News
Chick-fil-A reports continued positive sales
January 29, 2009
ATLANTA — Despite the struggling economy, Chick-fil-A enjoyed another year of double-digit sales growth in 2008. The company has reported 2008 systemwide sales of $2.96 billion, representing a 12.17 percent increase over the chain's 2007 overall sales performance. Same-store sales increased 4.59 percent.
Chick-fil-A's record sales performance marked the chain's 41st consecutive year of systemwide sales gains – a streak that the chain has sustained since its inception in 1967 – and its 16th straight year of double-digit sales growth.
"Chick-fil-A was able to endure a number of challenges that could have been detrimental to any other chain, including targeted product competition among our quick-service rivals and a challenging economic environment, but our restaurant operators and team members remained committed to excellence which resulted in another solid sales year," said Chick-fil-A president and COO Dan T. Cathy.
Cathy also said that restaurant growth will continue to be an integral factor in sustaining sales momentum this year. Chick-fil-A will continue its steady restaurant growth with 76 new locations planned for 2009, including 64 stand-alone restaurants, two mall/retail locations and 10 licensed outlets. Additionally, the chain feels it also is critical to reinvest in some of its existing restaurant sites. The chain will renovate 65 restaurants throughout the year in a reinvestment effort to extend the life cycle of each location and introduce new efficiencies that will help Chick-fil-A's franchise operators attract and accommodate greater sales volumes.
The chain's 2008 sales performance complemented a number of business highlights, including:
- Continued restaurant expansion with 83 new locations.
- The most aggressive product rollout year in its history, introducing the Chargrilled Chicken sandwich and fruit salad, a new Chick-fil-A Chick-n-Strips product that is 50-percent larger than the chain's previous strips offering, and an enhanced Chick-fil-A Chicken Salad sandwich, which tripled in sales upon rollout.
- In fall 2008, Chick-fil-A eliminated artificial trans fat from its entire menu, including condiments.
- In August, the chain hosted the inaugural Chick-fil-A College Kickoff football game between the University of Alabama and Clemson University at the Georgia Dome in Atlanta, Ga. Alabama will return to face Virginia Tech for the 2009 event.
- Chick-fil-A awarded 48 franchise operators new cars as part of the chain's Symbol of Success sales incentive program. Through the program, franchisees are awarded a new Ford vehicle of their choice for meeting their annual sales goals.
Chick-fil-A was recognized with a number of prominent industry awards in 2008, including being named oneof 25 national Customer Service Champs. The company also wasrecognized as America's Healthiest Chain Restaurant for Kids and topped a 2008 Best Drive-Thru in America survey for the fifth time.
During the year, 87-year-old founder and CEO S. Truett Cathy received the president's Call to Service Award for lifetime volunteer service achievement and became the first recipient to receive the award in the Oval Office. Other significant charitable endowments for the chain included continued support for WinShape Foundation, a non-profit organization and charitable foundation established by the Cathy family, and for the 2008 Chick-fil-A Bowl, which led all college football bowl games by contributing more than $1.2 million to charities and scholarships.
Chick-fil-A also celebrated the 35th anniversary of its Leadership Scholarship Program by donating more than $1.4 million in college scholarships to its restaurant team members in 2008, and will exceed the $25 million mark in total scholarships later this year.
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