Burger King (BKW) Has McDonald's (MCD) in Sights as Turnaround Continues
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Is Burger King Worldwide, Inc. (NYSE: BKW) now a better deal than McDonald's (NYSE: MCD)?
It could be, though chances are slim that Burger King will overtake McDonald's for total market share anytime soon.
Latest data has Burger King with a 3.2 percent gain in comps last year, with numbers coming in as McDonald's recently reported two months of lower comps and several misses since last October. The gains might put Burger King in the number two spot soon, ousting venerable rival Wendy's (NYSE: WEN) for the position. Research firm Technomic has Burger King sales rising 2.9 percent to $8.59 billion last year, while Wendy's is estimates to have seen a 1.2 percent jump to $8.6 billion.
Keys for Burger King have been attracting the business of more women and children, bolstered by new menu items like lattes, salads, and wraps. The company has also taken a stronger approach to breakfast, with offerings like Seattle's Best coffee and new breakfast burrito variations.
Burger King is updating its look as well, with new digital signage and contemporary colors now gracing many U.S. locations.
While both have been strong competitors over the years, Burger King is running a tighter ship since going private a few years back. Along with only having a 12 percent share of the U.S. burger market, along with peer Wendy's, there's plenty of room for this staple to sizzle as its turnaround continues to take hold.
Shares of Burger King finished 2012 up 13 percent with the resumption of trading on June 20th, while McDonald's dropped about 9.3 percent.
It could be, though chances are slim that Burger King will overtake McDonald's for total market share anytime soon.
Latest data has Burger King with a 3.2 percent gain in comps last year, with numbers coming in as McDonald's recently reported two months of lower comps and several misses since last October. The gains might put Burger King in the number two spot soon, ousting venerable rival Wendy's (NYSE: WEN) for the position. Research firm Technomic has Burger King sales rising 2.9 percent to $8.59 billion last year, while Wendy's is estimates to have seen a 1.2 percent jump to $8.6 billion.
Keys for Burger King have been attracting the business of more women and children, bolstered by new menu items like lattes, salads, and wraps. The company has also taken a stronger approach to breakfast, with offerings like Seattle's Best coffee and new breakfast burrito variations.
Burger King is updating its look as well, with new digital signage and contemporary colors now gracing many U.S. locations.
While both have been strong competitors over the years, Burger King is running a tighter ship since going private a few years back. Along with only having a 12 percent share of the U.S. burger market, along with peer Wendy's, there's plenty of room for this staple to sizzle as its turnaround continues to take hold.
Shares of Burger King finished 2012 up 13 percent with the resumption of trading on June 20th, while McDonald's dropped about 9.3 percent.
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