Burger King has been profitable for over a decade, but its recent performance has raised questions about its long-term viability. In late 2016, Burger King reported global same-store sales growth of 2.5%, but this was largely due to increased sales in the United States. Despite this success, Burger King’s global same-store sales fell 0.5% in 2017, and the company announced plans to close more than 600 restaurants in the United States.
These closures, combined with increased competition from rival chains such as Wendy’s and Subway, have raised questions about the long-term profitability of Burger King. However, the company’s debt and pension obligations are relatively small, and its net cash and marketable securities are worth $5.9 billion. In the long term, Burger King’s profitability may be affected more by changes in global food consumption patterns than by competition from rivals.
