Despite the continued increase in COVID-19 cases and the impact of food inflation, the offering of services like online ordering, contactless delivery, drive-thru, and the introduction of new vegan recipes have helped fast-food companies to maintain their business. The food at home index rose 6.5% last year, the largest increase since January 1982. This, along with rising consumer spending, bodes well for the restaurant industry. The global fast-food market is expected to grow at 5.1% CAGR to $931.70 billion by 2027. So, both McDonald’s Corporation (MCD) and Shake Shack Inc. (SHAK) should benefit.
MCD and SHAK are two prominent players in the fast-food restaurant industry. MCD operates and franchises McDonald’s restaurants that serve mainly locally relevant fast food, soft drinks, and other beverages worldwide. As of December 31, 2020, the company operated 39,198 restaurants. In comparison, SHAK operates as a fast-casual restaurant that offers food and beverages. As of December 30, 2020, it operated 311 Shacks.
