Nibble on Some Fast-Food Trends

The latest issue of QSR magazine, a trade journal for the "quick-serve restaurant" industry (which includes fast-food and fast-casual chains), is out. As I've noted before, such periodicals are a great way to keep up with any industries that interest you, helping you to identify trends that can help or hurt your companies of interest, familiarizing you with up-and-comers, and providing useful data to track progress.

Here are some interesting data points from QSR's annual survey or customers:

  • Forty-five percent of respondents visited fast-food establishments at least once a week, up a full 10 points over 2007 levels. What's going on? Well, socked by a struggling economy, people might be seeking out less-expensive lunch fare. We're also getting busier and busier over time, with less time to prepare our own meals. These trends help companies such as McDonald's (NYSE: MCD  ) , Burger King (NYSE: BKC  ) , Wendy's (NYSE: WEN  ) , and Yum! Brands (NYSE: YUM  ) .
  • In 2007, Wendy's won top marks as a favorite, but this year, McDonald's took that crown. This reflects a winning strategy to win more business via new products (such as coffee and iced tea), among other things. Lest McDonald's shareholders get too excited, the company was also deemed "least favorite" by the most respondents. So Mickey D’s still has work to do.
  • In fact, all fast-fooderies might want to note this: When asked if they're loyal to one particular chain, 57% of respondents said yes, but that's down from 61% in 2007. A growing factor in chain choice is price, cited by 36%, up from 30% in 2007.
  • There was much improvement in fast food, according to respondents. Customer service is seen as very or somewhat pleasant by 58%, up significantly from 45%. (This may be tied to our ailing recession. As people value the jobs they have more, they may perform better in them.) Food quality was deemed somewhat or much improved by 41%, vs. 29% last year. Menus were seen as having gotten healthier, too.

Trade journals can be a great starting point to get leads on interesting companies in industries you'd like to learn more about. For instance, QSR was where I first read about Buffalo Wild Wings (Nasdaq: BWLD  ) , which I later bought for my own portfolio. Because trade journals go beyond the biggest names to talk about little-known start-up ventures, reading them can often give you the scoop before a young company hits the mainstream.

Buffalo Wild Wings is a Motley Fool Hidden Gems pick. Find out about the hot stocks of tomorrow before the crowd knows about them with a 30-day free trial today.

Longtime Fool contributor Selena Maranjian owns shares of McDonald's, Yum! Brands, and Buffalo Wild Wings. The Fool owns shares of Buffalo Wild Wings. Try our investing newsletters free for 30 days. The Motley Fool is Fools writing for Fools.


Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 667447, ~/Articles/ArticleHandler.aspx, 10/1/2014 3:06:09 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement