If you're going to stuff your gullet with crap...why not McDonalds?
The fast food industry is in a state of flux, with consumers balking at higher prices on the menus of some of the biggest names in the game.
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Yesterday, Pizza Hut and KFC both reported that same-store sales had fallen. That followed industry giant McDonald’s, which hasn't had the smoothest start to the year so far, last week reporting that same-store sales had dropped 0.7% too — the first decline since 2020.
The Big Mac
But, even with huge shifts in consumer behavior, when it comes to McDonald’s, America just can’t help lovin’ it. Indeed, in Monday’s QSR 50 report, a comprehensive annual ranking of US fast food chains, McDonald’s held onto the top spot thanks to its 13,457 outlets pulling in total sales of more than $53 billion last year.
Now, McDonald’s is embracing affordability — harking back to the success of the iconic “Dollar Menu” — by doubling down on its $5 meal deal to lure back customers, mentioning the word "value" more than 90 times in its Q2 earnings call, per Edward Moreno.
No small fry
While no fast food outlet comes anywhere close to McDonald’s for revenue — Starbucks, at the No.2 spot, made only $28.7 billion in sales last year — some still surpass the chain for sheer efficiency. None more so than Chick-fil-A.
Known for its focus on customer service and long drive-thru lines, Chick-fil-A has 10,905 fewer units than McDonalds but manages to bring in a massive $8.5 million on average at each of its outlets — more than double the takings at an average McD’s. On the other hand, Subway, which secured the largest franchise-backed bond ever for its buyout back in May, only brings in ~$490,000 from each of its mind-boggling 20,000+ units. For how much longer Subway will retain its store count supremacy, however, is another matter.
Footlongs and farewells
Last year, the “Eat Fresh” chain’s US store tally fell by almost 450 locations, as the sandwich giant shut more American restaurants than it opened for the 8th year in a row. Although that drop was actually the least steep it’s been since 2016, it was still nearly 200 more closures than second place Burger King.
At the other end of the table, a few restaurants that aren’t yet household names are growing rapidly. Jersey Mike’s — a sub rival that’s gained traction with a simple set of sandwiches that spotlight the freshness of their meats and cheeses — is expanding at breakneck speed, adding 287 units last year. Chicken connoisseurs Wingstop also added more than 200 restaurants, and Gen Z’s increasing love for Tropical Smoothie Cafe, which mostly sells what its name suggests, has driven the chain to report its 12th straight year of positive same-store sales growth.
Starbucks, meanwhile, was also closing the gap on Subway again last year, taking the fastest-growing fast food chain crown for the second year in a row by adding some 473 stores nationwide in 2023 — proving US expansion to be a pretty significant part of the chain’s efforts to open the equivalent of 8 stores around the world every single day until 2030.
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