Burger King Worldwide, Inc. (BKW) is reintroducing the popular Yumbo ham-and-cheese sandwich, after a 40-year long wait, according to Bloomberg. The sandwich will be offered for a limited time and has been priced at $3.69. Further, it will be included in Burger King’s two-for-$5 deal.
The sandwich was launched in 1968 and officially taken off the menu in 1974. After repeated customer requests over the years to bring the item back, the Miami-based company seems to have responded.
In a vastly competitive fast food market, Burger King is trying to drive traffic by re-launching such favorites. In August, the company reportedly brought back the immensely popular Chicken Fries for a limited period.
Additionally, with the beef prices at an all-time high, Burger King is looking to add more chicken and pork items to its menu to counter the rise.
In fact, according to data by U.S. Department of Agriculture, as of Jul 1, cattle inventories were at their lowest since records began in 1973. This crisis, primarily stemming from prolonged drought in the southern U.S. Great Plains, has led to the increase in retail beef costs. Therefore, restaurants are striving to find cheaper alternatives.
We believe Burger King’s reintroduction aims to drive sales without compromising on its margins. The huge popularity of the item is an added positive for the burger chain to differentiate itself from peers.
Burger King Worldwide carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include BJ's Restaurants, Inc. (BJRI), Ruby Tuesday, Inc. (RT) and DineEquity, Inc. (DIN). All these stocks sport a Zacks Rank #1 (Strong Buy).
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