Burger King is heavily dependent on a wide array of agricultural commodities such as beef, corn, cheese and poultry. Over the past few years, the prices of these commodities have increased drastically; on the other hand, intense competition in the QSR industry limits Arby's and Wendy's ability to pass these costs onto customers. Burger King saw fourth quarter margins fall fallto 13.1% from 14.8% a year ago.
Domestic sales growth at the 500 largest U.S. restaurant chains fell to 3.4 percent in 2008, a decrease from 5 percent the previous year, Technomic Inc, a foodservice consultant, said on Monday.