RBI chief financial officer Matt Dunnigan said: “Our $400m investment into the Burger King US system represents a substantial deployment of capital toward important marketing and image investments aimed at accelerating our sales growth and modernising our iconic brand across the US.
“In 2023 and 2024, these investments are expected to have an average annual impact to adjusted EPS of approximately ($0.10) to ($0.12), before considering benefits from any potential sales improvements.
“In 2025 and beyond, we expect the impact to be accretive to adjusted EPS as our advertising investments conclude and we realise the long-term sales benefits of our Reclaim the Flame initiatives and increased advertising contributions from our system.”
Major components of the ‘Reclaim the Flame’ plan are brand positioning, menu priorities, advertising, modernisation and operational excellence.
The investment will drive higher quality restaurant enhancements and remodels as well as increase the brand’s advertising and support ongoing technology and digital investments.
Out of the total investment, $150m will be allocated for advertising and digital investments while $250m will be used for the ‘Royal Reset’, which will involve investments in restaurant technology, kitchen equipment, building enhancements, and remodels and relocations.
The funding also aims to support ongoing franchisee investments, which are intended for upgrading the restaurant portfolio of Burger King.
Burger King North America president Tom Curtis said: “Our plan is focused on a few important priorities – operational excellence, refreshed image and enhanced marketing – that when put together, provide a superior experience for our guests.”
Earlier this month, Burger King signed a master franchise and development agreement with McWin to expand its Polish footprint.