BKW Delivery Program Gains Momentum - Analyst Blog


Burger King Worldwide Inc. ( BKW ) remains steadfast in expanding its delivery services to every corner of the country. Initially rolled out at a small number of Washington, D.C locations, this program has now been expanded into a number of markets like Boston, New York, Miami, Houston, Los Angeles, Chicago, San Francisco Bay Area, Las Vegas, Sacramento, greater Washington, D.C., Phoenix, Salt Lake City, Denver, Minneapolis and Spokane.

On Oct 15, this burger giant added one more location to its well-accepted delivery program, following which residents of the Detroit area can have the Whopper sandwich and hot crispy fries delivered to an address of their choice. The expansion trail confirms that the program is gaining considerable customer acceptance.

Of late, home delivery and catering programs have become a trend in the U.S. restaurant industry. While the delivery system is doing the trick for pizza chains like Domino's Pizza Inc. ( DPZ ), companies like Panera Bread Co. ( PNRA ) and Jack in the Box Inc. 's ( JACK ) Qdoba Mexican Grill chain are benefiting largely from catering initiatives.

Last year, this Zacks Rank #4 (Sell) company -initiated this new sales initiative, BK Delivers, to counter sluggish same-store sales performance in a highly competitive environment. This initiative was intended to take Burger King beyond its outlets and deliver at homes, schools and offices, thus further enhancing the company's presence.

The service allows people to select from a wide range of popular items including the recent introductions, with a minimum food order of $10. A well-defined loyalty program is also in place.

At present, the company has 1 live delivery restaurant in the northern suburbs of Detroit. This location will act as a training center for crew members before the restaurateur opens other locations in the area.

Following the new openings, Burger King will have more than 75 delivery units in the U.S. and several more are in the offing. Basically, management intends to capitalize on its brand value by offering an off-premise service. We believe that the delivery system will likely prove to be a strong growth driver for Burger King in the years to come.

BURGER KING WWD (BKW): Free Stock Analysis Report

DOMINOS PIZZA (DPZ): Free Stock Analysis Report

JACK IN THE BOX (JACK): Free Stock Analysis Report

PANERA BREAD CO (PNRA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BKW , DPZ , JACK , PNRA



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