Send me real-time posts from this site at my email
Motley Fool

Popeyes Chicken Sandwich Causes Sales to Jump 42% Higher

Popeyes Louisiana Kitchen conquered the chicken sandwich wars as Restaurant Brands International (NYSE: QSR) reported sales for the fried chicken chain surged 42% in the fourth quarter after the sandwich was reintroduced.

The restaurant operator said the chicken sandwich "has proven to be a game changer for the brand in every way," as comparable store sales spiked over 34% for the period. The success of the menu item is likely to overshadow the results from Restaurant Brands' Burger King chain, which also delivered its strongest period of growth in over two decades.

Image source: Getty Images.

Ruffling feathers in the quick-serve space

Popeyes reinvigorated the chicken sandwich category. While Chick-fil-A had long been the province of the premiere chicken sandwich, the industry was upended by Popeyes spicy chicken offering. It sold out within weeks when it was first introduced, and lines formed around the block in some locations when it was brought back in November.

It set off a scramble among competitors like Wendy's to tout their own sandwich, and had McDonald's franchisees clamoring for the burger chain to finally introduce its own "world class" chicken sandwich.

Sales at Popeyes rocketed to $1.3 billion from $934 million a year ago in the fourth quarter, and full year sales were 18.5% higher at $4.4 billion. The meteoric rise, however, is likely to create something of a letdown when the restaurant chain reports first quarter 2020 results, and it will be a difficult hurdle to get over a year from now as well.

10 stocks we like better than Restaurant Brands International
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Restaurant Brands International wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of December 1, 2019

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


Popular posts

Welcome!!! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue