Raising Cane’s has knocked KFC out of the top three chicken chains in the US.

The Louisiana-based restaurant has become the third-largest chicken chain in the US by sales, behind Chick-fil-A and Popeyes.

KFC now ranks as the fifth-largest chain, also trailing behind Wingstop, according to the latest Technnomic Top 500 restaurant chain list.

With over 900 restaurants in 42 states and $5.1 billion in 2024 revenue, Raising Cane’s has been rapidly expanding and plans to open about 100 locations this year.

The 28-year-old business said skyrocketing sales were helped by a 10.8 percent increase in traffic last year, even as Americans pulled back on their restaurant spending.

Out of all chains featured on the list, Raising Cane’s ranked 18th overall, 10 spots higher than what it was last year.

However, Raising Cane’s founder Todd Graves is hoping for the chain to crack the top 10, and make more than $10 billion in annual revenue.

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

Raising Cane’s earnings, however, were not enough to overtake McDonald’s or Starbucks despite both chains’ consistent recent revenue losses.

The restaurant’s menus have hardly changed since the first location opened in 1996 near Louisiana State University. It’s known for offering classics like chicken fingers, crinkle-cut fries, Texas toast, and signature sauce.

Raising Cane’s is not looking to change its ways anytime soon even though chicken chains have been upping the ante on value meal wars.

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

Chicken chains have had a surge in popularity, with nationwide sales spiking 9 percent in 2024. Its national per capita consumption is now expected to hit 104 pounds, over 25 percent higher than last year.

‘I think it’s a change in people’s diets and their mindsets. It’s still a cheaper alternative than where beef prices are,’ Andrew Sharpee, co-leader of AlixPartners’ restaurants, hospitality and travel practice, told CNBC.

Chicken also comes in a variety of forms, and several restaurant chains’ chicken varies depending on recipes.

‘It’s come a long way, right? Chicken is not this heavily processed, frozen-to-fryer product. It’s fresh, battered in stores,’ Sharpee said.

Chicken chains have been highly competitive due to its success, including Bojangles, which launched Breakfast Bo-Ritos days after sharing its interest in exploring the idea of selling the business.

The Bo-Ritos were the starting point for a war with Taco Bell, a Mexican chain that’s in its ‘crispy chicken era.’

Popeye’s also sparked a war with McDonald’s by adding chicken wraps to its menu just a month before the return of the fast food empire’s snack wraps.

However, Kumaran insisted Raising Cane’s is still the ‘chicken finger meal experts,’ calling it a ‘lifestyle.’

‘I do think simplicity is kind of the starting point. 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,’ said R.J. Hottovy from Placer.ai.

The success has gotten so impressive that Hottovy had no problem comparing Raising Cane’s to Chipotle, one of the most successful fast food chains in the world.

‘Maybe you saw a long line out the door at Chipotle, but you were willing to wait for it because you can get through the line quickly,’ he said.

‘And I think we’ve got a similar, similar phenomenon going on with Raising Cane’s and some of the other hot chicken chains where sometimes there’s long lines, but they’ve set up the system to move quickly.’

Only 3 percent of the eateries are franchisee-operated, which is the complete opposite of most of its primary competitors.

‘When you get to a certain size, franchisee growth becomes a way to fund future expansion, so it’s unique that [Cane’s] is able to do this,’ Hottovy told CNBC.

‘I think part of it is the fact that they do have superior unit economics, compared to the rest of the category.’

It’s been unafraid to expand to populated areas like its best-performing restaurant in Times Square, and bases location destinations on things like traffic and distance from significant establishments.

‘I think they’ve done a great job in terms of picking the best locations. That gives them access to these potential high repeat visitors,’ Hottovy said.

‘They’re pulling in across all demographic groups, skewing towards a higher household income, but really doing a good job kind of front and center with a lot of consumers.’

Raising Cane’s expects to make $5.8 billion in revenue this year, and Kumaran insisted the chain has ‘no interest in going public.’

[H/T Daily Mail]