In this article, we take a look at the 20 most valuable fast food companies in the world. If you would like to skip our detailed analysis of the fast food industry, you can directly go to the 5 Most Valuable Fast Food Companies in the World.
According to a CDC report, 36.6% of Americans consume fast food on any given day, which makes up almost 84.8 million adults. Despite this food option being high in calories and being associated with obesity, popular fast food items have become an integral part of the average American’s diet, which begs the question as to why. The biggest reason behind the popularity of fast food is that it offers a convenient and on-the-go option for people who live busier lives. Fast food is also relatively cheap, with an average meal being in the $4 to $7 price range, whereas for a fine dining meal, one can expect to pay up to $75 roughly at a minimum. Even fast-casual restaurants cost a couple of bucks more than a wholly fast food chain, but they’re still included in the category.
Some would also argue that the pricelessness of fast food is merely people's perception, as home-cooked meals tend to be a lot cheaper than eating out, even if you’re just grabbing the cheapest burger on the menu. Despite the disagreement on the economic value of fast food, no one can deny that Americans are consuming a lot of it. The US fast food industry was worth $862.05 billion in 2020 and is projected to grow to $1,467.04 billion by 2028, showcasing a CAGR of 6.05% from 2021 to 2028, per Fortune Business Insights This means that the fast food industry offers massive potential to both investors as well as individuals looking to open their own restaurant chains.
Some of the most valuable fast food companies in the world have reached this position because of the fast food industry providing high profit margins, with the average being around 10%. The reason fast food is highly profitable is mainly because of its menu items. The simplicity means that the same ingredients can be utilized for multiple items; thus, it is possible to order higher quantities in bulk. This also reduces the amount of food waste and enables the creation of bulk orders, speeding up delivery time. Many also believe that a fast food restaurant will have lower labor costs as most employees don’t require advanced specialized training or experience and, hence, can be paid lower wages. Whether one agrees with these minimum wage rates is another debate, but the practical implication is that these elements combine to make fast food quite profitable.
Whenever one thinks of fast food, McDonald's Corp (NYSE:MCD) is usually the first company that comes to mind due to its massive popularity. McDonald's Corp (NYSE:MCD) is a fast food chain with a high profit margin, earning a gross annual profit of $13.207 billion in 2022 alone and showcasing a 4.98% increase from 2021. The corporation also recently decided to hike its menu prices, but the resulting increase in revenue showcased that individuals are still willing to purchase these items even if the prices increase by a few dollars. On the other end of the issue, McDonald's Corp (NYSE:MCD) has also been under public fire in the past few weeks as #BoycottMcDonalds trends over social media due to the corporation’s support for Israel during the Israel-Palestine war. Whether this political activism will lead to practical and economic implications for the corporation's units in the US is something time will tell. Only once Q4 financial statements come out will we able to see whether the perceived boycott had any actual impact on the chain's profits.
Another name that comes up the most with McDonald's Corp (NYSE:MCD) is Burger King, a burger-chain owned by Restaurant Brands International Inc. (NYSE:QSR), the reason being that both chains offer some of the best burgers in the States, along with having a huge number of locations around the world. Another similarity between the two is that Burger King also faced boycott calls in September 2023 over removing its advertising from the Rumble platform. Then once again in October, the brand faced backlash and boycott calls over its continued operations in Russia. The latest instance of boycott calls comes from a coalition of American Muslims who have issued the call over Burger King's decision to open a restaurant in a West Bank settlement. This goes to show that as business decisions turn political, even fast food brands may come under fire, but the real impact of these boycotts will take some time to become evident, as in the case of McDonald's Corp (NYSE:MCD).
Coming back to revenue, Burger King is not bigger than McDonald's Corp (NYSE:MCD) by any means, considering that the former’s revenue in 2022 was barely $2 billion, whereas the latter boasted a revenue of almost $23 billion. This shows that the size of a chain does not matter when it comes to receiving backlash for its business decisions. Moreover, in spite of the economic disparity, one can’t say that Burger King by Restaurant Brands International Inc. (NYSE:QSR) is not a fan-favorite amongst many people; some even consider its offerings to be more upscale as compared to other burger giants. A 2021 study by The Hustle utilized search engine results to infer that Burger King grew in popularity in at least six different states. Restaurant Brands International Inc. (NYSE:QSR) itself is a prolific corporation in the fast food world, with many other labels under its name, such as Tim Hortons and Popeyes.
