Data Monitor Fast Food

INDUSTRY PROFILE
Global Fast Food
Reference Code: 0199-2230

Publication Date: September 2010
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Global - Fast Food 0199 - 2230 - 2009
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EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Market value
The global fast food market grew by 3.1% in 2009 to reach a value of $201.1 billion.
Market value forecast
In 2014, the global fast food market is forecast to have a value of $239.7 billion, an increase of 19.2%
since 2009.
Market volume
The global fast food market grew by 3.9% in 2009 to reach a volume of 208.1 billion transactions.
Market volume forecast
In 2014, the global fast food market is forecast to have a volume of 248.7 billion transactions, an increase
of 19.5% since 2009.
Market segmentation I
QSR is the largest segment of the global fast food market, accounting for 70.9% of the market's total
value.
Market segmentation II
Americas accounts for 47.4% of the global fast food market value.
Market rivalry
While particular segments of the fast food market can be concentrated - for example, the burger segment
is close to being a Burger King / McDonald's duopoly - the market as a whole is fairly fragmented, with
many independents as well as larger chains.
Global - Fast Food 0199 - 2230 - 2009

CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY 2
MARKET OVERVIEW 6
Market definition 6
Research highlights 7
Market analysis 8
MARKET VALUE 9
MARKET VOLUME 10
MARKET SEGMENTATION I 11
MARKET SEGMENTATION II 12
COMPETITIVE LANDSCAPE 13
LEADING COMPANIES 16
Burger King Corporation 16
Domino's Pizza, Inc. 19
McDonald's Corporation 23
Yum! Brands, Inc. 27
MARKET FORECASTS 32
Market value forecast 32
Market volume forecast 33
APPENDIX 34
Methodology 34
Industry associations 35
Related Datamonitor research 35
Disclaimer 36
ABOUT DATAMONITOR 37
Premium Reports 37
Summary Reports 37
Datamonitor consulting 37
Global - Fast Food 0199 - 2230 - 2009

CONTENTS
LIST OF TABLES
Table 1: Global fast food market value: $ billion, 2005–09 9
Table 2: Global fast food market volume: billion transactions, 2005–09 10
Table 3: Global fast food market segmentation I:% share, by value, 2009 11
Table 4: Global fast food market segmentation II: % share, by value, 2009 12
Table 5: Burger King Corporation: key facts 16
Table 6: Burger King Corporation: key financials ($) 17

Table 7: Burger King Corporation: key financial ratios 17
Table 8: Domino's Pizza, Inc.: key facts 19
Table 9: Domino's Pizza, Inc.: key financials ($) 21

Table 10: Domino's Pizza, Inc.: key financial ratios 21
Table 11: McDonald's Corporation: key facts 23
Table 12: McDonald's Corporation: key financials ($) 25
Table 13: McDonald's Corporation: key financial ratios 25
Table 14: Yum! Brands, Inc.: key facts 27
Table 15: Yum! Brands, Inc.: key financials ($) 30
Table 16: Yum! Brands, Inc.: key financial ratios 30
Table 17: Global fast food market value forecast: $ billion, 2009–14 32
Table 18: Global fast food market volume forecast: billion transactions, 2009–14Error! Bookmark not defined.
Global - Fast Food 0199 - 2230 - 2009

CONTENTS
LIST OF FIGURES
Figure 1: Global fast food market value: $ billion, 2005–09 9
Figure 2: Global fast food market volume: billion transactions, 2005–09 10
Figure 3: Global fast food market segmentation I:% share, by value, 2009 11
Figure 4: Global fast food market segmentation II: % share, by value, 2009 12
Figure 5: Burger King Corporation: revenues & profitability 18
Figure 6: Burger King Corporation: assets & liabilities 18

Figure 7: Domino's Pizza, Inc.: revenues & profitability 22
Figure 8: Domino's Pizza, Inc.: assets & liabilities 22
Figure 9: McDonald's Corporation: revenues & profitability 26

Figure 10: McDonald's Corporation: assets & liabilities 26
Figure 11: Yum! Brands, Inc.: revenues & profitability 31
Figure 12: Yum! Brands, Inc.: assets & liabilities 31
Figure 13: Global fast food market value forecast: $ billion, 2009–14 32
Figure 14: Global fast food market volume forecast: billion transactions, 2009–14Error! Bookmark not defined.
Global - Fast Food 0199 - 2230 - 2009

