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Burger King Is Flourishing While McDonald's Suffers

Sales are up by 9.6 percent this quarter.

Thomas Lohnes/Getty Images

Burger King has made a ton of money since it moved its headquarters to Canada. Last year, the chain announced that it was acquiring Tim Hortons for $11.4 billion and that its operations would be moved to Canada. According to a press release, Restaurant Brands International Inc. — BK's parent company — is reporting a "sharp increase" in sales in the first financial quarter. Overall, sales climbed by 9.6 percent for Burger King, while same-store sales were up an impressive 4.6 percent. Analysts had predicted that same store sales would only be 2.5 percent. Revenue was also up: The company's quarterly financial report notes that the company saw $249.6 million in revenue. Plus, the chain managed to open 15 new locations in that time frame, which means the chain now has well over 14,000 stores world wide. The company called the financial quarter "one of its best" for both Burger King and Tim Horton.

The same cannot be said for McDonald's, unfortunately. McDonald's revealed earlier this month that it plans to close 220 under-performing restaurants in an effort to keep costs down. This is on top of the 350 restaurants the company already shuttered during the quarter, which means the number of McDonald's stores is now under 36,000. While Burger King's same-store sales increased drastically, McDonald's same-store sales fell by 2.6 percent and overall sales dropped by 2.3 percent. And as Burger King saw its revenue rise, McDonald's revenue dropped: The company earned over $5.96 billion this quarter, a drop from the $6.7 billion that it earned in the same quarter in 2014. McDonald's is looking to combat slumping sales with offers like all-day breakfast, but perhaps the company should follow in Burger King's footsteps and create some, err, unconventional advertising.

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