McDonald’s brings in new U.S. leader to address traffic declines

Burger King’s U.S. same-store sales rose 8.5% for the three months ended June 30, the chain reported Thursday. The company attributed the result in part to changes to its Whopper, while executives said some customers were returning after long absences.

McDonald’s is responding to declining U.S. traffic and is bringing in a new U.S. president to implement a strategy focused on improving food and service.

Tom Curtis, president of Burger King’s U.S. and Canada business, said in an interview that Burger King was capturing share from competitors and that he believed some of it was coming from McDonald’s. Curtis said many customers were telling the chain they were “coming back for the first time in a long time.”

Burger King, owned by Restaurant Brands International, improved the bun, box, mayonnaise and other elements of its Whopper earlier this year. Curtis said the upgrades were working and that the chain now needed to focus on hospitality.

Curtis also said he was still taking direct calls from customers on his phone several days a week. He said friendly service was among the top issues customers raised.

In July, Burger King said it would begin guaranteeing Whopper quality. The company committed to remaking orders on the spot if customers deemed them unsatisfactory and providing a future Whopper for free.

“I have a strong belief that we will ultimately someday be the standout burger chain in hospitality and friendliness,” Curtis said.

McDonald’s is working to upgrade its menu, increase customer service and develop new store prototypes. The chain is testing hand-breaded chicken offerings and brightly colored beverages, including drinks that include Red Bull.

“We’ve got to elevate the taste and quality of the food,” Kempczinski told investors on an earnings call this week. “We’re going to elevate the experience that we’re offering our customers.”

McDonald’s debuted a renovation of its Big Mac and other core U.S. burgers in 2023, promising hotter and juicier sandwiches. Burger King has followed a similar approach by overhauling its own signature offering.

“The next generation of burger lovers are being exposed to Burger King, and that means we’ve got runway ahead for years to come,” Curtis said.