MARKET OVERVIEW
MARKET OVERVIEW
Market definition
The fast food market is defined as the sale of food and drinks for immediate consumption either on the
premises or in designated eating areas shared with other foodservice operators, or for consumption
elsewhere. Datamonitor's definition excludes sales through vending machines and is restricted to sales in
specific foodservice channels (please see channel definitions below). All market values are given in
Operator Buying Prices, which is the amount spent by foodservice operators on the food and drink that
they serve and not the amount the consumers spend on food and drinks (Operator Selling Prices - OSPs)
in these channels. The difference is the mark up the foodservice operator adds in order to cover their
other costs and generate a profit. This therefore values the market in terms of the amount of money for
which food and drinks manufacturers are competing. All currency conversions were performed using
constant 2009 average annual exchange rates. Market volumes are classed as the total number of visits
by individuals to foodservice locations that involve the consumption of either food. Multiple purchases
made during the same visit are counted as one transaction. The purchase of drink with food in the same
location in the same visit is also considered as one transaction, not two. The market is broken down in to
four segments: Quick Service Restaurants (QSR), Takeaways, Mobile & Street Vendors and Leisure
Locations. QSR's are defined as: locations where the primary function is to provide full meals but where
table service is not offered. Takeaways are defined as: establishments that provide freshly prepared food
for immediate consumption and where typically 80% or more of revenues come from consumers who take
the food off the premises to consume. Mobile & street vendors are defined as: either individual mobile
stalls or vans that offer a limited range of freshly prepared food as well as beverages. Leisure locations
are defined as: locations serving food and drinks for immediate consumption on premises within leisure
outlets (such as Cinemas, Theatres, Racecourses etc.) that the leisure operator owns and operates itself.
For the purposes of this report, the global market consists of North America, South America, Western
Europe, Eastern Europe, and Asia-Pacific.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.
Western Europe comprises Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain,
Sweden, and the United Kingdom.
Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.
Asia-Pacific comprises Australia, China, India, Japan, Singapore, South Korea, and Taiwan.
Global - Fast Food 0199 - 2230 - 2009

MARKET OVERVIEW
Research highlights
The global fast food market had total revenue of $201.1 billion in 2009, representing a compound annual
growth rate (CAGR) of 4.8% for the period spanning 2005-2009.
Market consumption volumes increased with a CAGR of 4.6% between 2005-2009, to reach a total of
208.1 billion transactions in 2009.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 3.6% for the five-
year period 2009-2014, which is expected to drive the market to a value of $239.8 billion by the end of
2014.
Global - Fast Food 0199 - 2230 - 2009

MARKET OVERVIEW
Market analysis
The global fast food market has been decelerating in recent years as a result of the worldwide economic
malaise. After reaching a low point of 3.1% in 2009, a phase of recovery is however anticipated with
accelerating growth rates expected for the remainder of the forecast period.
The global fast food market had total revenue of $201.1 billion in 2009, representing a compound annual
growth rate (CAGR) of 4.8% for the period spanning 2005-2009. In comparison, the European and Asia-
Pacific markets grew with CAGRs of 4.7% and 6.1% respectively, over the same period, to reach
respective values of $34.2 billion and $71.6 billion in 2009.
Market consumption volumes increased with a CAGR of 4.6% between 2005-2009, to reach a total of
208.1 billion transactions in 2009. The market's volume is expected to rise to 248.7 billion transactions by
the end of 2014, representing a CAGR of 3.6% for the 2009-2014 period.
The QSR segment was the market's most lucrative in 2009, with total revenue of $142.6 billion,
equivalent to 70.9% of the market's overall value. The takeaways segment contributed revenue of $24.3
billion in 2009, equating to 12.1% of the market's aggregate value.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 3.6% for the five-
year period 2009-2014, which is expected to drive the market to a value of $239.8 billion by the end of
2014. Comparatively, the European and Asia-Pacific markets will grow with CAGRs of 4.1% and 5%
respectively, over the same period, to reach respective values of $41.9 billion and $91.2 billion in 2014.
Global - Fast Food 0199 - 2230 - 2009

MARKET VALUE
MARKET VALUE
The global fast food market grew by 3.1% in 2009 to reach a value of $201.1 billion.
The compound annual growth rate of the market in the period 2005–09 was 4.8%.
Table 1: Global fast food market value: $ billion, 2005–09
Year $ billion € billion % Growth

2005 166.6 119.8
2006 175.3 126.1 5.2%
2007 185.9 133.7 6.0%
2008 194.9 140.2 4.9%
2009 201.1 144.6 3.1%
CAGR: 2005–09 4.8%
Source: Datamonitor DATAMONITOR
Figure 1: Global fast food market value: $ billion, 2005–09
Global - Fast Food 0199 - 2230 - 2009

MARKET VOLUME
MARKET VOLUME
The global fast food market grew by 3.9% in 2009 to reach a volume of 208.1 billion transactions.
The compound annual growth rate of the market in the period 2005–09 was 4.6%.
Table 2: Global fast food market volume: billion transactions, 2005–09
Year billion transactions % Growth

2005 173.8
2006 183.1 5.4%
2007 192.2 4.9%
2008 200.4 4.3%
2009 208.1 3.9%
CAGR: 2005–09 4.6%
Figure 2: Global fast food market volume: billion transactions, 2005–09
Global - Fast Food 0199 - 2230 - 2009

MARKET SEGMENTATION I
MARKET SEGMENTATION I
QSR is the largest segment of the global fast food market, accounting for 70.9% of the market's total
value.
The takeaways segment accounts for a further 12.1% of the market.
Table 3: Global fast food market segmentation I:% share, by value, 2009
Category % Share
QSR 70.9%
Takeaways 12.1%
Mobile & Street Vendors 11.2%
Leisure Locations 5.8%
Total 100%
Figure 3: Global fast food market segmentation I:% share, by value, 2009
Global - Fast Food 0199 - 2230 - 2009

