Basic financial benchmarks,metrics, and growth
Production cost& control
Gross Margin:
- (QSR): 31% (13-50%) (Including operating expenses and franchising expenses if applied)
- (Hamburger-QSR): 36% (13-50%) (Including operating expenses and franchising expenses if applied)
- (Chicken-QSR):47% (Including operating expenses and franchising expenses)
- (Sandwich-QSR):13% (Including operating expenses)
- (Mexican-QSR): 17% (Including operating expenses, depreciation, and franchise related ad)
- (Pizza-QSR): 17% (Including operating expenses, depreciation, and franchise related ad)
- Gross Margin (before depreciation): 36%
- Depreciation/sales: 5%
- Depreciation/ CAPEX:
Margins
Operating Margin:
- (QSR): 18%(Hamburger-QSR): 22%
- (Chicken-QSR):30%
- (Sandwich-QSR):1%
- (Mexican-QSR): 8.5%
- (Pizza-QSR): 8%
- EBITDA / Sales: 24%
- Free Cash Flow before working capital / Sales:
- (QSR): 9%
- (Hamburger-QSR): 10%
- (Chicken-QSR):15%
- (Sandwich-QSR):1%
- (Mexican-QSR): 4.5%
- (Pizza-QSR): 4.5%
EBI / Asset: 15%
Marketing & general management expenses
SG&A/ Sales:
- (QSR): 12%
- (Hamburger-QSR): 13%
- (Chicken-QSR):16%
- (Sandwich-QSR):11%
- (Mexican-QSR): 8%
- (Pizza-QSR): 9%
- R&D / Sales:
Financing &liquidity
- Debt / Asset: 96%
- Interest / EBITDA: 19%
Growth
2015 2016 2017 2018(annualized)
- Growth in comparable sales (QSR-US market)
- Average 4.8% 2.0% 1% 0%
- Range 0.5-8% -1-5% -5-3% -5-6%
- Growth in comparable transactions (QSR-US market)
- Average 1% -0.9% -1.3% 0.6%
- Growth in comparable sales (hamburger-QSR US market)
- Average 5.3% 1.6% 1.3% 1.8%
- Range 0.5-8% 0-2.6% -3-5% -2-6%
- Growth in comparable sales (Chicken-QSR-US market)
- Average 4.2% 2.1% 3% 2%
- Range 3-6% 1.4-3% 3% 2%
- Growth in comparable sales (sandwich-QSR-US market)
- Average 4% 1.4% -2.4% -1.8%
- Growth in comparable sales (Mexican -QSR-US market)
- Average 5.7% 3.4% 4% 2%
- Growth in comparable sales (Pizza-QSR-US market)
- Average 3.5% 1.7% 0% -3.5%
- Growth in comparable traffic (hamburger-US market):
- Average 0.3% -1.7% -1% -0.6%
- Range -3-4% -3-0% -5-1% -2-1%
- Growth in comparable traffic (Mexican-QSR-US market):
- Average 1.6% 0.2% 0.2% 0.2%
- Average Increase in SG&A: 9% 4% -4% 1.5%
- Increase in depreciation:
- Average Increase in CAPEX:
- AVG Increase in Operating Income: 103% 10% -4% -9%
- AVG Increase in cash inflow/share: 19% 19% -5% -9%
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Philosophy of Corporate Operation
A philosophy behind our work is that, when selling the same products and services to the same type of customers, companies should always have opportunities to gain the same performance in terms of finance and operating. It should be relatively easier and less risky for a below-average company to improve its profitability by copying its peers’ winning strategies or management method with existing products and services than jumping into a segment where it has to face a market with new products and services. It is because copying a peer does not always need to invest considerable capital and resources and it does not need to face uncertainties in a new market as well. For most of times, it may only involve some of minor alternations of company’s management and operation such as an optimization of production or a reallocation of resource. It is certainly true that it is impossible for every company to improve its performance by taking our relatively analytical method without significant capital input. However, there is nothing to lose to make a pre-estimate for your company with our data.