While fast food restaurants can be ranked on the basis of various elements, one way is to compare them based on their valuableness.
20 Most Valuable Fast Food Companies in the World
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Our Methodology
With the number of fast food chains popping up every other day, people are now valuing the quality of fast food above other factors. Despite that, it is pertinent to notice that not every valuable fast food company in the world will manage to come up in terms of quality as well, as there are multiple ways to determine the value of a fast food chain. Our preferred method is to rank these corporations in order of their market cap as of the writing of this piece, with the title of the most valuable fast food company in the world being assigned to the chain with the largest market cap.
Based on this methodology, here are the 20 most valuable fast food companies in the world, ordered from least to most:
20. Pizza Pizza
Market Cap: $0.33 billion
Pizza Pizza is a Toronto-based fast food chain that operates all over Canada. It is a rare example of a fast food chain that manages to be one of the most valuable fast food companies in the world, despite only being present in one country. Within Toronto, people usually find a Pizza Pizza outlet not further than 15 minutes away; this availability, paired with its low prices, makes the chain quite popular within Canada.
19. Denny’s
Market Cap: $0.48 billion
Denny's Corp (NASDAQ:DENN) is sometimes branded as a fast food option more expensive than its peers, which can be due to the company using ethically sourced meat products. Denny's Corp (NASDAQ:DENN) also caters to a wider customer base by offering plant-based options. But besides its menu, the corporation’s best business strategy is offering value-based meals when inflation strikes. Denny's Corp (NASDAQ:DENN) first adopted this in 2010 to cope with the 2008 economic recession and, most recently, in 2022, to cope with rising fuel prices.
18. Sweetgreen
Market Cap: $1.09 billion
The Sweetgreen Inc (NYSE:SG) salad chain went public in November 2021, aiming to turn a profit by 2024, but unfortunately, things haven’t panned out quite well for the company so far. Despite being one of the most valuable fast food chains in the world, Sweetgreen Inc.’s (NYSE:SG) sales were weaker than expected for the second quarter of 2023. One of the reasons for this is that Sweetgreen Inc (NYSE:SG) appeals to a niche audience, as ‘healthy lunch salads’ might not stir everyone’s appetite.
17. Portillo’s
Market Cap: $1.19 billion
Portillos Inc (NASDAQ:PTLO) is a fast-casual chain that opened itself to the public stock market just two years ago but managed to take the industry by storm. Portillos Inc (NASDAQ:PTLO) can be credited with placing its market debut at a strategic time in the year 2021 when the industry was benefitting from people coming back to outdoor dining owing to the rollout of COVID-19 vaccines. Thus, Portillos Inc (NASDAQ:PTLO) is a prime example of how strategic business moves can enable a company to outgrow competition that might have been in the market for decades.
16. Jack in the Box
Market Cap: $1.34 billion
Jack in the Box Inc. (NASDAQ:JACK) is one of the largest hamburger chainsin the US, and it has bagged that position by employing a multi-level approach to present value to customers rather than relying on one element. Jack in the Box Inc. (NASDAQ:JACK) has employed strategies like bringing back discontinued items from ten years ago and offering specialized reward programs to build its customer base. Jack in the Box Inc. (NASDAQ:JACK) also acquired Del Taco in early 2022, which enabled the corporation to further expand its reach in a different segment of the fast food industry.
15. Papa John’s
Market Cap: $2.23 billion
Papa John's International Inc (NASDAQ:PZZA) is one of thetop pizza chains in the US, often in close competition with Domino's Pizza Inc (NYSE:DPZ). The reason Papa John's International Inc (NASDAQ:PZZA) has managed to gather a massive customer base can be attributed to its use of organic ingredients and signature sauces. The CEO of Papa John's International Inc (NASDAQ:PZZA), Rob Lynch, has mentioned how customers prefer ‘value-based’ meals over meals that are just cheap. The corporation has always strived to deliver innovative products, which independent surveys have found to be well-liked by consumers.
14. Shake Shack
Market Cap: $2.52 billion
Shake Shack Inc (NYSE:SHAK) started out as a hot dog stand in 2021 but has grown to become one of the most valuable fast food companies in the world, with more than 377 locations around the globe. The humble beginnings of the company, which used to be massively popular even in its kiosk days, have managed to gather a loyal following that has been with Shake Shack Inc (NYSE:SHAK) for years. Over the years, Shake Shack Inc (NYSE:SHAK) has focused its investing efforts towards improving guest experience rather than marketing, which has enabled it to gain a ‘cult-like following’, in the words of Charles Frankievich, the director for consumer insights and analytics at the company.
