'I'm lovin it' - 4 new charts on Quick Service Restaurants
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You may hate it, but quick service restaurants (QSRs) are becoming increasingly dominating and popular. They are always quick, convenient, and cheap. And in recent years, they are cleaner, healthier, and even trendier. Many of them are now household brands. Let’s take a closer look.
Who are the largest QSR brands in US? McDonald’s raked in $46B sales in 2021. Starbucks $24B. Chick-Fil-A did an impressive $16.7B. These are not small numbers. And it’s not a winner take all industry.
Another way to gauge size is through number of stores. Subway ranks #1 (shows how inefficeint it is). Starbucks has more stores than McDonald’s in US, albeit lower sales. Chick-Fil-A is by far the most efficient with just 2.7K stores, yet making $16B sales.
Food, water, clothing, shelter, sleep - these are our basic needs as humans, and some of the most lucrative and in-demand industries. Some of the world's oldest food companies have been around for around 200 years already (Cadbury was established in 1824!) and are showing no signs of slowing down any time soon.
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McDonald’s has an impressive 4 decades of steady store growth - shows how well-run the company is through ups and downs, and with the help of well-managed franchisee model that fueled growth. Wendy’s not so much on the other hand.
A deeper look at McDonald’s revenue segment and profitability. It makes more revenue from international markets than US. 30% operating margin and 21% net margin are solid, healthy and not excessive, which otherwise will induce more competition and price wars.
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See you next Wednesday with some new charts!
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