Tag: Burger King

McDonald’s losing the fast food fight

In the fast food fight for customer spending, one restaurant giant is struggling while rivals scoop up diners’ dollars.

Last week, McDonald’s reported its global comparable sales fell again, dropping 0.7 percent in the second quarter.

Meanwhile, comps at Burger King rose 6.7 percent in constant currency while Arby’s comps rose 7.6 percent during the second quarter. Several other large restaurants are also showing positive growth.

“It seems like the only big player doing negative numbers, period. They’re in a healthy market but they’re not participating in that market,” said David Palmer, analyst at RBC Capital Markets, in a phone interview.

This comes after several blockbuster years at the chain where it delivered a string of mid-single digit comp increases in the 2000s after a successful previous turnaround plan called “Plan to Win.”

In its domestic unit, McDonald’s comps have lagged its fast-food sandwich peers (a group that includes Arby’s, Burger King, Carl’s Jr., Jack in the Box, Wendy’s, Sonic and Subway) each month since October 2013, according to data that its investor-relations team provides to analysts using data from The NPD Group.

Source: CNBC

Burger King, Sasol filling SA

gaspumpSouth African petrochemicals giant Sasol has signed a deal with global fast-food company Burger King which will see the hamburger chain opening sit-down and takeaway restaurants at Sasol’s fuel station forecourts countrywide.

Burger King opened its first South African restaurant in Cape Town in May this year.

The deal allows Burger King South Africa to open stores across Sasol’s national fuel retail network and will award opportunities to current and potential Sasol franchisees.

“The agreement with Sasol allows us to position our brand across new channels and therefore expand our number of guests and restaurants in South Africa, as well as offering a new way of enjoying our products to clients across the country,” Burger King president for Europe, the Middle East and Africa, Jose Cil, said in a statement on Monday.

It also supports the company’s expansion plans. “Partnering with Sasol supports our rapid expansion plans and will enable us to increase our growth potential in South Africa in the next few years,” said Burger King South Africa CEO Jaye Sinclair.

Burger King South Africa was formed as a joint initiative between Burger King Worldwide and Western Cape-based gaming and leisure firm Grand Parade Investments.

“The national roll-out will commence towards the end of 2013 and will further enhance our job creation initiative,” Sinclair said.

“Partnering with Burger King, one of the leading quick service restaurant (QSR) brands, is in line with our strategic vision and and will allow us to expand our retail footprint in South Africa,” said Sasol Oil managing director, Alan Cameron.

“This collaboration will allow two leading brands to leverage each other’s strengths and capabilities.”

Partnering fuel retail groups and QSR brands is an increasingly common international trend as it offers both parties a point of differentiation and competitive advantage, according to Grand Parade Investments chairperson, Hassen Adams.

“There is a natural symbiotic relationship between Burger King South Africa and Sasol with both companies focused on creating future franchise opportunities for local South Africans,” he said.

McDonald’s won’t open in Jewish settlement

mcdkosherThe Israeli branch of McDonald’s says it won’t open a restaurant in a Jewish settlement to protest Israel settlement policy.

Irina Shalmor, spokeswoman for McDonald’s Israel, said the owners of a planned mall in the Ariel settlement asked McDonald’s to open a branch there about six months ago. The chain refused because it is the policy of McDonald’s Israel’s owner to stay out of the occupied territories.

The decision was not coordinated with McDonald’s headquarters in the U.S., she said.

Israeli lawmakers have protested the decision, reported in local media Thursday. One says she’ll boycott the chain.

Tzahi Nehimias, co-owner of the mall, says Burger King and an Israeli burger chain both offered to open branches at the mall.