Jump to content

Chick-fil-A is now the 3rd-largest restaurant chain in America, and McDonald's and Starbucks should be terrified


MonkeyF0cker
 Share

Recommended Posts

Chick-fil-A is now the third-largest restaurant chain in America by system-wide sales, according to Nation's Restaurant News data.

The chicken chain grew sales by 16.7% in 2018, reaching about $10.5 billion.

Chick-fil-A moved up from the No. 7 spot on last year's Top 200 ranking, passing Wendy's, Burger King, Taco Bell, and Subway.

 

Chick-fil-A has whipped past rivals to become the third-largest restaurant chain in the US.

 

The chicken chain's massive growth in 2018 moved it into the No. 3 spot on the ranking of the largest restaurant chains in the US, with $10.46 billion in American systemwide sales, according to Nation's Restaurant News analysis published Monday.

 

McDonald's maintained the No. 1 spot, with $38.52 billion in American system-wide sales. Starbucks held on to second place with $20.49 billion.

 

 

Chick-fil-A moved up from the No. 7 spot on last year's Nation's Restaurant News' Top 200, passing Wendy's, Burger King, Taco Bell, and Subway. Chick-fil-A's system-wise sales grew 16.7% in 2018, up from $8.97 billion.

 

Experts say there is no reason to believe Chick-fil-A's growth will slow anytime soon. If anything, Starbucks should be worried it could lose its silver medal.

 

"Can they double that? I think that is a very reasonable goal for them," Kalinowski Equity Research founder Mark Kalinowski told Business Insider in May.

 

 

"I would be suprised if they didn't double that in the not-too-distant future," Kalinowski added. "Can they reach $30 billion? I think that's also a realistic goal if you give them enough time. And that should put them ahead of Starbucks."

 

Why rivals should be scared

 

Chick-fil-A competes with chains that have many more locations because of its enviable average unit volumes.

 

On average, a Chick-fil-A location brought in $4.6 million in annual sales in 2018, up from $4.2 million in 2017 — more than any other fast-food chain. By comparison, the average McDonald's location made $2.8 million.

 

 

Chick-fil-A has plenty of room for growth as it continues to expand outside the South.

 

"They're severely under-penetrated," Kalinowski said. "Once you start looking at all these other big metropolitan areas in all these states, there's room for growth for, not just years and years to come but potentially decades to come."

 

Kalinowski says that some of the brands that should be most concerned about Chick-fil-A's growth are chicken rival KFC and Wendy's, which is known for its chicken sandwich. In an increasingly competitive restaurant industry, many chains are feeling the pressure from Chick-fil-A's growth, as rivals struggle to attract more customers.

 

"I would say there's pressure on the burger chains in general," Kalinowski said, "and they're fighting that off with varying degrees of success."

https://www.businessinsider.com/chick-fil-a-third-largest-restaurant-chain-in-america-2019-6

Link to comment
Share on other sites

  • Replies 64
  • Created
  • Last Reply

Top Posters In This Topic

The one's here make a killing on junk food and a wide assortment of beverages.

 

if they're big enough they get grocery discounts... otherwise many smaller convenience store operators are paying $1.60 for those drinks they sell for $1.89

 

the old saying was if you weren't making it on the gas, then make it on the cigarettes... now it's a whole lot of making it on neither around here, kwik trip has killed everyone else just like casey's did in iowa

Link to comment
Share on other sites

when?

 

there are now 3 chick fil a within a few miles of me... like krispy kreme, subway, and walgreens did they are opening way too many of these things

 

The closest franchises I ever experienced was in the late 90s when I visited Miami Beach/South Beach, and two Burger Kings were about three or four blocks away from each other.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share


×
×
  • Create New...