Fast Food Chains Report Positive Quarterly Earnings

Published Date : Feb 18, 2016

In recent years, fast food joints such as Burger King, Wendy’s and McDonald’s have struggled amid growing awareness about healthy lifestyle and food choices. While these fast food chains are focussing on dishing out healthy options, pricing of the snacks is playing an important role in gaining profits and improving their balance sheets. Industry experts have noted that consumers are spending more at these chains owing to lower gas prices and improving job market. Low prices are also driving the budget-conscious consumers towards convenience and comfort food. The fast food chains have also shifted their advertising towards value play such as US$4 for 4 or US$2 for 2. 

Early this year, McDonald’s has registered its strongest quarterly earnings in the past four years. The robust growth of the fast food can be attributed to the positive response from consumers on its ‘breakfast all day’ offering. Further, renovations have also paid off for these companies with locations becoming more appealing to customers.   

Restaurant Brands International Benefits from Expansion of Tim Hortons

Restaurant Brands International, the owner of Burger King, has benefitted from remodelling the burger outlets along with expanding the Tim Horton’s donut shop chain that it acquired last year. Following their merger, in the first year of operation, the Restaurant Brands International has registered a total turnover of US$4 billion according to the financial results released for the quarter and year ended December 31. The two restaurant chains have introduced new products such as fried chicken, Nutella turnovers, and others which have been received well by the customers. Demand is particularly high for dark roast coffee launched by Tim Hortons in 2014. Slippers creamy Nutella chocolates, grilled lunches, and evening wraps have further fuelled profits. Burger King’s new offerings such as fried chicken and hamburger on Halloween at 2 for US$5 have contributed to the company’s profits.