Burger King Modifies Value Menu - Analyst Blog

By Zacks Equity Research,

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The world's No. 2 hamburger chain Burger King Worldwide ( BKW ) has undertaken a series of initiatives such as unit expansion, reimaging, closing underperforming units and several other growth initiatives to improve brand recognition. The new addition is also part of the company's brand-building efforts.

Recently, Burger King altered its "Value Menu" by including items that cost about a dollar. The new version of the menu named "KINGDEALS Value Menu" is expected to hit the U.S. stores this year.

The restaurateur added two limited-time products to its KINGDEALS Value Menu options priced at only $1. Along with these new offerings, the restaurateur offers 20 other items under its value options.

The Value Menu - launched more than a decade ago - has been a driving force in generating sales even in the time of recession. Over the years, management has been trying to shore up this line.

The Zacks Rank #3 (Hold) company continues to gain market share, driven by price value proposition and premium limited-period offerings. In Nov 2013, the company rolled out a new item - BBQ Rib Sandwich - for only a dollar throughout the U.S. This limited-time offer comes on the heels of the overwhelming demand for BBQ fire-grilled flavors. 

Innovation and introducing new items have become a trend among all the restaurateurs. Another hamburger restaurateur, The Wendy's Company ( WEN ), added two spicy items to its Right Price Right Size Menu options in Dec 2013. These two limited-time products - Spicy Chipotle Crispy Chicken Sandwich and Spicy Chipotle Jr. Cheeseburger - have been priced at only 99 cents. These items have been launched to tap the demand for spicy foods.

Other Stocks to Consider

Some better-ranked stocks in the restaurant industry include Fiesta Restaurant Group, Inc. ( FRGI ) and Cracker Barrel Old Country Store, Inc. ( CBRL ). While Fiesta Restaurant sports a Zacks Rank #1 (Strong Buy), Cracker Barrel carries a Zacks Rank #2 (Buy).

BURGER KING WWD (BKW): Free Stock Analysis Report

CRACKER BARREL (CBRL): Free Stock Analysis Report

FIESTA RESTRNT (FRGI): Free Stock Analysis Report

WENDYS CO/THE (WEN): Free Stock Analysis Report

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Zacks Investment Research

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

This article appears in: Investing , Business , Stocks
Referenced Stocks: BKW , CBRL , FRGI , WEN

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