MARKET SEGMENTATION II
MARKET SEGMENTATION II
Americas accounts for 47.4% of the global fast food market value.
Asia-Pacific accounts for a further 35.6% of the global market.
Table 4: Global fast food market segmentation II: % share, by value, 2009
Category % Share
Americas 47.4%
Asia-Pacific 35.6%
Europe 17.0%
Total 100%
Figure 4: Global fast food market segmentation II: % share, by value, 2009
Global - Fast Food 0199 - 2230 - 2009

COMPETITIVE LANDSCAPE
The fast food market will be analyzed taking fast food operators as players. The key buyers will be taken
as consumers, and food ingredients providers and workforce providers as the key suppliers.
many independents as well as larger chains.
The fast food market is not, as once thought, recession proof, but has had to work hard in the downturn to
enhance growth. Industry players have attempted to enhance their business in the downturn by offering
cheaper value offerings to encourage consumers to eat out of the home. For example, McDonald’s, the
largest fast food chain in the world, created meals of smaller-size and smaller price- “fourth-tier menu
items”- to boost sales. The Snack Deluxe line in Germany and P’tit Plaisir mini sandwiches in France are
examples as well as the dollar saver menu in the US, all a strategy to beat the downturn. As fast food
giants continue to exploit the recession with pricing strategies coupled with economic recovery the overall
fast food market is expected to grow over the coming years. The fast food market will be analyzed taking
independent and chain restaurant companies as players and consumers as buyers. Players differentiate
their offering via brand building on a range of foods with attractive discounts. While brand awareness
strengthens consumer loyalty, buyer power weakens. Alternatively, supplier power is boosted in this
market as suppliers usually have other profit foodservice and cost foodservice customers thereby
decreasing their dependence on fast food players. The greatest threat, especially in times of economic
malaise, is the likelihood of buyers turning to substitutes, such as purchasing the raw materials cheaply
and cooking the meal themselves in their own kitchen. The degree of rivalry within the sector is strong as
customers can switch from one player to another with relatively low switching costs (effectively zero) and
players themselves can quite easily increase capacity. Consequently, players mitigate rivalry by
competing via brand awareness, food quality and value pricing. As the market as a whole is fragmented
rivalry is intensified. However, with little initial capital outlay required and low fixed costs, rivalry is reduced
to a degree, as companies are not committed to a certain scale of operation in order to remain profitable.
This also makes the likelihood of new entrants to the market a strong possibility.
Global - Fast Food 0199 - 2230 - 2009

Economic malaise resulting from the financial crisis has consequently strengthened buyer power as
industry players secure price sensitive consumers with competitive pricing strategies. For example,
players have started offering discounts and combination meals to raise revenue from all the corners.
However, the main source of buyer power is the lack of switching costs: within a given price range, a
consumer's choice of fast food provider is purely a matter of personal taste, and can vary from one day to
the next. There is also likely to be relatively high price elasticity of demand, because fast food is not
strictly essential to consumers. Despite a downturn in consumer expenditure and signs of saturation,
investment in the fast food industry remains high, with new stores opening across the sector. McDonald's
remains the global giant of the fast food industry. Investment in brand building has driven customer
loyalty, while the sheer convenience of fast food makes it more important to the consumer than a simple
source of food. Buyer power is assessed to be moderate overall.
One key input for the fast food market is of course food. It is vital for fast food companies to maintain
reliable supply chains offering food of marketable quality, and in a generally low margin - high volume
business, keeping food costs down is pivotal. Suppliers in this market usually have other kinds of profit
foodservice and cost foodservice customers, decreasing their dependence on fast food players. The large
number of businesses served by upstream companies means that they themselves are under less
pressure to keep their own prices down. While in some European countries, foodservice supply is
fragmented, cash-and-carry wholesalers are highly concentrated in France and Germany, while delivery
wholesalers are also starting to consolidate in the UK where just two companies (3663 and Brakes)
dominate the upstream landscape. These factors boost supplier power, especially for the many small
foodservice players. The fast food business is labor intensive, and the minimum wage legislation or
collective agreements found in many countries goes some way towards strengthening employees,
considered here as suppliers of labor. Overall, supplier power is assessed as moderate.
Entry to the global fast food market does not require large capital outlay; setting up a single, independent
fast food outlet is within the means of many individuals in the region, even in countries such as India, with
low-median incomes. Larger companies can reduce the cost of expanding by running some or all of their
outlets as franchises. Whilst expansion is relatively easy around the globe, notable exceptions include
the Asia-Pacific region where restrictions to such an expansion are imposed. For example, franchise
regulations by the Chinese Ministry of Commerce (MOFCOM), include a requirement that foreign
franchisors open pilot locations in China first, making it more difficult for foreign franchisors to franchise in
China. The regulations enacted in February of 2005 include the requirements, that a foreign franchisor
must have operated two pilot locations for a minimum of one year before offering franchises in China.
Moreover, the foreign franchisor must be registered with the Chinese government. In addition to the
regulatory restrictions foreign franchisors face, it is important that preliminary marketing and brand
promotions precede the major introduction of foreign franchise concepts in China. Market entrants face
several other barriers; retaliation by existing players, such as the launch of a price war, especially where a
new entrant moves into a more concentrated segment. The brand strength of the major chains is not
negligible, which may negate some of the effect of low consumer switching costs. Overall, there is a
moderate likelihood of new entrants.
Global - Fast Food 0199 - 2230 - 2009

