Burger King Sees Big Sales, Bigger Beef Costs

Dow Jones
08/06

1125 ET - Burger King's main ingredient, beef, is still at record high prices in 2Q, and it continues to weigh on profits. "Q2 was still at an all time [with] high beef costs running through the P&Ls of our franchisees," says Restaurant Brands CFO Sami Siddiqui in an earnings call. While Burger King U.S. same-store sales jumped 8.5%, the flow-through to restaurant profitability was delayed by raw material inflation. Siddiqui thinks there will be some relief ahead, but the more meatier cost reductions are expected in early 2027. "We think that'll be really healthy for our Burger King franchisees," he says.

 

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