News

Report predicts strong QSR growth in 2011

March 10, 2011

A new report conducted by WorldStreetFundamentals.com, an online financial market research firm, predicts a stronger sales growth for the quick-service segment throughout the remainder of 2011.

The report's predictions include:

• Industry sales projections reaching as high as $604 billion. This comes after a 30-year period of negative real sales growth when considering inflation-adjusted terms;
• Real numbers for the coming year are expected to post 1.1 percent growth over 2010;
• Quick-service restaurants are projected to post sales of $167.7 billion this year, a gain of 1 percent over 2010.
• Sales at full-service restaurants are projected to reach $194.6 billion, an increase of 0.9 percent over 2010.

Consumers today spend 49 percent of their food budget in the restaurant industry, compared with only 24 percent in 1952.

The economic downturn has created a substantial pent-up demand for restaurant services: more than 40 percent of consumers are not dining out or using takeout as often as they would like. As the economy recovers and consumers begin to regain purchasing power, the restaurant industry is positioned to see rapid increases customer volume. This creates a strong position for growth in 2011. 

This data reflects similar predictions released by the National Restaurant Association in early February.

Among the World Street Fundamentals reports is an analysis of Sonic Corporation for its position as the largest chain of drive-in restaurants in the United States. 

The company also focused on Wendy's/Arby's Group for the reiteration of its 2011 earnings outlook and reaffirmed Wendy's long-term target of 10 percent to 15 percent in average annual EBITDA growth, beginning in 2012.