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The Street
The Street
Daniel Kline

Burger King's menu adds value, brings back Whopper spinoff line

Burger King has fallen to number three in the fast-food burger space. That has been the case for a few years, and the chain has tried a lot of innovation in order to catch up to Wendy's in order the become the Pepsi to McDonald's Coke.

In recent months, McDonald's  (MCD)  has gotten a lot of media attention for embracing value. The chain introduced a $5 meal that offer a burger, chicken McNuggets, fries, and a drink. That's a pretty blatant knockoff of the Wendy's (WEN) $5 Biggie Bag, something the number two brand has pointed out in a television commercial.

Related: Forget McDonald's: Walmart gets trendy new fast-food partner

A $5 meal deal seems like table stakes in the fast-food space right now, but Burger King, owned by Restaurant Brands International  (QSR) , was late to the game entering that space. It did add a $5 meal deal in June which includes a choice between the Whopper Jr., a Bacon Cheeseburger, or a Chicken Jr., plus french fries, a four-piece chicken nuggets, and a beverage.

It's a better late than never deal, which the chain has advertised heavily, but the chain has gotten more attention for its innovation than its deals.  

Many of Burger King's innovations have involved the Whopper. The chain has leveraged its signature sandwich into various versions ranging from minor additions like adding bacon and different sauces to the Whopper Melt line, which uses different bread and more cheese.

Now, the fast-food giant has brought the breakfast version of its Whopper Melts to its morning menu.

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Whopper Melts use round bread instead of a traditional bun.

Image source: Burger King/TheStreet

Burger King brings back Breakfast Melts

"Cheesy goodness is back on the menu at Burger King with the return of the fan-favorite Cheesy Breakfast Melts, available for a limited time. Cheesy Breakfast Melts feature the same components as the brand’s permanent breakfast sandwiches, but they’re served on toasted round bread slices and include an additional slice of American cheese," FastFood Post reported.

The line does not formally use the Whopper name, but it's a spinoff of the Whopper Melts burger line with a breakfast spin. It's being sold nationwide at a suggested price of $3.49. The Cheesy Breakfast Melts lineup includes:

  • Cheesy Sausage & Egg Breakfast Melt: A sausage patty, eggs, and two slices of American cheese on two slices of toasted bread.
  • Cheesy Bacon & Egg Breakfast Melt: Crispy hardwood-smoked bacon, eggs, and two slices of American cheese on two slices of toasted bread.
  • Cheesy Ham & Egg Breakfast Melt: Black Forest ham, eggs, and two slices of American cheese sandwiched between two slices of toasted bread.
  • Cheesy Egg Breakfast Melt: Eggs and two slices of American cheese sandwiched between two slices of toasted bread.

The Cheesy Breakfast Melts are available now and the chain has not said when it will end the promotion.

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Burger King has struggled

Over the past year, Burger King has seen multiple franchisees file for bankruptcy, and the chain lost hundreds of restaurants. Burger King's US comparable sales were relatively flat while total net restaurants declined 2% resulting in a negative 0.8% decline in system-wide sales in the second quarter.

Those aren't results that CEO Joshua Kobza is satisfied with. 

"The absolute sales and traffic results at Burger King were clearly softer than we aspire to. But the business continued to outperform Burger QSR sales and traffic. I believe this is in large part due to our responsible approach to everyday value, our focus on meeting the needs of our guests and franchisees, and the impact of our operational improvements starting to shine through," he said during RBI's second-quarter earnings call.

More restaurants:

He does believe the chain is moving in the right direction.

"We brought back another $5 price-pointed item this quarter, the $5 Your Way Meal, and balanced it with premium menu innovation like Melts and Now our new Fiery Menu. There's even more we can do to enhance the value we offer. And I believe great operations, digital and re-imaging are just as important to win in the long-term," he added.

QSR's shares were off about 2% on Friday at $70.51. The shares are 0.7% so far in August but down 9.8% this year.  

Related: Veteran fund manager sees world of pain coming for stocks

 

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