In this article, we will look at some of the world’s top fast food chains. You can skip our discussion on fast food industry growth and go to the 5 Largest Fast Food Chains in the World.
The worldwide fast food sector is thriving as the younger demographic remains its biggest customer. The market for fast food is anticipated to grow at a CAGR of 4.6 percent from 2020 to 2027, reaching $931.7 billion.
The ongoing changes in consumer preferences and taste, increase in the number of fast food restaurants, international cuisines, availability of tech-savvy ordering alternatives, and the number of working women all point to the fast food market experiencing significant growth during the projection period.
Latest Fast Food Industry Trends And Analysis
The popularity of specialist diets, which range from low carb and keto to plant-based and vegan, has compelled even fast food chains to make changes. Due to the rapid advancement of technology, customers now want the utmost comfort and convenience in everything they do. Fast food outlets that wish to remain in business are quick to respond to these consumer needs. The latest food chain related statistics show:
- In 2021, the total consumer spending in the QSR (Quick Service Restaurants) sector in the United States was $304.8 billion, greater than the previous year’s total of $272 billion.
- Sales at fast food restaurants serving hamburgers make up 30% of the total sales, as of 2020.
- Fast-casual and fast-food restaurants make up 50% of the whole restaurant industry’s sales.
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Is the Fast Food Sector Expanding?
Yes, there is steady growth in the fast food industry. The COVID-19 epidemic reduced the fast food sector by almost 20% between 2019 and 2020, but it soon recovered; by the end of 2021, the market is expected to be $3 billion larger than it was in 2019.
The top ten global fast food chains are driving their enormous expansion due to continually rising market performance and revenues coupled with outstanding product sales. These chains are noted for their distinctive branding and well-known menu items around the globe.
Fast food chains offer affordable food which is why they see increased interest from consumers during recessions. The Fed has been aggressively increasing the interest rates this year which will more likely push the US economy into a recession next year. The financial markets already started pricing in the possibility of a recession into the asset prices. As a result, fast food chains stocks like Wendys (WEN) have been outperforming the S&P 500 Index this year. We expect this trend to continue until the markets bottom.
Our Methodology
We listed some of the notable fast food companies in the world based on their market cap.
10. Wendys Co
Market Cap: $4.23 Billion
This ranking of the top 10 largest fast food chains worldwide also includes Wendys Co (NASDAQ:WEN). Dave Thomas established Wendy’s Company fast food restaurant brand in Columbus, Ohio, on November 15, 1969. The fast food restaurant brand is well-known for its soft-serve ice cream (Frosty), sea salt fries, and square hamburgers.
The main items on Wendy’s Company menu include drinks, hamburgers, French fries, and chicken sandwiches. There are 6711 restaurants spread over the globe.
9. Dunkin’
Valuation: $11 Billion
Dunkin’ is a popular eatery that serves baked goods and coffee and sells more than 50 different kinds of doughnuts in addition to high-end breakfast sandwiches, bagels, and beverages. Bill Rosenberg established the business in 1951, and in 1955 it filed its first franchise contract. Dunkin’ owns the business with more than 130 years of franchise experience. With its headquarters in Quincy, Massachusetts, Dunkin’ operates more than 12,900 locations, 8,500 in the 41 US states, and over 3,200 in other nations.
8. Domino’s Pizza
Market Cap: $11.3 Billion
One of the top fast food companies in the world, Domino’s Pizza (NYSE:DPZ) operates in more than 17,000 locations across 90 countries. The company offers different flavors and types of pizza, such as traditional hand-tossed pizza, pizza with crunchy, thick crusts, and pizza made in Brooklyn. The majority of Domino’s (NYSE: DPZ) restaurants in the US are owned by franchises—more than 94%.
Domino’s (NYSE: DPZ) menu also has in-house sandwiches, bread bowls, and pasta.
7. Darden Restaurant
Market Cap: $16 Billion
Darden (NYSE:DRI) is the 7th largest fast food chains in the world. Darden is a complete service restaurant business that offers all restaurant services. Its significant segments include fine dining, LongHorn Steakhouse, Olive Garden. The largest operator of Italian full-service restaurants is the Olive Garden division. The Eddie V’s and Capital Grille restaurants are included in the Fine Dining segment, comprising the top brands within the full-service dining’s fine-dining subsegment. The remaining brands are combined in the Other Business section, including sales from consumer packaged goods and the company-owned restaurant’s Yard House, Cheddar’s Scratch Kitchen, Bahama Breeze, and Seasons 52. The Darden company (NYSE: DRI) is headquartered in Orlando, Florida, and was established in 1938 by William B. Darden.
6. Yum China Holdings
Market Cap: $19 Billion
Yum China (NYSE:YUMC) is a Fortune 500 American fast-food franchise founded in 2016, with its headquarters in Shanghai, China. Yum China (NYSE: YUMC) was founded in the US. The business holds an equity or has ownership in firms that run restaurants. Its segments include Pizza Hut, KFC, Little Sheep, Lavazza, Huang Ji Huang, COFFii & JOY, East Dawning, Taco Bell, and Daojia.
In China, KFC is the leading QSR (quick-service restaurant) brand. In over 1,600 cities, KFC runs about 8,100 restaurants across China. Pizza Hut is the leading CDR (casual dining restaurant) brand and has 2,500 restaurants in more than 600 towns. In 2020, Yum China (NYSE: YUMC) was ranked 361st on the Fortune 500 list.
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Disclosure: None. 10 Largest Fast Food Chains In The World is originally published on Insider Monkey.