Burger King Holdings Inc. (NYSE: BKC) announced plans Wednesday to overhaul its 12,000 locations worldwide. The fast-food giant is seeking a sleeker, futuristic look that includes LCD-screen menus, rotating chandeliers, and corrugated metal and brick accents (see pictures at the above link) on the inside, as well as metal canopies and additional signs on the exterior.
The new upscale design, called 20/20, is expected to cost franchisees between $300,000 to $600,000 per restaurant. Some 60 locations have already been remodeled, including in Miami, Mexico City, Edinburgh, and Shanghai, and 75 more are expected to be completed by the end of 2010. All new restaurants will be built using the 20/20 design.
The new look is expected to help the Burger King compete with "fast casual" restaurant chains such as Chipotle (NYSE: CMG) and Panera (NASDAQ: PNRA), as well as to set it apart from larger rival McDonald's (NYSE: MCD) and other, regional chains. But some doubt whether the redesign will result in the growth in sales that Burger King projects, or whether franchisees will be eager to pony up given the state of the economy. Burger King franchise owners are contractually obligated to update their restaurants periodically.
Shares of Miami-based Burger King have been stuck in the $16 to $18 range in the past few months, well off the 52-week high of $24.48. Analysts surveyed by Thomson Reuters are expecting year-over-year revenue growth of 1.9% this year and 4.2% next year, as well as projecting long-term EPS growth of 14.3%, which better than that of rivals McDonald's and Yum! Brands (NYSE: YUM).










Reader Comments (Page 1 of 1)
10-07-2009 @ 4:06PM
Almadi said...
Burger King in Riyadh, Saudi Arabia already has one of the new designs since March 2009
10-09-2009 @ 8:57AM
ptsmith29 said...
Why in the world is Burger King going to go through the astronomical expense of updating/remodeling 12,000 locations? What an absolute waste of money. Why does Burger King not do the humanitarian thing and take the amount of money for 12,000 restaurants to be remodeled, and give it to charity, feed the hungry, shelter the homeless by donating to Habitat for Humanity, etc....this is a disgusting thing to hear about. What is the matter with the chairs, tables, booths, floor color, etc...in these restaurants now....absolutely nothing. People still order food at these (supposed outdated) restaurants every day of the week. Corporate greed and wasting of money is sickening. Do something worthwhile with your remodeling line item in your budgets!!! The common folk don't care about a new modernized booth to sit in. There are so many suffering and homeless people in our country...let you money surplus help someone in need.
11-17-2009 @ 1:24PM
macho1975 said...
So how many people are getting fired because of this?
10-13-2009 @ 10:39PM
Ray said...
Maybe they should "upgrade" their french fries!!!
10-09-2009 @ 6:20PM
jessika said...
i dont think the burger kings here in america should change their look theyu have durn good food thats all that matters and i like burger kings look it looks like a burger joint should this new look is crazy!!! i dont like it
10-09-2009 @ 7:40PM
tina said...
This is what is wrong with America! Have tons of money and need to show off! Change for change's sake! What the hell, We can afford it! Blah, blah!!!!!!!!!!!!!!!!!!!!!!
Stop the freaking madness and focus on the issues, the problems!!!! We don't need another freaking waste of money and a new facelift!! Most of these Burger King's have very well kept , no need of repair, buildings!!! Why destroy something that is perfectly fine and spend a zillion dollars making it new, modern, sleek, fashionable.....(whatever it takes to sell you a 30+fat gram, unhealthy, cholestoral ticking-bomb!!!!!!!!!!!!!!!!!!)
Spend the money feeding the hungry or the homeless!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Stop feeding the overpaid and unrealistic CEO's with our hard working dollars!!!!!!!!!!!!!!!!!!!!!!!!!
GET BACK TO THE BASICS AND FOCUS ON YOUR FAMILY, YOUR HEALTH AND YOUR COUNTRY!!!!!!!!!!!!!!!!!!!!!!!!!!!
Burger KIng People, if you are out there......................
Scale down your facelift...turn your energy and your money to the economic mess this country is in!!!! We don't need any more blinders, we need a change of attitude, a change of heart!!! You would be surprised at how many Americans would back you...........if you began to back them !!!!!!!!!!!!!!
Just my "Keep it simple, stupid"" opinion!!!!!
10-09-2009 @ 8:25PM
andrewgosnell1 said...
you know what, i say screw all of ya'll that thinks burger king should stay the same way. most of this stuff that they are wanting 2 put in may actually help them make even more money. why i say this you may ask, because the more customers that they get, the more money they will make, & with all this new stuff, they will probably have twice as much as customer as they did before. i actually like the look that they will have.
10-09-2009 @ 9:56PM
Katie said...
Like putting lipstick on a pig
10-09-2009 @ 9:59PM
phil said...
Tina: wake up!!! Whose money is it? How much of your money have YOU given away??
10-10-2009 @ 12:15AM
Kyle McKenna said...
tina,if youare truly concerned with all of the social issues that you cited, then what the hell are you even reading this article for?
10-10-2009 @ 12:18AM
Kyle McKenna said...
you can dip a piece of shit in sugar, but when you're done, you still only have sugar coated shit
10-10-2009 @ 12:31AM
LT said...
It does seem a bit wasteful to change so drastically, there would be nothing wrong with more subtle upgrades. But then again, big companies need big tax right-offs. As long as their prices do not rise too much along with the new look.
10-10-2009 @ 8:09AM
hunter.cox277 said...
i don't see why there changing it i like this one better
10-10-2009 @ 9:19AM
halc947 said...
I dont care if Burger King gives out peices of gold with their food,I still wouldnt eat there!! They have garbage!! No wasted $$ on a makeover is going to help them! Tina already said what I feel!! Stop throwing away$$$,Help the poor!!
10-10-2009 @ 9:26AM
Big Guy said...
They need to change and update. What they need o work on is firendly team memebrs who actually care about taking cre of us when we choose to eat their. You can remodel all you want but that doesnt change the atmosphere that is created by the team members.
10-10-2009 @ 9:26AM
nicklebeer said...
Its not a new design that will make the difference. It is and always will be the attitude that each management team creates or their employees.
When all said and done it comes down to how we are treated when we come into any business to spend our money.
The top dogs at BK should alreay know this!!
10-10-2009 @ 10:29AM
Glenn said...
I'm a Burger King Franchise Owner, responding to Tina who thinks we should take all the money we invested in the business, and now give it away to the homeless and hungry. I was once hungry and worked my way up to now have several franchises. Didn't need a handout If we want to draw more customers by investing more of our own money, then we will. We sell a product that people want. If you don't want it, don't buy it. The fat people will find somewhere to buy their 30+ fat. We also have salads, grilled chicken and fish. Burger King didn't make people fat. People made themselves fat.
We scale our facilities up to gain more market share. This helps the economy. The more successful we are, the more we will build and the more people will be employed. This is America. We have a right to free enterprise. How dare you tell me to give everything away to the homeless and the lazy. How dare you.
10-10-2009 @ 12:08PM
Jlink856 said...
I Agree with Glen just think of the jobs created by the renovations and building supplies!
10-10-2009 @ 5:36PM
Shannon said...
glenn...you own BKs...good for you but you dont need to be so rude...people can have opinions....and i agree what the company is doing is good and will employ people to do it..good idea in my mind...but to be rude towards over weight people is wrong! how many people do you think want to support your company when you insult them....maybe my fat ass will go somewhere else now...