Restaurant Brands' (QSR) Burger King Expands Loyalty Offerings
Following the digital testing of Royal Perks in February 2021, Restaurant Brands International Inc.’s QSR Burger King recently announced the roll out of its Royal Perks Loyalty Program in the United States. The company stated that it expects to bring the program to two thirds of its locations by September 2021.
Burger King has been constantly trying to evolve its digital guest experience. The efforts have transitioned from personalized offers and app features around mobile orders to payments and timed order releases with its first-party delivery platform as well as strategic partnerships.
Nonetheless, with this initiative, the company intends to broaden its customer offerings, thereby allowing them to earn and redeem crowns on purchases made through the Burger King app, website and at participating restaurants. Some of the perks include 10 crowns for every $1 spent, early access to products and limited-time members-only offers, crowns on delivery orders and double crowns for one's entire birthday month.
Ellie Doty, chief marketing officer of Burger King, North America, stated, “We’re excited for members to unlock a more personalized BK experience and access to rewards they can’t get anywhere else, starting with a new Royal Perks deal later this month.”
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Coming to price performance, shares of Restaurant Brands have gained 5.9% so far this year compared with the industry's 14.8% growth. The dismal performance was mainly due to the coronavirus pandemic. During the second quarter, sales in Canada (especially in Ontario) were negatively impacted by the strict lockdowns. Although the company has reopened most of its restaurants, it is likely to witness dismal traffic due to social-distancing protocols.
However, increased focus on loyalty program and digitalization efforts bode well. This, along with emphasis on off-premise capabilities through reimaging, drive-thru enhancements and applications, is likely to drive growth in the upcoming periods. Earnings estimates for 2021 have moved up in the past 60 days, depicting analysts’ optimism regarding the stock’s growth potential.
Zacks Rank & Key Picks
Restaurant Brands currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the same space include Papa John's International, Inc. PZZA, The Wendy's Company WEN and Jack in the Box Inc. JACK, each currently carrying a Zacks Rank #2.
Papa John's 2021 earnings are expected to increase 122.9%.
Wendy's has a three-five-year earnings per share growth rate of 9%.
Jack in the Box has a trailing four-quarter earnings surprise of 26.4%, on average.
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