Substitutes for fast food include other forms of profit foodservice, and also food retail (ready meals or
ingredients for home cooking). The generic product of fast food is mainly considered as convenience.
Convenience and availability are the main drivers for choosing fast food coupled with a focus on value. As
the market consists of many differentiated fast food companies, customers have the option of choosing
the best value products. Frozen re-heatable prepared food offers a strong competitive strength against
regular take away fast food. For example, in China popular items include instant noodles and
microwavable frozen dumplings that cost about 70 cents a bag and comes in dozens of varieties,
including pork, celery, shrimp and vegetarian. The substitute product is convenient and offers both cheap
value meals and quality products on a scale that matches the fast food industry. Many forms of fast food
have attracted criticism for being unhealthy, while food retail offers consumers greater freedom to control
their diet. However, the market for healthier forms of fast food is accelerating. America’s health-reform bill,
which Congress passed in March 2010, requires restaurant chains with 20 or more outlets to put the
calorie-content of items they serve on the menu. Consequently the trend towards ‘healthy fast food’ will
continue to develop in early 2011, when it is enacted. Similar measures are to follow in Australia also.
For the calorie conscious consumer, the main substitute is preparing a home cooked meal where the
switching cost is the opportunity cost of the time spent in the kitchen. Overall, the threat of substitutes is
assessed to be moderate.
many independents as well as larger chains. Rivalry is somewhat mitigated with the absence of high exit
costs coupled with the ease with which capacity can be increased; chains can increase the number of
outlets (the prevalence of franchising is a factor here) whilst independents can take on more staff or
extend opening hours. As players of all sizes in this market are highly focused on fast food, profitability
relies on low margin-high turnover operations. Price competition is thus prevalent amongst industry
players, especially between value meals. In particular, the value meals within the $1-$2 range are a
reaction to the shifting consumer trends and a larger focus on competition amongst industry players. This
form of price dumping has become particularly prevalent as a result of a fragile wider economic
environment. Brand power however forms the greatest competition in the fast food market, for example,
McDonald’s spent $650.8 million on advertising (globally) in 2009. Overall, rivalry is assessed to be
strong.
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
LEADING COMPANIES
Burger King Corporation
Table 5: Burger King Corporation: key facts
Head office: 5505 Blue Lagoon Drive, Miami, Florida 33126, USA
Telephone: 1 305 378 3000
Fax: 1 305 378 7262
Website: www.bk.com
Financial year-end: June
Ticker: BKC
Stock exchange: New York
Source: company website DATAMONITOR
Burger King Corporation (BKC) is one of the world's leading fast food restaurants. It operates more than
11,925 restaurants in 73 countries and the US territories, of which 1,429 restaurants are company
restaurants and 10,496 are owned by independent franchisees. Out of these, 7,233 restaurants are
located in the US and 4,692 are located in international markets.
The company's business is divided into three geographic segments; the US and Canada; Europe, the
Middle East, Africa and Asia-Pacific (EMEA/APAC); and Latin America. About 7,512 BKC restaurants are
located in the US and Canada. Over 2,580 of the company's restaurants are located in EMEA, 733
restaurants in APAC, and 1,078 restaurants in Latin America.
The chain offers a range of burgers, sandwiches, salads and breakfast items, including flame-broiled
hamburgers, chicken and other specialty sandwiches, French fries, soft drinks and other food items. BKC
introduced drive-thru services, which now account for almost 62% of the US company restaurant
business.
The company generates revenues from three sources: sales at company restaurants, royalties and
franchise fees, and property income from certain franchise restaurants that lease or sub-lease property
from the company.
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
Key Metrics
The company recorded revenues of $2,357 million in the fiscal year ending June 2009, a decrease of 4%
compared to fiscal 2008. Its net income was $200 million in fiscal 2009, compared to a net income of
$190 million in the preceding year.
The US and Canada, Burger King's largest geographical market, accounted for 68.7% of the total
revenues in FY2009. Revenues from the US and Canada reached $1,743 million in 2009, an increase of
10.4% over 2008.
EMEA/APAC (Europe, the Middle East, Africa and Asia Pacific) accounted for 27.1% of the total revenues
in FY2009. Revenues from EMEA/APAC reached $687.4 million in 2009, a decrease of 9.6% compared
with 2008.
Latin America accounted for 4.2% of the total revenues in FY2009. Revenues from Latin America reached
$107 million in 2009, a decrease of 7.3% compared with 2008.
Table 6: Burger King Corporation: key financials ($)
$ million 2005 2006 2007 2008 2009

