The Australian fast food industry is entering an exciting chapter in 2025, with both established global giants and innovative local players driving growth. McDonald's, KFC, and the recent resurgence of Wendy's in Australia, alongside the incredible success of Guzman y Gomez (GYG), highlight the sector's resilience and its continued appeal to investors.

Our sales analysis shows that the fast food asset class remained resilient in 2024, with yields tightening from 4.56% in 2023 to 4.32%, while transaction volume surged from $70.5 million to $85.6 million, despite the number of sales holding steady at 16.

McDonald's and KFC remain dominant forces, achieving record-tight yields as low as 2.97 per cent, a clear indication of their stability and strong market presence. These brands consistently attract high consumer demand, translating into lucrative opportunities for property investors. Their ability to maintain customer loyalty and adapt to evolving consumer tastes positions them as safe, long-term investment options in a competitive market.

Wendy's, the fast food giant known for its high-quality burgers, has made a significant comeback in Australia with its first outlet on Surfers Paradise's Cavill Avenue. Its choice of location and the high foot traffic from both locals and tourists signal the brand’s growing commitment to expanding its footprint in the region. Wendy's entry into the market only adds to the sector’s vitality and its increasing attractiveness for investors seeking high-yielding, stable properties.

Meanwhile, Guzman y Gomez (GYG), a homegrown success story, continues to break new ground. With its focus on fresh, fast Mexican food, GYG has witnessed impressive growth, quickly expanding across the country. The brand's consistent performance and its ability to capture the attention of millennials and Gen Z consumers make it a standout in the fast food industry. Its rapid expansion underscores the growing demand for innovative, quality-driven fast food, creating further opportunities for investors looking to capitalise on emerging trends.

The fast food sector is a dynamic one, driven by strong consumer demand and the continued growth of brands that are able to offer consistent quality and value. For property investors, these developments highlight the profitability of the sector. As the market becomes more competitive, the demand for prime retail spaces is intensifying, particularly in high-foot-traffic areas. For savvy investors, this presents an opportunity to secure long-term, stable returns by aligning with high-performing brands.

In 2025, the Australian fast food market is set for continued growth. The enduring success of established brands, combined with the rise of exciting newcomers like Wendy’s and GYG, ensures the sector remains an attractive option for property investors looking to secure lucrative, high-yielding assets.

By Beau Coulter, Burgess Rawson Partner

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