Australia, known for its diverse culinary scene, has seen a notable shift in dining habits which in turn has seen the popularity of fast food assets intensify.

Burgess Rawson’s latest Fast Food Industry Snapshop found that 75% of Australians are now dining out once a month, up from 63.7% in 2019. It's clear that the allure of fast food has never been stronger. But what fuels this seemingly insatiable appetite for quick and convenient meals?

The answer lies in the convenience and affordability factors that fast food offers. From iconic franchises to emerging players, fast food establishments have mastered the art of delivering satisfying meals at lightning speed. It's no wonder that annual yields for fast food investments still hover around an impressive 4.25%, attracting investors seeking stable returns in an uncertain market.

One such player making waves in the Australian market is Wendy's, the American burger giant with plans to establish 200 stores nationwide by 2034. With its distinctive square patties and frosty desserts, Wendy's promises to bring a taste of Americana to Aussie shores. Partnering with Flynn Restaurant Group, Wendy's aims to create thousands of jobs and inject healthy competition into the fast food market.

Wendy's will leverage its iconic offerings and strategic alliances to carve out a niche in the fast food landscape.

But Wendy's story is just one chapter in the larger narrative of the fast food revolution. Across the globe, fast food brands are evolving and innovating to meet the changing tastes and preferences of consumers. From plant-based options to sustainable packaging initiatives, the industry is undergoing a transformation driven by consumer demand for healthier, more ethical choices.

As we look to the future, one thing is clear: the fast food industry shows no signs of slowing down. With McDonald's set to invest $600 million in new stores over the next three years, and other brands following suit, the stage is set for continued growth and innovation.

In addition to their expansion, relative newcomers Guzman y Gomez (GyG) announced its intention to go public. This move not only signals confidence in GyG's growth potential but also provides the company with access to additional capital for expansion and investment. As GyG continues to expand its footprint across Australia and internationally, it faces the challenge of standing out in a competitive market while maintaining its commitment to quality and authenticity.

Amidst the flurry of expansion and innovation, fast food operators are providing healthier options making them more appealing to consumers and investors alike.

The fast food industry is a complex and multifaceted phenomenon, driven by a myriad of factors ranging from convenience to consumer preferences but its reputation as one of the most solid investments is supported by its consistently firm yields and impressive ongoing growth.

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 By Andrew Havig, Partner at Burgess Rawson