Burger Restaurants in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: November 2023
NAICS OD4306Revenue
$170.1bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
2m
Businesses
84,316
Wages
$XX.Xbn
Burger Restaurants in the US industry analysis
The Burger Restaurants industry has performed well over the past five years as per capita disposable income increased, providing consumers will spend more money to eat away from home. Although the industry experienced increased competition from the broader food service market, burger restaurants still represent the market's largest segment, especially among limited-service restaurants. However, economic slowdowns caused by the COVID-19 pandemic somewhat decreased burger demand. Nevertheless, burgers were highly demanded as a takeout food when a large share of the population stayed home. Industry revenue recovered in 2021 as the government eased COVID-19 restrictions. Consequently, industry revenue is anticipated to grow at a CAGR of 4.1% to $170.1 billion over the past five years, including an expected 2.4% growth in 2023 alone.<br />Furthermore, during the five-year period, there has been a surge in food service establishments outside of the Burger Restaurants industry. As consumers become more health-conscious and expand their palate to include various ethnic and fusion foods, burger restaurants have struggled to maintain domestic food service market dominance. Many burger restaurants have slowly begun to respond to these changing trends by altering their menus or expanding their offerings beyond the traditional hamburger. Furthermore, some restaurants have had to reduce product prices to remain competitive, which has pressured profit growth. However, profit has risen over the past five years as burger demand strengthens.<br />The industry will likely fall despite an expanding economy over the next five years. As burger restaurants implement menu changes and expand their product variety, they can prevent further effects from the changing consumer trends and growing competition. The Burger Restaurants industry will also continue to approach market saturation, forcing many major companies to seek growth through acquisition or international expansion. Nevertheless, a deterioration in the labor market and a rising interest in healthy diets will disincentivize consumers to dine out at burger restaurants. Overall, industry revenue is forecast to fall at an annualized rate of 0.3% to $167.9 billion over the five years to 2028.
Trends and Insights
- Burger restaurants only specialize in one food category. Therefore, they have had to contend with increasing competition from other food service providers offering more diverse food product options.
- Most burger restaurants focus on new product development and customer experience to differentiate themselves. Therefore, even though the core menu items are the same, each operator has something different, whether it is a special sauce or a special offer.
- Fast food restaurants are more popular among the low-middle and middle-income neighborhoods. Furthermore, burger restaurants choose to be located among high-traffic and highly populated areas to attract more customers.
- Burger restaurants have no choice but to invest heavily in research and development to stay relevant to the modern consumer. The continued shift towards healthier food poses ongoing challenges to the industry.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 4.1 % over the past five years, to reach an estimated $170.1bn in 2023.
Trends and Insights
COVID-19 hurt and benefited burger demand
- Since the food service sector was considered essential, burger restaurants remained open throughout the pandemic. However, they could only offer pick-up and delivery services.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Rising health consciousness is a primary cause for the increased popularity of alternative menu choices
- During the outlook period, Americans will continue becoming increasingly health-conscious, especially as younger generations, like millennials, enter the workplace and begin having children.
Biggest companies in the Burger Restaurants in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Mcdonald’s Corporation | 2,836.0 | 429.0 | 15.1 | |
Burger King Corp | 24.5 | 13.0 | 53.1 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Burger Restaurants in the US
Products & Services
Industry revenue is measured across several distinct product and services lines, including Take-out food service, Drive-thru food service and On-premise food service. Take-out food service is the largest segment of the Burger Restaurants in the US.
Trends and Insights
The most popular food service provided is on-premise food services
- This service consists of consumers ordering their meals at a walk-up counter and paying before receiving their food. When they do, they sit down and eat it at the industry establishment.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Chain Restaurants in the US
- Single Location Full-Service Restaurants in the US
- Fast Food Restaurants in the US
Complementors
- Restaurant & Hotel Equipment Wholesaling in the US
International industries
- Fast Food Restaurants in Canada
- Fast Food and Takeaway Food Services in Australia
- Fast Food and Takeaway Food Services in New Zealand
- Takeaway & Fast-Food Restaurants in the UK
- Fast-Food Restaurants in China
Table of Contents
About this industry
Industry definition
The industry comprises chain, independent and franchised restaurants that primarily sell burgers but may also sell alcoholic and other beverages. Burger restaurant formats range from fast food to full-service.
What's included in this industry?
Operating quick-service burger restaurantsOperating sit-down burger restaurantsOperating fast food burger restaurantsOperating burger drive-thru and take-out facilitiesCompanies
Mcdonald’s CorporationBurger King CorpPurchase this report to view all 2 major companies in this industry.
Related Terms
POINT-OF-SALE (POS)CHAIN RESTAURANTSFAST-CASUAL RESTAURANTSLIMITED-SERVICE RESTAURANTSFRANCHISED RESTAURANTSFULL-SERVICE RESTAURANTSSYSTEM-WIDE SALES NET REVENUEIndustry Code
NAICS 72251 - Burger Restaurants in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Burger restaurants only specialize in one food category. Therefore, they have had to contend with increasing competition from other food service providers offering more diver...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Most burger restaurants focus on new product development and customer experience to differentiate themselves. Therefore, even though the core menu items are the same, each op...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Fast food restaurants are more popular among the low-middle and middle-income neighborhoods. Furthermore, burger restaurants choose to be located among high-traffic and highl...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Burger restaurants have no choice but to invest heavily in research and development to stay relevant to the modern consumer. The continued shift towards healthier food poses ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The industry's immensely competitive and saturated environment prohibits any one company from dominating. Burger restaurants associated with huge incumbent brands, like McDon...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Mcdonald’s Corporation's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Burger King Corp's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Mcdonald’s Corporation, and factors influencing its performance in the industry
- Description and key data for Burger King Corp, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The US Affordable Care Act requires that restaurant chains with twenty or more locations post the calorie content on menus. New research finds that menu items introduced afte...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
This industry has a relatively high product turnover and is service-based, increasing necessary expenses and placing pressure on industry profit. However, cost structure can ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Burger Restaurants in the US industry in United States in 2024?
The market size of the Burger Restaurants in the US industry in United States is $170.1bn in 2024.
How many businesses are there in the Burger Restaurants in the US industry in 2023?
There are 84,316 businesses in the Burger Restaurants in the US industry in United States, which has grown at a CAGR of 0.2 % between 2018 and 2023.
Has the Burger Restaurants in the US industry in United States grown or declined over the past 5 years?
The market size of the Burger Restaurants in the US industry in United States has been growing at a CAGR of 4.1 % between 2018 and 2023.
What is the forecast growth of the Burger Restaurants in the US industry in United States over the next 5 years?
Over the next five years, the Burger Restaurants in the US industry in United States is expected to decline.
What are the biggest companies in the Burger Restaurants in the US market in United States?
The biggest companies operating in the Burger Restaurants market in United States are Mcdonald’s Corporation and Burger King Corp
What does the Burger Restaurants in the US in United States include?
Operating quick-service burger restaurants and Operating sit-down burger restaurants are part of the Burger Restaurants in the US industry.
Which companies have the highest market share in the Burger Restaurants in the US in United States?
The company holding the most market share in United States is Mcdonald’s Corporation.
How competitive is the Burger Restaurants in the US industry in United States?
The level of competition is high and steady in the Burger Restaurants in the US industry in United States.
