Restaurant Brands’ (NYSE:QSR) Burger King is planning to fire up significant spending in the next two years toward revamping restaurants and marketing.
Per a press release issued by the restaurant operator on Friday afternoon, $400M will be allocated to increasing “advertising firepower”, restaurant remodels, and new technology and digital investments. The investment will be divided into two parts, whereby $150M will be put toward advertising and digital investments and $250M will be set aside for “restaurant technology, kitchen equipment, building enhancements and high-quality remodels and relocations.” According to the company statement, more than 93% of US-based restaurants endorsed the plan.
“Our $400M investment into the Burger King U.S. system represents a substantial deployment of capital toward important marketing and image investments aimed at accelerating our sales growth and modernizing our iconic brand across the U.S. In 2023 and 2024, these investments are expected to have an average annual impact to adjusted EPS of approximately ($0.10) to ($0.12), before considering benefits from any potential sales improvements,” Restaurant Brands (QSR) CFO Matt Dunnigan said. “In 2025 and beyond, we expect the impact to be accretive to adjusted EPS as our advertising investments conclude and we realize the long-term sales benefits of our Reclaim the Flame initiatives and increased advertising contributions from our system.”
Shares of Restaurant Brands (QSR) rose 0.63% in the waning hours of the week’s trading.
Read more on recent restaurant spending trends