Picture this: a 28-year-old chicken chain, born from grit and a Labrador Retriever’s name, overtaking a fast-food titan like KFC in U.S. sales.
According to CNBC, Raising Cane’s, with $5.1 billion in system sales last year, has surged past KFC to claim the No. 3 spot among chicken chains, trailing only Chick-fil-A and Popeyes, while setting its sights on $10 billion in annual revenue and a top 10 ranking among all U.S. restaurant brands.
Let’s rewind to August 1996, when Todd Graves founded Raising Cane’s. He bootstrapped the venture with earnings from grueling jobs at an oil refinery and fishing for sockeye salmon in Alaska. The chain’s name honors his Labrador, with the current pup, Raising Cane III, born in 2017.
The first location opened at the North Gates of Louisiana State University in Baton Rouge, a spot that still stands today. From there, Graves built a focused menu of chicken fingers, crinkle-cut fries, Texas toast, coleslaw, and a signature sauce, unchanged for nearly three decades.
By 2020, Raising Cane’s had just over 500 locations. That number has skyrocketed to more than 900 today, with 118 new restaurants opened last year alone. The chain expects to hit nearly 1,000 locations by the end of 2025, with another 200 in the pipeline.
Unlike most fast-food giants, Raising Cane’s keeps tight control, with only 3% of its restaurants franchised. When co-CEO AJ Kumaran joined in 2014, roughly a quarter of its then-200 locations were franchised, but the company shifted to a company-owned model for operational consistency.
Last year’s system sales of $5.1 billion more than doubled the chain’s 2021 figures. A 10.8% traffic increase fueled this growth, even as consumers tightened their belts on dining out. Raising Cane’s also celebrated its first $1 billion quarter in that period.
Average unit volume tells an even bigger story: $6.6 million per restaurant in 2024, dwarfing the fast-food industry average and outpacing McDonald’s ($4 million) and Taco Bell ($2.2 million), though trailing Chick-fil-A’s $9.3 million. The Times Square location, a former Levi’s flagship, grossed a staggering $25 million last year.
“It has been massive for us,” said Kumaran, reflecting on the Times Square success. “Our brand awareness truly took off.”
Now operating in 42 states, Raising Cane’s targets high-traffic markets like New York, Massachusetts, California, and Florida for new openings. Most upcoming U.S. restaurants will dot the coasts, though growth spans nationwide. Internationally, the chain has a foothold in the UAE, Bahrain, Kuwait, Saudi Arabia, and Qatar, with more global plans potentially involving franchising or joint ventures.
Why the chicken boom? U.S. per capita chicken consumption is projected to hit 104 pounds in 2025, up over 25% in 15 years, per National Chicken Council data. As beef prices soar, chicken remains a wallet-friendly protein, and chains like Cane’s capitalize on this shift. “It’s a cheaper alternative,” noted Andrew Sharpee of AlixPartners. “It’s easier on the wallet.”
For investors eyeing the fast-food sector, Raising Cane’s offers a masterclass in operational efficiency and brand discipline. Their simplicity—sticking to a core menu without gimmicky limited-time offers—drives customer loyalty and streamlines costs, a model Milton Friedman might applaud for its market-driven focus.
Unlike competitors chasing short-term buzz, Cane’s plays the long game, funding growth through traditional credit lines rather than outside investment or public offerings. Todd Graves, with a Forbes-estimated net worth of $17.2 billion, retains majority ownership, avoiding the dilution many chains face.
Want to build wealth from this trend? Consider exposure to consumer discretionary stocks tied to efficient restaurant operators, or study Cane’s playbook: focus on quality, control, and strategic location picks. In a world of fiat-driven inflation, frugality and smart scaling are your best bets.