Burger King UK has announced ambitious plans to open 30 new restaurants annually from 2026, despite navigating a "challenging" economic landscape marked by "softer" consumer sentiment and escalating labour costs.
The fast-food chain, which currently boasts 574 outlets across the country, reported stronger revenues even amidst these difficulties.
It noted "further signs of improvement" throughout the current year, partly attributing this to a slowdown in inflation.
However, the company acknowledged that broader pressures on consumer finances and increased costs, influenced by last year's budget, continue to affect the UK hospitality sector.
Nevertheless, Burger King remains committed to its ongoing expansion programme, with a focus on developing new company-owned sites.
Alasdair Murdoch, chief executive of Burger King UK, said: “While inflation in food and utility costs has returned to more normal levels, the sector continues to face softer consumer sentiment and rising labour costs following significant increases in the national minimum wage and national living wage.”
Trading in 2025 has remained “robust”, with the group surpassing $1 billion (£748 million) in system-wide sales across the UK.
During the year, the group also signed an agreement to extend Burger King UK’s franchise right to the Republic of Ireland for the first time, providing the business with more opportunities for expansion.
It came as the company revealed its financial results for last year, reporting that revenues lifted 7 per cent to £408.3 million in 2024.
It said like-for-like sales grew by 4.5 per cent to £347 million, driven by home delivery sales and targeted market.
Meanwhile, underlying earnings rose by 12 per cent to £26 million on the back of “disciplined cost control”.
Mr Murdoch added: “I am pleased to report another year of solid performance and strategic progress for Burger King UK in 2024.
“Despite a challenging macroeconomic environment and ongoing sector cost pressures, we delivered revenue growth, positive like-for-like sales, and improved underlying EBITDA through disciplined cost management and operational focus.”
