I have been tracking this business for quite sometime and here is my thought -
While the overall strategy of expanding and operating this business looks fine to me as already mentioned by @akhilgulecha the moot question to me still is how different is BK from McDonald’s and what prevents McDonald’s from taking away BK’s market share. At the end of the day, people don’t care for the brand name BK as long as long one gets similar quality products at lower prices.
I happen to accidentally visit and compare price and offerings of McDonald’s with BK and found McDonald’s offerings (similar products) priced lower to that of BK. Rather than comparing different QSRs a detailed comparison of McDonald’s with BK is more of an apple to apple comparison here. It should not be difficult for McDonald’s with its brand and distribution reach to take away BK’s market share in the coming qtrs/years. The recent q3 results of BK seems to indicate a slowdown in SSSG which reaffirms my thinking.
Subscribe To Our Free Newsletter |