Burger King closing more stores in the US

Burger King is shutting down additional stores across the United States. The stores that are closing are being operated by Meridian Restaurants Unlimited, one of the fast-food chain's franchisees.

Meridian Restaurants said that it would cease operations of 27 more of its Burger King restaurants, and these are located in seven states, including Utah, which is its home state. The franchisee has more than 100 BK stores, and it stated in its latest court filing that while it is not likely to close a considerable number of its Burger King restaurants, there is the possibility of more closures in the future.

Business Insider mentioned that Merian Restaurants filed for bankruptcy last month due to high inflation and low sales. There are still other things that have contributed to the decision, but the declining sales are the biggest factor.

The states where Burger King stores are set to close include nine locations in Minnesota, three in Montana, one in Kansas, three in Nebraska, one in Dakota, one in Wyoming, and nine stores in Utah.

Meanwhile, there may be some Burger King franchisees that are struggling to keep their business going, but the brand has been showing early signs of a turnaround. The brand's same-store sales soared by five percent in the last quarter of 2022.

Moreover, following its "reclaim the flame" plan, Burger King is said to be selling more Whoppers than ever before in the early days of its turnaround. This happened seven months after the chain announced its strategy to revitalize its business in the U.S. with a $400 million investment.

Tom Curtis, Burger King US' president, confirmed to CNBC that the initial improvements in their operations and new marketing campaigns are showing results already. He said their sales are picking up, and customer satisfaction has improved as well, although their strategy is still in the early phase.

"We are selling more Whoppers than we ever have. It's had a really positive impact that we didn't pay for or foresee on the business and it really exceeded my expectations," Curtis stated. I think those things are foundationally important, and they resulted in a 20% uplift in guest satisfaction and I am s excited for Restaurant Brands to release its earnings."

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