We will take a look at the 16 biggest fast food companies in the world. To skip our analysis of the recent market trends, you can go directly to see the 5 Biggest Fast Food Companies in the World.
Fast food restaurants typically offer food to their customers on a short notice by using frozen, preheated, or precooked ingredients served in packaging which allows the customers to easily take-away the food. Fast food was launched to cater to the large number of commuters, travelers, and labor force. It benefitted significantly from the massive increase in automotive ownership through its drive-through model which allows customers to purchase food within minutes without getting out of their car.
Similar to almost all other industries, the fast food industry, also referred to as the Quick Service Restaurant industry, was also negatively impacted by the coronavirus pandemic. The restaurant industry faced significant decline in restaurant traffic as indoor dining was restricted due to social distancing orders. The fast food industry in the U.S. experienced a nearly 20% decline in restaurant traffic according to a report by Statista.
Despite the significant decline in restaurant traffic, the take-out and delivery models allowed the fast food industry to curtail the risk of any significant decline in its revenues. The industry revenue in the U.S. shrunk by 2.8% in 2020 and was recorded at $301.5 billion. Mass vaccination and other measures allowed softening of restrictions in 2021 which allowed the companies to recover lost revenues. The fast food industry generated a revenue of $322 billion in 2021.
We have picked the 16 biggest fast food companies in the world based on the number of restaurants and franchise locations operated by them across the world. Some of these companies are standalone brands, either owned privately or with publicly traded shares, while others are a part of a group of restaurant companies owned by a single organization, such as Yum! Brands, Inc. (NYSE:YUM) and Restaurant Brands International Inc. (NYSE:QSR).
Tim Hortons is a leading international quick service restaurant brand owned and operated by Toronto, Ontario-based Restaurant Brands International Inc. (NYSE:QSR). The restaurant chain was founded in 1964 in Canada and has since grown to more than 5,400 locations across Canada, United States, and globally.
Tim Hortons offers premium coffees, hot and cold specialty drinks, fresh baked goods, Panini and sandwiches, wraps, soups, prepared foods, and other food products. Tim Hortons restaurants generated a total revenue of $1.03 billion and an operating income of $305 million in Q3 2022.
In addition to Tim Hortons, Restaurant Brands International Inc. (NYSE:QSR) also owns Burger King, Popeyes, and Firehouse Subs restaurant brands. With shares listed on the New York Stock Exchange, the company currently has a market capitalization of $20.2 billion.
As of Q3 2022, Restaurant Brands International Inc. (NYSE:QSR) shares were held by 27 of the 920 hedge funds tracked by Insider Monkey with the total shares held by these hedge funds valued at a combined total of $1.8 billion.
15. Papa John's
Number of locations: 5,589
Papa John's International, Inc. (NASDAQ:PZZA) is a leading pizza restaurant chain co-headquartered in Louisville, Kentucky, and Atlanta, Georgia. As of September 25, 2022, there were 5,589 Papa John’s restaurants in operation, consisting of 521 company-owned and 5,068 franchised restaurants operating in 47 countries and territories.
Papa John’s International, Inc. (NASDAQ:PZZA) generated a total revenue of $511 million and a net income of $8.3 million during the quarter ended September 25, 2022.
Papa John's International, Inc. (NASDAQ:PZZA) currently has a market capitalization of $2.6 billion. As of Q3 2022, its shares were held by 22 hedge funds with a total value of $342 million. Jeffrey Smith’s Starboard Value LP was its largest hedge fund shareholder with ownership of 2.8 million shares valued at $193 million.
14. Dairy Queen
Number of locations: 7,000
Quick service restaurants under the Dairy Queen brand serve soft-serve ice cream, beverages, and fast food items to its customers. Owned and operated by International Dairy Queen Inc., (IDQ), based in Minneapolis, Minnesota, there are more than 7,000 Dairy Queen locations in Canada, United States, and more than 20 other countries across the world.
The Dairy Queen brand dates back to 1940 when its first branch was opened in Joliet, Illinois. The brand since grew exponentially over the years and its parent company, International Dairy Queen Inc., (IDQ), was acquired by Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK-B) in 1998.
13. Wendy’s
Number of locations: 7,080
Dublin, Ohio-based The Wendy's Company (NASDAQ:WEN), doing business as Wendy’s, is famous for its made-to-order square hamburgers, freshly prepared salads, chili, baked potatoes, and desserts. Founded in 1969, the company has since grown to become a leading quick-service restaurant company with 7,080 restaurants across U.S. and 31 foreign countries and territories.
The Wendy's Company (NASDAQ:WEN) added 131 new restaurants to its system during the first nine months of 2022 and expects to reach 8,000 to 8,500 restaurants by the end of 2025. For the three months ended October 2, 2022, the company generated revenue of $533 million and a net income of $51 million.
The Wendy's Company (NASDAQ:WEN) currently has a market capitalization of $4.85 billion. As of Q3 2022, 23 hedge funds held shares of the fast food company worth a combined total of $697 million. Nelson Peltz’s Trian Partners was its largest hedge fund shareholder with ownership of 25.3 million shares worth $473 million.
