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Chick-Fil-A Surpasses $2 Billion in Sales

Posted on: Tuesday, 28 November 2006, 09:00 CST

Poised to celebrate 40 years of business in 2007, Chick-fil-A, Inc. today reported more than $2 billion in system-wide sales -- that includes sales of 156,420,000 Chick-fil-A® Chicken Sandwiches. A positive sales trend has become expected of the brand -- the Atlanta-based company will mark its 39th consecutive sales increase this year since its inception in 1967.

"Chick-fil-A's growth is first attributed to the caliber of people that operate each restaurant," said Chick-fil-A President and Chief Operating Officer Dan T. Cathy. "Our family of franchise Operators and their restaurant team members are among the best in the food service industry. Chick-fil-A's Operator retention rate was 95.6 percent in 2006, and approximately 70 percent of franchise Operators that are selected have previous Chick-fil-A experience. Their loyalty has resulted in the same patterns from their customers who consistently reward our restaurants with visits for their dedication to delivering the highest quality in the food we prepare and the customer service we extend."

A significant portion of Chick-fil-A's sales increase occurred after customers finished their meals thanks to one of its "coolest" product introductions in recent years. The chain introduced four flavors of Hand-Spun Milkshakes this past summer, boosting overall sales without compromising speed of service. In the height of summer at some stores, more Milkshake sales were reported than its hero product, the original Chick-fil-A Chicken Sandwich. Chick-fil-A's successful Milkshake launch added significantly to its 2005 sales momentum of a 13.10 percent overall increase and a positive 5.87 same-store performance. These same two measures are projected to be even stronger for 2006.

Consistent with the chain's long-term philosophy of controlled growth, a modest new store expansion rate of approximately six percent for 2006 also contributed to this year's sales success as new locations (especially in western markets) continued a trend of record opening sales. By the end of the year, Chick-fil-A will have opened 76 new restaurants, including 64 stand-alone locations, two mall outlets, and approximately 10 licensed operations (e.g., college campuses and airports).

"Our customers truly define our growth and projections trends," added Cathy. "Their loyalty is most evident by the fact that we determine our new store expansion projections each year based on our sales performance. After 33 years of operations, we reached $1 billion in sales in 2000 and have doubled the figure six short years later. We like to say our customers determine our growth rate."

While Chick-fil-A's restaurant expansion around the nation continues, the company also is embarking on an expansion campaign at its home office in Atlanta. The chain will break ground next summer on a 200,000-sq. ft. third wing on its 75-acre campus south of Atlanta. The headquarters expansion also includes a new building for its corporate daycare facility, along with the addition of three new decks on its three-story parking garage and warehouse facility.

Having long been a leader in promoting the overall good health of its employees and providing solutions to inspire all employees to adopt a healthy, active lifestyle, Chick-fil-A expanded its structural presence this past year with a 12,000-sq.-ft wellness center for its employees and local Operators. Operated by Dallas-based Cooper Wellness Center, the facility offers a variety of exercise options including cardio, strength and free weight equipment and training, as well as group exercise classes and a full-time staff for personal fitness needs. A racquetball court and a 1.5 mile walking/running trail are also on the corporate premises for employee use.

$2 Billion By the Numbers

What does it mean for the nation's second largest chicken chain to mark $2 billion in sales?

The 156,420,000 original Chick-fil-A® Chicken sandwiches laid side by side would equal the distance from Founder Truett Cathy's original restaurant, the Dwarf House in Hapeville, Ga., to the most distant Chick-fil-A in San Diego more than five times.

Chick-fil-A restaurants sold more than 94,030,205 pounds of Waffle Potato Fries™ (cooked in pure peanut oil).

Restaurant team members nationwide used 86,467,709 lemons to make the chain's signature, fresh-squeezed lemonade.

The amount of Chick-fil-A® Nuggets sold, 824,200,000, would cover one-fourth of the earth's circumference.

The chain's 40,284 franchise Operators and team members plus 640 corporate staff make up the 40,924 employees that worked tirelessly to accomplish such a feat.

About Chick-fil-A Inc.

Atlanta-based Chick-fil-A, Inc., the nation's second-largest quick-service chicken restaurant chain (based on sales), currently has more than 1,280 restaurants in 37 states and Washington D.C. Credited with inventing the boneless breast of chicken sandwich and first introducing the chicken nugget concept, Chick-fil-A serves nutritious and freshly prepared food products in mall locations, stand-alone restaurants, drive-thru-only restaurants, Chick-fil-A Dwarf House® and Truett's Grill® full-service restaurants, and through licensed outlets in college campuses, hospitals, airports, businesses and industrial sites. More information about Chick-fil-A is available on the chain's websites, located at www.chick-fil-a.com, www.chick-fil-apressroom.com or www.truettcathy.com.

Source: Business Wire

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