Keeping it simple is working for Restaurant Brands (QSR) owned Burger King US.<\/p>\n
Keeping it complicated is not working for McDonald's (MCD).<\/p>\n
The second quarter report cards are in for Burger King US and McDonald's, and there is one clear winner.<\/p>\n
Comparable sales for Burger King US rose 8.5% year over year, beating analyst expectations, per Yahoo Finance AlphaSpace data. The result trounced McDonald's US result, which reported a disappointing 0.8% comparable sales gain.<\/p>\n
At first blush, the disparity between the two fast food rivals' sales shouldn't be that wide.<\/p>\n
In April, McDonald's launched its new McValue menu by offering 10 items for under $3. It also launched the Big Arch burger the month prior.<\/p>\n
It then launched six new drinks on May 6, with refreshers like Strawberry Watermelon and crafted sodas like Sprite Berry Blast. All the drinks are caffeinated and aimed at Gen Z consumers who have been going to the nearest Dutch Bros (BROS) or convenience store for a Celsius (CELH).\u00a0<\/p>\n
The revamped McValue platform, discounted breakfast offers, and broader push into specialty beverages all failed to generate the incremental traffic McDonald's was banking on.<\/p>\n
"The 10 items for under $3 [promotion] has not delivered against our expectations. Part of that was due to the fact that we're getting really inconsistent execution," McDonald's CEO Chris Kempczinski said on the earnings call. "Only about 60% to 65% of our system is currently executing the recommended pricing architecture with the 10 items for under $3."<\/p>\n
On the other hand, there is Burger King US, which has focused on improving ingredient quality and related marketing rather than loading up on new menu items.<\/p>\n
Burger King US president Tom Curtis also went up against McDonald's CEO Chris Kempczinski, who faced online backlash over a video of him taking a small bite of the Big Arch. Curtis released a TikTok video in which he takes an enthusiastic bite of a Whopper and jokes that the only thing missing is a napkin. He also gave out his phone number so people could share what they thought about the brand.<\/p>\n
Curtis ended up talking to 1,500 people after the number share and getting tens of thousands more messages.<\/p>\n
Curtis's viral moment also shed light on the revamped Whopper, which has long been the company's answer to McDonald's Big Mac.<\/p>\n
Burger King made several subtle but meaningful changes to its Whopper for the first time in nearly a decade. The updated burger now features a more premium, better-tasting bun and a reformulated, creamier mayonnaise. Toppings like lettuce, tomatoes, onions, and pickles are prepared to taste fresher and stack more neatly.<\/p>\n
Another major change is the packaging: Instead of being wrapped in paper, the burger is now served in a box to prevent it from getting squished and to maintain its presentation.<\/p>\n