Chick-fil-A Inc. Announces USD 1B plan To Expand To Asian and European Markets

Chick-fil-A Inc. has announced a $1 billion plan to expand its signature crispy chicken-breast sandwich beyond North America.

The Atlanta-based company stated that it intends to open restaurants in Europe and Asia by 2026, with plans to expand to five international markets by 2030.

According to Andrew Cathy, the company's third-generation CEO, Chick-fil-A has plenty of room to grow in the United States, but an international presence is necessary as the family-owned business charts its future.

“We feel like it’s time to continue to innovate and try and test how we will do in international markets so that we can learn,” Mr. Cathy said.

The crispy chicken sandwich, which is frequently served with a pickle and a spicy or tangy sauce, has become the focus of a years-long battle between fast-food companies in the United States. In the last four years, chains such as McDonald's Corp. MCD 0.15%increase; green up pointing triangle and Popeyes Louisiana Kitchen have introduced crispy battered versions. According to market research firm Circana Group, Americans ordered 2.8 billion breaded chicken sandwiches in the 12 months ending in January, a 21% increase over the same period three years ago.

Chick-fil-signature A's crispy chicken-breast sandwich has long outsold the competition. According to market research firm IRI, the company's relatively simple menu focused on poultry has helped privately held Chick-fil-A grow to become the third-largest U.S. fast-food chain by sales, trailing only McDonald's and Starbucks Corp.

Its U.S. sales have quadrupled in the past decade, with its restaurants averaging more yearly sales than any other fast-food chain and many sit-down ones, Technomic said.

Mr. Cathy stated that Chick-fil-A is still deciding how many international restaurants it will open overseas. It intends to stick with its current model, in which franchisees operate only one restaurant, collaborating closely with the company and sharing profits with the chain after paying fees.

Chick-fil-A has dabbled with international locations since its founding by entrepreneur Truett Cathy in 1967, but previous attempts to launch individual overseas locations have had mixed results.

Anita Costello, the chain's executive vice president for international, stated that the company strives to serve all customers in its markets and takes any concerns about the company seriously.

Chick-fil-A opened its first Canadian location in Toronto in 2019 and now has eight locations in Canada and three in Puerto Rico.