National Restaurant Advertising Shows Modest Growth

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Contact:
Matt Biscuiti
Golin/Harris International
(212) 373-6044
mbiscuiti@golinharris.com

News

April 11, 2000

National Restaurant Advertising Shows Modest Growth
The Category's 7.5% Increase Lags Behind the 10.3% Overall Increase

For the second straight year, national restaurant advertising has not kept pace with the increases seen across all advertisers. In 1998, the category decreased its spending by 0.3% while overall advertising measured by Competitive Media Reporting (CMR), the leading provider of advertising intelligence, rose 8.3% over 1997 figures. This year, the category did increase its expenditures but only by 7.5%, less than the 10.3% average. McDonalds led both the parent company and brand lists spending $626.2 million and $623.5 million respectively; the difference was spent on Donatos Pizza and other corporate efforts.

By a different ranking, Wendy's led the category for the second straight year based on the percent increase over the previous year. Up 9.7% from '97 to '98 and up 15.9% from '98 to '99. Tricon Global (the holding company of Kentucky Fried Chicken, Pizza Hut and Taco Bell) reversed its slide increasing expenditures by 11.1% as compared to its small drop of .1% a year ago. Of course, the list is not complete without Burger King - placing second on the brand list only behind McDonalds.

For more information on industry parent and brand leaders, see the attached chart.

Competitive Media Reporting is the leading provider of strategic advertising intelligence, serving advertising agencies, advertisers, broadcasters and publishers. The company's tracking technologies collect occurrence and expenditure data, as well as the creative executions of over 900,000 brands across 15 media. CMR is headquartered in New York City and maintains sales locations in major markets throughout the United States. For further information, visit http://www.cmr.com.

Restaurants

Rank	Parent Company	1999	1998	% Change
1	McDonald's Corp.	626,238.00	570,948.80	9.7
2	Tricon Global (former Pepsico)	551,409.10	496,313.60	11.1
3	Diageo PLC	404,169.20	407,977.60	-0.9
4	Wendy's Int'l. Inc.	219,809.90	189,730.90	15.9
5	Darden Restaurants	136,883.70	139,447.50	-1.8
($000)

Rank	Brand	1999	1998	% Change
1	McDonald's Restaurant	623,470.50	569,192.90	9.5
2	Burger King Restaurant	400,385.50	404,594.90	-1
3	Wendy's Restaurant	217,149.20	187,264.40	16
4	Taco Bell Restaurant	206,340.10	202,781.40	1.8
5	KFC Restaurant	168,795.00	161,623.00	4.4
($000)

Editor's Note:
Additional expenditure reports and analyses are available by calling Daniel Prince & Associates — (212) 213-9060.