New York Post: Burger Rivals

Rivals are bringing the burger wars home to McDonald’s.

The world’s biggest hamburger chain posted its first monthly sales decline in nearly a decade as reinvigorated fast-food rivals fight back.

After years of battling each other for second place as they struggled to keep up with McDonald’s, Wendy’s and Burger King are starting to steal market share, analysts said.

With the backing of hedge-fund investors, both chains have undergone transformations in recent months that include revamping their menus, remodeling their stores and honing their marketing.

McDonald’s yesterday said October same-store sales in the US fell 2.2 percent, even more than the global 1.8 percent decline. It marked the first monthly decline since 2003.

The news sent the shares down nearly 2 percent, to $85.13.

“It seems both Wendy’s and Burger King are taking share,” said Sara Senatore, a senior analyst at Sanford C. Bernstein & Co.

Wendy’s, controlled by buyout kingpin Nelson Peltz, is quickly moving to higher price points and premium products, an effort that is paying off with sales gains.

Last quarter, Wendy’s dropped its low-price W Burger so customers would buy more expensive items such as the Bacon Portabella Melt and the Asiago Ranch chicken sandwich.

Yesterday, the chain reported a 2.7 percent increase in same-store sales in the latest quarter, its sixth straight quarter of gains.

Wendy’s CEO Emil Brolick, who came on board about a year ago, is making over the chain. The idea is to compete directly against Five Guys as Wendy’s remodels its stores, which still look like they did in the late 1970s.

Franchisees need to decide if they are willing to invest in the expensive renovations, according to Pacific Management Consulting Group Principal John Gordon.

Wendy’s also plans to push forward with a breakfast menu — a new offering for the chain.

Burger King’s launch of salads, wraps and smoothies helped boost sales, Santore said.

Burger King’s largest franchisee, Carolls Restaurant Group, last week reported same-store sales for the quarter jumped 6.2 percent.

The chain has started to invest again in the brand after going public in April. The moves follow an effort by Burger King’s hedge-fund owners to turn it around after it had languished for years with crippling debt. Bill Ackman, founder of hedge fund Pershing Square Capital Management, also took a 10 percent stake.

Meanwhile, McDonald’s has been shifting to lower price points and pushing its dollar menu, in an attempt to boost same-store sales.

It’s a big change from just last year. In 2011, McDonald’s saw a 5 percent rise in US store sales, Wendy’s grew 2 percent and Burger King fell 3 percent.

“I do see the risk to McDonald’s” as both competing chains get stronger and start to differentiate their offerings, Gordon said.