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- Chick-fil-A restaurants generate more than double the revenue of McDonald’s restaurants, according to a new analysis by Goldman Sachs citing Technomic data.
- The Atlanta-based chain has grown rapidly over the last decade and now ranks as the fifth largest fast-food company in the US in terms of market share, up from the No. 23 spot in 2005, according to the report.
- "Steer clear from those in the fray of Chick-fil-A," analysts said. Companies most at risk from the Chick-fil-A threat include Popeyes, Jack in the Box, Wendy’s, and KFC, analysts said.
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Chick-fil-A is seemingly unstoppable.
The Atlanta-based chain has grown rapidly over the last decade and now ranks as the fifth largest fast-food company in the US in terms of market share, up from the No. 23 spot in 2005, Goldman Sachs analysts wrote in a research note citing data from Technomic.
And despite being closed on Sundays, Chick-fil-A restaurants generate more than double the revenue of McDonald’s restaurants, according to the data.
"Our brand survey shows that Chick-fil-A has had the most brand momentum across [fast-food restaurants] — supporting the most increase in total revenue (in dollar terms) in the US," Goldman analysts wrote.
Looking ahead, Chick-fil-A’s "rapid rise" is showing no signs of slowing, according to the note.
"Steer clear from those in the fray of Chick-fil-A," analysts said. "Our 2,000 consumer brand survey suggests they will continue to take share and grow."
Companies most at risk from the Chick-fil-A threat include Popeyes, Jack-in-the-Box, Wendy’s, and KFC, analysts said.
Chick-fil-A generated more than $10 billion in sales last year, up from $2 billion in 2005, as the company has expanded into new markets in the Northeast and Midwest.
The company’s total number of locations grew by nearly 8% last year, on top of 7% growth the previous year, according to Technomic data cited by Goldman Sachs. By comparison, Chick-fil-A rival KFC closed more than 1% of its locations in the US.
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See Also:
- Chick-fil-A likely loses out on more than $1 billion in sales every year by closing on Sundays — and it’s a brilliant business strategy
- 7 perks fast-food chains are offering as they attempt to win over workers in the war for talent
- How Chick-fil-A got its name
SEE ALSO: It costs nearly nothing to open a Chick-fil-A — but there’s a catch
Source: Business Insider – hpeterson@businessinsider.com (Hayley Peterson)