In this article, we are going to discuss the 15 Fastest-Growing Fast-Food Chains in the US. We have also discussed the fast-food industry at length. You can skip the analysis and the rest of the list and head straight to the fastest-growing fast-food chain in the US.
The global fast food market has struck a staggering figure of $700 billion in 2022, and it is further expected to grow at a CAGR of 3.7% between 2023 and 2032, which would mean a market size of $1 trillion by then, according to past Insider Monkey research. Over the years, fast-food chains have spread across the globe like wildfire, thanks to the process of franchising. Through this, the fast-food providers have taken their customer reach to the next level, while innovating their product offerings based on individual markets’ preferences and trends.
The demand for fast food has been high in the U.S., as the reports have indicated a whopping 37% population, that actively consumes fast food. The Millennials segment has been the most profitable one for fast food companies, as 54% of millennials are reported to be consuming fast food more than once a week, according to Drive Research. Historically, Subway, Starbucks, and McDonalds have been three of the most popular fast-food chains in America, with the greatest number of locations in the country, having approximately 20,801, 16,000, and 13,000 locations, respectively. Subway is also considered the healthiest fast-food option, not only in the country but also across the globe. In the sub-category of burgers, McDonald’s popularity is well competed against by some of the other fast-food companies like Wendy’s and Burger King, while in the chicken-based fast-food category, Chick-Fil-A is emerging as the top player, even surpassing the mighty KFC, with a sales growth of 5.75% in the second quarter of 2023, while already bagging a whopping consolidated sales figure of $18.8 billion in 2022, according to QSR Magazine.
Now further delving into the fast-food market, we will also look at some of the fast-food giants, namely, McDonald’s Corporation (NYSE:MCD) and KFC, under Yum! Brands, Inc. (NYSE:YUM).
McDonald’s Corporation (NYSE:MCD)
McDonald’s Corporation (NYSE:MCD), which is among the top fast-food chains in the world, operates in more than 100 countries, consisting of a whopping customer base of 69 million! For the year ending 31 December 2023, it boasted a revenue of $25.5 billion, out of which, $6.4 billion was collected in the last quarter of the period, according to the company’s announcement. It is important to note that the fast-food giant is experiencing a decline in sales, after one of its franchises delivered thousands of free meals to IDF.
KFC
In contrast, KFC, another fast-food giant boasting its signature Kentucky fried chicken, along with other diverse chicken-based offerings, operated under its parent company, Yum! Brands, Inc. (NYSE:YUM). For the quarter ending 31 December 2023, Yum! Brands, Inc. (NYSE:YUM) bagged a revenue of $2.04 billion, boasting a YoY growth of 0.84%, according to CNBC. Likewise, the company was flying high with its annual figures as well, as it earned a revenue of $7.08 billion, growing at a yearly rate of 3.42%.
With this, let’s now jump onto our list of 15 Fastest Growing Fast-Food Chains in the US.
Also, see 25 Most Popular Fast-Food Restaurants in America.
A close-up of a hamburger, french fries, and a soft drink, representing the fast food chain.
Methodology
To list down the Fastest Growing Fast-Food Chains in the US, we first filtered out the top US-based fast-food restaurants according to the Top 500 Chain Restaurant Report by Technomic. After that, we gathered data on the number of units of each restaurant in 2021 and 2022. The 15 restaurants with the highest number of units opened in 2022 made the cut and then were arranged in descending order to create a concise list of 15 Fastest Growing Fast-Food Chains in the US.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
15. Raising Canes
Units opened in 2022: 79
Raising Cane’s Chicken Fingers, established in 1996 in Baton Rouge, Louisiana, is an American fast-casual chain renowned for its specialization in chicken fingers. Currently, there are over 700 locations for the fast-food franchise in the United States but the company plans on increasing the number of locations to 1500 across the country in the long-term, according to Vinepair.
