Fast Food Fact Results

Topics: Fast food, Fast food restaurant, Hamburger Pages: 236 (52447 words) Published: January 8, 2013
Results Overview of fast food market
Fast food market Fast food restaurant Definitions Fast food restaurants feature a common menu above the counter; they provide no wait staff; and customers typically pay before eating and choose and clear their own tables. These restaurants are also known as quick serve restaurants (QSRs). Main type of food sold at the restaurant, including burgers, sandwiches, snacks, Mexican food, and pizza. sales. The next four, Subway, Burger King, Starbucks, and Wendy’s, had $8 to $10 billion each in sales and 6% to 7% of the market. The three YUM! Brands restaurants in the top 20 (Taco Bell, Pizza Hut, and KFC) ranked sixth, seventh, and ninth individually. Together their sales totaled $16.7 billion, or 12% of the market, and placed YUM! Brands in second place behind McDonald’s. The restaurants in our analysis represent several different segments of the fast food market including burgers (McDonald’s, Burger King, Wendy’s, Sonic, and Dairy Queen), sandwiches (Subway), snacks (Starbucks and Dunkin’ Donuts), Mexican food (Taco Bell), pizza (Pizza Hut and Domino’s), and chicken (KFC).4 The number of U.S. locations of these twelve restaurants totaled almost 100,000 and ranged from approximately 3,500 Sonic restaurants to almost 24,000 Subway restaurants. These twelve restaurants comprised 41% of locations for the top 50 restaurants.

Fast food segment

Table 2 presents 2008 and 2009 sales data for the twenty largest fast food restaurants in the United States and highlights the twelve restaurants included in our full analysis. In addition to the ten restaurants with the highest sales in 2008 and 2009, we have also included Domino’s and Dairy Queen in our analysis due to the large number of TV advertisements seen by children for these restaurants. In 2008, Domino’s ranked ninth in the amount of TV advertising seen by children, Arby’s ranked tenth and Dairy Queen ranked eleventh. In 2009, Arby’s reduced its TV advertising by 40% and fell to thirteenth whereas Dairy Queen rose to tenth. Therefore, we have included Dairy Queen, but not Arby’s, in the full analysis. The top 20 fast food restaurants totaled $117 billion in sales in 2009, 85% of sales for the top 50 restaurants; and sales for the twelve restaurants in our full analysis totaled $98 billion representing 71% of sales. McDonald’s led the market with $30 billion in sales, a 22% share of the top 50 restaurant Table 2: Sales of top 20 fast food restaurants 2008 sales ranking Parent company 1 McDonald’s 2 Doctor’s Associates 3 TPG Capital 4 Starbucks Corporation 5 Wendy’s Arby’s Group 6 YUM! Brands 7 YUM! Brands 8 Dunkin’ Brands 9 YUM! Brands 10 Sonic Corp. 11 Wendy’s Arby’s Group 12 Jack in the Box 13 Domino’s Pizza 14 Chick-fil-A 15 Panera Bread 16 Berkshire Hathaway 17 Papa John’s 18 CKE Restaurants 19 Quizno’s Corporation 20 AFC Enterprises Twelve restaurants in our analysis Top 20 restaurants Top 50 restaurants Source: QSR News (2009, 2010) Restaurant McDonald’s Subway Burger King Starbucks Wendy’s Taco Bell Pizza Hut Dunkin’ Donuts KFC Sonic Arby’s Jack in the Box Domino’s Chick-fil-A Panera Bread Dairy Queen Papa John’s Hardee’s Quizno’s Popeye’s

2008 sales (mill)1 $30,025 $9,600 $9,348 $8,750 $8,013 $6,700 $5,500 $5,500 $5,200 $3,811 $3,372 $3,080 $3,055 $2,962 $2,648 $2,519 $2,034 $1,680 $1,660 $1,593 $98,021 $117,050 $137,411

2009 sales (mill)2 $31,000 $10,000 $9,000 $8,347 $8,388 $6,800 $5,000 $5,700 $4,900 $3,837 $3,229 $3,072 $3,031 $3,217 $2,797 $2,640 $2,057 $1,660 $1,777 $1,597 $98,643 $118,049 $138,536

Number of U.S. locations3 13,980 23,034 7,250 11,128 5,877 5,604 7,566 6,566 5,162 3,544 3,596 2,212 4,937 1,480 1,304 4,540 2,781 1,905 4,203 1,576 99,188 118,245 243,693

Fast Food FACTS


Results Fast food menu composition
In the following menu composition analysis, we first describe the range of individual menu items and special menus that were available on January 15, 2010 at the twelve restaurants. We then...
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