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Chick-fil-A scores more than double the sales of McDonald's per restaurant even though the chicken chain closes on Sundays

Jul 30, 2019, 18:25 IST

Hollis Johnson/Business Insider

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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.
  • Visit Business Insider's homepage for more stories.

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.

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Read more: 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

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.

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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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