14. Panda Express
Units opened in 2022: 87
Panda Express is a popular fast-food chain originating from the United States. It is known for its focus on American Chinese cuisine. Boasting a vast network of more than 2,390 outlets, it holds the title of being the largest Asian-themed restaurant chain in the U.S. Its presence spans across North America and Asia. Among the favorites at Panda Express are the classic orange chicken, which accounts for a third of the company’s sales. This is quite apparent from the sheer quantity of The Original Orange Chicken, amounting to 125 million pounds, that the company sold in 2022.
13. Dunkin’
Units opened in 2022: 126
Dunkin’ Donuts, now known simply as Dunkin’ since 2019, is a well-known American company famous for its coffee, donuts, and quick-service dining options. At the end of 2020, Inspire Brand spent a whopping $11.3 billion to acquire Dunkin’ along with Baskin Robbins. And it has since grown substantially with 161 locations opening up in 2021 and 126 in the year 2022. The company has also claimed to have 100% responsibly sourced coffee by 2025.
12. Domino’s
Units opened in 2022: 126
Domino’s Pizza, Inc. (NYSE:DPZ), an American pizza restaurant chain with a global presence, was established in 1960. One notable example of its pioneering approach is the introduction of the “30 minutes or its free” guarantee in the 1970s, which revolutionized the food delivery experience. There are a total of 6,906 Domino’s Pizza, Inc. (NYSE:DPZ) locations across the United States, with Texas holding the largest share of about 11%, with 740 Domino’s Pizza, Inc. (NYSE:DPZ) outlets.
11. Dutch Bros
Units opened in 2022: 133
Dutch Bros. Coffee is a rapidly expanding presence in the fast-paced beverage service sector, and its growth speaks for itself. In 2023, the coffee chain unveiled an impressive 159 new outlets, with 37 of them debuting in the final quarter alone. Looking ahead to 2024, Dutch Bros. aims to surpass all of its previous achievements by launching between 150 and 165 additional stores. With a total of 831 locations as of the end of 2023, this ambitious expansion strategy is poised to bring the company’s total store count to nearly 1,000 by the end of the year.
10. Chick-Fil-A’
Units opened in 2022: 153
Chick-fil-A, Inc. stands as a prominent American fast-food chain renowned for its specialization in chicken sandwiches. Situated in College Park, Georgia, the company oversees operations spanning 3,059 restaurants across 48 states. It also has establishments in the District of Columbia and Puerto Rico. According to Scrape Hero, Texas boasts the highest count of these eateries, with 495 locations. Following closely behind are Georgia and Florida, with 259 and 246 establishments, respectively. Presently, Chick-Fil-A restaurants can be found in nearly 40 states, as per information from the official Chick-Fil-A corporate website.
9. Scooter’s Coffee
Units opened in 2022: 155
Scooter’s Coffee, which is headquartered in Nebraska, has expanded its presence to 700 locations across the United States, with a recent addition being a drive-thru outlet in Elkhart, Indiana.
Established in 1998, Scooter’s Coffee has emerged as one of the rapidly expanding coffee chains in the country. Achieving the milestone of 700 stores comes just 10 months after the inauguration of its 500th outlet and less than six months after reaching the 600-store mark, as noted by the World Coffee Portal.
8. Tropical Smoothie Cafe
Units opened in 2022: 159
In 2023, the smoothie chain experienced significant expansion, with 176 new locations opening nationwide, as detailed in a press release. Additionally, Tropical Smoothie Cafe secured 258 franchise agreements during the same period, indicating a promising avenue for future growth.
Furthermore, the press release highlighted that 2023 marked the 12th consecutive year of positive same-store sales for the chain. This trend suggests that Tropical Smoothie Cafe is poised for further substantial growth in 2024.
