Poor Sales Push Burger King to Drop Satisfries from Menu - Analyst Blog

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Burger King Worldwide, Inc. 's ( BKW ) Satisfries seems to have run its course. The Miami-based quick service restaurant recently announced that it was dropping the Satisfries - its low-fat version of French fries - from the menu at all U.S. outlets. The fact that consumers at quick-service restaurants are not looking for healthier fare might have prompted this decision by Burger King.

Franchise owners of the company's 7,500 U.S and Canadian restaurants were given the option to continue offering Satisfries earlier this week, however, only 2,500 owners opted. The rest will treat it as a limited-time offering and eventually drop it from the menu.

Burger King launched the Satisfries with much fanfare less than a year back in an attempt to cater to the increasingly calorie-conscious consumers. Made with a special batter that absorbs less oil, Satisfries reportedly had 20% lower calories and 25% less fat than the company's conventional fries. A small serving of Satisfries contains 270 calories and 11 grams of fat compared with 340 calories and 15 grams of fat for a small serving of Burger King's classic fries.

To cater to the health-conscious customers, fast-food restaurants have been trying to give their menus healthier makeovers with the addition of salads, fruits, vegetables and additional alternatives to the regular menu. However, the discontinuation of Satisfries suggests that this might not be as easy as it seems.

Battling intense competition and declining sales, Burger King has been testing new and more innovative menu items over the last few years, such as the French Fry Burger and Italian Basil Chicken Wrap. Last week, the company reportedly announced that it is bringing back its immensely popular Chicken Fries for a limited period. We believe Burger King's discontinuation of Satisfries and the reintroduction of Chicken Fries is a step toward distinguish itself from other players in the quick-service restaurant sector like McDonald's Corp. ( MCD ), The Wendy's Company ( WEN ), Yum! Brands, Inc. ( YUM ).

Burger King currently has a Zacks Rank #3 (Hold).

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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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