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Brazilian fast food industry to benefit from the 2014 FIFA World Cup and 2016 Olympic Games

Press Release   •   Dec 09, 2013 09:29 GMT

Consumption of fast food in Brazil is extensive with nearly one in two Brazilians consuming this type of food. Major fast food chains can follow the lead of snack bars and use attributes typical of traditional Brazilian food to create more opportunities.

The upcoming 2014 FIFA World Cup and 2016 Olympics in Brazil are expected to generate the greatest sales growth for those companies operating in the fast food industry, with a boom in sales expected to drive higher levels of profitability.

Those companies that stand to benefit most from these two events are those in the fast moving consumer goods sector and include brewers, fast food restaurant chains and convenience stores.

Probably the most prominent among these companies for investors is Argentine company Arcos Dorados, which is the McDonald's Latin American master franchisee. Its key market is Brazil, where it has 735 or almost 38% of its total restaurants, which at the end of the first quarter 2013 contributed almost 48% of all sales.

McDonald's ranked first within the Brazilian fast food industry in 2012, with a value share of 33%. Although registering good performance with new outlets and increasing in local currency in the year, the company lost relative participation due to the excellent advance of other chains such as Burger King and Subway.

Thanks to the attractive growth rates in chained bakery products, new players have entered this category in the recent years. This is the case of the international chain Quiznos, a sandwich specialist which started activity in Brazil in 2011 and increased rapidly; it had 21 stores in the first months of 2013.

All leading operators within the Brazilian fast food industry have already announced their intention to invest in Brazil over the next five years, through significant resources expanding into new opening stores in largest cities of the country as well as to increase participation in other regions as south, northeast and centre-east.

According to ABF, 60% of foodservice chains are concentrated in the southeast region, which shows the potential growth to expand into other geographical areas.

For more information on the Brazilian fast food industry, see the latest research: Brazilian Fast Food Industry

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