BK brand Announces Plan to Accelerate Growth in the U.S.

Miami / FL. (bk) The Burger King (BK) brand shared the details of its «Reclaim the Flame» plan to accelerate sales growth and drive Franchisee profitability. The plan was built in collaboration with Franchisee leaders from across the country and was shared with all U.S. Franchisees at its annual convention this week by Tom Curtis, President of Burger King North America.

The plan includes Burger King investing USD 400M over the next two years, comprised of USD 150M in advertising and digital investments to «Fuel the Flame» and USD 250M for a «Royal Reset» involving restaurant technology, kitchen equipment, building enhancements and high-quality remodels and relocations. This investment will work to enhance ongoing Franchisee investments to modernize the Burger King restaurant portfolio, and when combined with our brand re-positioning plan, menu enhancements and focus on operational excellence, will help drive our overarching goal of improving the Guest experience and attracting more traffic back to the brand over time.

Burger King Franchisees representing more than 93 percent of all U.S. restaurants have endorsed the plan and have agreed to co-invest in increased advertising firepower over the coming years. These corporate investments are in addition to Burger King recently expanding its field team to provide increased support to Franchisees as they continue improving restaurant-level profitability and execution.

Jose Cil, CEO of Restaurant Brands International (RBI): «Over the past year, Tom has built a talented leadership team that has worked collaboratively with Burger King Franchisees to develop a multi-year plan to drive the performance of the system. We believe now is the time to make a significant investment to accelerate the work given the quality of the team, focus of the plan, commitment of our Franchisees and the opportunity that clearly exists for our iconic brand to «Reclaim the Flame» and be the first choice for a high-quality meal, an exceptional experience, and a great value.»

Tom Curtis, President of Burger King North America: «We are relentlessly pursuing a better experience for our Guests. This is the driving force behind all the initiatives that we are executing collaboratively with our Franchisees. Our plan is focused on a few important priorities – operational excellence, refreshed image, and enhanced marketing – that when put together, provide a superior experience for our Guests. I’m very proud and thankful that our Franchisees have stepped up once again to invest in our performance together, reflecting the genuine partnership and mutual respect we have built between the Franchisor and Franchisees. Ultimately, the success of this «Reclaim the Flame» plan comes down to execution at the restaurant level and we are so fortunate to have Franchisees who love this brand and are working closely with us to focus on the right priorities. I believe in this team, this plan, and a bright future as we evolve and enhance our Guest experience and drive profitable growth for the business.»

Matt Dunnigan, Chief Financial Officer of RBI: «Our USD 400M investment into the Burger King U.S. system represents a substantial deployment of capital toward important marketing and image investments aimed at accelerating our sales growth and modernizing our iconic brand across the U.S. In 2023 and 2024, these investments are expected to have an average annual impact to adjusted EPS of approximately (USD 0.10) to (USD 0.12), before considering benefits from any potential sales improvements. In 2025 and beyond, we expect the impact to be accretive to adjusted EPS as our advertising investments conclude and we realize the long-term sales benefits of our «Reclaim the Flame» initiatives and increased advertising contributions from our system.»

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