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Structure of Burger King restaurants could change

Structure of Burger King restaurants could change

Parent company Restaurant Brands International, Inc. is working with US Burger King franchisees to improve guest experience and franchise profitability, said José E. Cil, chief executive officer of RBI. A national Burger King franchise convention is scheduled for September.

“We're going side by side (with franchisees) to determine the best path for each restaurant,” Mr. Cil said in an Aug. 4 earnings call to discuss second-quarter results. “We're considering remodels versus scrape-and-rebuilds versus relocations or offsets, and this is centered on kind of the guest experience on digital and also enhancing our throughput or the capacity for us to serve more guests in our restaurants.”

Building changes also could come at other RBI chains, which include Popeyes and Tim Hortons, said Joshua Kobza, chief operating officer of RBI.

“We're testing express drive-thru lanes for mobile order and pickup, tandem drive-thrus with two sets of menu boards and order points in a single lane and restaurants with above-lane conveyor systems, allowing two cars to receive their orders at the same time,” he said. “With delivery growing significantly each year, the experience of delivery drivers has become an increasingly large priority as well. So we're also testing walk-up windows that can reduce wait times for both delivery drivers and guests who place mobile orders.”

Toronto-based RBI in the second quarter ended June 30 had net income of $346 million, or 77¢ per share on the common stock, which was down 12% from $391 million, or 84c per share, in the previous year’s second quarter. Revenue in the quarter was $1.64 billion, up 14% from $1.44 billion.

RBI’s stock on the New York Stock Exchange closed at $59.09 per share on Aug. 4, which was up 7.4% from an Aug. 3 close of $55.01 per share.

Comparable store sales growth was 10% at Burger King. Including an 18% increase in the international business, which made up 60% of Burger King’s global systemwide sales in the quarter. France, Spain, Germany and Brazil generated double-digit comparable sales growth and contributed over $1.2 billion to systemwide sales in the quarter, Mr. Cil said.

Tim Hortons comparable same-store sales, driven by a strong afternoon performance, jumped 12% while Popeyes comparable same-store sales increased 1.4%.

Over the first six months of the fiscal year, RBI had net income of $616 million, or $1.36 per share on the common stock, which was down 7% from $662 million, or $1.43 per share, in the same time of the previous year. Revenue of $3.01 billion was up 15% from $2.70 billion. 

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