Each year, Brand Finance compiles a ranking of the world’s most valuable restaurant brands based on marketing investment, stakeholder equity, and business performance. As we take a look at the brands that have ranked at the top of the list, we can see how quick-service restaurants around the country are improving with better food options. Here are 5 of the most valuable brands in the world! Let’s begin.
–Brand value (in millions): $32,421
It is Starbucks consecutive year of placing number one in the Brand Strength Index of 89.2%. Same-store sales have increased by 2% in the first quarter this year as their global potential and growth remains strong. The Starbucks expansion in China has increased their revenues by 30% in the first quarter. They recently made a $1.3 billion acquisition on the remaining 50% share of its East China business. Furthermore, Kevin Johnson, the CEO of Starbucks, announced the prediction of China’s GDP to exceed $15 trillion by 2021. This announcement carries along with the fact that Starbucks is set to open 1,000 global Reserve stores and reimagine their current U.S. stores with several tech-driven initiatives.
Brand value (in millions): $24,872
McDonald’s has also held onto their ranking of number two for their consecutive year. McDonald’s has grown in the fast-food industry as they continue serving their classic meals that everyone knows. They announced their fourth-quarter report in late 2017 and shares increased approximately 44.5% over the past year. The company’s global comparable sales climbed 5.3% which marked the company’s best sales performance in six years. McDonald’s plans to invest about $2.4 billion of capital in 2018. This investment will go towards their “Experience of the Future” design for all of its U.S. locations and also open 1,000 new locations.
Brand value (in millions): $8,083
The recent brand index showed that Subway has experienced a decline in their revenue forecast due to the many store closures. Similar to the first two rankings, Subway has held onto their ranking in third place. Subway serves approximately 7.5 million customers per day but have still had to close many stores. Their domestic store count has dropped by 900 stores in 2017 which is less than 4% of its nearly 26,000-unit U.S. presence. Suzanne Greco, the CEO of Subway, announced that she expects to continue closing down stores over the next three years.
Brand value (in millions): $8,049
KFC has a complete comeback story after they have begun improving their food options for those who are seeking a healthier option at KFC. Global same-store sales have increased by 3% in their fourth quarter last year. Internationally, the food chain has a strong 5% growth in their international emerging markets and 3% in developed markets. They have opened approximately 539 new international restaurants in the last quarter and 1,247 in 84 countries for the year, including 1,042 in emerging markets. They have many initiatives planned for their stateside business such as partnering with GrubHub to bring delivery to thousands of restaurants. KFC also plans to remodel another 600 stores in 2018, resulting in nearly 40% of their sites being remodeled by the end of the year.
5. Tim Hortons
Brand value (in millions): $5,033
In this fifth and final ranking of our two-part article was Tim Hortons. Consequently, Tim Hortons has a strong presence in Canada which has brought a lot of competition for Burger King and Popeyes. They have shown comparable same-store sales growth of 0.1% in their fourth quarter of last year and a 0.1% decline in the fiscal year of 2017. Tim Horton has been busy with an international growth and has opened its first restaurants in Asia, Europe, and Latin America in 2017. They have also opened their first two stores in Egypt, Spain, and Mexico. Hortons recently announced their success in their international locations and mentioned that “these international stores continue to perform well and their partners have been building robust pipelines for additional openings in 2018 and beyond.”