Chick-fil-A poised to jump Subway, Burger King in US fast food market

By Food and BeverageFOXBusiness

Chick-fil-A to become nation's third-largest fast food restaurant

Chick-fil-A is cashing in. A new 2017 sales report shows the king of chicken is rolling in the dough and is far exceeding its rival fast food chains like McDonald’s and KFC.

Booming restaurant chain Chick-fil-A is claiming the ranks of the most popular fast food destinations and could become the third-largest U.S, brand by the end of 2018, according to a report this week from a restaurant industry research firm.

Continue Reading Below

The Georgia-based, chicken-focused company has a “reasonable” chance of jumping from seventh to third in overall sales by the end of the year and “90-95 percent” odds of taking the third spot by 2019. If it accomplishes the feat, Chick-fil-A will rank behind only McDonald’s and Starbucks in terms of domestic system-side sales, surpassing industry giants such as Subway, Taco Bell, Wendy’s and Burger King.

“We have long pointed out that Chick-fil-A is the restaurant competitor with which McDonald’s U.S. should most concern itself – and by extension, investors should, too,” research analyst Mark Kalinowski wrote. “But this goes beyond McDonald’s.”

Chick-fil-A’s U.S. sales could jump about 15 percent to roughly $10.4 billion in 2018, up from about $9 billion in 2017, the firm said, citing Technomic sales data. That total would rank just ahead of sandwich chain Subway, which currently ranks third among U.S. fast-food operators.

McDonald’s, the longtime industry leader, is expected to post U.S. system-wide sales in excess of $38 billion.

More on this:

Chick-fil-A’s sales were up more than 15 percent through the first eight months of the year, outpacing industry-wide sales growth of about one percent, Restaurant Business reported in August.

“It likely would take a major self-inflicted stumble from Chick-fil-A itself to prevent that concept from reaching the number three position in 2019,” Kalinowski wrote. “All this means that the competitive risk that Chick-Fil-A represents to McDonald’s, Wendy’s and other publicly traded rivals is only expanding in importance.”

What do you think?

Click the button below to comment on this article.