Business

/

ArcaMax

Sundaes in Shanghai: Dairy Queen expands global empire

Brooks Johnson, Star Tribune on

Published in Business News

Mexico has also taken to soft serve, where there are nearly 325 Dairy Queen locations. The chain operates in 20 countries.

Internationally, Dairy Queen is known more for its ice cream treats than its food, though the emphasis is shifting toward the Grill & Chill model more common in the U.S.

"We are still the undisputed treat leader and plan to be," Bader said. "But we also are a very balanced food and treat player."

Domestically, Dairy Queen is pushing even harder to be known for its hot eats as well as its cool treats.

"We talk about our chicken strips being Blizzard-good," Bader said, and a new burger lineup released in 2022 is still performing well.

International Dairy Queen had $248 million in revenue last year and a $93 million profit, according to franchise disclosure documents, both improvements from the year before. The company earns royalties paid by franchisees and boasts a roughly 50% operating margin.

 

Like other restaurants, Dairy Queen franchisees have had to increase prices in recent years to deal with higher wages and ingredient costs. Bader said the specific increases are up to individual store owners, though the company provides guidance, especially for maintaining the $7 meal and two-for-$5 promotions.

"We still want to make sure we have everyday value available for our fans," Bader said.

Dairy Queen, owned by Berkshire Hathaway, will be serving up Dilly Bars at the multinational conglomerate's famed annual meeting this weekend in Omaha. Though a small part of Warren Buffett's business empire since 1998, the 84-year-old ice cream company is well-loved by shareholders, Bader said.

"Dairy Queen is one of their favorites because it has a special place in many people's lives and their hearts."


©2024 StarTribune. Visit at startribune.com. Distributed by Tribune Content Agency, LLC.

Comments

blog comments powered by Disqus