A LIFE CYCLE [GROWTH] STAGE ASSESSMENT OF THE FAST FOOD SEGMENT OF THE FOODSERVICE INDUSTRY IN THE UNITED STATES
This study develops a life cycle [growth] stage assessment of the fast food segment of the foodservice industry in the United States. The problem statement for the study and the analytical approach followed in the study are presented in the next two sections. The findings of the study then are presented as follows: (1) a life cycle [growth] stage assessment of the fast food segment of the foodservice industry; (2) an analysis of the fast food giants in relation to life cycle [growth] stage assessment; (3) an analysis of the secondary fast food chains in relation to life cycle [growth] stage assessment; (4) an analysis of the eating habits in the United States; (5) a consideration of advertising in the fast food segment of the foodservice industry; and (6) the future outlook for the fast food segment of the foodservice industry in the United States. These findings are followed by a summary of the findings and conclusions drawn from the findings.
Private buyers are acquiring closely held restaurant companies while publicly traded chains are repurchasing their shares. Such actions the manifestation of a dichotomy of opinion, as investors are anticipating the maturity of the fast food segment of the foodservice industry, while executives of restaurant and fast food chains are anticipating continued growth.
The public stock valuations of many large fast food chains may reflect either the current credit crunch or the possible maturity phase of the industry. Prices paid by private buyers of restaurant companies in the private market have been higher than the mean valuations of many publicly traded companies, excluding only the extremely large chains such as McDonald's. Approximately 60 percent of the larger publicly traded fast food chains are selling as valuations below the mean EBITDA (earnings before interest, taxe...