Chick-fil-A stretches sales lead over KFC

Chick-fil-A continues to eat the lunch of its competitors.

The company eclipsed the $5 billion in annual sales mark in 2013, up from $4.6 billion a year earlier.

The year was even better for Chick-fil-A on a relative basis. For the second year in a row, it was the U.S. sales leader among quick-service chicken chains. No. 2 KFC dropped further behind.

Louisville-based KFC’s sales slid to $4.2 billion last year from $4.4 billion in 2012, according to data compiled by Technomic, a research and consulting firm focused on food and related products and service.

KFC led Chick-fil-A in sales as recently as 2011.

Chick-fil-A’s sales were more than double those of another metro Atlanta-based chain, Popeyes Louisiana Kitchen, which logged sales of about $2.2 billion in 2013 to land at No. 3 in the category. Zaxby’s, an Athens-based chain, is about half the size of Popeyes, with about $1 billion in sales in 2012. Atlanta-based Church’s Chicken had sales of $855 million in 2013.

Chick-fil-A still ranked far behind the overall fast food industry leader, McDonald’s, which has about seven times the sales in the U.S.

The family-owned chain has cemented its status atop the chicken category while operating only six days a week. It is closed on Sundays.

“One of the factors that make (Chick-fil-A) successful is that they have an incredibly loyal consumer base,” said Sam Oches, editor of QSR magazine, a trade publication that covers the quick-service industry.

For example, new store openings take on the feel of a festival mixed with a camp out and slumber party, with customers staying overnight to win free food.

Oches said the company has also managed its growth well, with deliberate expansion plans and attention to quality.

Chick-fil-A stores are owned by the company but managed by independent operators, not franchisees. The company is highly selective in choosing operators, Oches said.

Chick-fil-A probably benefits from being regarded as more of a premium product than KFC, he added. KFC recently launched KFC Eleven, a upscale fast-casual chicken concept with new, high-brow fare, including flatbreads and fancier sandwiches and salads.

KFC is still by far the larger chain in terms of outlets, though it is shrinking. It had 4,438 stores nationwide last year, down from more than 5,000 in 2010. Chick-fil-A had 1,775 U.S. stores in 2013, up from 1,683 in 2012.

Chick-fil-A said same-store sales rose 3.64 percent in 2013, while total sales gained 9.3 percent.

The company plans to open 90 stores in 2014 and is looking at expanding further in the Northeast and Northwest U.S.

KFC has a major international presence, with outlets in 125 nations. Spokesman Rick Maynard said it is still the one most associated with chicken worldwide.