Revenues 1,940.0 2,048.0 2,234.0 2,455.0 2,357.4
Net income (loss) 47.0 27.0 148.0 190.0 200.1
Total assets 2,723.0 2,552.0 2,517.0 2,687.0 2,707.1
Total liabilities 2,246.0 1,985.0 1,801.0 1,842.0 1,732.2
Source: company filings DATAMONITOR
Table 7: Burger King Corporation: key financial ratios
Ratio 2005 2006 2007 2008 2009

Profit margin 2.4% 1.3% 6.6% 7.7% 8.5%
Revenue growth 10.6% 5.6% 9.1% 9.9% (4.0%)
Asset growth 2.2% (6.3%) (1.4%) 6.8% 0.7%
Liabilities growth 0.2% (11.6%) (9.3%) 2.3% (6.0%)
Debt/asset ratio 82.5% 77.8% 71.6% 68.6% 64.0%
Return on assets 1.7% 1.0% 5.8% 7.3% 7.4%
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
Figure 5: Burger King Corporation: revenues & profitability
Figure 6: Burger King Corporation: assets & liabilities
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
Domino's Pizza, Inc.
Table 8: Domino's Pizza, Inc.: key facts
Head office: 30 Frank Lloyd Wright Drive, Ann Arbor, Michigan 48106, USA
Telephone: 1 734 930 3030
Fax: 1 734 930 4346
Website: www.dominos.com
Financial year-end: December
Ticker: DPZ
Domino's Pizza is one of the world's leading pizza delivery companies. The company operates through a
network of 8,999 company-owned and franchise stores, located in all 50 states of the US and across 60
countries worldwide. The company operates 16 regional dough manufacturing and supply chain centers,
one thin crust manufacturing center, one vegetable processing supply chain center in the US, and six
dough manufacturing and supply chain centers outside the US.
Domino's operates in three business segments: domestic stores, domestic supply chain, and
international.
The domestic stores segment is comprised of 4,461 franchise stores and 466 company-owned stores.
The domestic franchises are operated by entrepreneurs who own and operate an average of three to four
stores. Six of the company's domestic franchisees operate more than 50 stores, including its largest
domestic franchisee, which operates 143 stores. The principal sources of revenues from domestic store
operations are company-owned store sales and royalty payments based on retail sales by its franchisees.
The domestic company-owned store operations are divided into 11 geographic areas located throughout
the US, while its domestic franchise operations are divided into four regions.
The domestic supply chain segment is comprised of dough manufacturing and supply chain centers that
manufacture fresh dough on a daily basis and purchase, receive, store and deliver quality pizza-related
food products and complementary side items to all of the company-owned stores and over 99% of its
domestic franchise stores. This segment operates 16 regional dough manufacturing and supply chain
centers. Each regional dough manufacturing and supply chain center serves approximately 300 stores.
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
The international segment oversees the company's network of 4,072 international franchise stores in
more than 60 countries. It also manufactures dough and distributes food and supplies in a limited number
of international markets. The company has 589 franchise stores in Mexico, 562 franchise stores in the
UK, 411 franchise stores in Australia, 329 franchise stores in South Korea, 319 franchise stores in
Canada, 296 franchise stores in India and over 100 franchise stores in each of Japan, Turkey, Taiwan
and France. The principal sources of revenues from its international operations are royalty payments
generated by retail sales from franchise stores, and sales of food and supplies to franchisees in certain
markets.
Key Metrics
The company recorded revenues of $1,404 million in the fiscal year ending December 2009, a decrease
of 1.5% compared to fiscal 2008. Its net income was $80 million in fiscal 2009, compared to a net income
of $54 million in the preceding year.
The reason for the decline in revenues was primarily due to low company-owned store revenues and
domestic supply chain revenues coupled with the negative impact of changes in foreign currency
exchange rates from its international revenues.
Domino's Pizza generates revenues through three business segments: domestic supply chain (57.1% of
the total revenues during FY2009), domestic stores (33.1%), and international (9.8%).
The domestic stores segment recorded revenues of $493.6 million in FY2009, a decrease of 3.5% as
compared to FY2008.
The international segment recorded revenues of $146.8 million in FY2009, an increase of 3% over
FY2008.
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
Table 9: Domino's Pizza, Inc.: key financials ($)
$ million 2005 2006 2007 2008 2009

Revenues 1,511.6 1,437.3 1,462.9 1,425.1 1,404.1
Net income (loss) 108.2 106.2 37.9 54.0 79.7
Total assets 461.1 380.2 473.2 463.8 453.8
Total liabilities 972.1 945.1 1,923.3 1,888.4 1,774.8
Employees 13,500 13,300 12,500 10,500 10,200
Table 10: Domino's Pizza, Inc.: key financial ratios
Ratio 2005 2006 2007 2008 2009

