The largest restaurant companies worldwide are primarily international chains. Many are positioned to weather economic cycles and maintain consistent, profitable growth over the long term. Among them are holding companies that control a variety of subsidiary chains.
These are the 10 biggest restaurant companies by trailing 12-month (TTM) revenue as of June 17, 2024. All figures are from TradingView. This list is limited to companies that are publicly traded in the U.S. or Canada, either directly or through American depositary receipts (ADRs). Some foreign companies may report semiannually and may have longer lag times.
Key Takeaways
- The largest restaurant companies worldwide are primarily international chains.
- Compass Group and Starbucks are the two largest restaurant companies as of June 2024.
- McDonald's is the largest fast-food chain.
- Chinese hot pot restaurant Haidilao and Texas Roadhouse round out the top 10.
1. Compass Group PLC (CMPGY)
- Revenue (TTM): $40.18 billion
- Net income (TTM): $1.72 billion
- Market capitalization: $47.85 billion
- One-year trailing total return (daily): -2.43%
- Exchange: Over-the-counter (OTC)
Compass operates across five sectors, including business and industry, education, and assisted living. The company provides food to hospitals, schools, oil rigs, and entertainment venues, operating in 35 countries with 55,000 client locations and serving 5.5 billion meals globally each year. Compass also has segments in the defense, offshore, and remote sectors.
2. Starbucks Corp. (SBUX)
- Revenue (TTM): $36.50 billion
- Net income (TTM): $4.16 billion
- Market cap: $91.61 billion
- One-year trailing total return (daily): -20.71%
- Exchange: Nasdaq
Starbucks is the world's dominant coffee shop chain,with more than 38,000 stores globally as of April 2024. It has both company-owned and licensed stores and sells specialty beverages, such as coffees and teas, as well as food items.
Starbucks also sells branded items outside of its stores, such as roasted whole bean and ground coffees, including Seattle's Best Coffee, Starbucks, Teavana-branded single-serve products, and ready-to-drink beverages like the Frappuccino.
3. McDonald's Corp. (MCD)
- Revenue (TTM): $25.77 billion
- Net income (TTM): $8.60 billion
- Market cap: $182.45 billion
- One-year trailing total return (daily): -14.08%
- Exchange: New York Stock Exchange (NYSE)
McDonald's is the world's largest fast-food restaurant chain and one of the best-known brands. As of the end of 2023, the company had 41,822 locations in about 100 countries.
A pioneer in the fast-food industry, the company has maintained consistent, moderate growth by maintaining inexpensive prices and expanding and refreshing its menu offerings.
4. Darden Restaurants Inc. (DRI)
- Revenue (TTM): $11.20 billion
- Net income (TTM): $1.04 billion
- Market cap: $18.05 billion
- One-year trailing total return (daily): -9.71%
- Exchange: NYSE
Darden Restaurants owns and operates a line of casual and upscale dining restaurant chains, including Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, Eddie V’s, and the Yard House. The company was spun off from General Mills (GIS) in 1995.
5. Yum China Holdings Inc. (YUMC)
- Revenue (TTM): $11.02 billion
- Net income (TTM): $825 million
- Market cap: $13.10 billion
- One-year trailing total return (daily): -44.02%
- Exchange: NYSE
Spun off from Yum! Brands (YUM) in 2016, Yum China Holdings is a Fortune 500 company incorporated in the U.S. and headquartered in Shanghai. It operates thousands of restaurant locations across mainland China. Yum China also manages all Chinese versions of Pizza Hut, Taco Bell, and KFC, as well as local chains.
Some of these stocks are only traded over-the-counter (OTC) in the U.S., not on exchanges. Trading OTC stocks often carries higher trading costs than trading stocks on exchanges. This can lower or even outweigh potential returns.
