Why this fast food chain is king of the burgers


Don’t knock the king — the Burger King, that is.

While McDonald’s noted sales struggles in last month’s earnings report, (Golden) arch-rival Burger King posted some serious good news Tuesday: Burger King stores saw a 3% sales increase last quarter, according to Bloomberg News.

This was the first time Burger King had reported earnings since it completed its takeover of Canadian coffee and donuts chain Tom Hortons. The two chains now operate under the banner Restaurant Brands International Inc, which posted a quarterly loss of $514.2 million owing to costs of the Timmy Ho’s takeover. Investors forgave the loss, focusing instead on rising sales and sending the stock skyrocketing nearly 9%.

McDonald’s, meanwhile, saw sales fall last quarter and recently saw its CEO leave the business.

Why has McDonald’s fallen on such hard times while the King reigns supreme? As Fortune‘s Beth Kowitt pointed out in November, an overly large McD’s menu with items no one wanted — chicken wings and wraps spring to mind — led to decreasing same store sales. Burger King, meanwhile, has been more strategic in its product selection, bringing back fan favorites like chicken fries.

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