Why McDonald's is beating Burger King
In the hamburger wars, McDonald's (MCD) is just crushing archrival Burger King (BKC). Since the market's March 9 closing low, shares of the Golden Arches are up 4.6% versus the 14.8% decline seen at the Home of the Whopper.
Although both have benefited from the trade down out of casual restaurants like Red Robin (RRGB) as consumers cut spending, Burger King is struggling to capitalize on the opportunity. I warned of these troubles in a post back in September.
Just look at the sales picture. On Wednesday, McDonald's reported solid first-quarter results with earnings of 83 cents per share and a 4.3% increase in same-store sales. Burger King, on the other hand, saw an "unanticipated" drop in traffic last month and has been consistently trailing its rival in same-store sales growth.
What's wrong with Burger King; and what's McDonald's doing right? Read More...
--
No comments:
Post a Comment