Industry Analysis & Industry Trends
Although the recession caused individuals to eat out less, increasing disposable incomes will turn this trend around, resulting in greater demand for fast food options. Fast food restaurants will benefit from expanding their menus and adding new operations overseas in the next five years. Operators will also look to benefit from high-margin and nontraditional menu items to capitalize on increased spending... purchase to read more
Industry Report - Industry Investment Chapter
The Fast Food Restaurants industry's capital intensity is determined by the ratio of capital to labor costs. To calculate the ratio, wages, and depreciation and costs are used as proxies. For every dollar spent on wages in 2014, an estimated $0.12 will be spent on the use and replacement of buildings and equipment, giving this industry a low-to-medium level of capital intensity.
Operators in the industry need to outlay capital on assets to cook and store food and beverages, such as refrigerators, freezers and ovens, as well as restaurant furniture and fittings. However, following the initial capital investment for a new restaurant, little ongoing investment is required, meaning the industry is relatively labor intensive... purchase to read more