12. Baskin Robbins
Number of locations: 7,600
Next on our list is a leading multinational chain of ice cream, beverages and cake specialty shops, Baskin Robbins, owned by Inspire Brands, Inc. Founded in 1945 in Glendale, California by Burton Baskin, and Irvine Robbins, the brand has grown from a single ice cream shop to over 7,600 branches across 52 countries around the globe.
In addition to Baskin Robbins, Inspire Brands, Inc. is also home to other famous quick service brands such as Arby’s, Buffalo Wild Wings, Dunkin’, Jimmy John’s, and Sonic Drive-In.
11. Taco Bell
Number of locations:7,974
Taco Bell is a Mexican-inspired quick service restaurant brand owned and operated by Louisville, Kentucky-based Yum! Brands, Inc. (NYSE:YUM). Founded in 1962, the brand currently boasts nearly 8,000 locations in the U.S. and nearly 30 countries internationally. Taco Bell serves customizable tacos, burritos, and quesadillas, among other food items like the Crunchwrap Supreme and Nacho Fries.
In November, Yum! Brands, Inc. (NYSE:YUM) released its financial results for Q3 2022. Sales for the Taco Bell Division of the company increased by 9% y-o-y to $3.4 billion, while operating profit increased by 10% y-o-y to $204 million. Taco Bell also opened 98 new restaurants in 16 countries during the quarter.
Yum! Brands, Inc. (NYSE:YUM) currently has a market capitalization of $36.7 billion. As of Q3 2022, its shares were held by 40 of the 920 hedge funds tracked by Insider Monkey, with a total value of $2 billion.
10. Hunt Brothers Pizza
Number of locations: 8,000
Hunts Brothers Pizza is a family-owned pizza brand based in Nashville, Tennessee, with more than 8,000 locations across 30 states in the United States. With a history dating back to 1962, Hunts Brothers Pizza offers original and thin crust pizzas in the ready-to-go form as well as customizable whole pizza options.
9. Krispy Kreme
Number of locations: 11,703
Krispy Kreme Doughnuts (NYSE:KKD), based in Charlotte, North Carolina, is a leading sweet treat brand famous for its Glazed Doughnuts. It operates more than 11,700 locations in more than 30 countries with a network of doughnut shops, partnerships with retailers, and e-Commerce and delivery business.
On December 15, Krispy Kreme Doughnuts (NYSE:KKD) announced its long term strategy with plans to accelerate its global expansion. The strategic plan foresees approximately 18,500 locations by the end of 2023 and 75,000 locations in the long term.
In November, Krispy Kreme Doughnuts (NYSE:KKD) announced its financial results for Q3 2022. Its net revenue increased by 10% y-o-y to $377.5 million while 294 new locations were added to its network during the three months.
As of Q3 2022, its shares were held by 7 hedge funds with a total value of $10.3 million. Chuck Royce’s Royce & Associates was its largest hedge fund shareholder with ownership of 0.45 million shares valued at $5 million.
8. Dunkin'
Number of locations: 12,900
Dunkin’, formerly known as the Dunkin' Donuts, is a leading multinational chain of donut and coffee shops. It also serves espresso beverages, baked goods, and breakfast sandwiches across more than 12,900 locations in United States and 40 other countries. Based in Canton, Massachusetts, the brand generated annual sales of $11.4 billion in 2021.
Dunkin’ is owned by Inspire Brands, Inc. which is also home to Arby’s, Buffalo Wild Wings, Baskin Robbins, Jimmy John’s, and Sonic Drive-In. Inspire Brands, Inc. acquired Dunkin’ and Baskin Robbins in a transaction valuing the brands at a combined total of $11.3 billion. The transaction was completed in December 2020.
7. Pizza Hut
Number of locations: 18,807
Pizza Hut is a leading pizza brand owned and operated by Louisville, Kentucky-based Yum! Brands, Inc. (NYSE:YUM). The first Pizza Hut restaurant was opened in Wichita, Kansas in 1958. Since then the brand has grown to more than 18,800 locations worldwide. It operates through delivery, carryout, and casual dining restaurants.
In November, Yum! Brands, Inc. (NYSE:YUM) released its financial results for the third quarter. Sales for the Pizza Hut Division of the company declined by 1% y-o-y to $3.1 billion, while operating profit shrunk by 8% y-o-y to $92 million. Pizza Hut also opened 392 new restaurants in 47 countries during the quarter.
6. Burger King
Number of locations: 19,401
Burger King is a fast-food hamburger restaurant chain famous for its iconic flame-grilled Whopper sandwich. The brand is owned and operated by Toronto, Ontario-based Restaurant Brands International Inc. (NYSE:QSR).
Founded in 1954, Burger King operates across more than 19,400 locations in more than 100 countries. Burger King restaurants generated a revenue of $491 million and an operating income of $262 million, in Q3 2022.
On November 29, Restaurant Brands International Inc. (NYSE:QSR) announced that it had entered into a master franchise and development agreement with McWin to develop Burger King in Czech Republic, Poland & Romania, and Popeyes in Czech Republic & Poland.
Restaurant Brands International Inc. (NYSE:QSR) also owns Tim Hortons, Popeyes, and Firehouse Subs restaurant brands.
