The Nation’s Restaurant News annual Second 100 report is the second installment of a comprehensive series of reports generated through exclusive research by NRN editors.
The Second 100 and last month’sreport provide a detailed, brand-by-brand assessment and three-year performance comparison of the largest individual organizations in foodservice. The forthcoming Next 20 report analyzes the chains best-positioned to rise into the Top 200 in the future.
The census is NRN’s annual endeavor to compile and rank results of the industry’s largest brands and corporations. This year’s reports give readers a panoramic view of the market share battles for the dining budgets of America’s consumers.
The Next 20, with data covering emerging chains, will appear in the Aug. 25 issue.
More focused than other rankings of the industry’s largest organizations, NRN seeks to present relevant comparisons of the largest foodservice competitors by tracking only consumer foodservice sales and revenue generated in the United States. Parallels therefore exist between the federal government’s shift in emphasis from gross national product, which included overseas results of U.S.-based multinationals, to the gross domestic product standard for assessing today’s economy.
In addition to excluding foreign results, the reports factor out business activities not directly related to consumer foodservice. For example, McDonald’s Corp.’s nearly $3 billion in estimated annual revenue derived from franchisees’ rent payments, contract foodservice revenue from facilities maintenance, and sales of equipment or food items to their own franchisees are not included.
By virtue of an apples-to-apples focus on food and beverage sales, the market data yields what we believe is a more relevant appraisal of U.S. market shifts among the industry’s leading brands and the fast-advancing emerging chains.
To augment direct company sources, NRN editors tapped corporate documents and research studies as well as information from government agencies, chain officials, franchisees and industry analysts. The resulting data were collated and organized into the study’s rankings by various criteria, including segment comparisons that portray fluctuating market-share results of direct competitors.
The final reports are analytical tools that can help define which chain concepts and market segments are prospering or struggling and where consumers are spending their dining dollars.
As the basic criterion for inclusion in the statistical universe, the study first ranks individually branded chains by domestic systemwide sales for their most recent fiscal years ended closest to Dec. 31, 2013.
Separately, companies are ranked on the basis of their domestic foodservice revenue. Qualifying organizations then also are assessed over a three-year span on the basis of their sales and revenue growth rates, estimated annual average sales per location, growth in average sales per location, and rates of expansion in total outlets and franchised units.