Jonathan Stempel

OMAHA, Neb. (Reuters] – Dairy Queen plans to look to China, India and maybe even India as growth drivers. It also hopes to appeal to more American and Canadian customers with a revamped burger selection.

Troy Bader has been the Chief Executive of International Dairy Queen Inc (NYSE:) Inc since 2018 and expects international markets, which Warren Buffett purchased in 1998, to grow the 82-year old restaurant chain.

China is Dairy Queen’s third largest market in terms of sales, and the second-largest by number of stores. There are more than 1100 outlets. FountainVest Partners and Bloomington-based Dairy Queen are teaming up to increase their 600 stores by 2030.

Bader, who is 57 years old, stated that “What we have seen over the time is an ever-growing middle and income levels China,” which made his brand and products more accessible during a Berkshire annual shareholder weekend on April 29.

Dairy Queen operates more than 7000 locations across 20 countries. There are no Dairy Queen stores in Russia and Ukraine.

Bader stated that India might be the next to stop international growth, even though it was delayed by the pandemic.

It’s on the top of our priority list, he stated. Once we feel confident that traveling is safe and understand Indian consumers and businesses, then we will have a more positive feeling. “I’m not in hurry.”

Bader reports directly to Greg Abel (Berkshire Vice Chairman), who Bader described as “incredibly astute”, a fast learner, and a very quick student ()Willing to learn. They both took their positions the following month.

Dairy Queen revenues topped $5.5 Billion in 2021. Sales at new stores opened at least one year increased 18% over 2019.

Bader was born in Rugby, North Dakota. He is less than an hour drive from Canada’s border.

He now eats Dairy Queen products at minimum three times per week. Buffett likes Vanilla Orange Bars.

Bader stated that franchisees had difficulties in the initial weeks of the pandemic, but customers eventually decided it was safe and they began ordering more.

Although sales of frozen foods, like Blizzards and chicken strips are roughly evenly divided, Dairy Queen recognized a need for a better burger.

Five Stackburgers were created, including the FlameThrower, with pepper Jack cheese, jalapeno, bacon, lettuce, tomato and the Loaded A.1 loaded with A.1 steak, peppercorn sauce and smoked bacon.

Bader explained that before March’s rollout, the burgers went through a string of sensory testing and were tested in more than 100 U.S. or Canadian locations. They are served at DQ Grill & Chill restaurants.

He stated, “This was a major change for our systems.” We weren’t adding product, we were also removing and replacing our existing burger lines.

Dairy Queen has been experiencing problems with its supply chain, which includes lockdowns and shortages in China.

As distributors have difficulty replacing the equipment that was damaged in the previous two years, vehicles are in limited supply.

Bader explained, “It could change next week. But that’s where it’s feeling the most pressure right currently.”