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Burger King's 8.5% U.S. same-store sales jump follows Whopper revamp.
Burger King has reclaimed the No. 2 spot among U.S. burger chains by sales for the 12 months ended June 30, displacing Wendy's, after a Whopper overhaul overseen by a chef who previously developed the viral Popeyes chicken sandwich. The chain is now drawing diners at a faster rate than both McDonald's and Wendy's, with its restaurant sales growing faster than both rivals, according to The Wall Street Journal.
Wendy's withdrew its annual financial guidance and cut its quarterly cash dividend to 7 cents a share from 14 cents, saying the moves will help fund turnaround initiatives after U.S. same-restaurant sales fell 7% in the second quarter. Chief Executive Bob Wright, who returned to the fast-food chain in May, said "Today we are clearly not performing at our potential."
Burger King's U.S. same-store sales rose 8.5% in the second quarter, the chain reported Thursday, as a revamped Whopper helped draw customers who executives said 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 turnaround strategy.