Burger King Worldwide Inc.
) recently added two more locations to its well-accepted delivery
program, following which residents of Minneapolis, Minn. and
Spokane, Wash. can now have the Whopper sandwich and hot crispy
fries delivered to an address of their choice.
Last year, the 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 to its customers
in their homes, schools and offices and further enhance the
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.
Initially rolled out at a small number of Washington, D.C
locations, this program has now been extended to 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 and Denver. The
expansion trail confirms that the program is gaining considerable
At present, this Zacks Rank #2 (Buy) company has 1 live delivery
restaurant each in Minneapolis and Spokane. While these locations
act as training centers for crew members, Burger King plans to
open 1 more delivery center in Minneapolis and 2 more in Spokane
within one month to further expand its reach.
Following the new openings, Burger King will have more than 75
delivery units in the U.S. and several more 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 prove to be a strong growth driver for Burger King in
the years to come.
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.
), companies like
Panera Bread Co.
Jack in the Box Inc.
) Qdoba Mexican Grill chain are benefiting largely from catering
BURGER KING WWD (BKW): Free Stock Analysis
DOMINOS PIZZA (DPZ): Free Stock Analysis
JACK IN THE BOX (JACK): Free Stock Analysis
PANERA BREAD CO (PNRA): Free Stock Analysis
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