Profit margin 7.2% 7.4% 2.6% 3.8% 5.7%
Revenue growth 4.5% (4.9%) 1.8% (2.6%) (1.5%)
Asset growth 3.1% (17.5%) 24.5% (2.0%) (2.2%)
Liabilities growth (2.5%) (2.8%) 103.5% (1.8%) (6.0%)
Debt/asset ratio 210.8% 248.6% 406.4% 407.2% 391.1%
Return on assets 23.8% 25.3% 8.9% 11.5% 17.4%
Revenue per employee $111,970 $108,069 $117,032 $135,724 $137,657
Profit per employee $8,015 $7,987 $3,032 $5,143 $7,814
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
Figure 7: Domino's Pizza, Inc.: revenues & profitability
Figure 8: Domino's Pizza, Inc.: assets & liabilities
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
McDonald's Corporation
Table 11: McDonald's Corporation: key facts
Head office: One McDonald's Plaza, Oak Brook, Illinois 60523, USA
Telephone: 1 630 623 3000
Fax: 1 630 623 5004
Website: www.mcdonalds.com
Ticker: MCD
McDonald's is one of the world's largest foodservice retailing chains. All restaurants are operated either
by the company or by franchisees, including conventional franchisees under franchise arrangements, and
foreign affiliated markets and developmental licensees under license agreements. The company is
primarily known for its burgers and fries which it sells through more than 32,478 fast-food restaurants in
over 100 countries. It primarily operates in Europe, Asia-Pacific, and North America.
The company's business is divided into four geographic segments: Europe, the US, APMEA (Asia-Pacific,
Middle East and Africa), and other countries and corporate. Other countries and corporate includes
Canada and Latin America, as well as corporate activities and certain investments.
McDonald's restaurants offer a standardized menu, although there may be geographic variations.
McDonald's key product offerings include hamburgers and cheeseburgers, chicken sandwiches, French
fries, wraps, chicken nuggets, salads, desserts, sundaes, soft serve cones, pies, and cookies. It also
offers beverages, such as milk shakes, soft drinks, coffee, and flavored tea. McDonald's restaurants in
the US and many international markets also offer a wide range of breakfast menu items. The company's
breakfast offerings include muffins, biscuits, hotcakes, and bagel sandwiches.
McDonald's markets its products under a wide range of brand names that include Big Mac, Big N' Tasty,
Filet-O-Fish, McNuggets, McFlurry, McMuffin, and McGriddle, among others.
McDonald's generates revenues through company operated restaurants and franchisee restaurants. Of a
total 32,478 McDonald's restaurants, over 6,200 are operated by McDonald's and over 26,000 are
operated by franchisees and affiliates. The company's revenue comprises sales from company operated
restaurants and fees as well as rent from franchisees and affiliates.
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
Under conventional franchise arrangement, franchisees provide a portion of the capital required by initially
investing in the equipment, signs, seating, and decor of their restaurant businesses, and by reinvesting in
the business over time. McDonald's owns the land and building or secures long-term leases for both
McDonald's operated and conventional franchised restaurant sites.
Key Metrics
of 3.3% compared to fiscal 2008. Its net income was $4,551 million in fiscal 2009, compared to a net
income of $4,313 million in the preceding year.
The decrease in revenues in FY2009 was primarily caused by a shift to a greater percentage of
franchised restaurants, where McDonald's receives rent and/or royalties based on a percent of sales.
Europe, McDonald's largest geographical market, accounted for 40.8% of the total revenues in FY2009.
Revenues from Europe reached $9,273.8 million in 2009, a decrease of 6.5% over 2008.
The US accounted for 34.9% of the total revenues in FY2009. Revenues from US reached $7,943.8
million in 2009, a decrease of 1.7% over 2008.
Asia/Pacific, Middle East and Africa (APMEA) accounted for 19.1% of the total revenues in FY2009.
Revenues from APMEA reached $4,337 million in 2009, an increase of 2.5% over 2008.
Other countries (Canada and Latin American) & corporate accounted for 5.2% of the total revenues in
FY2009. Revenues from other countries & corporate reached $1,190.1 million in 2009, a decrease of
7.8% over 2008.
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
Table 12: McDonald's Corporation: key financials ($)
$ million 2005 2006 2007 2008 2009

Revenues 19,117.3 20,895.2 22,786.6 23,522.0 22,744.7
Net income (loss) 2,602.2 3,544.2 2,395.1 4,313.0 4,551.0
Total assets 29,988.8 28,974.5 29,391.7 28,462.0 30,224.9
Employees 447,000 465,000 390,000 400,000 400,000
Table 13: McDonald's Corporation: key financial ratios
Ratio 2005 2006 2007 2008 2009

Profit margin 13.6% 17.0% 10.5% 18.3% 20.0%
Revenue growth 2.8% 9.3% 9.1% 3.2% (3.3%)
Asset growth 7.7% (3.4%) 1.4% (3.2%) 6.2%
Liabilities growth 8.8% (8.9%) 4.4% 6.9% 7.4%
Debt/asset ratio 49.5% 46.6% 48.0% 53.0% 53.6%
Return on assets 9.0% 12.0% 8.2% 14.9% 15.5%
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
Figure 9: McDonald's Corporation: revenues & profitability
Figure 10: McDonald's Corporation: assets & liabilities
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
Yum! Brands, Inc.
Table 14: Yum! Brands, Inc.: key facts
Head office: 1441 Gardiner Lane, Louisville, Kentucky 40213, USA

