Overview of fast food market

1 fast food FACTS 2013 13 fast food market DefinitionFast food restaurant fast food restaurants feature a common menu above the counter and provide no wait staff. Customers typically pay before eating and choose and clear their own tables. They are also known as quick serve restaurants (QSRs).2010 report focus Twelve restaurants analyzed in detail in the Rudd Center 2010 fast food FACTS report focus Eighteen restaurants analyzed in detail in this report, including the restaurants highlighted in the 2010 report, plus six additional restaurants that met at least one of two criteria.

2 1) ranked among the top 15 in 2012 sales, or 2) had child-targeted messages on its website and national TV of fast food marketResultsTable 3 presents total sales in 2012 for the top-20 fast food restaurants, as well as six additional restaurants that ranked in the top-25 for advertising spending on national TV in 2012. We also indicate the 12 restaurants that were the focus of the 2010 fast food FACTS report and the 18 restaurants detailed in this sales for the 50 fast food restaurants with the most sales reached $157 billion in 2012 on average, $1,335 annually per McDonald s remained number one with $ billion in sales, almost one-quarter of all sales by the top-50 restaurants and almost three times the sales of Subway, its closest competitor.

3 Sales at both Subway and Sales ranking Report focus 2012 sales % change 2010 2013 2012 2009 Parent company Restaurant (millions) vs 2009 (12) (18) 1 1 McDonald s McDonald s $35,600 15% X X 2 2 Doctor s Associates Subway $12,100 21% X X 3 5 Starbucks Corporation Starbucks $10,600 27% X X 4 4 Wendy s Company Wendy s $8.

4 600 3% X X 5 3 Burger King Holdings Burger King $8,587 -5% X X 6 6 Yum! Brands Taco Bell $7,478 10% X X 7 7 Dunkin Brands Dunkin Donuts $6,264 10% X X 8 8 Yum! Brands Pizza Hut $5,666 13% X X 9 12 Chick-fil-A Chick-fil-A $4,621 44% X 10 9 Yum! Brands KFC $4,459 -9% X X 11 15 Panera Bread Panera Bread $3,861 38% X 12 10 Sonic Corp Sonic $3.

5 790 -1% X X 13 14 Domino s Pizza Domino s $3,500 15% X X 14 13 Jack in the Box Jack in the Box $3,085 0% X 15 11 Roark Capital Group Arby s $2,992 -7% X 16 18 Chipotle Chipotle $2,731 48% 17 17 Papa John s Papa John s $2,402 17% 18 16 Berkshire Hathaway Dairy Queen $2,300 -13% X X 19 20 Popeyes Popeyes $2,253 41% 20 19 CKE Restaurants Hardee s $1,900 14% 22 24 Little Caesars Little Caesars $1,684 34% X 24 23 CKE Restaurants Carl s Jr.

6 $1,400 7% 32 18 Quiznos Quiznos $838 -53% 34 32 LJS Partners Long John Silver s $723 3% 42 41 Boston market Corporation Boston market $559 9% 46 39 CiCi Enterprises CiCi s Pizza $505 7% X Focus of 2010 report (12 restaurants) $108,944 10% Focus of 2013 report (18 restaurants) $125,692 11% Top 25 national TV advertisers in 2012 $138,498 13% Top 50 restaurants (by sales in 2012) $156,875 13% Source: QSR Magazine,3 includes restaurants that ranked in the top 20 by 2012 systemwide sales or the top 25 in 2012 advertising spending on national TVTable 3.

7 fast food restaurant sales Starbucks exceeded $10 billion in 2012, and sales of five additional restaurants exceeded $5 billion (Wendy s, Burger King, Taco Bell, Dunkin Donuts, and Pizza Hut). In 2012, Chick-fil-A replaced Sonic in the top-ten restaurants by sales. Chipotle was the only restaurant that ranked in the top 20 in sales, but not the top 25 in spending on national TV. Sales at the top-50 fast food restaurants increased 13% on average from 2009 to 2012. Sales at three smaller restaurants went up by 40% or more (Chipotle, Chick-fil-A, and Popeyes), and sales at two additional restaurants increased 30% or more (Panera Bread and Little Caesars).

8 Starbucks and Subway also had higher-than-average sales increases of 27% and 21%, respectively. The traditional burger restaurants fared less well. McDonald s 15% sales increase was the highest for this segment, but its two largest competitors (Wendy s and Burger King) saw an increase of 3% and a decline of 5%, food FACTS 14 fast food menu compositionIn the menu composition analysis, we first examine kids meals offered by any of the 18 restaurants in our detailed analysis. We then evaluate changes in nutrition quality of full menus for McDonald s, Subway, Wendy s, Burger King and Taco Bell (the top five in sales for 2012 among traditional fast food restaurants).

9 Finally, we analyze the dollar/value and healthy menus, as well as sizes of soft drinks and french fries, offered by the 18 restaurants in our detailed analysis. Kids meals Kids meals DefinitionsKids meal A menu of items specifically designed for children. Kids meals typically contain a main dish, side, and beverage. Many also come with a toy or other meal combinations Possible combinations of main dish, side, and beverage that can be ordered in one kids Profile Index Measure of overall nutritional quality that considers positive and negative nutrients in foods.

10 Scores (NPI) score range from 0 (very poor) to 100 (excellent). This scoring is based on one developed by researchers in the United Kingdom for the Office of Communications (OFCOM) guidelines prohibiting junk food advertising to food products with a score of 64 or higher and beverages with a score of 70 or higher qualify as nutritious products that can be advertised to children in the United limits: Children Maximum acceptable calories for kids meals, based on the Institute of Medicine (IOM) Committee on School Meals Kids meals served to elementary school-age children should not exceed 650 calories and those served to preschool-age children should not exceed 410 limits.