The Chicken Category’s Sales Slowed Last Year

Why It Matters

The deceleration signals a market pivot from pure volume growth to competitive differentiation, affecting investors, franchisees, and supply chains across the quick‑service landscape.

Key Takeaways

• Chicken-chain sales grew 5.3% in 2025, down from 9.1% in 2024.
• Popeyes sales fell 0.5% while Wingstop added 382 locations.
• Chicken-chain locations rose 46% over the past decade, adding ~6,200 units.
• Non‑chicken brands like McDonald’s and Taco Bell expanding chicken menus.
• Raising Cane’s posted $5.48 billion sales, aiming for top‑10 brand status.

Pulse Analysis

The chicken segment has long been the engine of growth for the U.S. restaurant industry, outpacing burgers and pizza for several years. Technomic’s 2025 Top 500 report shows the category’s sales growth slowed to 5.3%, a stark contrast to the double‑digit gains recorded from 2020‑2023. While overall industry revenue rose 3%, the chicken category’s momentum waned, highlighted by Popeyes’ first year of negative growth and KFC’s 4.6% sales decline. This slowdown marks the end of an era of relentless expansion and forces operators to reassess pricing, menu innovation, and operational efficiency.

A key driver behind the deceleration is market saturation. Over the past ten years, chicken‑chain locations have surged 46%, adding roughly 6,200 new units and pushing unit growth rates above 5% annually. Yet sales per unit have softened, indicating that additional footprints are cannibalizing existing traffic rather than generating fresh demand. Simultaneously, traditional burger and fast‑casual brands are infiltrating the chicken space with wraps, nuggets, and specialty sandwiches, intensifying competition for the same consumer dollars. This cross‑category encroachment erodes the once‑protective moat that pure‑play chicken chains enjoyed.

Despite the broader slowdown, a cohort of agile players continues to thrive. Dave’s Hot Chicken posted a 51% sales jump, while Wingstop expanded its footprint by 17% and grew sales 11% in 2025. Raising Cane’s, now the 16th‑largest U.S. restaurant by revenue, generated $5.48 billion and targets a top‑10 brand ranking. These outliers demonstrate that disciplined brand positioning, rapid unit rollout, and menu differentiation can still deliver robust growth. Investors and franchisees should watch these high‑velocity chains as bellwethers for where profitable opportunity remains within an increasingly crowded chicken market.