Burger King Q3 figures strong after Tim Hortons merger
Fast food giant Burger King widened its global footprint even further in the third quarter, with the acquisition of Canadian fast-casual chain Tim Hortons. The company reported 2.4 percent growth year-over-year in global store sales and a 7.7 percent increase in system-wide sales. Through its recent merger with Tim Hortons in August, Burger King reported its best quarterly performance since 2012, showing that the deal has strengthened the corporation's standing in the industry and expanded its customer net.
Burger King also beefed up its offerings for consumers, with a variety of new menu items and a popular value menu. Tim Hortons also diversifies the burger giant's profile, as customers generally recognize the brand for its coffee and breakfast items, making its more direct morning competitors the likes of Dunkin Donuts, Starbucks and McDonalds.
This marks a significant overture into fast casual dining, a growing sector of the food service industry, with restaurants like Chipotle and Five Guys continually raising their profile and expanding market shares. Overall, the third quarter revenues rose 5 percent over last year, boosted by the development of new locations under its completely franchised business model.
Merging with Tim Hortons also stands to increase Burger King's market in Canada: According to a 2013 SEC filing, Burger King boasted a total of 7,155 locations in the United States and only 281 in Canada. Tim Hortons, on the other hand, reported 3,588 locations in Canada and 859 in the United States. A marriage of the two fast food giants produced a North American entity of nearly 12,000 restaurants. Worldwide, Burger King alone holds 13,960 locations, according to Forbes, and has continued expanding within those markets, adding hundreds of new stores in every region.