Investors often overlook SEC filings, and it is the job of the 10Q Detective to dig through businesses’ 8-K and 10-Q SEC filings, looking for financial statement ‘soft spots,'(depreciation policies, warranty reserves, and restructuring charges, etc.)that may materially impact Quality of Earnings.
Monday, March 15, 2010
Burger King Launching New Assault on Breakfast
Burger King (BKC-$19.60) has yet to win any of the breakfast sandwich battles – whether they be against McDonald’s or Dunkin Donuts. Management is hoping that the national rollout of Seattles “Best Coffee” (lesser-known line of Starbuck’s premium-coffee brands) in its U.S. stores and launches of BK’s Breakfast Muffin sandwich and Breakfast Bowl will attract traffic to the otherwise struggling fast-food chain.
With $1 billion in debt maturing and comparable same-store sales still in free-fall, the company needs to put more than just flame-broiled sizzle and discounted sales of its signature Whopper sandwiches on its balance sheet.
I don't think Burger King can survive on marketing gimmicks alone. While they may increase sales in the short term with witty advertising I don't believe they have what it takes to challenge McDonalds. McDonalds is truly a global brand and they have done a superb job in tailoring their menu and brand message to the consumer. While I'd personally rather have Wendys over the big 3 burger chains, I think Burger King has to find a way to offer some healthy offerings instead of the heart clogging double down.
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I don't think Burger King can survive on marketing gimmicks alone. While they may increase sales in the short term with witty advertising I don't believe they have what it takes to challenge McDonalds. McDonalds is truly a global brand and they have done a superb job in tailoring their menu and brand message to the consumer. While I'd personally rather have Wendys over the big 3 burger chains, I think Burger King has to find a way to offer some healthy offerings instead of the heart clogging double down.
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