Slow Fast-Food Sales Are Affecting Burger King's Parent Company

When we think of fast food, we might not think about the money behind the companies. Still, that’s the thing on their minds, as they want to see profits that are off the charts and keep people coming back time and time again. The problem? Things don’t always go to plan for those at the top.

Now, it appears that slow fast-food sales are affecting Burger King’s parent company, Restaurant Brands International, and many are worried about what it could mean. After all, the rising cost of everything is affecting most people’s lives. Could this be enough to hit the big guys harder than we realized?

Most of Restaurant Brands International’s branches saw slower sales than 2021

Taking a look at the fourth quarter wasn’t the only thing on Restaurant Brands International’s mind, as looking back at the previous year’s income shows that most things have slowed for the company. Burger King is by far the biggest income for the company, seeing a sales increase of 11.8% compared to 15.4% seen in 2021. Popeyes Fried Chicken actually did see an increase from 2021, jumping from 7.2% to 11.2%. However, Tim Hortons joined Burger King, with sales rising 12.3% compared to 14% in 2021.

High inflation costs and world events have impacted their costs

What is it that’s affecting Restaurant Brands International’s sales so much? The company blames most of it on inflation, with fewer people eating fast food and dining out than they have been in previous years. That’s not all. Inflation is also affecting their costs, too. Higher labor costs teamed with a rise in energy prices - both affected by the events going on around the world in the last few years - mean the company is now sending more on the production line and keeping its restaurants open than ever before. According to Restaurant Brands International, further increases could have even more of an effect on all their brands as they need to raise their prices without reducing consumer demand.

There have been some significant changes at the top of Restaurant Brands International

It’s not just slow fast-food sales and rising costs that have affected Restaurant Brands International so much in the last few months. It turns out there have been some big changes at the top, with a new CEO coming in. Joshua Kobza had already been serving as the company COO and will officially take over his new role on March 1. Of course, a change can have an effect on the stocks, with Restaurant Brands International’s shares dropping 2.7% as people need time to figure out what’s to come from a new leader. Whatever the case, it seems Burger King and most other fast-food chains might have to make some big changes if they want to see things out to the other side.

Slow fast-food sales are affecting Burger King’s parent company, and they’re not alone. With the rising cost of inflation set to continue well into the new year, there’s a chance there might have to be some major changes if companies are going to continue to thrive.