Burger King
The world’s second-biggest burger chain after McDonald’s, a Miami company with about 19,000 restaurants, now Canadian-owned.
24 figures on Burger King, drawn from 6 Modern MBA case studies.
The figures
US dollars7
| Against its own chart | |||
|---|---|---|---|
| Average annual revenue per store, in millions | $2.1M | 4th of 8 · top $3.9M | Why fast food can't make a good burger |
| Average sales per store by chain, 2024, in millions | $2.06M | 4th of 6 · top $3.88M | Why fast food can't make a good burger |
| Average net profit take-home per store after rent, supplies and labor | $205,000 | 1st of 6 · top $205,000 | Why Crumbl won't last |
| Average annual payment in rent and royalties per franchisee, 2024 | $121,931 | 4th of 6 · top $373,737 | Why fast food can't make a good burger |
| Non-refundable upfront payment required to operate | $50,000 | 1st of 8 · top $50,000 | Why Crumbl won't last |
| Average price for a double cheeseburger and fries across Los Angeles | $14.99 | 7th of 9 · top $20.58 | Why fast food can't make a good burger |
| Average order size by chain and concept | $13 | 8th of 9 · top $30 | Why fast food can't make a good burger |
Percentages12
| Against its own chart | |||
|---|---|---|---|
| Store-level operating margins, 2018 | 21% | 5th of 6 · top 30% | Why Crumbl won't last |
| Average restaurant-level operating margin · 2016 | 18.3% | 1st of 6 · top 18.3% | Why fast food can't make a good burger |
| Average restaurant-level operating margin · 2018 | 15.8% | 2nd of 6 · top 18.3% | Why fast food can't make a good burger |
| Average restaurant-level operating margin · 2024 | 15.7% | 3rd of 6 · top 18.3% | Why fast food can't make a good burger |
| Average restaurant-level operating margin · 2020 | 15.0% | 4th of 6 · top 18.3% | Why fast food can't make a good burger |
| Average restaurant-level operating margin · 2022 | 14.1% | 5th of 6 · top 18.3% | Why fast food can't make a good burger |
| Restaurant-level operating margins across the industry in 2010 | 11.3% | 8th of 8 · top 26.6% | Why Chipotle got so much worse |
| Average store-level operating margin by chain and concept | 9% | 7th of 9 · top 25% | Why fast food can't make a good burger |
| Percentage of sales paid to the franchisor as royalties and marketing fees | 8.5% | 8th of 8 · top 12.5% | Why Crumbl won't last |
| Average restaurant-level operating margin · 2014 | 5.8% | 6th of 6 · top 18.3% | Why fast food can't make a good burger |
| Royalty on gross sales charged to franchisees | 4% | 7th of 8 · top 15% | How much a Texas BBQ joint actually makes |
| Store-level operating margin by restaurant chain in 2022 | −6% | 13th of 13 · top 24% | Why Taco Bell got so expensive |
Counts4
| Against its own chart | |||
|---|---|---|---|
| Store counts at home against everywhere else, 2022 · International | 13,011 | 4th of 6 · top 26,831 | Why Taco Bell got so expensive |
| US locations at each end of the window · 2017 | 7,226 | 4th of 5 · top 25,908 | Why the Popeyes chicken sandwich was so good |
| US locations at each end of the window · 2022 | 6,850 | 3rd of 5 · top 20,567 | Why the Popeyes chicken sandwich was so good |
| Store counts at home against everywhere else, 2022 · United States | 6,778 | 3rd of 6 · top 13,444 | Why Taco Bell got so expensive |
Durations1
| Against its own chart | |||
|---|---|---|---|
| Months a restaurant must be open before it counts as comparable | 13 mo | 6th of 11 · top 24 mo | Why the Popeyes chicken sandwich was so good |
Case studies covering Burger King
Case study — Food & beverageWhy Chipotle got so much worseA weekly staple became a byword for small portions and high prices in under ten years. Here is what broke.10 min read
Case study — Food & beverageWhy fast food can't make a good burgerMcDonald's makes more from rent than from food. That is why it can't fix the burger — and why four LA independents can.13 min read
Case study — Food & beverageHow much a Texas BBQ joint actually makesOne in three fail, brisket yields 40%, and the biggest variable in whether you survive is one magazine editor's palate.16 min read
Case study — Food & beverageWhy Taco Bell got so expensiveThe most profitable chain in fast food is being squeezed hardest, and the reason is KFC and Pizza Hut.11 min read
Case study — Food & beverageWhy the Popeyes chicken sandwich was so goodThe sandwich came from a decade of R&D discipline its new owners inherited and did not build. That is the problem.14 min read
Case study — Food & beverageWhy Crumbl won't lastMrs. Fields had its decade too. Crumbl store margins fell from 30% to 10% while corporate went from $4M to $152M.15 min read