020515 Who's Winning the Burger Wars?May 7, 2002New York - McDonald's Corp.'s share of the fast-food hamburger market dipped last year, while No. 3 hamburger chain Wendy's International Inc. boosted its market share for the fifth straight year, according to a survey issued by a food service consulting firm. McDonald's, the world's biggest restaurant operator, had a 43 percent share of the hamburger quick service restaurant market in 2001, down from 43.1 percent in 2000 and 1999, Technomic said Thursday in its annual study of leading hamburger chains. No. 2 hamburger chain, Burger King also saw its market share decline. Burger King, which is being auctioned off by its U.K. parent Diageo Plc., saw its share fall to 18.4 percent from 18.8 percent in 2000 and 19.6 percent in 1999, said Technomic. Wendy's share of the market rose to 13.2 percent last year from 12.7 percent in 2000 and 12.2 percent in 1999. Unlike its two bigger rivals which compete on price, Wendy's is boosting share without discounting core menu items, said Technomic executive vice president Dennis Lombardi. "Wendy's has consistently held to a two-tiered pricing menu -- an everyday value menu, and an adult- focused menu that is not discounted. The strategy is paying off for them," Lombardi said. Wendy's on Wednesday, posted a 12 percent rise in quarterly net income and forecast robust comparable sales growth for the month of April. In contrast, McDonald's last month reported its sixth straight quarterly earnings decline. The Oak Brook, Illinois company is struggling to reverse two years of disappointing results amid sluggish U.S. sales and a perception of bad food and service. Also gaining market share last year was Jack in the Box Inc., the nation's fourth-largest hamburger chain, whose share rose to 4.6 percent last year, from 4.4 percent in 2000. Finally, Sonic Corp., operator of the nation's biggest chain of drive-ins, had a 4.3 percent market share last year, up from 4 percent in 2000, according to Technomic.
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