Telephone: 1 502 874 8300
Fax: 1 502 454 2410
Website: www.yum.com
Ticker: YUM
Yum! Brands operates franchises and licenses a chain of restaurant brands including Kentucky Fried
Chicken (KFC), Pizza Hut, Taco Bell, Long John Silver's (LJS) and All America Food (A&W). It operates
more than 36,000 restaurants in 110 countries. Of the over 36,000 restaurants, 21% are operated by the
company, 73% are operated by franchisees and unconsolidated affiliates and 6% are operated by
licensees.
KFC restaurants in the US offer fried chicken-on-the-bone products, mainly marketed under the names
Original Recipe and Extra Tasty Crispy. The restaurant's other principal items include chicken
sandwiches (including the Snacker and the Twister), KFC Famous Bowls, Colonel's Crispy Strips, chicken
wings, Popcorn Chicken and, seasonally, Chunky Chicken Pot Pies. KFC restaurants in the US also offer
a variety of side items also, such as biscuits, mashed potatoes and gravy, coleslaw, corn and potato
wedges, as well as desserts. While many of these products are offered outside of the US, international
menus are more focused on chicken sandwiches and Colonel's Crispy Strips, and include side items that
are suited to local preferences and tastes. Restaurant decor throughout the world is characterized by the
image of Colonel Sanders.
KFC operates in 109 countries throughout the world. As of 2008, KFC has 5,253 units in the US, and
10,327 units outside the US.
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
The Pizza Hut restaurant chain, headquartered in Dallas County, Texas, specializes in the sale of ready-
to-eat pizza products. The chain features a variety of pizzas, which include Pan Pizza, Thin 'n Crispy,
Hand Tossed, Sicilian, Stuffed Crust, Twisted Crust, Sicilian Lasagna Pizza, Cheesy Bites Pizza, The Big
New Yorker, The Insider, The Chicago Dish and 4forALL. Each type of pizza is offered with a variety of
toppings. In some restaurants, Pizza Hut also offers breadsticks, pasta, salads and sandwiches. Menu
items outside of the US are generally similar to those offered in the US, although pizza toppings are often
matched to local preferences and tastes.
Pizza Hut operates in 97 countries throughout the world. As of 2008, Pizza Hut had 7,564 units in the US,
and 5,611 units outside the US.
Taco Bell specializes in Mexican-style food products, including various types of tacos, burritos, gorditas,
chalupas, quesadillas, salads, nachos and related items. Additionally, it also offers proprietary items such
as Grilled Stuft Burritos and Border Bowls. Taco Bell restaurants feature a distinctive bell logo on their
signage.
Taco Bell operates in 17 countries and territories throughout the world. As of 2008, there were 5,588 Taco
Bell units in the US and 245 units outside the US.
Long John Silver's (LJS) features a variety of seafood and chicken items, including meals featuring batter-
dipped fish, chicken, shrimp, hushpuppies and portable snack items. LJS restaurants basically feature a
distinctive seaside/nautical theme.
LJS operates in seven countries throughout the world. As of 2008, there were 1,022 LJS units in the US,
and 38 units outside the US.
All America Food (A&W) serves A&W draft Root Beer and its signature A&W Root Beer floats, besides
hot dogs and hamburgers.
A&W operates in 10 countries throughout the world. As of 2008, there were 363 A&W units in the US, and
264 units outside the US.
Yum Brands consists of six operating segments: KFC-US, Pizza Hut-US, Taco Bell-US, LJS/A&W-US,
Yum Restaurants International (YRI) and Yum Restaurants China (China).
For financial reporting purposes, it combined the four US operating segments into a single reporting
segment (the US). The China segment includes China, Thailand and Taiwan, and the international
segment includes the remainder of its international operations.
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
Key Metrics
of 4.1% compared to fiscal 2008. Its net income was $1,071 million in fiscal 2009, compared to a net
income of $964 million in the preceding year.
Yum Brands generates revenues through three geographic business divisions: the US (45.4% of the total
revenues during FY2008), China (27.7%) and Yum Restaurants International (YRI) (26.8%).
The US, Yum Brands' largest geographical market, accounted for 45.4% of the total revenues in FY2008.
Revenues from the US reached $5,125 million in FY2008, a decrease of 1.4% compared with FY2007.
China accounted for 27.7% of the total revenues in FY2008. Revenues from China reached $3,128 million
in FY2008, an increase of 45.9% over FY2007.
YRI accounted for 26.8% of the total revenues in FY2008. Revenues from YRI reached $3,026 million in
FY2008, a decrease of 1.6% compared with FY2007.
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
Table 15: Yum! Brands, Inc.: key financials ($)
$ million 2005 2006 2007 2008 2009

Revenues 9,349.0 9,561.0 10,416.0 11,304.0 10,836.0
Net income (loss) 762.0 824.0 909.0 964.0 1,071.0
Total assets 5,797.0 6,353.0 7,242.0 6,527.0 7,148.0
Employees 59,840 53,200 48,160 49,000 50,400
Table 16: Yum! Brands, Inc.: key financial ratios
Ratio 2005 2006 2007 2008 2009

