In this article, we will talk about the 20 most popular fast-food restaurants in the world. If you want to skip our detailed analysis, you can head straight to the 5 Most Popular Fast Food Restaurants In The World.
Fast Food Industry: An Overview
Fast food provides a quick, tasty meal at a good value. Ever since the introduction of fast food, there has been a consistent rise in demand. Like all other industries, the pandemic posed challenges for the fast food industry. People were social distancing, and the dine-out culture took a hit. However, the fast food industry has been recovering from the impact. In many cases, fast food chains have bounced back even stronger.
The fast recovery of the industry can be attributed largely to how quickly the restaurants adapted to the dynamic environment during the pandemic. On March 27, Forbes reported that in the US, 30% of restaurants used online ordering and payment while 26% introduced delivery and takeout services, and 41% of the customers said they were more likely to use these services in 2023, compared to 2019. On January 28, the Wall Street Journal reported that in the US, in 2022, 85% of all orders were taken to go. Many restaurants switched to paperless menus as well.
According to a report by IMARC Group, the fast-food industry was valued at $243.9 billion in 2022 and is estimated to grow to $319.7 billion by 2028 at a compound annual growth rate of 4.7%. According to a report by Precedence Research, North America dominated the fast food market in 2021 with a revenue share of 28%. The large share in the global market of this region can be attributed to dual-working households and high household incomes. The United States has the highest fast food consumption in the world. The fast food industry in the United States accounts for almost one-third of the overall global fast food market.
Mexico has been predicted to have the highest CAGR from 2021 to 2028 which can be attributed to lifestyle changes and increased tourism. According to a report by Zion Market Research, the fast food industry has various segments, including end-user, product type, and region; the end user is further segmented into quick-service restaurants, fast-casual restaurants, and others.
Globalization, industrialization, and urbanization have all combined to amplify the demand for fast-food restaurants. Fast food restaurants assemble and sell precooked food, the main factor in their quick service. Despite the rapid recovery from the pandemic and increased consumer spending capacity, fast food restaurants still face challenges like inflation. Food prices are constantly rising, also causing the prices of the end products to increase. On March 8, Bloomberg published an article saying that 60% of the restaurants in the US mentioned that they are understaffed and labor woes are impacting restaurant chains including Domino’s Pizza, Inc.(NYSE:DPZ). According to the US Bureau of Labor Statistics, the food industry is expected to have the highest employment upsurge from 2021 to 2031, adding 1.3 million jobs, mainly to fill the large vacancies created by layoffs during the pandemic.
Recent Tech Advancements
Fast-food restaurants are incorporating new technological advancements to maximize their efficiency. Many restaurants have started using AI Chatbots to take orders at the drive-thru. On July 10, Bloomberg reported that chatbots can reduce restaurant labor requirements by 40 hours a week. The introduction of AI could significantly impact how the labor market will look like in a few years, as the fast food industry is the fourth largest industry in the US and makes up 8% of all jobs. The trend towards cloud kitchens is also increasing. Fast food restaurants are turning towards automation in production as well. On August 2, Reuters reported that Starbucks Corporation (NASDAQ:SBUX) will roll out an automated coffee-making machine in 10% of its stores by 2024. Chipotle Mexican Grill, Inc. (NYSE:CMG) introduced a robot prototype that cuts and peels avocados, reducing prep time by 50%, and a double-sided grill that cooks 70% faster than the normal ones. According to a report by the National Restaurant Association, 58% of restaurant operators are turning towards automation and technology to cater to the looming labor shortages. Tech advancements could potentially change how the fast-food industry will look in a few years.
Noteworthy Names In The Fast Food Industry
Despite the possibility of a global recession, the restaurant industry is booming and earnings are showing constant growth. Some of the largest players in the fast food restaurant industry include Restaurant Brands International Inc.(NYSE:QSR), McDonald’s Corporation(NYSE:MCD), and Domino’s Pizza, Inc.(NYSE:DPZ). McDonald’s Corporation(NYSE:MCD) is one of the most valuable food companies in the world.
