Burger King’s new fries are supposed to make you less fat. But will its stock add more muscle to your portfolio?
It’s the second-biggest myth in fast food, just behind unicorn burgers – the low fat French fry. And now Burger King is releasing a lower fat, lower calorie French fry to compete with the true king of burgers, McDonald’s.
Burger King’s “Satisfries” has 40% less fat and 30% less calories than McDonald’s fries. A standard serving of “Satisfries” contains 8 grams of fat and 190 calories, about three-fourths of a Snickers candy bar.
While McDonald’s may be what Burger King is aiming for, one other target may actually be the second-highest grossing fast food chain in the United States.
Subway’s total annual revenues of over $18 billion put it well behind McDonald’s $27.8 billion, but the sandwich restaurant has 40,319 locations compared to the Golden Arch’s 34,000. Burger King’s 12,667 restaurants generate only $1.5 billion in revenue. But, if Burger King plans on taking on number one, it will first have to overtake number two.
Where Subway has successfully positioned itself is as a healthy alternative to McDonald’s, Wendy’s, and Burger King. Subway doesn’t sell French fries, though a “$5 Footlong” sandwich of steak, egg, and cheese has 430 calories and 15 grams of fat compared to the McDonald Big Mac’s 550 calories and 29 grams of fat. Burger King’s Whopper has 1160 calories and 12.5 grams of fat.
Is this a one-time gimmick or does it signal a change in how Burger King plans to do business?
Analyzing what’s next for Burger King based on its fundamentals is CNBC contributor Andy Busch, author and publisher of the Busch Update. Checking the how healthy Burger King’s charts are is Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grasyon.
Watch the video above to see Busch and Ross analyze whether you should want to buy the stock and if you want fries with that.
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