AuthorDaniel Gonzalez
First Vice President & Associate DirectorTampa, FL
QSR Competition Heats Up
QSR Tenant Takeover
With consumer preferences constantly changing, some QSR tenants are outperforming in the pack. Particularly, Chick-fil-A, Raising Cane’s, and Whataburger are recording an uptick in performance and expansions, leaving other tenants behind in the competition. It is key to track their increased activity and how it will impact the QSR sector as a whole.
Chick-fil-A
Known for its chicken sandwich, Chick-fil-A is a dominant player in the QSR industry. The chain reported $22 billion in its total systemwide sales in 2024, an uptick from the $21 billion recorded in 2023. Chick-fil-A is one out of three QSRs in the U.S. that reported over $20 billion in sales, proving it is a key player in the QSR competition.
Expansion Tracker
Chick-fil-A is actively pursuing both domestic and international expansion. Recently, it kicked off expansions in Massachusetts by breaking ground on a property in Foxborough that is set to open in the fall. Chick-fil-A plans to add five to eight more Massachusetts locations by 2027. Across the country, Chick-fil-A opened 64 new restaurants through May. California received the most new locations with nine stores, and Florida followed behind with eight.
Raising Cane’s
Raising Cane’s has experienced rapid growth and strong financial performance. In 2024, the tenant reported an average unit volume (AUV) of nearly $7 million. Their AUV for the year is higher than the QSR sector’s average, reflecting its popularity and continued growth.
Expansion Tracker
The popular QSR tenant is in an aggressive growth phase, aiming to bring its One Love meals to more customers across the country. In 2024, it opened 118 restaurants, outpacing its prior plan of opening 100 stores per year. Raising Cane’s plans to follow the same expansion strategy this year, and it will open stores across six different states in June. It is also focusing on expansions in Washington, particularly in Seattle, Lynwood, and Silverdale.
Whataburger
Whataburger, with its strong Texan roots, has shown notable upward trends in sales and customer loyalty. Since the chain was bought by Capital Partners in 2019, the company increased in sales and popularity. The chain recorded a total $4.2 billion in sales for 2024, which has boosted each year since Capital Partners took over.
Expansion Tracker
Growth for new Whataburger locations is prominent in the South and Southeast, with Texas recording 761 locations. Since it was purchased by Capital Partners, it has expanded into six new states, and recorded 1,100 locations at the start of 2025. Moving forward, Whataburger is focusing on its additions in the Carolinas. Expansions have already begun in North Carolina, with its first location that opened on May 29 in Gastonia.
Collectively, these three chains illustrate diverse, yet effective, strategies for success. Their continued performance and ambitious expansion plans signal a vibrant future for each brand within the competitive fast-food industry.
