Effects of capital intensity on firm performance: The u.s. restaurant industry

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19 Scopus citations


Among several industry characteristics, capital intensity plays an important explanatory role for the restaurant industry. A restaurant needs physical buildings, equipment, fixtures, and furniture all ready at the launch of a business; these require considerable capital expenditures. Considering capital intensity as a significant restaurant industry characteristic, educators and practitioners who focus on this industry are strongly encouraged to investigate the implications and effects of capital intensity in food service operations. The purpose of this study is to examine the effect of capital intensity on a firm’s value performance in the U.S. restaurant industry. The investigation period spans from 2000 to 2008. Findings suggest that capital intensity has a negative effect on U.S. restaurant firms’ value performance.

Original languageEnglish (US)
Pages (from-to)1-13
Number of pages13
JournalJournal of Hospitality Financial Management
Issue number1
StatePublished - 2010

All Science Journal Classification (ASJC) codes

  • Finance
  • Tourism, Leisure and Hospitality Management
  • Strategy and Management


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