Burger King UK reports ‘resilient trading’ after strong 2023

Burger King UK has delivered a strong set of financial results for its year ended 31 December 2023, while trading continues to be resilient in the first half of 2024.

 

The quick service restaurant chain reported total revenue up 30% to £381.8m over the course of 2023, with like-for-like sales growth of 3%.

 

Operating profit significantly improved over the period to £13.4 million for the year up from a loss of £20.7m in 2022, with the business putting this hike down to its increase in revenue growth combined with “good cost management”.

 

Adjusted EBITDA increased from £15.1m in 2022 to £23.3m in 2023.

 

The burger chain continued its expansion in the UK with 18 new restaurants, as well as completing the integration of the Karali business acquired in September 2022.

 

Meanwhile it remodelled 10 restaurants across the year, including flagship sites in Manchester Piccadilly and Thorpe Park.

 

Post year-end trading remained resilient with total sales growth of 5%.

 

Alasdair Murdoch, chief executive 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.”

 

The business said it has continued to invest in its digital transformation project, including the roll-out of pre-order digital kiosks with digital menu screens and development of the Burger King UK app. Meanwhile it’s UK-wide loyalty scheme within the app now has over 2.8 million users who take advantage of personalised digital offers.

 

In addition, the business continued its expansion into home delivery through partnerships with Deliveroo, Just Eat and Uber Eats.

 

Murdoch added: “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 UK also introduced a number of new products over the period including extending its collaboration with Doritos to launch the Doritos Chilli Heatwave Chicken Fries. The business also reported that its 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.

 

The chain’s biggest competitor McDonald’s has faced backlash in recent months for its price rises with earnings taking a hit as customers reign in their spending. The fast-food chain reported its first global slump in sales since 2020, last month, leading to questions on whether it could recover.

 

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