AN iconic fast food chain has once again reclaimed its position as the world’s top-performing restaurant brand.
The chain was surpassed by Starbucks in in 2016.
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According to earnings reports, Starbucks faced significant challenges in 2024.
After suffering four consecutive quarters of financial decline, the Washington-based chain is no longer the top-ranked restaurant brand in terms of value.
That title now belongs to McDonald’s.
Before Starbucks, McDonald’s was the most valuable restaurant chain globally, before Starbucks took the top spot in 2016.
While Starbucks fell off last year, McDonald’s achieved a massive 7% increase in value, bringing the company’s overall worth up to $40.5 billion.
According to research conducted by brand valuation consultancy Brand Finance, McDonald’s growth can be attributed to its Brand Strength Index (BSI).
The chain’s BSI rating rose 7.6% to 90.5 out of 100, scoring AAA+.
The rating weighs several factors including familiarity, consideration, and preferred brand, for which McDonald’s scored highly in all three categories.
According to Brand Finance, McDonald’s is the 42nd most valuable brand in the world.
On the other hand, Starbucks’ overall value dropped 36% to 38.8 billion, making it the world’s second-most valuable restaurant brand.
Starbucks was the most valuable from 2016 to 2024, but its diminishing reputation and recommendation scores may be the reasons for the company’s valuation decline.
Brian Niccol, the former CEO of Chipotle, was appointed as Starbucks’ new CEO in August 2024.
Starbucks hoped that a change in leadership could reverse the company’s gradual decline.
Niccol’s strategy includes revamping its cafe culture by improving its seating and service.
The company also reintroduced ceramic mugs for in-store orders, with the aim of keeping customers in stores longer.
STARBUCKS IN THE NEWS
In 2023, Starbucks was overtaken by Chinese coffee chain Luckin Coffee as the largest coffee chain in China.
Luckin recently announced that it would be expanding to the US for the first time.
Meanwhile, a popular fashion brand opened its first cafe location in New York, replacing a Starbucks location.
The cafes have stores across Asia, but are now entering the US market for the first time.
