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Proprietary Data Insights Top Fast Food Stock Searches This Month
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Source: Quick Service Restaurant Magazine That’s a look at the top ten fast food brands in America, according to QSR Magazine, based on 2021 US sales. In terms of investor interest, it’s no surprise that the top five most searched fast food tickers in The Juice’s proprietary Trackstar database also show up among the top ten sales giants. McDonald’s (MCD) leads the way in total domestic revenue. However, if you break it down by revenue per location, some fast food chains with a smaller footprint actually compete. From a whopping 13,438 locations, McDonald’s generated approximately $3,420,000 in sales per US store in 2021. This ranks sixth. Number one? Privately-owned Chick-Fil-A. The closed-on-Sunday quick serve chicken chain manages to squeeze $6,100,000 in sales, on average, out of its 2,732 stores. Equally as impressive, the stop so many people have to make when they visit California, In-N-Out Burger only has 370 locations, but goes animal style with $3,200,000 in sales per restaurant. Size Doesn’t Always Matter Consider Subway. More than 21,000 locations. About $9.3 million in US sales for an average per shop of just $438,000. It takes a lot of work – or at least a massive footprint – for Subway to make bank. Maybe too much work and too big of a footprint. Subway’s probably long overdue for a makeover. Meanwhile, there’s Shake Shack (SHAK). It comes in fourth in terms of sales per store with $3,679,000 in revenue, on average, from 243 locations. There’s definitely such thing as being too big and growing too fast. From an investment perspective, scroll with us to see what The Juice thinks really matters if you’re considering investing in the fast food/quick service space. |
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Top 5 Most Searched Fast Food Stocks This Month |
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Key Takeaways:
There’s a reason why Starbucks (SBUX) generates so much interest among investors, as evidenced by its top position among fast food/quick service restaurants in The Juice’s Trackstar database. It comes down to loyalty and consistency. In North America, Starbucks saw an increase of 8% in average ticket size in its most recent quarter. Last month, The Juice started to explain why. It comes down to Starbuck’s always-evolving app and overall digital strategy as well as in-store add-ons, such as customizable drinks and food items. Not only do you know what you’re getting when you go to a Starbucks (consistency), but you can customize it to your liking and earn rewards in the process (loyalty). These two factors keep people coming back. McDonald’s fosters loyalty and consistency differently. But with similar results. For example, we bet this resonates with you. While on a roadtrip last week, The Juice was hungry. Amid the blur that is fast food signs along the freeway, there was no question about where to stop. Hands down – McDonald’s. When you walk into a McDonald’s you know what you’re getting (consistency). Food that tastes the same way it did 30 years ago and (usually) clean bathrooms. From a digital standpoint, you no longer have to wait in line. Most McDonald’s we have been in over the last year have kiosks where you place and pay for your order via touchscreen. McDonald’s upsells you throughout this entire process. Add the McDonald’s app into the mix and digital sales accounted for nearly 33% of systemwide sales in Q2/2022. Source: Google Finance The Bottom Line: In terms of the stocks, McDonald’s has performed relatively well over the last year, trouncing the returns of the S&P 500 (SPY) (down 11.4%) and Nasdaq 100 (QQQ) (down 21.3%). While Starbucks can’t say the same, the stock has rallied recently, up nearly 30% from its June 2022 lows. But here’s the thing – just as you probably don’t visit McDonald’s every single day (might be a different story with Starbucks!), you don’t have to look at either of these stocks every single day. One of the hallmarks of sound, long-term, blue chip investments. Another hallmark – consistent and growing dividends. McDonald’s has increased its dividend every year for 46 consecutive years, making it a dividend aristocrat. Starbucks only started paying a dividend in 2010, but has increased it in each of the last 11 years. You rarely want to own a stock just because of the dividend. Lots of investors do this, only to see their investment dwindle thanks to a stagnant or sinking stock price. However, if you know the underlying company is strong – as is the case with McDonald’s and Starbucks – that dividend serves two main purposes:
Thankfully for MCD and SBUX, periods of poor performance don’t last long, as the stocks are up roughly 66% and 64%, respectively, over the last five years. A nice one-two punch that can serve as the cornerstone in many long-term portfolios.
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