From CNBC: 2024-04-30 07:34:42

Burger King plans to invest $300 million to remodel 1,100 U.S. restaurants as part of a turnaround effort. Parent company Restaurant Brands International previously invested $250 million in renovations, technology, and $150 million in the mobile app and advertising. With the latest investment, the company is spending around $2.2 billion on revitalization.

The parent company purchased Burger King’s largest U.S. franchisee, Carrols Restaurant Group, for $1 billion in January, aiming to speed up the remodeling process. Restaurant Brands expects 85-90% of its 7,000 U.S. locations to have a modern design by 2028. Around 100 Burger King restaurants have been updated with positive sales results following the renovations.

The new remodeling strategy includes the “Sizzle” design, featuring drive-thru mobile order pickup and self-order kiosks. Burger King franchisees will receive discounts on royalties for remodeling their locations. The company is pitching the plan to franchisees and starting the sign-up process for the $300 million investment, aiming to drive more sales growth.

Despite weaker-than-expected earnings, Restaurant Brands International’s quarterly revenue surpassed Wall Street estimates. Burger King’s same-store sales grew by 3.8% in the first quarter, slightly below estimates. Shares of the company remained flat in premarket trading following the earnings report.



Read more at CNBC: Burger King invests another $300 million to remodel restaurants