Burger King is on the way of becoming the third-largest fast food chain restaurant in the world. Burger King will establish this after it closes the deal and buys the famous coffee chain Tim Hortons. Burger King has reported that the US sales estimates are higher than ever and that’s because fast food chain has included new menus and new products.
The Miami based fast food giant said that the American and Canadian sales have gone up 3.6% in the third quarter of 2014 and this was only from same-store sales. The new figures actually topped what the analysts estimated, which was a 2.5% in sales. The Burger King global sales were close to what the analysts projected, 2.4%
Burger King has been busy lately introducing and advertising new products to bring the American diners on top of the industry, which has many serious competitors. The fast food chain has announced that they will be purchasing Tim Hortons, the coffee shop chain and also advertised a new menu, consisting of 10 chicken nuggets for only $1.49. According to the stock market, Burger King’s shares have gone up 41% in 2014.
The new sales gain are in comparison with the last year’s decline of 0.3%, and Burger King managed to surpass the king of fast food restaurants McDonald’s, which reported last month a 3.3% decline in the US stores in the last year.
Burger King bought the Canadian coffee and doughnut restaurants chain Tim Hortons for $11 billion, which could have left a big hole in its pocket if it weren’t for the new sales rise. Burger King is said to close the deal with Tim Hortons later this year or early 2015. The deal was announced in August and was criticized because of the tax inversion, which will means that Burger King will move its headquarters from Miami to Canada, where there are lower taxes. The new purchase will also protect Burger King stock holders from any capital-gains taxes.
Burger King has stated that the plan is to manage the two businesses as two separate brands.