Profit margin 8.2% 8.6% 8.7% 8.5% 9.9%
Revenue growth 3.8% 2.3% 8.9% 8.5% (4.1%)
Asset growth 1.8% 9.6% 14.0% (9.9%) 9.5%
Liabilities growth 6.0% 13.1% 24.1% 8.7% (7.7%)
Debt/asset ratio 75.0% 77.4% 84.3% 101.7% 85.7%
Return on assets 13.3% 13.6% 13.4% 14.0% 15.7%
Global - Fast Food 0199 - 2230 - 2009

LEADING COMPANIES
Figure 11: Yum! Brands, Inc.: revenues & profitability
Figure 12: Yum! Brands, Inc.: assets & liabilities
Global - Fast Food 0199 - 2230 - 2009

MARKET FORECASTS
MARKET FORECASTS
Market value forecast
In 2014, the global fast food market is forecast to have a value of $239.8 billion, an increase of 19.3%
since 2009.
The compound annual growth rate of the market in the period 2009–14 is predicted to be 3.6%.
Table 17: Global fast food market value forecast: $ billion, 2009–14
Year $ billion € billion % Growth

2009 201.1 144.6 3.1%
2010 207.7 149.3 3.3%
2011 214.7 154.4 3.4%
2012 222.3 159.9 3.6%
2013 230.3 165.7 3.6%
2014 239.8 172.5 4.1%
CAGR: 2009–14 3.6%
Figure 13: Global fast food market value forecast: $ billion, 2009–14
Global - Fast Food 0199 - 2230 - 2009

MARKET FORECASTS
Market volume forecast

In 2014, the global fast food market is forecast to have a volume of 248.7 billion transactions, an increase
of 19.5% since 2009.
The compound annual growth rate of the market in the period 2009–14 is predicted to be 3.6%.
Table 18: Global fast food market volume forecast: billion transactions, 2009–14
Year billion transactions % Growth

2009 208.1 3.9%
2010 216.1 3.8%
2011 224.3 3.8%
2012 232.6 3.7%
2013 240.7 3.5%
2014 248.7 3.3%
CAGR: 2009–14 3.6%
Figure 14: Global fast food market volume forecast: billion transactions, 2009–14
Global - Fast Food 0199 - 2230 - 2009

APPENDIX
APPENDIX
Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated,
analyzed, cross-checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys
and supported by analysis from industry experts using highly complex modeling & forecasting tools,
Datamonitor’s in-house databases provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst
commentary, company profiles and macroeconomic & demographic information, which enable our
researchers to build an accurate market overview
Definitions – Market definitions are standardized to allow comparison from country to country. The
parameters of each definition are carefully reviewed at the start of the research process to ensure they
match the requirements of both the market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest
industry events and trends
Datamonitor aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative
and qualitative data to be combined with related macroeconomic and demographic drivers to create
market models and forecasts, which can then be refined according to specific competitive, regulatory
and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and
up-to-date
Global - Fast Food 0199 - 2230 - 2009

APPENDIX
Industry associations
International Hotel & Restaurant Association
48 Boulevard de Sébastopol, 75003 Paris, France
Tel.: 33 1 4488 9220
Fax: 33 1 4488 9230
www.ih-ra.com
Related Datamonitor research
Industry Profile
Fast Food in the United States
Fast Food in Europe
Fast Food in Asia-Pacific
Global - Fast Food 0199 - 2230 - 2009

APPENDIX
Disclaimer
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Global - Fast Food 0199 - 2230 - 2009

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INDUSTRY PROFILE

Global Fast Food

Reference Code: 0199-2230

Global - Fast Food 0199 - 2230 - 2009

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Burger King Corporation 16

Domino's Pizza, Inc. 19

Yum! Brands, Inc. 27

Market value forecast 32

Market volume forecast 33

Related Datamonitor research 35

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Table 6: Burger King Corporation: key financials ($) 17

Table 9: Domino's Pizza, Inc.: key financials ($) 21

Global - Fast Food 0199 - 2230 - 2009

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Figure 6: Burger King Corporation: assets & liabilities 18

Figure 9: McDonald's Corporation: revenues & profitability 26

Global - Fast Food 0199 - 2230 - 2009

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Table 1: Global fast food market value: $ billion, 2005–09

Year $ billion € billion % Growth

CAGR: 2005–09 4.8%

Source: Datamonitor DATAMONITOR

Figure 1: Global fast food market value: $ billion, 2005–09

Source: Datamonitor DATAMONITOR

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Table 2: Global fast food market volume: billion transactions, 2005–09

Year billion transactions % Growth

CAGR: 2005–09 4.6%

Source: Datamonitor DATAMONITOR

Figure 2: Global fast food market volume: billion transactions, 2005–09

Source: Datamonitor DATAMONITOR

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Source: Datamonitor DATAMONITOR

Source: Datamonitor DATAMONITOR

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Source: Datamonitor DATAMONITOR

Source: Datamonitor DATAMONITOR

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Table 5: Burger King Corporation: key facts

Source: company website DATAMONITOR

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