7. Popeyes
Units opened in 2022: 169
Popeyes, a fried chicken restaurant chain, originated in New Orleans, Louisiana in 1972 and is now a global entity, headquartered in Miami. It operates as a subsidiary of Restaurant Brands International, based in Toronto. With 3,705 restaurants as of 2021, Popeyes has a presence in over 46 states, the District of Columbia, Puerto Rico, and 30 countries worldwide, according to IJRPR. The chicken chain is rapidly expanding its presence both in the U.S. and globally. Its popular chicken sandwich has enabled it to enter into a wider range of locations than before.
6. Wingstop
Units opened in 2022: 187
Sixth on the list of 15 Fastest Growing Fast-Food Chains in the US, is Wingstop. Wingstop is famous for its variety of wing flavors and chicken sandwiches and is ready for significant growth this year. With 255 net new stores opened in 2023, the chain aims to surpass this in 2024 by adding another 270 net new locations worldwide.
Ending 2023 with 2,214 global locations, including 1,926 in the United States, these planned openings bring it close to reaching a milestone of 2,500 stores. Additionally, Wingstop has a long-term goal of reaching 7,000 units, though it may take some time to achieve this target.
5. Taco Bell
Units opened in 2022: 196
Taco Bell Corp. is a multinational chain of fast-food restaurants based in the United States. It was established in 1962 by Glen Bell in Downey, California. The fast-food Mexican chain has been expanding its reach in recent years to stimulate growth, and it appears to be achieving success in this endeavor. In its mid-2023 update, the company shared that the business is on track to be operating 10,000 U.S.-based restaurants in the coming years.
4. Chipotle
Units opened in 2022: 211
Chipotle expects to open around 285 to 315 new restaurants in 2024, as long as there are no big delays with things like construction permits, they announced in their third quarter 2023 results. This could be even more than 271 restaurants they opened in 2023. They aim to grow and serve more customers and meet their needs better as well.
3. Jersey Mike’s Subs
Units opened in 2022: 297
Jersey Mike’s Subs stands out among the chains listed here for its ambitious growth strategy. CEO Peter Cancro revealed to QSR Magazine last year that the company aims to launch 350 new locations in 2024. Following this, Jersey Mike plans to maintain a similar pace of expansion in 2025 before ramping up to 400 to 450 openings in 2026.
Looking ahead, the company intends to sustain an annual growth rate of 13% to 15% in its unit count. This is particularly impressive considering that Jersey Mike’s already operates more than 2,600 restaurants across the United States.
2. Crumbl
Units opened in 2022: 363
Crumbl Cookies is a franchise bakery chain operating in the United States and Canada, renowned for its assortment of freshly baked cookies. Established in 2017 and headquartered in Utah, Crumbl specializes in crafting a wide variety of delicious cookies. In its most recent franchise disclosure document, Crumbl revealed its intention to unveil 122 new locations during 2024. Although this figure is slightly lower compared to recent years, with 184 openings in 2023, 363 in 2022, and 184 in 2021, it still represents a significant expansion effort. If Crumbl successfully achieves its targets, the addition of 122 new locations would mark one of the most substantial growth pushes.
1. Starbucks
Units opened in 2022: 429
Starbucks is the biggest coffee chain in the world, but it plans to get bigger in the upcoming years. Starbucks aims to open 17,000 new locations worldwide by 2030, with plans to ultimately reach 55,000 locations globally, a significant increase from its current total of about 38,000.
In the United States alone, Starbucks is targeting a 4% net growth in new store openings for the 2024 fiscal year. With 16,352 locations currently in the U.S., achieving this growth would mean adding roughly 650 more locations by the end of the fiscal year. The company’s long-term goal for expansion in the United States is to reach 20,000 locations.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also take a peek at 15 Worst Steakhouse Chains in the US and Alternatives to Celsius Drink: 10 Best Energy Drinks.
Click to continue reading and find out about 5 Fastest-Growing Fast-Food Chains in the US.
Suggested Articles:
- 30 US Cities with the Highest Fast-Food Consumption
- 20 Biggest Snack Companies in the World
- 20 Most Food Insecure States in the US
