News

Technomic releases Top 500 annual report

May 2, 2007

CHICAGO — The 500 largest U.S. restaurant chains registered solid performance, posting 6 percent annual sales growth in 2006, according to data released today by Chicago's Technomic Information Services at the 22nd Annual Elliot Leadership Conference.

In its annual report on the top U.S. restaurant chains, the leading foodservice consultancy found that U.S. systemwide sales for the Top 500 rose to an estimated $212.7 billion in 2006, up nearly $13 billion over 2005 on a same-chain basis.

"As the U.S. economy continued to struggle against rising gas prices, aggressive chain restaurant unit expansion and menu price increases fueled the Top 500 to outperform the restaurant industry at large, which grew 5.9 percent," said Darren Tristano, managing director of Technomic.

Significant growth continued to come from the limited-service beverage, donut and bakery cafe categories with Starbucks, Dunkin Donuts and Panera Bread posting 2006 double-digit sales growth of 21.5, 20.7 and 19.7 percent, respectively. McDonald's grew 5.7 percent with sales exceeding $27.1 billion. Subway also continued to dominate the growing other sandwich segment with 7.5 percent sales growth and total sales in excess of $7.7 billion.

Limited-service chains within the Technomic Top 500 accounted for 82 percent of all U.S. "fast food" restaurants. As a whole, this group grew at a rate of 5.8 percent. Chicken, which grew at 4.9 percent, was another limited-service sub-segment with sales growth above their segment average. Within this segment, Atlanta-based Chick-fil-A grew 15.2 percent with sales of nearly $2.3 billion.

Growth continued to be driven by quick-casual chains. The Mexican category was led by Chipotle and Qdoba Mexican Grill which posted U.S. systemwide sales growth of 42.8 and 31.7 percent, respectively. The Asian category continued its sales growth with P.F. Chang's Pei Wei concept (34.5 percent) and Panda Express (21.7 percent). Standouts in the other sandwich segment included Potbelly Sandwich Works and McAlister's Deli with growth of 51.4 and 23.1 percent, respectively.

The Ten Fastest-Growing Chains

(in millions)

Qdoba Mexican Grill: $266(a); 43%
Famous Dave's: $378; 40%
Bonefish Grill: $327; 39%
BJ's Restaurant & Brewery: $242; 34%
Moe's Southwest Grill: $273(a); 32%
Buffalo Wild Wings: $869; 32%
Chipotle: $837(a); 32%
Jimmy John's Gourmet Sandwich Shop: $262; 31%
Jason's Deli: $372; 27%
Red Robin International: $1,000; 25%

* Includes their 2006 sales figures with 2006 vs. 2005 percentage increase.

** (a) equals Technomic estimate

Impressively, 4 chains with sales over $2 billion achieved double-digit growth in 2006 including Starbucks (21.5 percent), Dunkin Donuts (20.7 percent), Chick-fil-A, (15.2 percent) and Chili's Grill & Bar (14.5 percent).

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