it always has.

Facebook/Burger King

Speaking of Burger King's Facebook pages: Remember the time it started calling itself "Fries King"?

2013/10/28

Burger King Profit Up On Whopping Cost Savings

Satisfries, a new lower calorie and lower fat ...

Fast-food restaurant Burger King beat the Street with its third quarter 2013 earnings report — and its investors seem satisfied (or “satisfried,” as Burger King might say), sending the stock into the green in pre-market trading Monday morning.

Burger King reported $275.1 million in third quarter revenue, a 40% decrease over this time last year but beating analyst predictions of $267 million. Despite this decrease, profit increased 32.7% to $81.1 million, or 23 cents per share, beating the Street consensus of 21 cents per share. A sharp drop in operating expenses, which fell over 64% due to cost management and a global refranchising effort, the company said.

In a statement released Monday morning, Burger King CEO Daniel Schwartz highlighted the company’s growth initiatives, including the lower-fat french fry (“Satisfries”) introduced at the end of September.

“We grew comparable sales across all three international regions and opened 133 net new restaurants globally. In the U.S. and Canada, we launched Satifries, a first of its kind better-for-you French fry, which demonstrates our commitment to leading innovation in the QSR industry,” Schwartz said. “We believe that new products like this, combined with our focus on improving operations will enhance the guest experience and drive increased restaurant profitability.”

He added that he expects the company to finish 2013 “strong,” but did not provide specific guidance beyond that. The company did announce an increase in its dividend, which will be increased to 7 cents (up from 6 cents), made payable on November 26, 2013, to shareholders of record as of November 12.

In a direct contrast to competitor McDonald's MCD +0.51% — which last week reported light revenue and cited weakness in China, Japan and Australia due to a challenging macro environment — Burger King saw sales grow globally yet tick down at home. U.S. and Canada comparable sales declined 0.3%, which the company attributed to “continued softness in consumer spending and ongoing competitive headwinds.” Burger King noted that the unveiling of Satisfries helped drive traffic during the last week of September. The full effect of Satisfries will be clearer in the company’s fourth quarter earnings report, when the fries have had an entire quarter to impact sales.

On a global level, sales grew a total of 0.9% (a figure that includes headwinds from sales in the U.S. and Canada). Particularly bright spots were Germany (a “top market,” BK said) and China, which drove net restaurant growth in the Asia/Pacific region thanks to “menu changes and operational initiatives, [which] have been effective at improving the guest experience and driving traffic,” the company said.

Following the earnings release, Burger King shares were enjoying a 2.7% bump in pre-market trading; year-to-date, the stock is up 16.5%. Meanwhile, McDonald’s was up 0.12% and fellow competitors Wendy’s and Yum! (which operates Taco Bell, among others) were flat in pre-market activity.

2013/10/03

Burger King Is Now Calling Itself 'Fries King'

If you believe Burger King's Twitter account, the 60-year-old fast-food giant is changing its name to "Fries King."

In support of its new crinkle cut "Satisfries," which contain 30% fewer calories than its regular fries, the chain is launching an all-out "rebrand" on social media, in commercials, and even in stores. The campaign seeks to shift consumers' focus from the Whopper hamburger that has for years been the company's calling card.

The company also tweeted a video spot in which it refers to itself by the Fries King moniker ("formerly known as Burger King"), and has even gone to the trouble of replacing the signage and packaging at one of its locations with the new Fries King logo.

Notably, the brand has not given up its @BurgerKing handle, and its Facebook name remains Burger King.

Here's what the Fries King "rebranding" looks like, via Burger King's Facebook page:

The Burger King sign on the restaurant's exterior has been replaced with one for Fries King, but it's still the "Home of the Whopper."

Burger King

The logo is also on cups.

Burger King

And t-shirts.

Burger King

And of course, on Fries King's french fries.

Burger King

Burger King's agency of record is Mother New York.

Retail Latin America

2015/10/29

Burger King just added this spicy new menu item

It’s only available for a limited time.

2014/08/25

Burger King Wants to Cut its Exposure to Hamburgers, Not Just Taxes

While all the focus is on the tax savings Burger King could enjoy through a Canadian inversion, the real benefit of buying Tim Hortons is boosting breakfast and coffee sales.

MORE