Domino’s Pizza, Inc.(NYSE:DPZ) has recently reported high earnings despite inflation. Domino’s makes pizza taste familiar to consumers by incorporating local flavors into the menu. Domino’s Pizza, Inc.(NYSE:DPZ) sells the 49-rupee ($0.60) pizza in India, which is the cheapest pizza in the world. On July 24, the company reported earnings for the fiscal second quarter of 2023. The company reported earnings per share of $3.08 and beat EPS estimates by $0.02. The company’s revenue for the quarter amounted to $1.02 billion. Here are some comments from the Q2 earnings call regarding how the company plans on increasing its profitability in the long term:
“First, pricing. During the second quarter, the average price increase across our US system was 3.9%. We expect average pricing to be similar in the third quarter before moderating in the fourth quarter to approximately 2%, when we left the carryout Mix & Match pricing change from October 2022. Second, cost efficiencies as we continue to drive margin recovery. We drove improvement in our operating income margin, which grew by 240 basis points versus Q2 2022. This was despite foreign exchange rates having a 15 basis points negative year-over-year impact on operating income margin during the quarter.
We now expect full-year operating income margins in 2023 to reach or exceed 2019 levels. Third, positive same store sales growth excluding foreign currency impact in our US and international businesses for the third consecutive quarter drove operating income improvement. Now for our financial results for the quarter. Excluding the negative impact of foreign currency, global retail sales grew 5.8% due to positive sales comps and global net store growth. US retail sales increased 1.7%. International retail sales, excluding the negative impact of currency, grew 10.1%. During Q2, same store sales for the US business increased 0.1%. The increase in US same store sales was driven by a higher average ticket, including the pricing actions I mentioned earlier, partially offset by order count declines.
Our carryout business remained strong in Q2, with same store sales plus 5.6%, rolling over a plus 14.6% performance in 2022. The US delivery business continues to be challenged. Q2 delivery same store sales declined 3.5%, rolling over a minus 11.7% in Q2 2022. We expect Q3 same store sales trends in our delivery business to be challenged, similar to Q2. However, we expect a slight improvement in trend in Q4 as our updated loyalty program begins to roll out, followed by a considerable improvement in 2024 as a result of transaction growth from our Uber Eats partnership and other initiatives Russell has shared with you. Shifting to unit count. We added 27 net new stores in the US with 30 store openings and three closures, bringing our US system store count to 6,735 stores at the end of the quarter and our four quarter net store growth rate in the US to 1.8%.”
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Our Methodology
To make our list of the most popular restaurants in the world, we initially extracted the names of the top 50 fast food restaurants from Technomic’s Top 500 Chain Restaurant Report. The list was based on the highest-grossing restaurants in the US. As we pointed out above, the US is the country with the highest fast food consumption in the world which is why we have used this report to form our initial list. We then looked up the number of countries each of these restaurants exists in and ranked the restaurants in ascending order of the number of countries they were present in. This information was gathered from the official sites of each restaurant. The ranking is based on the hypothesis that a restaurant is more popular if it operates in more countries. We have used the number of overall locations for the restaurants operating in the same number of countries as a tiebreaker.
20 Most Popular Fast Food Restaurants In The World
20. Chipotle Mexican Grill
Number Of Countries The Restaurant Is Present In: 5
Chipotle Mexican Grill, Inc.(NYSE:CMG) is one of the most popular American restaurants specializing in Mexican food. It is currently operating in 5 different countries. It is famous for its burritos and tacos.
19. Buffalo Wild Wings
Number Of Countries The Restaurant Is Present In: 7
Buffalo Wild Wings is one of the most popular casual dining restaurants for wings. In the US, it has a concentrated presence in Texas. It operates in 7 countries worldwide.
