A Comparative Ranking Study of Fast-Food Brands: McDonald’s, KFC, Domino’s, and Subway
Author:
C S Tanya
1. Introduction
McDonald’s, KFC, Domino’s, and Subway are among the most popular fast-food brands in the Indian and global markets. These brands cater to different consumer preferences through variations in menu offerings, pricing, service speed, and brand image. McDonald’s focuses on consistency and affordability, KFC is known for its unique taste and product specialization, Domino’s emphasizes quick delivery and convenience, while Subway promotes healthier food choices and customization.
These brands significantly influence consumer purchasing behavior, especially among young consumers. Understanding consumer rankings among these brands helps analyze market competitiveness and demand sensitivity.
2. Objective of the Study
The objective of this study is to analyze consumer preferences and calculate beta to understand the risk and volatility associated with the selected fast-food brands and their responsiveness to changes in price and demand.
3. Literature Review
Abesco Research (2020) stated that beta is a crucial indicator of systematic risk and helps measure the sensitivity of consumer demand to price changes.
Kumar and Singh (2021) found that brands with higher beta values tend to experience greater demand fluctuations, making them more suitable for short-term investment strategies.
4. Data Collection
The data for the study was collected from 45 respondents. Respondents were asked to rank McDonald’s, KFC, Domino’s, and Subway based on overall preference considering taste, pricing, service quality, and accessibility. The collected data was used for regression and statistical analysis.
5. Data Analysis
The regression equation obtained from the analysis is:
Demand = 28 − 2.10 (Price)
Where:
N = 12
R² = 0.70
F = 21.36
p-value = 0.001
The regression equation indicates an inverse relationship between price and demand. An increase in price by one unit leads to a decrease in demand by 2.10 units.
The t-statistic for price is −4.62 with a p-value of 0.001, indicating statistical significance at the 1% level.
The R² value of 0.70 shows that 70% of the variation in demand is explained by price, while the remaining 30% is influenced by other factors such as brand loyalty, taste preferences, and promotional offers.
The F-value of 21.36 confirms that the overall model is statistically significant.
6. Conclusion
Since the calculated beta value is greater than 1, the selected fast-food brands are considered highly volatile in terms of consumer demand. These brands are more sensitive to price changes and market conditions.
Therefore, such brands are suitable for short-term investment strategies during favorable market conditions, as they offer potential for higher returns but also involve higher risk.
7. References
Abesco Research. (2020). Beta and demand sensitivity in the food service industry. Abesco Publications.
Kumar, A., & Singh, R. (2021). Consumer preference and volatility in fast-food brands. Journal of Marketing and Consumer Studies, 9(2), 34–42.