Chick-fil-A Inc. reported record revenue for 2022, although higher restaurant operating expenses including food costs and labor, cut into earnings. Revenue reached $6.4 billion in 2022 compared to $5.8 billion in 2021, an increase of 10.6 percent. Comprehensive earnings, which are after tax however, were $1.1 billion in 2022 compared to $1.2 billion in 2021, a slight decrease of 1.1 percent.
The financial statement and store operating results for 2022 were derived from Chick-fil-A’s annual franchise disclosure document which was filed by the company on April 5.
Results for the 2,800-unit chain included gains in all revenue categories including royalties and rents paid by franchisees, rental income and company store sales. Average unit volumes for freestanding locations not inside mall locations reached a record $8.68 million per location in 2022, an increase of 6.5 percent over 2020.
As of December 31, 2022, the company operated 2,338 franchised, 73 company-operated and 395 licensed Chick-fil-A restaurants for a total of 2,806 locations, an increase of 102 locations over 2021.
Total systemwide sales generated from the 2,411 franchised and company-operated restaurants were $18.8 billion in 2022 compared to $16.7 billion in 2021, an increase of 12.8 percent.
Of the approximately 1,925 domestic franchised restaurants not located in malls that were open for at least one full calendar year, the average annual sales volume in 2022 was $8,675,749. That compares to 1,836 domestic franchised restaurants not located in malls that were open for at least one full calendar year in 2021 with a per store average of $8,142,257, an increase of 6.5 percent. Compared to five years ago, Chick fil-A’s average unit volume has increased 53 percent.
Of the approximately 182 domestic franchised restaurants located in malls that were open for at least one full calendar year in 2022, the average annual sales volume was $3,732,694 versus $3,224,731 in 2021. Of the 301 domestic college/university licensed locations open for at least one full calendar year, average annual sales were $1,106,994 versus $859,740 in 2021 for 289 of them.
Notes: Chick-fil-A charges franchisees an operating service fee equal to 15 percent of restaurant sales, less amounts charged to franchisees for equipment rentals and business services fees. The company also receives from franchisees an additional operating service fee equal to 50 percent of the net profit of franchised restaurants, as defined by the franchise agreement. The base operating service fee and additional operating service fees are charged to franchisees monthly and are recognized as revenue in the period earned. The company charges rent to its franchisees for the land and retail space that it leases from third-party developers. The company leases or subleases these properties to franchisees under month-to-month lease arrangements with rent subject to a cap of 6 percent of restaurant sales.
Review a complete copy ofChick-Fil-A's 2023 Franchise Disclosure Document.
John is the founder and president of Franchise Times Corp., a national publisher of business trade journals in food, franchising and finance. The company publishes Franchise Times magazine; the Restaurant Finance Monitor; Food On Demand and Foodservice News.
