There are some big cultural divides in America:

Ford vs Chevy.
Coke vs. Pepsi.
Yankees vs. Red Sox

But the most divisive? Well, it just might involve the argument over the best burger-and-fry combo meal. Is it McDonald’s? Wendy’s? Or maybe a regional favorite like Whataburger. For what it’s worth, a study by Food Republic identified Culver’s as the best, followed by Shake Shack, In-N-Out and Five Guys.

Personally, I prefer to cook my own on the Blackstone Grill. But for the countless millions of people on-the-go each day, that’s not always an option. There might only be a matter of minutes before school or after soccer practice to feed the crew, leaving the nearest drive-thru lane as the most convenient option.

While quality can vary, quick-service restaurants are generally also viewed as a good value proposition (although sub-$10 meals are getting harder to find as labor and ingredient costs continue to climb). Whatever the reason, nearly two-thirds of Americans visit at least once per week for breakfast, lunch or dinner – if not all three.

It’s a commonly cited statistic that the average household spends about 10% of its annual income eating away from home. Some of that goes to casual dining chains and higher-end establishments, but the lion’s share of those transactions involve a bag filled with burgers, chicken, tacos or sandwiches.

Sources vary, but per-capita spending figures range from $1,200 to $2,000 per year. In aggregate, Americans will spend about $400 billion on fast food in 2025 – with global revenues approaching the $1 trillion mark. So if those drive-thru lines seem a bit longer (even with mobile order pickup), it’s not just your imagination

As an inpatient customer, I hate waiting behind a dozen other people. But as an investor, I can’t help but appreciate the never-ending stream of vehicles, even at non-peak hours. They just keep pulling in — one after another — from open to close.

The quick-service restaurant (QSR) industry is somewhat immune to economic shocks. In fact, it can be almost counter-cyclical, as more consumers are inclined to “trade down” during tough times and eat off the value menu. Some, like Chipotle Mexican Grill (NYSE: CMG), eked out positive sales growth even during the harsh 2009 recession.

And contrary to popular belief, the industry isn’t saturated. I heard that same argument 15 years ago when McDonald’s (NYSE: MCD) surpassed 30,000 stores. It was still being made in 2020 when the store count reached 40,000. Today, there are 44,000+ locations worldwide.

Meanwhile, annual system-wide sales have nearly doubled from $70 billion to $130 billion – that’s a lot of Big Macs. Over this same time frame, guest counts have steadily risen from 40 million per day to 50 million to 60 million to the current 70 million.

That traffic growth has fueled a dependable streak of dividend hikes that dates back to 1976. But this isn’t really about Mickey D’s.

Yes, it may be the world’s largest and most recognizable dining chain, with a footprint in more than 100 countries worldwide. But it’s by no means the swiftest. Sales among owned and franchised locations edged up just 1% last year – well below the heated 12% to 30% growth rate of up-and-coming chains such as Raising Cane’s, Shake Shack and Jersey Mike’s.

McDonald’s isn’t the highest-grossing per store either. That honor goes to Chick-Fil-A, which rakes in about $7.5 million in annual sales per location, handily beating the $2.7 million for the average Golden Arches unit.

And yet, stockholders haven’t exactly been suffering. The same can be said for Yum! Brands (NYSE: YUM). The owner of Taco Bell, Pizza Hut, and KFC has tripled in value since 2015.

That’s despite the well-known competitive pressures in this field. There are very few barriers to entry in the QSR space, which is why the U.S. is now home to more than 200,000 fast-food joints hawking everything from gyros to sushi. That fierce competition can stifle operating margins, constantly culling weaker players from the herd.

But the big are getting bigger. And as a group, they enjoy unwavering demand for their products.

Sure, there’s a growing contingent of nutrition-conscious consumers making an effort to watch their calories. But the industry has responded by introducing salads, wraps and other healthier fare. In any case, the steady uptrend we’ve been seeing isn’t likely to show any big reversal over the next few years.

That’s why I remain bullish on Restaurant Brands International (NYSE: QSR).

If you’ve ever eaten a Whopper, then you’ve helped contribute to the firm’s bottom line. RBI owns the iconic Burger King name, which has been licensed to nearly 20,000 franchise outlets since its creation in 1954.

The company gets an even bigger financial contribution from Tim Hortons, the beloved Canadian coffee and donut vendor. There are now 6,000 units across North America, most of which are located north of the border. While known primarily as a breakfast shop, most locations also offer soups, salads, and sandwiches.

Then there’s Popeye’s, the New Orleans-inspired chain that pioneered spicy fried chicken, served with delectable sides such as red beans and rice. Popeye’s threw down the gauntlet in the chicken sandwich wars, launching a seasoned fillet on a buttery brioche bun that became an instant sensation. Living in the heart of Popeye’s country, I can attest to the feverish demand.

The newest addition is Firehouse Subs, which was acquired back in 2021. Combined, these four brands span 32,000 locations that generate $44 billion in annual system-wide sales. Keep in mind, the company operates almost exclusively on a franchise model, which allows for rapid global expansion with much less capital. Most units are operated by third-party owners, all of which dutifully feed a nickel or so from every dollar of sales (not counting rent) back to the parent company.

Multiply that royalty by $1.5 million in average annual sales per unit – and a new store opening every 8 hours (about 3 per day) — and you can see the growth potential ahead.

As it stands, adjusted operating income has hit $1.2 billion through the first half of 2025 and is on track to climb 8% for the full year. And management returns about 50% to 60% of profits back to stockholders. That has kept dividend distributions on an upward trajectory for the past 12 consecutive years.

With steady balance sheet deleveraging and optimistic growth targets, RBI is primed to make an assault on its recent peak in the mid-$70s.