13. Wendy’s
Market Cap: $4.03 billion
Wendys Co (NASDAQ:WEN) managed to surpass Burger King with its annual sales in 2022, showcasing its prominence in the hamburger industry. However, this could also be due to the increasing prices at Wendys Co (NASDAQ:WEN), which rose 35% in 2022 alone. A study by Pricelisto revealed Wendys Co (NASDAQ:WEN) to be the most expensive fast food chain in 2022, with an average price of $6.63 per item.
12. Cava Group
Market Cap: $4.08 billion
CAVA Group Inc (NYSE:CAVA) owns Cava, the Mediterranean fast-casual restaurant with 297 locations all over the US. CAVA Group Inc (NYSE:CAVA) started by selling dips and spreads in local grocery stores, and its specialty offerings in a niche cuisine enable it to boast the strong sales that it does, despite fears of a looming recession in the market. The Mediterranean cuisine, along with its customization, is what sets CAVA Group Inc (NYSE:CAVA) apart from other competitors in the market. This is why the company has managed to become one of the most valuable fast food chains in the world, despite only going public in June 2023.
11. Jollibee
Market Cap: $4.42 billion
Jollibee is a Phillipines-based fast food chain that has over 70 locations in the US as well. Despite not being centered in the US, Jollibee has managed to become one of the most valuable fast food companies in the world by market cap. Its consumer success mainly comes from its low-cost operating model, which offers fast food items at a much lower price than other competitors in the market.
10. Café de Coral
Market Cap: $5.9 billion
Café de Coral, listed on the Hong Kong Stock Exchange, serves both Chinese and Western fast food options at a budget price. The chain has over 100 locations in Hong Kong and 24 in China. Several specialty brands also run under the main label, making up 12% of the company’s total sales. The company has shown massive plans for growth, aiming to double the number of its mainland Chinese outlets within the next three years.
09. Wingstop Restaurants
Market Cap: $6.2 billion
Wingstop Inc (NASDAQ:WING) has over 1,700 locations in the world, making it the largest fast-casual chicken wings restaurant chain. Wingstop Inc (NASDAQ:WING) established itself as the leading chicken wing chain in this category due to several factors, including the launch of new products, reduction of operating costs by moving towards more stable menu items like boneless wings, the toughing up of its real-estate strategies for its franchises, and balanced debt financing. Wingstop Inc (NASDAQ:WING) proves that a fast food chain cannot become an industry leader solely through its menu.
08. Texas Roadhouse
Market Cap: $6.96 billion
Texas Roadhouse Inc (NASDAQ:TXRH) was mainly known for having casual dining restaurants, but in 2015, it moved beyond that market segment by opening a fast food chain called Jaggers. With Jaggers, Texas Roadhouse Inc (NASDAQ:TXRH) has bigger plans to dip its toes in the franchising model. Jaggers started franchising as recently as 2021, but it has enabled Texas Roadhouse Inc (NASDAQ:TXRH) to become one of the most valuable fast food companies in the world.
07. Domino’s
Market Cap: $12.62 billion
Domino's Pizza Inc (NYSE:DPZ) is the most valuable pizza chain in the world that runs under its own label. Domino's Pizza Inc (NYSE:DPZ) invests heavily in its technology and R&D departments, bringing the company to the forefront of technological innovation in the fast food sector. In 2023, Domino's Pizza Inc (NYSE:DPZ) paired up with Microsoft Corp (NASDAQ:MSFT) to launch ‘pinpoint delivery’, which enables customers to receive deliveries anywhere, even at places like beaches or parks.
06. Yum China
Market Cap: $18.83 billion
Yum China Holdings Inc (NYSE:YUMC) is another fast food chain that has wholly focused on embracing technology to advance its operations and made massive improvements in the process. Yum China Holdings Inc (NYSE:YUMC) has a digitalized supply chain as well as an efficiently-developed loyalty program that enables it to improve its customer service. Yum China Holdings Inc (NYSE:YUMC) is the largest restaurant company in China, with a $9.5 billion revenue in 2022.
