Burger King UK delivers strong performance with continued expansion driving profitable growth in 2023
Burger King UK, one of the top-three most recognised Quick Service Restaurant (QSR) chains in the UK, today announces a strong trading performance and strategic progress for the year ended 31 December 2023. The business achieved a 30% increase in total revenue to £381.8 million (2022: £294.5 million) and a 3% increase in like-for-like sales[2], reflecting the continued resilience of the QSR market and strong demand for Burger King UK’s high-quality and affordable food offering.
Despite continued macro-economic challenges, Burger King UK continued to trade resiliently, leveraging new store openings and integration of the Karali business acquired in September 2022 to progress the business’ rapid expansion in the UK. Operating profit for Burger King UK significantly improved to £13.4 million for the year (2022: loss of £20.7 million) due to a combination of factors including the increase in revenue and good cost management. Adjusted EBITDA[3] improved to £23.3 million (2022: £15.1 million).
Trading has remained resilient in the first half of 2024. Burger King UK continues to experience sales growth and is well-positioned to profitably convert these sales. Burger King UK will continue its ambitious expansion plans as it benefits from recent restaurant openings and acquisitions and with good visibility on the pipeline of future openings.
Evolving customer proposition
Burger King UK introduced several new products during the period including extending its popular collaboration with Doritos to launch the Doritos Chilli Heatwave Chicken Fries. The business’ Gourmet Kings premium offering drove growth, with the launch of the Peppercorn Angus and Chimichurri Steakhouse Angus, alongside the under £4.99 and £5.99 King Box menu bundle.
Burger King UK invested in digital transformation by advancing its UK-wide loyalty scheme within its app which now has over 2.8m users. The personalised, digital offers have driven strong customer engagement, helping to grow digital ordering and enhanced customer experience. Alongside this, the business continued to expand its home delivery offering and has partnerships with major home delivery operators including Deliveroo, Just Eat and Uber Eats.
Results for the year ended 31 December 2023
Total revenue up 30% to £381.8 million with like-for-like sales growth of 3%[1]
Strong profitable growth, with operating profit of £13.4 million due to revenue growth from existing estate and new restaurants, together with good cost management
Continued expansion in the UK including opening 18 new Burger King UK owned restaurants and completed integration of the Karali business acquired in September 2022
Strong progress in remodelling programme with 10 restaurants upgraded in 2023, including flagship sites in Manchester Piccadilly and Thorpe Park, delivering improved customer experience through enhanced restaurant environment and significant sales improvement
Continued investment in digital transformation, including roll-out of pre-order digital kiosks with digital menu screens and development of Burger King UK app which is supporting digital sales
Post year end trading has been resilient with total sales growth of 5%
Alasdair Murdoch, CEO of Burger King UK, said: “I am pleased to announce a strong full-year performance and significant strategic progress in 2023. 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.
“Despite ongoing macro-economic challenges, we expanded our footprint by opening 18 new Burger King UK owned restaurants alongside fully integrating the Karali business to bring more of our restaurants under direct ownership. We also continued to invest in our customer proposition through our remodelling programme, advancements in digital transformation and the launch of several new products to cater to all preferences including the successful launch of the Peppercorn Angus and Chimichurri Steakhouse Angus as part of the Gourmet Kings premium offering.
“We have seen a resilient trading performance in the first half of 2024, with total sales growth of 5% split equally between the existing estate and contribution from new site openings. This was also supported by a significant improvement in profitability from a strong operational cost focus. Looking ahead, we are excited about our ambitious expansion plans and the continued growth of our digital and delivery services, supported by good cost management and a robust pipeline of new openings."
Burger King for Good
Burger King UK advanced its ESG efforts through Burger King UK’s responsible business strategy, ‘Burger King for Good’. With a focus on managing its business and supply chain sustainably, Burger King UK has continued its aim to achieve 100% independently certified sustainable sourcing across all key commodities by 2030. In 2023, initiatives included reducing overnight energy usage with the 'Save While You Sleep' campaign and enhancing food waste measurement and reduction in restaurants.
ABOUT BURGER KING UK®
Burger King first entered the UK market in 1976, with Burger King UK® established in 2017 through Bridgepoint’s simultaneous acquisition of the master franchise agreement in the UK, and an initial 74 Burger King restaurants to directly own and manage. Today, Burger King UK® is the third most recognised Quick Service Restaurant chain in the UK. As of 30 June 2024, the business operates 561 restaurants, 285 of which are directly owned, and the remainder are sub-franchises. The business employs around 6,000 people.
Founded in 1954, the Burger King® brand is a global fast-food hamburger chain known for food quality and value as the only place guests can get the iconic flame-grilled Whopper® sandwich. It is owned by Restaurant Brands International Inc. (TSX, NYSE: QSR), one of the world's largest quick service restaurant companies with over $40 billion in annual system-wide sales and over 30,000 restaurants in 120 countries and territories. To learn more about the Burger King® brand, please visit the Burger King® brand website at www.bk.com or follow them on Facebook and Twitter.
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