Tags: burger king restaurants | franchises | turnaround

Burger King to Shut 400 US Restaurants

Burger King to Shut 400 US Restaurants
(Getty Images)

Friday, 05 May 2023 03:34 PM EDT

Burger King plans to close up to 400 restaurants nationwide by the end of 2023, due to competition from McDonald's and Chipotle.

While Burger King has been adding restaurants and growing comparable sales internationally, in the United States it has struggled with bankruptcies by two big franchisees.

In the first quarter, Burger King closed a net 124 U.S. locations or 1.7%, to end the quarter with just under 7,000 U.S. restaurants, according to its earnings release.

This year, the brand is seeking additional franchisees with stronger finances but still expects to close between 300 and 400 more restaurants, Chief Executive Joshua Kobza said during a call with investors. Usually, it closes a couple hundred annually, he said.

"There will always be a minority (of franchisees) who aren't dedicated, enthusiastic operators," Chairman Patrick Doyle said on the call.

"We'll work with them to leave the system," Doyle said.

The fast-food chain's $400 million turaround plan, dubbed "Reclaim the Flame," appears to be building market share, bringing new life to run-down restaurants, updating menus — and attracting younger customers.

Burger King's U.S. comparable sales rose 8.7% in the first quarter.

© 2024 Thomson/Reuters. All rights reserved.


StreetTalk
Burger King plans to close up to 400 restaurants nationwide by the end of 2023, due to competition from McDonald's and Chipotle.
burger king restaurants, franchises, turnaround
187
2023-34-05
Friday, 05 May 2023 03:34 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved