Filed under: Forecasts, Industry, Competitive strategy, China, McDonald’s (MCD), Burger King Hldgs (BKC), Japan
Management at Burger King (NYSE:BKC) believes that it can increase its sales in Asia, especially China, to improve overseas sales above their current third of overall company revenue.
It will begin opening stores in big Asia counties at a more rapid clip. Chief Executive John Chidsey told Reuters the drive would eventually help the company rake in half its revenue from non-U.S. markets in four to five years, as the burger chain returns to key markets such as Japan that it had pulled out of in the 1990s where the wire service notes it was “pummeled by heated competition.”
That little “pummeled by heated competition” notation may come back to haunt the company.
Everywhere Burger King goes, it will find McDonald’s (NYSE:MCD). The more massive chain has probably been very good and picking the best locations for its stores. That leaves it smaller rival at a disadvantage.
There are also plenty of local chains in China and Japan selling burgers, fast food, and the like. The appetite for Western-style fat foods was established itself in Asia long ago.
Burger King should not count its chickens before they’re hatched.
Douglas A. McIntyre is an editor at 247wallst.com.
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