Burger King UK to open 60 new restaurants in whopper expansion

Burger King UK has secured £35m in additional funding from its shareholder Bridgepoint, which will support the fast food giant's plans to add over 60 restaurants to its estate over the next two years.

In 2022, the group opened 32 new Burger King UK owned restaurants and acquired 74 from its largest franchising partner, Karali Group.

The chain also launched an extensive remodelling programme, which saw 32 restaurants upgraded and £1m invested into its flagship restaurant in London's Leicester Square. Burger King UK said it was preparing to redevelop ten further restaurants in 2023.

Total revenue at the chain jumped by 39% to £294.5m in 2022, while like-for-like sales grew 11%.

However, underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) halved to £15.2m, down from £33.1m in 2021, with the chain blaming a "significant rise" in food inflation and higher energy prices.

Burger King UK posted an operating loss for the year of £20.6m compared to a profit of £33.5m in 2021, which it said was partly due to the acquisition of the 74 Karali Group restaurants.

Alasdair Murdoch, chief executive of Burger King UK, said: "We have continued our rapid expansion in the UK and delivered good growth during the year, despite industry-wide headwinds.

"Looking ahead we see significant opportunity for further growth and are encouraged by the strong pipeline of new openings, supported by additional funding from Bridgepoint."

As of 27 September 2023, Burger King UK operates 553 restaurants, 279 of which are directly owned. The remainder are sub-franchises.

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