5 Most Profitable Fast-Food Chains

In this article we discuss the 5 most profitable fast-food chains. If you want to read our detailed analysis of the fast-food industry, go directly to 20 Most Profitable Fast-Food Chains.

5. Subway; Owned by Doctor’s Associates, Inc.

Initially known as ‘Pete’s Super Submarine,’ the chain sold a limited menu consisting of salads and submarine sandwiches when it was founded in 1965. Today, Subway is the largest fast-food chain in terms of the number of outlets, as it has around 41,600 stores operating worldwide. It has revolutionized the industry with its diet-focused menu and customized subs. Despite closing as many as 2,400 outlets worldwide, Subway managed to generate a revenue of $10.4 billion, a slight increase from $10.2 billion in 2019.

4. Starbucks Corporation (NASDAQ: SBUX)

Founded in 1971, Starbucks is one of the oldest and most famous coffeehouse chains in the world. With its customized coffee mugs and a menu with over 87,000 drink combinations, the chain is very famous among the general masses. For the past decade, the chain has seen a drastic increase in year-over-year revenue due to the exceptional coffee and beverages. However, Starbucks’ revenue fell 27.7% due to the pandemic. In the year 2020, its net income is recorded at $19.16 billion, which shows a sharp decline from $26.5 billion in 2019.

3. McDonald’s Corporation (NYSE: MCD)

When it comes to fast food, McDonald’s is the most famous name. It was founded in 1940 by two brothers, which makes it the pioneer of the fast-food industry. The signature Happy Meal along with a wide variety of burgers, breakfast items, and beverages, kept the chain profitable over the last several decades. McDonald’s has a market capitalization of $173.85 billion and is the most profitable fast-food chain globally. The company, however, has suffered the jolts of the pandemic. Its annual revenue fell to $19.2 billion, down from $21.8 billion in 2019. This loss can be attributed to the closure of around 200 restaurants due to the economic crisis.

2. Burger King, Owned by: Restaurant Brands International (NYSE: QSR)

Founded as Insta-Burger in 1953, Burger King was one of its kind hamburger company, which became famous due to its whopper burger. The chain has over 17,800 stores located in 100 countries. Along with its signature Whopper burger on its menu, the restaurant includes an extensive range of burgers, fish, sandwiches, fries, and hot dogs. Their recent launch of a $1 menu gained immense popularity amongst the audience. Despite the increasing demand, the sales of Burger King fell 11% due to the pandemic. But the chain still managed to generate $20.038 billion in revenues in 2020, compared to $22.9 billion in 2019.

1. KFC, Owned by: Yum! Brands, Inc. (NYSE: YUM)

KFC is one of the oldest fast-food chains, which opened its doors in 1952. The chain is famous for its signature fried chicken and includes many burgers, fries, and beverages on its menu. The chain has a brand value of $8.3 billion. China is the biggest market for KFC; the country has over 6,600 of its 24,000 outlets. The reason for its fame is KFC’s ability to cater to the local taste. KFC’s new initiative in China, KPRO, is targeted towards the health-conscious audience with a distinctive menu of juices, salads, and sandwiches. After the coronavirus crisis, Yum! Brands, Inc. (NYSE: YUM) decided to shut around 7,000 of its restaurants worldwide, 2000 of which belonged to KFC and Pizza Hut. Despite this loss, KFC generated $27.9 billion in 2020, increasing from $26.2 billion in 2019.

You can also take a peek at 10 Biggest Fast-Food Chains in the World and 15 Richest Media Owners in the World.

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