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Abstract:Chick-fil-A is the fifth largest US fast-food chain in terms of market share, up from the No. 23 spot in 2005, according to a Goldman Sachs analysis.
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.
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.
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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