Walmart (WMT) has announced a new partnership with Restaurant Brands’ (QSR) Burger King, bringing exclusive meal discounts to Walmart+ members.
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Why Has Walmart Partnered with Burger King?
The new partnership shows Walmart’s strategy to enhance the value of its Walmart+ membership, catering to busy lifestyles where convenience is key. Walmart has highlighted that this collaboration is designed “to save members time and money,” addressing the needs of customers who may not always find time for grocery shopping, meal planning, or cooking.
In the context of broader retail trends, this move comes as both retailers and fast-food chains are introducing value-driven deals to attract cost-conscious consumers. Walmart+ is priced competitively at $12.95 per month or $98 annually and includes various benefits like free shipping and Paramount+ streaming, reinforcing Walmart’s commitment to providing added value.
Is Walmart+ Trying to Compete With Amazon Prime?
This new initiative could also impact the competition between Walmart+ and Amazon Prime (AMZN). Amazon’s recent offer, which provides Prime members with access to Grubhub+ through its app, contrasts with Walmart+’s new benefits aimed at enhancing its value proposition. Data from PYMNTS Intelligence indicates that while Amazon Prime currently leads in subscriptions, Walmart+ is expanding more rapidly, with membership rising by over 6.8% year-over-year compared to a 3% increase for Amazon Prime.
Is Walmart a Buy, Sell, or Hold?
Analysts remain bullish about WMT stock, with a Strong Buy consensus rating based on 27 Buys and three Holds. Over the past year, WMT has surged by more than 40%, and the average WMT price target of $74.11 implies a downside potential of 2.5% from current levels.
