How McDonald's Became the World's Most Valuable Restaurant Brand as Starbucks Slips to Second Place

McDonald’s has overtaken Starbucks to become the world’s most valuable restaurant brand, according to new data from Brand Finance, a leading brand valuation consultancy. The report reveals that McDonald’s brand value has increased by 7% to USD 40.5 billion, driven by a rise in its Brand Strength Index (BSI) score to 90.5 out of 100, earning an AAA+ rating. In contrast, Starbucks has dropped to second place as its brand value fell by 36% to USD 38.8 billion, impacted by declining customer sentiment in key markets like the US and China.

The study also highlights significant growth among other brands, with Chick-fil-A seeing a 43% rise in brand value, making it the fastest-growing restaurant brand globally. Meanwhile, US brands continue to dominate the rankings, with 20 of the top 25 most valuable restaurant brands originating from the country. McDonald’s also ranks 42nd among the world's 500 most valuable brands.

Starbucks’ brand value had declined 36% to USD38.8 billion, placing it second among the world’s most valuable restaurant brands. Brand Finance attributes this drop to declines in key brand strength metrics in the US and China, including ‘reputation’ and ‘recommendation’. This highlights Starbucks’ growing misalignment with customer expectations and increasing dissatisfaction, contributing to the brand’s overall decline.

Richard Haigh, Managing Director, Brand Finance commented: “Many restaurants have increased prices over the past few years in response to the pandemic, inflation, and supply chain disruptions. As prices go up, it creates a challenge for brands to continue to demonstrate their value, which more often than not results in a drop in customer perceptions. Brand Finance data shows a steady decline in average price premium acceptance across the sector since 2023. In 2011 with the rise of a more health-conscious zeitgeist, McDonald's repositioned to project a healthier profile while still maintaining its core offering. As the mood of consumers changes, brands that can adapt to the new requirements of consumer perceptions, much like McDonald's a decade ago, will be the ones to thrive."

With a 43% increase in brand value to USD5.7 billion, Chick-fil-A has become the sector’s fastest-growing brand, securing eighth position among the world’s leading restaurant brands. This rise is fuelled by the brand’s strong financial performance and rising BSI score, now at 89.4 out of 100. Notably, despite Chick-fil-A operating on relatively higher prices versus its competitors, Brand Finance data reveals that the brand earns 9.8 out of 10 for ‘price premium acceptance’, bolstered by its focus on quality ingredients and freshly prepared food.

US brands continue to dominate the ranking, accounting for 20 of the top 25 most valuable restaurant brands. Outside the US, China is represented by Haidilao (brand value USD3.6 billion) – also the world’s strongest restaurant brand with a BSI score of 94.1 out of 100, and Luckin Coffee (brand value USD1.7 billion), while Canada, the Philippines, and the UK each contribute on brand. The UK’s Greggs has re-entered the ranking at its highest-ever position in 21st place, with a brand value of USD1.3 billion. Greggs also ranks as the second-strongest restaurant brand, highlighting its leading presence in the UK restaurant market.

McDonald’s Rapid Growth in India: Fuelling Expansion and Strengthening Market Presence

As per recent media reports, Westlife Foodworld, the master franchisee overseeing McDonald's operations in West and South India, which operates over 420+ restaurants, and Connaught Plaza Restaurants Limited, the master franchisee for McDonald's in North and East India, managing more than 245 +outlets, remained unavailable for comment and did not respond to inquiries regarding the review. Both franchisees are driving aggressive growth plans for the brand in coming years.

McDonald’s is the world’s leading global foodservice retailer with over 43,000 locations in over 100 countries. Approximately 95% of McDonald’s restaurants worldwide are owned and operated by independent local business owners.