6. Chipotle Mexican Grill Inc. (CMG)
- Revenue (TTM): $10.21 billion
- Net income (TTM): $1.30 billion
- Market cap: $91.82 billion
- One-year trailing total return (daily): 61.82%
- Exchange: NYSE
Chipotle Mexican Grill is a fast-casual Mexican food chain specializing in burritos, tacos, bowls, and similar dishes. The company operated 3,437 locations in 2023 with restaurants in the U.S., U.K., Canada, France, and Germany.
7. Restaurant Brands International Inc. (QSR)
- Revenue (TTM): $7.14 billion
- Net income (TTM): $1.23 billion
- Market cap: $30.98 billion
- One-year trailing total return (daily): -10.28%
- Exchange: NYSE
Restaurant Brands International is among the largest global quick-service restaurant chains in the world. It was established by the $12.5 billion merger of Burger King and Canadian coffee chain Tim Hortons in 2014.
The company bought Popeyes Louisiana Kitchen in 2017. Restaurant Brands operates more than 30,000 restaurants in more than 100 countries and territories.
8. Yum! Brands Inc. (YUM)
- Revenue (TTM): $7.03 billion
- Net income (TTM): $1.61 billion
- Market cap: $38.72 billion
- One-year trailing total return (daily): -1.55%
- Exchange: NYSE
Yum! Brands is one of the largest quick-service restaurant companies in the world, with more than 59,000 restaurants in 155 countries. The company is known for its franchise chains KFC, Pizza Hut, Taco Bell, and WingStreet. Most of the company's locations are franchised by 1,500 partners. Yum! Brands was first established as a spinoff of PepsiCo (PEP) in 1997.
9. Haidilao International Holding Ltd. (HDALF)
- Revenue (TTM): $5.86 billion
- Net income (TTM): $636.93 million
- Market cap: $13.99 billion
- One-year trailing total return (daily): 12.56%
- Exchange: OTC
Haidilao International is a Chinese holding company that operates a chain of hot pot restaurants. The company has locations throughout Asia and the U.S.
10. Texas Roadhouse Inc. (TXRH)
- Revenue (TTM): $4.78 billion
- Net income (TTM): $331.70 million
- Market cap: $11.22 billion
- One-year trailing total return (daily): 50.56%
- Exchange: Nasdaq
Texas Roadhouse is a casual-dining steakhouse restaurant chain that opened in 1993. As of May 2024, it had about 750 locations in 49 states and 10 countries.
What's the Difference Between Fast Food and Fast Casual?
The fast-food sector contains restaurants like McDonald's, KFC, Taco Bell, and Wendy’s (WEN). Fast-food chains earned much of their success byoffering quick, inexpensive mealsalways made exactly the same way. Fast-casual restaurants offer consumers freshly prepared, higher-quality food in an informal setting, with counter service to keep things speedy. Shake Shack, a burger chain that originated in New York City, has found success in offering a casual dining experience at a fast-food pace.
How Safe Are Restaurant Stocks?
Restaurant stocks tend to be fairly safe bets and generally do very well. That's because they tend to fare well during times of economic distress. Value and fast-food chains, such as McDonald's and Domino's, tend to do well over the long term. Keep in mind that these companies' stocks may be affected temporarily by bad news. For instance, Chipotle's stock price dropped when news broke of an E. coli outbreak at restaurants in several states.
Which Sector Do Restaurants Belong to?
Restaurant companies are generally considered consumer discretionary stocks. This sector represents what people want rather than need. This means that people tend to buy from companies in this sector when they have the money to spend. Restaurant companies often do well, though, even when times get tough. Although people may cut back on spending, they still tend to eat out even when the economy slows down.
The Bottom Line
Compass Group, Starbucks, and McDonald's are the three largest restaurant companies based on revenue, serving billions of people across the world. These companies tend to be well-positioned against shocks in the economy, as people often want to eat out even when times get tough. If you're an investor who wants to add restaurants to their portfolio, ensure you do your research about which company works with your goals and investment style. When in doubt, consult a financial professional.
