Burger King Holdings announced positive sales everywhere but the U.S. and Canada despite the introductions of new burgers and new advertising.
Burger King reported a Q4 profit of $29.4 million, compared with a $93.9 million loss a year ago. Revenue declined 0.7% to $580.6 million. Systemwide same-store sales were +1.2% thanks to significant gains in Latin America (+9.7%) and Europe/Asia/Middle East (+7.3%).
Burger King has revamped its website to better promote new products.
In the U.S. and Canada, comp sales were -2%. Curiously, in a conference call with analysts this morning, CFO Daniel Schwartz attributed the domestic decline to an abundance of “competitive offers in the market.” In other words, consumers liked what other chains offered more than what Burger King offered?
The comp-sales decline stings because Burger King’s Q4 marketing effort included the Oct. 7 introduction of BK Toppers and Oct. 24 rollout of the Chef’s Choice burger. Price shouldn’t have been the problem: Although the Chef’s Choice is premium-priced at $4.99, the BK Toppers are just $1.99, so there was something new for any budget.
The chain also changed its advertising style, beginning in August. TV spots from new agency McGarryBowen are much more straightforward than previous shop Crispin Porter + Bogusky’s edgy but occasionally immature approach. The more adult tone didn’t help push comp sales positive, yet.
However, Steve Wiborg, president of Burger King’s North American operations, said domestic same-store sales were positive in the second half of Q4 and have been positive in 2012. Asked about new menu products—such as the Chicken Strips and Crispy Chicken Snack Wrap reported exclusively by BurgerBusiness.com—Wiborg would only say that the chain has interesting products to introduce in Q2.
New burgers didn’t help in Australia, either. Burger King’s Hungry Jack’s operation there underwent a major brand makeover in Q4, including the introduction of certified organic beef burgers. Still it saw negative Q4 comp sales. Elimination of its popular beet-topped Aussie Whopper may have been a factor. Calls for the burger’s return dot the chain’s Facebook page.
Schwartz told analysts that Burger King in the U.S. has focused on four priorities: marketing communications, menu, operations and image. He said the cost for the 20/20 design package has been cut in half to $250,000. Remodel commitments have been received for 1,017 restaurants, Wiborg said.
Can't keep track of all the new menu additions? Check the 
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Burger King needs to focus on service and store cleanliness not just added dozens of new menu items. I believe they are bringing new products in too quickly and too many at a time. I have seen chef choice burgers/toppers/new nuggets/new fries/new onion ring / new bacon/ ice cream and more all in a short time. Are any of these new items better than the old? I had a chefs choice burger it was not very good; food tasted old. Focus on quality and service and they can see positive numbers.
Maybe Burger King is past the tipping point. There has been no movement to upgrade the facilities so you are starting from a poor image point. The last push was in the early 2000′s and it was subject to constant change. The present protoypes look like the poor relatives of McDonalds and Wendys. So you hae an issuse getting people through the door.
Then you have the quality issue. Flame boiled is not flame broiled
I don’t know if there ever was another QSR lamb offering but I LOVED your headline! Nicely done.
What a shame. Back in the 80′s and early 90′s, BK was one of the better fast food options. Now it’s become a pathetic joke. The Whopper of today is a sad version of it’s former self, with a patty so thin, it’s almost criminal. Their fries have sucked for over a decade now. The new ones are a slight improvement, but they still blow. The coating just ruins them, and they taste fake because of it. Their produce blows, and there stores are mostly dirty and out of date. Even the new updated stores already feel out of date and dirty. BK really need to blow everything up and start over again. They suck from the ground up.
I’m not sure if you guys watch television but the new commercial for the whopper is a prime example of the failure of BK. The vibe they had going with that pimp king character almost turned things around for their image but the latest looked like the best the 80′s could provide. Peace out