Restaurant Brands' (QSR) Burger King Ties Up With Uber Eats
Zacks Investment Research | Oct 15, 2019 10:34PM ET
Restaurant Brands International Inc.’s (NYSE:QSR) Burger King recently announced that it has partnered with Uber (NYSE:UBER) Eats to expand its delivery services. Notably, Burger King’s customers can order whenever and wherever they want, including the iconic WHOPPER Sandwich, via the Uber Eats app.
Meanwhile, the Miami-based fast food giant will be offering free delivery services on orders worth $15 or more till Oct 27, 2019. Chris Finazzo, President of Burger King Corporation North America, stated “At Burger King restaurants, delivery is a major priority to ensure our food is available to anyone, anywhere”. Notably, Burger King visited several hundred houses in LA to surprise and delight fans.
Restaurant Brands continues to expand the size of its delivery program, with availability in nearly 3,500 restaurants in the United States and more than 8,700 restaurants on a worldwide basis. In the second quarter, comparable sales at Burger King rose 3.6% owing to robust international sales. Notably, Burger King is also registered on Grubhub and Doordash.
A glance at the company’s year-to-date price performance shows that this Zacks Rank #3 (Hold) stock has gained 32.6%, comparing favorably with the industry’s 22.8% growth. Moreover, Restaurant Brands’ efforts to strengthen its position through various sales initiatives and increased focus on franchising are expected to drive growth, moving ahead.
Bottom Line
With Internet, digitalization and electronics influencing every facet of our day-to-day lives, it is obvious that the restaurant industry has also embraced this trend.
Per The NPD Group, foodservice delivery services have contributed significantly to restaurant sales over the past few years. Over the past four years, digital orders have increased 23%. As a result, digital sales are no longer a luxurious feature but are the dire need of the hour.
Markedly, Morgan Stanley (NYSE:MS) predicts that the food delivery industry could account for 11% of all restaurant sales by 2020.
Key Picks
Some better-ranked stocks in the same space include Chipotle Mexican Grill, Inc. (NYSE:CMG) , Chuy's Holdings, Inc. (NASDAQ:CHUY) and Dunkin' Brands Group, Inc. (NASDAQ:DNKN) , each carrying a Zacks Rank #1 (Strong Buy). You can seeZacks Investment Research
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