Burger King's shop count has fallen in recent years due to low sales and failing franchisees. The chain hopes to end mass closures in the future.
Restaurant Brands International (RBI), which owns Burger King, Popeyes, Tim Hortons, and Firehouse Subs, revealed its fourth-quarter
and full-year 2023 results on Feb. 13. RBI reported in a subsequent earnings call that Burger King's net restaurants fell 3.7% on the year.
RBI CEO Josh Kobza stated in a prior earnings call that Burger King has historically closed a couple hundred US outlets per year, explaining the
loss of so many restaurants. Last May, Kobza estimated Burger King would close 300–400 outlets in 2023. Burger King's longer-term strategy
to clean house and eliminate underperforming shops to boost the chain's health became increasingly crucial when many franchisees declared bankruptcy last year.
RBI officials believe most Burger King closures are over. Burger King may close more restaurants in 2024 and beyond.
We believe most of these closures are behind us and expect a more normalized level of closure activity in 2024," RBI CEO Josh Kobza told yesterday's earnings call.
Burger King's recent earnings report has more positives than just the end of mass closures. Burger King is using its $400 million "Reclaim the Flame"
investment drive to update its image, improve its kitchens, renovate hundreds of stores, create new menu items, and increase advertising.