Under pressure from the US government, consumer health advocate groups and a desire to boost the bottom-line, burger joints have begun to introduce “healthy menu alternatives” to their customers.
Most of these attempts of had little impact on sales of the largest fast-food restaurants.
But that’s not surprising. You wouldn’t think of McDonalds or Wendy’s as your first choice if you want to eat out healthy.
So will Burger King (BKW) fair any better with their new low-fat fries… Satisfries? Those low-fat fries they introduced this week with 40% less fat and 30% less calories?
For starters, Burger King is not trying to supplement their successful “burger fair” with a larger “me-too” healthy choice menu.
Instead, they are tempting addictive fry market junkies and faithful family customers with a favorite low-fat alternative, but hoping they continue return to spend across the rest of the standard BK menu.
What does it mean for Burger King the stock?
With their share price up 40% since the beginning of the year, Burger King continues to make headway against some of the fast food heavy weights.
Modernizing stores … moving to a franchise model… international expansion and a focused management team has produced a reasonable valuation for a relatively new company to the public markets.
They have a long way to go, but “Satisfries” could be the first course of a Burger King strategy to continue to quietly sneak up on the fast-food “big boys” and reward patient shareholders.