Burger King’s Gains Against McDonald’s
Burger King seems to be making notable gains at the expense of McDonald’s.
Recently, a promotional video featuring McDonald’s CEO Chris Kempczinski struggling to enjoy the new Big Arch Burger went viral, not quite in the way the company might have hoped. Coincidentally, the president of Burger King made an unexpected appearance to highlight an improved version of the Whopper, and the strategy seems effective.
Since that video took off in March, data from Placer.ai shared with sources reveals that Burger King’s weekly visitor growth has significantly surpassed McDonald’s.
For instance, during the week of March 2, when both the Big Arch and the revamped Whopper were available, Burger King saw a 7.4% increase in weekly visits compared to last year, while McDonald’s only managed a 2.2% rise.
In the following weeks, Burger King’s traffic continued to increase by 5.4%, 2.2%, and 3.2%. Contrarily, McDonald’s traffic dropped by 0.2%, 2.2%, and 1.3%.
Analyst David Palmer from Evercore noted that factors like war and rising gas prices might be affecting McDonald’s sales. According to him, this could explain why the overall same-store sales growth in the U.S. fell from 3% in early March to stagnant over the past three weeks.
Palmer also pointed out that McDonald’s appears to be lagging behind competitors like Burger King, partly due to the viral ‘CEO Burger Bite’ video and the subsequent comparisons between the Whopper and the Big Arch Burger.
Placer.ai has indicated that changes in foot traffic can depend on various influences, including economic uncertainty and shifts in consumer confidence, in addition to factors like holiday closures and weather.
In the last month, McDonald’s stock dropped by 7.4%, while shares of the restaurant group that includes Burger King, Tim Hortons, and Popeyes have risen by 4.9% during the same timeframe.
In response to the negative buzz, Burger King president Tom Curtis shared a TikTok video of himself thoroughly enjoying the new Whopper, humorously captioning it, “I thought I’d recreate this.”
The updated Whopper, introduced just before the Big Arch, features a new bun, creamier mayonnaise, and now comes in a box rather than a paper wrapper to prevent crushing. This marks the first upgrade to the Whopper in a decade.
Meanwhile, McDonald’s, like many fast-food chains, is facing challenges in drawing in price-sensitive customers, particularly as external issues like tariffs and the ongoing war in Iran are impacting consumer sentiment.
Looking ahead, McDonald’s is prioritizing value offerings and specialty beverages, with plans to introduce new drink options, such as Creamy Vanilla Cold Brew Coffee, along with items priced under $3.
Palmer suggested that the upcoming menu adjustments are aimed at providing affordable a la carte options, similar to Taco Bell’s Luxe menu. This might help McDonald’s address some financial concerns for lower-income customers.
He added that while the new value strategy might not dramatically shift the landscape for competitors like Burger King, it could gradually increase foot traffic for McDonald’s over time.
