Burger King Worldwide (BKW) Re-launches Chicken Fries - Analyst Blog

Recently, Burger King Worldwide, Inc. ( BKW ) announced that it is bringing back its immensely popular Chicken Fries for a limited period, according to a report by Bloomberg.

The Miami-based company's Chicken Fries were part of a series of products introduced in 2005. Chicken Fries became immensely popular - Burger King's most successful launch in years - as the company sold an astonishing 100 million Chicken Fries in four weeks.

However, in 2012, the menu item was discontinued, and presumably replaced by Crispy Chicken Strips. Soon Facebook, Inc. ( FB ) and Twitter, Inc. ( TWTR ) were flooded with protests by fans and requested Burger King to bring the item back.

Now it seems that Burger King has finally responded. In a vastly competitive fast food market, the company is seeking to drive traffic by re-launching such favorites. Additionally, with the beef prices at an all-time high, Burger King is looking to add more chicken items to its menu to regulate rising costs.

In fact, according to data by U.S. Department of Agriculture, as of Jul 1, cattle inventories have fallen to their lowest level since records began in 1973. This crisis, primarily stemming from prolonged drought in the southern U.S. Great Plains, has led to the increase in retail beef costs. Therefore, restaurants are striving to find cheaper alternatives like chicken for their menu.

We believe Burger King's reintroduction aims to drive sales without sacrificing on its margins. The huge popularity of the item is an added positive for the burger chain to distinguish itself from others.

Burger King carries a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is BJ's Restaurants, Inc. ( BJRI ), which sports a Zacks Rank #1 (Strong Buy).

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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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