Move over Mickey D's --- BK is out to win. While McDonald's retains control of fast food market share, Burger King is stepping up its game to aggressively compete by lowering prices and applying the KISS method to business. After boldly crossing the northern border and acquiring Tim Horton's in 2014, Burger King elevated its status to the third largest fast food chain in the world, effectively inching a bit closer to the ranks of the Golden Arches.
A mere two weeks into 2015, the company announced a chicken nugget promotion to rival all, pricing each nugget a full 5 cents below McDonald's. Months of plummeting sales -- in most cases well below predicted milestones -- left McDonald's in a weak position, which grew more vulnerable once Burger King launched its outstanding nugget price cut. Continuing a year-long trend, attempts by McDonald's to lure customers in with attractive ads and designer coffees prove unsuccessful in boosting sales.
The conditions are ripe for Burger King to take the throne as top fast food chain. When the BK-Tim Horton's merger was finally approved, some believed it was simply a tax inversion move that would spark massive internal upheaval and result in the unified exodus of employees. While this hasn't exactly come to fruition, Burger King's market position is certainly in an interesting place, particularly since the announcement that Wendy's CMO resigned.
As predicted by MarketWatch, Burger King is faring well so far as the company reports making more now than at the same time last year, signaling a position of fiscal health for the burger contender. In addition to hitting McDonald's with low nugget prices, Burger King threatens to take a larger chunk of market share as customers seek a better value. Combined with strategic price increases to cover the loss of revenue, Burger King's strategy in 2015 is one of domination.
Thus far, planning further international expansion is only the tip of the iceberg when it comes to Burger King's blueprint for the future. After cutting costs significantly by refranchising restaurants, Burger King is primed for growth in the coming years. First, however, it seems like regal burger chain plans to hit the Golden Arches where it counts -- the price points.
Despite valiant efforts by McDonald's to take their products to the next level, customers continue to choose simple menus, good food, and great prices. With Burger King intent on outshining the Golden Arches in all three arenas, it's only a matter of time before the public begins to take notice of the chain's increased presence internationally.