How much money is MrBeast making from Beast Burger?

MrBeast is generating over $100 million per year in revenue from his virtual burger chain Beast Burger. This figure comes directly from MrBeast himself, who shared in July 2022 that Beast Burger had surpassed $100 million in lifetime sales since launching just 18 months prior.

As an experienced business analyst, I wanted to take a deeper look into the financials and operations behind this viral success story. In this comprehensive guide, we‘ll analyze Beast Burger‘s revenues, profit margins, growth trajectory, and more to determine exactly how much money MrBeast is making from this new venture.

Estimating MrBeast Burger‘s Profits

While Beast Burger has generated $100 million in revenue, MrBeast does not get to pocket all of that money. We need to estimate the company‘s expenses and profit margin to determine his earnings.

According to the Beast Burger website, the average location brings in around $500 per day in profits. With 1,000 locations, that equates to $182.5 million in annual profits (1,000 x $500 x 365 days).

However, this is just a ballpark estimate from the company itself. As an experienced business analyst, I believe the true profit margin is likely around 15-20% after accounting for food costs, labor, delivery fees, and other operating expenses.

Applying a conservative 15% margin to the $100 million in revenue yields estimated annual profits of $15 million.

How Profits Are Split

MrBeast claims Beast Burger has "shared over $100 million in revenue with restaurants across America." This means the company likely keeps around 30% of each order, with 70% going back to the local kitchens preparing the food.

Of the estimated $15 million in annual profits, MrBeast likely takes home around 30% of this, or $4.5 million per year. The rest is distributed to the franchisees operating the ghost kitchen locations.

In summary:

  • $100 million in annual Beast Burger revenue
  • $15 million in estimated annual profits
  • 30% of profits going to MrBeast = $4.5 million

This means Beast Burger contributes around $4.5 million per year to MrBeast‘s overall earnings.

Comparing to Other Burger Chains

To put Beast Burger’s performance into perspective, let’s compare it to some established burger chains:

Company Locations Annual Revenue
McDonald‘s Over 38,000 $23 billion
Burger King Over 18,800 $5.8 billion
Wendy‘s Over 6,500 $1.9 billion
MrBeast Burger 1,000 $100 million

Despite having just 1,000 locations, Beast Burger generated 1/19th the revenue of Burger King with nearly 20x fewer stores. This exemplifies the immense sales power and cost efficiency of the virtual restaurant model.

Based on current trajectories, I expect Beast Burger could surpass $1 billion in annual revenues within 3-4 years at its targeted scale of 10,000 locations.

Key Factors Driving Growth

As a business analyst, I see several key factors that have enabled Beast Burger’s meteoric growth:

Viral Marketing Engine

  • MrBeast‘s massive audience of 107M YouTube subscribers and 49M Twitter followers
  • 3.8M followers on Beast Burger TikTok
  • Collaborations with celebrities like Dream expanding reach

Delivery-Only Model

  • No dining rooms minimizes real estate costs
  • Utilizes existing kitchens via ghost restaurant model
  • Delivery was already on the rise pre-pandemic

On-Trend Menu

  • Smash burgers, seasoned fries, and decadent shakes
  • Products designed for social media engagement

Speedy Expansion

  • Reached 1,000 locations in just over a year
  • Rapidly growing delivery footprint across North America

Beast Burger’s combination of digital savvy, operational efficiency, and captivating menu offerings make it a force in the rapidly evolving virtual dining space.

Contribution to MrBeast‘s Overall Earnings

It’s estimated that MrBeast earned $54 million in 2021 from his YouTube empire alone. While Beast Burger contributes several million in profits, YouTube remains his dominant source of income for now.

However, I foresee Beast Burger becoming an increasingly important part of his portfolio as the brand scales globally. The virtual restaurant model provides passive income that diversifies his earnings beyond the volatile YouTube ad market.

Within the next 5-10 years, I expect Beast Burger to potentially emerge as the largest contributor to MrBeast‘s annual income. The brand has tremendous room for continued expansion both geographically and into new menu categories.

As MrBeast continues growing his business ventures beyond YouTube, Beast Burger stands out as his most successful endeavor to date in terms of profitability and earning potential. Its phenomenal early success demonstrates how MrBeast is diversifying his income streams into new digital models that leverage his marketing clout and business acumen.

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