18. Arby’s
Number Of Countries The Restaurant Is Present In: 9
Arby’s is primarily a sandwich shop that operates in 9 countries. The popular fast food restaurant largely has its locations in the US. One of the most popular menu items in the restaurant is its roasted beef sandwich.
17. IHOP
Number Of Countries The Restaurant Is Present In: 10
IHope is popular for its breakfast options. This restaurant is currently present in 10 countries. It is one of the most popular restaurants in the world. It currently has 1,840 locations worldwide.
16. Panda Express
Number Of Countries The Restaurant Is Present In: 10
Panda Express is one of the most popular restaurants in the world. It is currently operating in 10 countries. The restaurant specializes in American Asian cuisine. It is one of the most prominent restaurants in the Asian segment of fast food restaurants in the US. Panda Express currently has 2,300 active locations.
15. Texas Roadhouse
Number Of Countries The Restaurant Is Present In: 12
Texas Roadhouse is a casual dining restaurant currently in 12 countries. The restaurant has a warm and friendly environment.
14. Little Caesars
Number Of Countries The Restaurant Is Present In: 27
Little Caesars is a multinational pizza chain. It is one of the most popular restaurants in the world. It is present in 27 different countries.
Domino’s Pizza, Inc.(NYSE:DPZ) is also a prominent multinational pizza chain and a dominant player in the fast food industry.
13. Wendy’s
Number Of Countries The Restaurant Is Present In: 29
Wendy’s is one of the most popular restaurants in the world. It operates primarily through its drive-thru and has a large consumer base. Wendys is present in 29 different countries and has 6,500 restaurants.
Some noteworthy companies in the fast food industry include Brands International Inc. (NYSE:QSR), Starbucks Corporation (NASDAQ:SBUX), and McDonald’s Corporation (NYSE:MCD)
12. Dairy Queen
Number Of Countries The Restaurant Is Present In: 29
Dairy Queen has a presence in 29 different countries. It has gained massive popularity through digital marketing. It primarily serves ice creams and ice cream cakes. It currently has 7,000 locations worldwide.
11. Taco Bell
Number Of Countries The Restaurant Is Present In: 30
Taco Bell is another one of the most popular restaurants in the world. Taco Bell currently has its locations spread across 30 countries and 7000 locations. It serves Mexican-inspired food.
10. Chili’s Grill & Bar
Number Of Countries The Restaurant Is Present In: 33
Chili’s Grill and Bar is currently operating in 33 countries. It serves burgers, sandwiches, and ribs.
9. Dunkin’
Number Of Countries The Restaurant Is Present In: 40
Dunkin’ is one of the most popular restaurants in the world. It is famous for its coffee and donuts. It is currently present in 40 countries,
8. Papa John’s
Number Of Countries The Restaurant Is Present In: 45
Papa John’s is a multinational pizza chain. It is owned by Papa John’s International, Inc. (NASDAQ:PZZA). It is one of the most popular restaurants in the world. The popularity of this restaurant can be gauged from its presence in 45 countries. It is one of the biggest fast-food companies in the world.
7. Starbucks
Number Of Countries The Restaurant Is Present In: 80
Starbucks, owned by Starbucks Corporation(NASDAQ:SBUX), is a coffee place with takeaway, dine-in, and drive-thru options available. It is a large consumer base that is loyal to the brand. It is currently present in 80 countries across the globe.
6. Domino’s
Number Of Countries The Restaurant Is Present In: 90
Domino’s is one of the most popular restaurants in the world. It is a pizza chain. It has managed to grow continuously through constant innovation in its products. It offers pizza flavors relevant to the country it is in. Domino’s is currently present in 90 countries worldwide.
Some of the largest companies in the fast food restaurant industry include Chipotle Mexican Grill, Inc. (NYSE:CMG), Restaurant Brands International Inc. (NYSE:QSR), McDonald’s Corporation (NYSE:MCD), and Domino’s Pizza, Inc. (NYSE:DPZ).
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Disclosure: None. 20 Most Popular Fast Food Restaurants In The World is originally published on Insider Monkey.
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