Direct Answer
31 SEC filers are classified under the Standard Industrial Classification code that describes the fast-casual restaurants industry, and their latest annual reports show $114.3 billion of combined revenue and a median operating margin of 4.1%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Fast casual restaurants offer higher-quality, made-to-order food with counter service at moderate prices. Strong unit economics and traffic drive expansion, and results depend on ingredient and labor cost. The first numbers to compare across companies here are same-restaurant sales, restaurant-level margin and average unit volume.
Key Industry Metrics
- Same-restaurant sales: Sales growth at restaurants open at least a year. It excludes new openings, and splitting it into traffic and price shows whether visits are rising or just checks.
- Restaurant-level margin: Profit at the restaurant before corporate costs as a share of sales. It shows unit economics after food, labor and occupancy, and it supports new openings when strong.
- Average unit volume: Average annual sales per restaurant. High volume spreads fixed costs and justifies expansion, and a falling figure can show new units are weaker or cannibalizing others.
- New unit growth: Growth in restaurant count. Fast casual concepts expand through new openings, so pace and the performance of new units help judge whether growth is sustainable.
- Digital sales share: Share of sales ordered through apps, websites and delivery. Rising digital share can add convenience and data, while third-party delivery can lower margin per order.
Primary Macro Drivers
- Consumer spending and traffic: Visits depend on household budgets and perceived value, setting same-restaurant sales and traffic.
- Food and wage inflation: Ingredients and wages are high-cost areas, so changes affect restaurant-level margin.
- New unit openings: New locations add sales and depend on strong average unit volume, so openings determine growth.
- Digital ordering: Mobile and delivery add sales and reduce wait times, raising digital sales share while adding fees.
Major Risks
- Traffic slowdown: Fewer visits lower sales and spread fixed costs, so same-restaurant sales and margin fall.
- Food safety events: An outbreak causes lost trust and closures, which can hit traffic across the chain for months.
- Cost inflation: Rapid input and labor increases squeeze margin when menu prices cannot rise as much.
- Saturation: New units in the same market take sales from existing ones, so growth slows and average unit volume may fall.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Medium |
| Regulatory Intensity | Medium |
| Industry Maturity | Growth |
| Geographic Importance | U.S. |
Fast-Casual Restaurants Filers in the SEC Record
31 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 5812. Their latest fiscal years end between 2025 and 2026, and together they reported $114.3 billion of revenue. Median revenue growth over the prior year was 4.4%. Median operating margin was 4.1% and median net margin 1.6%. Median total liabilities were 69% of total assets, and 18 of 31 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Mcdonalds Corp | $26.9 billion | 3.7% | 46.1% | 31.9% | FY 2025 |
| Aramark | $18.5 billion | 6.4% | 4.3% | 1.8% | FY 2025 |
| Darden Restaurants Inc | $13.2 billion | 9.4% | 12.0% | 9.1% | FY 2026 |
| Chipotle Mexican Grill Inc | $11.9 billion | 5.4% | 16.2% | 12.9% | FY 2025 |
| Yum China Holdings, Inc. | $11.8 billion | 4.4% | 10.9% | 7.9% | FY 2025 |
| Yum Brands Inc | $8.2 billion | 8.8% | 31.3% | 19.0% | FY 2025 |
| Texas Roadhouse, Inc. | $5.9 billion | 9.4% | 8.1% | 6.9% | FY 2025 |
| Bloomin' Brands, Inc. | $4.0 billion | 0.1% | 0.9% | 0.2% | FY 2025 |
The 8 largest of 31 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Fast-Casual Restaurants guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Fast-Casual Restaurants industry?
Key performance indicators for the Fast-Casual Restaurants industry include: Same-restaurant sales, Restaurant-level margin, Average unit volume, New unit growth, Digital sales share. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Fast-Casual Restaurants industry?
The Fast-Casual Restaurants industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Fast-Casual Restaurants industry?
The primary risks for Fast-Casual Restaurants companies include: Traffic slowdown, Food safety events, Cost inflation, Saturation. Investors should assess each company's exposure to these factors and its track record of navigating them.