How Burger King Revamped Its Whopper and Overtook Wendy's

Dow Jones08-17

To overhaul its signature Whopper, Burger King added a more premium bun, new mayonnaise, a box to preserve freshness -- and a corporate chef who had already worked magic at chicken chain Popeyes.

Overseen by Burger King's U.S. Head Chef Amy Alarcon, who developed the Popeyes chicken sandwich that became a viral sensation in 2019, the revamped Whopper is now helping propel a comeback for the chain. Burger King has lately been drawing diners at a swifter rate than both McDonald's and Wendy's, and its restaurant sales are growing faster.

After struggling for years, Burger King is gaining momentum in a rocky patch for the fast-food industry. Inflation-fatigued consumers are watching their food dollars and eating more at home, while restaurants strain under rising costs, particularly for beef.

"A lot of people are saying they're coming back for the first time in a long time," Tom Curtis, president of the chain's U.S. and Canada business, said in an interview.

Known for its flame-grilled beef, Burger King has struggled for years with outdated restaurants and menu mistakes, like a hand-breaded chicken sandwich that was hard to make. Several large franchise groups declared bankruptcy as their profits declined and hundreds of locations closed.

Restaurant Brands International, Burger King's parent, has spent hundreds of millions of dollars to reverse traffic declines, helping franchisees upgrade restaurants with ordering kiosks and digital menu boards, while expanding marketing.

Earlier this month Burger King reported an 8.5% increase in U.S. same-store sales over its most recent quarter, beating McDonald's results by the largest margin in at least two years. Wendy's U.S. same-store sales declined by 7%.

Burger King topped both of its main rivals in visit growth in July, according to Placer.ai, which analyzes foot traffic. Burger King has reclaimed the No. 2 spot among U.S. burger chains, bumping aside Wendy's in terms of U.S. sales over the 12 months ended June 30, company filings show.

Curtis himself has played a starring role in the turnaround effort, featuring in videos on Burger King's social-media accounts where he encourages customers to call him directly with suggestions or complaints. The company said he has personally taken 3,300 calls.

Ronald and Wendy

McDonald's remains the U.S. burger leader, generating roughly five times the domestic sales of Burger King, and wielding a billion-dollar ad budget. Wendy's, which had held the No. 2 spot by sales since 2020, isn't far behind Burger King in total U.S. sales, despite having hundreds of fewer locations.

McDonald's and Wendy's franchised U.S. restaurants also tend to have better margins than Burger King's. Burger King's average U.S. franchisee profit last year dropped to around $185,000 per location, down from roughly $205,000 in 2023 and 2024, which executives have attributed in part to record beef prices.

Both chains are redoubling their own efforts. McDonald's, which has reported sluggish sales growth in recent months and declining traffic, earlier this month appointed a new president of its U.S. operations, Skye Anderson.

Anderson aims to better focus the business and rally Golden Arches franchisees behind a new corporate strategy promising better food and service, including enhanced training. In an internal video to U.S. restaurant operators, Anderson said that she wanted the company to move faster and that she would be visible, transparent and direct with franchisees.

"You've shared concerns about performance, increasing complexity and an enormous pressure many restaurants are feeling today," Anderson said in the video, a copy of which was viewed by The Wall Street Journal.

At Wendy's, recently appointed Chief Executive Bob Wright has been traveling the country to meet with franchisees, laying out a five-point plan covering food, branding, operations, restaurants and digital strategy. He has also held online forums with operators talking about the need to improve quality and offer better value options.

"We're in the early stages of this work, and meaningful change won't happen overnight," Wright said in an Aug. 7 investor call. Wright said he was conducting a top-to-bottom review of Wendy's, and he slashed the company's dividend to invest in the business.

Investor Nelson Peltz, a longtime Wendy's shareholder, is adding to the pressure. Peltz's Trian Fund Management has been exploring a deal to take the chain private.

Deal deluge

Burger chains have leaned on value menus to try to boost traffic. McDonald's kicked off the recent promotional blitz in 2024 with a series of meal deals starting at $5. Since then the chain has added more deals, including buy-one-get-one for a dollar, lower-priced meal combos and an under-$3 menu.

Wendy's earlier this year introduced new $4, $6 and $8 tiers to its Biggie Bag deals. But in recent weeks executives at both Wendy's and McDonald's said that they were rethinking how they approach deals, after disappointing results.

Wright has told Wendy's franchisees that the chain's promotions need to better resonate with customers. McDonald's executives have said that too few franchisees offered the under-$3 menu as intended, while they also pulled back on other promotions, disappointing diners.

"We have restored our leadership in value and affordability, but that leadership only matters if customers see it, feel it, and believe it each time they visit," McDonald's CEO Chris Kempczinski said in an internal email earlier this month.

Burger King last year standardized a menu of two items for $5, or three for $7. Curtis said that the deal's consistency has made it easy for customers to remember.

The chain's menu and service need more improvement, Curtis said, but he is hearing promising signs in his chats with customers. "It's consistent value and commitment to your premium Whopper lineup that makes the difference here," he said.

 

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