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.
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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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