Burger King to Give Away Kid’s Meals as U.S. Schools Shut Down

Burger King’s U.S. restaurants will soon begin offering two free kids meals per adult meal, said Jose Cil, Chief Executive Officer of parent companyRestaurant Brands International Inc.

  • The offer is for food ordered online or through Burger King’s mobile-phone app, Cil said in an interview Tuesday. The executive spoke after an earlier conference call with President Trump and restaurant industry leaders.

Key Insights

  • Burger King and others on the call discussed federal aid for small business owners for the largely franchised restaurant industry. Cil said that the crisis team at Restaurant Brands, which also owns the Popeyes and Tim Hortons brands, has been focused on coronavirus since January. The company is working with its franchisees on a case-by-case basis to determine whether to provide aid.
  • “We work closely with each of our franchisees,” he said. “We’re going to get through this. We have a strong franchise system and a very strong franchise model.” Concerns are high about the industry, however: Areport Tuesday from Challenger, Gray & Christmas Inc. said that the coronavirus-related shutdown could eliminate 7.4 million restaurant jobs.
  • Restaurants across the U.S. including those owned by Restaurant Brands International, are shifting to mostly takeout, delivery and drive-thru to minimize human contact.

Market Reaction

  • The worsening outbreak has hit restaurant shares hard, and Restaurant Brands is no exception. The stock has fallen by almost 50% in 2020, more than double the decline of the S&P 500 Index.

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