One Chicken Chain Just Utterly Demolished KFC and Now Has Chick-fil-A in Their Crosshairs

Mironov Vladimir via Shutterstock

The chicken wars just took a devastating turn that nobody saw coming.

A restaurant empire that most Americans barely knew existed five years ago is now gunning for the crown.

And this unstoppable force just sent shockwaves through the entire fast food industry by obliterating KFC’s decades-long dominance.

The David vs. Goliath Story Nobody Saw Coming

While Americans were busy arguing about politics and the economy, something remarkable was happening in the world of fried chicken that would make any small business owner’s heart sing.

Raising Cane’s, a 28-year-old company that started with one location near Louisiana State University, just accomplished what seemed impossible just a few years ago.¹

The chain has officially knocked KFC out of the top three chicken restaurants in America, becoming the third-largest chicken chain by sales behind only Chick-fil-A and Popeyes.²

KFC now finds itself embarrassingly relegated to fifth place, trailing behind both Raising Cane’s and Wingstop.³

That’s gotta sting for a brand that once dominated the chicken game.

The Numbers That Tell an Incredible Success Story

The growth numbers for Raising Cane’s are nothing short of jaw-dropping.

With more than 900 restaurants spread across 42 states, the company generated a staggering $5.1 billion in system sales last year – more than double their 2021 total.⁴

Here’s where it gets even more impressive: Raising Cane’s achieved a 10.8% increase in traffic during 2024, even as Americans were pulling back their overall restaurant spending due to economic concerns.⁵

The chain ranked 18th overall on Technomic’s list of U.S. restaurant brands – that’s 10 spots higher than just one year earlier.⁶

But founder Todd Graves isn’t satisfied yet. He wants Raising Cane’s to crack the top 10 restaurant chains with more than $10 billion in annual sales.⁷

"All indicators say that we should get there before the end of this decade," co-CEO AJ Kumaran told CNBC. "We’re climbing the ladder slowly, but we’re humble about it."⁸

The Secret Weapon That Demolished the Competition

What makes Raising Cane’s success story so fascinating is how they did it – by completely ignoring conventional fast food wisdom.

While their competitors chased every new trend and loaded their menus with countless options, Raising Cane’s stuck to their guns with laser-like focus.

The menu hasn’t changed since the first location opened in 1996: chicken fingers, crinkle-cut fries, Texas toast, coleslaw, and their signature sauce.⁹

That’s it. No gimmicks, no limited-time offers, no value menu wars.

"We do not get into value play. We do not get into limited-time offers," Kumaran explained. "When our customers pull into the drive-thru or walk through the doors, they immediately know what to expect."¹⁰

While KFC’s menu has become a sprawling mess of bowls, waffles, and countless other items, Raising Cane’s kept it simple – and customers rewarded them for it.

Why KFC Lost the Chicken Crown

The contrast between these two companies couldn’t be more stark.

KFC has suffered through five straight quarters of declining same-store sales in the U.S., with first-quarter sales shrinking 1%.¹¹

Meanwhile, Raising Cane’s restaurants averaged $6.6 million in unit volume last year – more than double the fast-food industry average.¹²

For comparison, McDonald’s average unit volume hit $4 million last year, while Taco Bell managed $2.2 million.¹³

The only chain that beats Raising Cane’s in this metric is Chick-fil-A, with a whopping $9.3 million average unit volume.¹⁴

The American Dream in Action

This isn’t just a business story – it’s a testament to what’s still possible in America when entrepreneurs stick to their principles.

Todd Graves founded Raising Cane’s in August 1996 using money he earned working in an oil refinery and fishing for sockeye salmon in Alaska.¹⁵

He named the restaurant after his beloved Labrador retriever and has kept the tradition alive with every dog since. Today, Raising Cane III serves as both his faithful companion and the company’s official mascot.¹⁶

The founder’s dedication has paid off handsomely – Graves still controls the majority of his empire and boasts a jaw-dropping net worth of $17.2 billion.¹⁷

The Strategy That’s Revolutionizing Fast Food

While most chains chase quick expansion through franchising, Raising Cane’s took a completely different approach that’s now paying massive dividends.

Only about 3% of Raising Cane’s locations are franchised – the complete opposite of most major fast food chains.¹⁸

"After I joined, we quickly realized that, in our hearts, we are operators, and we’re good at it," Kumaran said. "We can do it better than anybody else, and we want full control over how we run our business."¹⁹

This approach gives them total control over quality and customer experience, something that’s clearly paying off.

The Times Square Phenomenon

Their best-performing location perfectly captures the Raising Cane’s phenomenon.

The Times Square restaurant, housed in a former Levi’s flagship location overlooking the famous New Year’s Eve ball drop, grossed $25 million in system sales last year.²⁰

"It is one of the most successful locations in history," Placer.ai’s  R.J. Hottovy said.²¹

The restaurant boosts Raising Cane’s profile thanks to the millions of tourists who pass by every day.

What This Means for America’s Food Future

The success of Raising Cane’s sends a powerful message about what consumers are looking for.

In an age of endless options and confusing menus, people crave simplicity and consistency.

"I do think simplicity is kind of the starting point," Hottovy explained. "From a drive-thru perspective, they’re one of the most efficient operators in the business. Really, Chick-fil-A is the only one that’s even close to that."²²

The chicken industry has been booming, with nationwide sales spiking 9% in 2024 and per capita consumption expected to hit 104 pounds – over 25% higher than 15 years ago.²³

"I think it’s a change in people’s diets and their mindsets," said Andrew Sharpee from AlixPartners. "It’s still a cheaper alternative than where beef prices are."²⁴

The Road Ahead

Raising Cane’s isn’t slowing down anytime soon.

They opened 118 restaurants last year and expect to open about 100 more this year, with another 200 in the development pipeline.²⁵

They’re targeting expansion in New York, Massachusetts, California, and Florida, with most new restaurants planned for coastal markets.²⁶

The company expects to operate nearly 1,000 restaurants by the end of 2025 and projects $5.8 billion in revenue for this year.²⁷

Despite their massive success, Graves and Kumaran have no plans to go public or seek outside investment.

"We are focused on growing our business, and we take a very long-term viewpoint," Kumaran said. "And we have no interest in going public or taking private investments, etc., at this stage at all."²⁸

This is what happens when American entrepreneurs stay true to their vision and refuse to compromise on quality.

While the political class in Washington, D.C. debates how to help small businesses, Todd Graves and his team are showing the world exactly how it’s done – one perfectly prepared chicken finger at a time.


Sources:

  1. CNBC, "How Raising Cane’s overtook KFC to become the No. 3 chicken chain in the U.S.," June 30, 2025
  2. Ibid.
  3. Daily Mail, "KFC knocked out of top 3 chicken chain in the US by growing rival," June 30, 2025
  4. CNBC, June 30, 2025
  5. Ibid.
  6. Daily Mail, June 30, 2025
  7. CNBC, June 30, 2025
  8. Ibid.
  9. Ibid.
  10. Ibid.
  11. Ibid.
  12. Ibid.
  13. Ibid.
  14. Ibid.
  15. Ibid.
  16. Ibid.
  17. Ibid.
  18. Daily Mail, June 30, 2025
  19. CNBC, June 30, 2025
  20. Ibid.
  21. Ibid.
  22. Ibid.
  23. Daily Mail, June 30, 2025
  24. CNBC, June 30, 2025
  25. Ibid.
  26. Ibid.
  27. Daily Mail, June 30, 2025
  28. CNBC, June 30, 2025