Mon. Mar 31st, 2025
alert-–-starbucks-dethroned-by-rival-after-10-year-reignAlert – Starbucks dethroned by rival after 10-year reign

For the first time in almost 10 years, McDonald’s has reclaimed the title of the world’s most valuable restaurant brand. 

It has beaten out Starbucks, which has had a dire year. Complaints of high prices and long wait times have seen millions of customers flee.

In January, it reported sales fell again in between October and December – the fourth straight quarterly drop. Customers fed up with high prices and long wait times ditched the chain. 

And it could get worse for Starbucks with the imminent arrival in the US of a rapidly-expanding Chinese competitor.  Luckin Coffee — which has overtaken Starbucks as China’s largest coffee chain — is brewing up plans to bring $2 coffee to America.

Starbucks had been the top of Brand Finance’s annual study for eight consecutive years before dropping to two in 2025.

McDonald’s brand value jumped 7 percent to $40.5 billion. Starbucks’ 36 percent decline to $38.8 billion was partially because of its ‘growing dissatisfaction among customers.’

The coffee chain also ‘dented consumer trust’ after being the target of a high-profile boycott campaign related to the conflict in Gaza.

Starbucks’ new CEO Brian Niccol is trying to turn things around. He said the company needed to ‘fundamentally change’ its business approach, including axing multiple drinks from menus and laying off more than 1,000 employees. 

McDonald's surpassed Starbucks in this year's list of Most Valuable Brands created by Brand Finance

McDonald’s surpassed Starbucks in this year’s list of Most Valuable Brands created by Brand Finance

Starbucks had been the number one Most Valuable Brand for eight consecutive years

Starbucks had been the number one Most Valuable Brand for eight consecutive years 

McDonald’s is currently one of the most popular fast-food chains in the world, with over 43,000 restaurants worldwide.

It continues to add new and fan-favorite items back onto its menus to keep up with competition from other restaurant brands.

One of its talked-about additions is the ‘McValue’ platform, which includes the $5 Meal Deal and Buy One, Add One for $1 specials.

An offering that will be returning this year is the fan-favorite snack wrap, now known as the McCrispy Wrap.  

Brand Finance found that McDonald’s received a perfect score in brand ‘familiarity’ and top scores in ‘consideration’ and preference, reinforcing its leadership in the sector.

‘McDonald’s reliably delivers a consistent, efficient product, ensuring customers know what to expect,’ the report read. 

‘This strategy has kept McDonald’s ahead of consumer trends while ensuring fast-rate production.’

Although McDonald’s reported a slight increase in its US comparable sales in its 2024 revenue compared to last year’s amount, Brand Finance concluded that its rising menu prices may play a role in its 7.5 out of 10 price premium acceptance score.  

McDonald's launched a new 'McValue' platform to compete with other fast-food chains last January

McDonald’s launched a new ‘McValue’ platform to compete with other fast-food chains last January

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Starbucks and McDonald's both face the same major problem

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While Starbucks operates over 35,000 restaurants, the chain experienced four consecutive quarters of sales declines.

‘These declines reflect deeper issues for Starbucks, including a misalignment with customer expectations,’ the report read regarding its Brand Strength Index (BSI) decrease. 

‘Starbucks’ heavy focus on app-based sales has drawn criticism from loyal customers who value the brand’s traditional coffeehouse experience.’

Like McDonald’s, another factor contributing to sales declines is the rise in product prices.

The coffee chain has been working to escape its sales slump through a Back to Starbucks Strategy implemented by CEO Brian Niccol.

The brand is looking to focus more on its ‘core strengths’ with hopes of boosting profits worldwide.

‘While we’re only one quarter into our turnaround, we’re moving quickly to act on the ‘Back to Starbucks’ efforts and we’ve seen a positive response,’ Niccol said.

‘We believe this is the fundamental change in strategy needed to solve our underlying issues, restore confidence in our brand and return the business to sustainable, long-term growth.’

Brand Finance's report indicated that Starbucks' focus on app-based sales has been criticized by customers

Brand Finance’s report indicated that Starbucks’ focus on app-based sales has been criticized by customers

One brand that also experienced significant value growth is KFC, which Brand Finance ranked at number three.

It surpassed 30,000 operating restaurants last year and experienced an eight percent value increase to $15.4 billion.

Subway upped last year’s value by 12 percent and retained its number four position with $8.1 billion in value.

Although Taco Bell’s value decreased by three percent to $6.9 billion, like the sandwich chain, its ranking did not change.

The five other brands that rounded up the list’s top 10 were Tim Hortons, Domino’s,  Chick-fil-A, Wendy’s, and Pizza Hut. 

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