Burger King (QSR) reported a larger-than-expected increase in revenue from its UK operations last year. It came following a set of new restaurant openings, while others were refitted during 2023.
Burger King Boosted by UK Revenue Increase
Revenue rose by 30%, despite like-for-like sales showing a more modest 3% rise. The company put the revenue boost down to good cost management and growth in its real estate portfolio. 2023 saw 18 new Burger King restaurants open in the UK, with 10 more being refitted last year.
Burger King’s UK operating profit rose impressively to £13.4m (25.97m AUD) for 2023, representing a large swing from the £20.7m (40m AUD) loss in 2022. Increased revenue was given as one of the main reasons for this turnaround.
These results are even more interesting given that other leading fast-food giants such as McDonald’s (MCD) have struggled with falling profits in the last year. Rising inflation rates have put such companies under pressure, as their products are no longer seen as being the low-cost and good value they once were.
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Alasdair Murdoch is Burger King UK’s chief executive. He pointed out:
Our revenue performance and improvement in operating profit reflects the strength of our brand and the continued demand for our high-quality, affordable food offering.
He also said that the company has carried on investing in its customer proposition with the remodelling programme, new product launches, and ongoing digital transformation. Murdoch pointed to a robust pipeline of new restaurant openings as one of the signs of Burger King’s expansion plans for the future.
