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Burger King Brings New Menu Item - Analyst Blog

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Miami-based Burger King Worldwide, Inc. ( BKW ) is focusing on menu innovation to improve sales this summer. The burger chain recently added a twist to its classic cheeseburger by introducing the Extra Long BBQ Cheeseburger.

The Extra Long BBQ Cheeseburger will have two beef patties side by side, rather than stacked together, on a toasted bun. The new cheeseburger also includes American cheese, onion rings and BBQ sauce.

The new cheeseburger will be available for $3.59. Further, it will also be available as part of the two for $5 menu together with the Big King sandwich, the Chicken Big King Sandwich, Original Chicken Sandwich and Big Fish Sandwich.

Burger King, which sports a Zacks Rank #2 (Buy), seems to have turned itself around with innovative menu offerings after lagging the competitive U.S. fast food hamburger restaurant category. The company's "Four Pillar" strategy which was launched in 2011 and focused on menu expansion is reaping benefits.

In fact, Burger King's food innovation, combined with improving operations, has considerably enhanced the total guest experience and the firm's profitability. In the first quarter of 2014, despite the inclement weather in the U.S., the company's comps in the U.S. and Canada grew 0.1%, primarily on the back of menu innovation. In our view, the company's launch of the Extra Long BBQ Cheeseburger is an attempt to boost sales during the summer months.

Other restaurants that are performing well include Red Robin Gourmet Burgers Inc. ( RRGB ), Fiesta Restaurant Group, Inc. ( FRGI ) and Carrols Restaurant Group, Inc. ( TAST ). All these stocks sport the same Zacks Rank as Burger King.

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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 Nasdaq, Inc.


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

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