Direct Answer
31 SEC filers are classified under the Standard Industrial Classification code that describes the quick-service 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
Quick service restaurants serve fast food through drive-through, counter and delivery, mostly through franchised units that pay royalties. Traffic, value menus and digital ordering drive same-store sales, and franchising lowers capital intensity. The first numbers to compare across companies here are same-store sales, traffic and check and franchise royalty revenue.
Key Industry Metrics
- Same-store sales: Sales growth at restaurants open at least a year. It shows demand for existing units, and splitting it into traffic and price explains how much comes from customers.
- Traffic and check: Number of customer visits and average amount per order. Value menus and price increases move both, and falling traffic with rising check can signal customers trading down.
- Franchise royalty revenue: Income from royalties and fees charged to franchised restaurants, usually a percentage of sales. It is high margin and steady, and it follows system sales.
- Restaurant margin: Profit at company-owned restaurants before corporate costs as a share of sales. It reflects food, labor and occupancy costs and shows unit economics.
- Unit growth: Growth in the count of restaurants. Mostly franchised growth needs little company capital, but new unit performance and closures affect its value.
Primary Macro Drivers
- Consumer value seeking: Budget-conscious diners favor value menus, so traffic follows perceived price, which sets same-store sales and traffic.
- Menu pricing: Price changes affect check and traffic, so same-store sales show the net effect.
- Digital and delivery: Apps and delivery add occasions and loyalty, raising frequency and digital sales.
- Commodity and wage costs: Food and labor costs set restaurant margin, so inflation matters for franchisee profit and for company-operated margin.
Major Risks
- Traffic declines: Fewer visits reduce sales and spread fixed costs, so traffic is the first thing to check.
- Franchisee profitability: Franchisees earning less open fewer units, and weak operators can close, slowing unit growth and royalties.
- Wage and commodity inflation: Cost rises squeeze franchisee and company margins, and franchisees may resist new investments.
- Competition: Rival chains and grocery prepared foods compete for the same occasions, limiting traffic and pricing.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Medium |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | Global |
Quick-Service 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 Quick-Service 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 Quick-Service Restaurants industry?
Key performance indicators for the Quick-Service Restaurants industry include: Same-store sales, Traffic and check, Franchise royalty revenue, Restaurant margin, Unit growth. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Quick-Service Restaurants industry?
The Quick-Service 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 Quick-Service Restaurants industry?
The primary risks for Quick-Service Restaurants companies include: Traffic declines, Franchisee profitability, Wage and commodity inflation, Competition. Investors should assess each company's exposure to these factors and its track record of navigating them.