The Golden Arches Still Rule Despite Struggles
McDonald’s remains the most well-known restaurant chain in the U.S., recognized by 97 percent of internet respondents, and had the highest sales of any U.S. fast food chain at over 53 billion U.S. dollars in 2023. But here’s where it gets interesting – despite being number one in revenue and recognition, the king of fast food is actually fighting some serious battles.
High prices and a listeria outbreak negatively impacted McDonald’s sales, which were down 1.4% according to fourth-quarter earnings reports, with CEO Chris Kempczinski admitting “Our performance in 2024 did not meet our expectations”. McDonald’s and Wendy’s last week, during their respective earnings calls, said they’re seeing sluggish breakfast sales attributed to heightened economic uncertainty and pressures facing low-income consumers. Americans are still choosing the Big Mac, but they’re thinking twice about that morning McMuffin.
Chick-fil-A Continues Its Chicken Revolution
Chick-fil-A had the highest customer satisfaction among fast food restaurants in the US in 2023, with a score of 85. This isn’t just some random survey result either – the Atlanta-based chain has become a cultural phenomenon that makes other restaurants jealous of their Sunday closures.
Chipotle has become a fan favorite in large part because its menu items are highly customizable, and they’re served impressively fast, with three-quarters of Chipotle’s sales from the chain’s app. Wait, that’s not Chick-fil-A – but it shows you how competitive this chicken game has become. According to Circana’s Definitive U.S. Restaurant Ranking 2025 report, chicken chains, including Raising Cane’s, Wingstop, Chick-fil-A, Zaxby’s, Bojangles and Popeyes, saw consumer spending increase in 2024. Chick-fil-A’s secret sauce appears to be consistency, customer service, and that perfect chicken sandwich formula that keeps people coming back.
Taco Bell’s Mexican Food Empire Keeps Growing
Taco Bell started off 2024 in a big way via the release of its “revitalized” Cravings Value Menu, featuring 10 “crave-worthy” menu items like the Spicy Potato Soft Taco for just $1.19, offering customers serious value in these inflationary times. This chain has figured out something that many competitors haven’t – how to stay affordable while everything else gets expensive.
As far as regional trends, New England strongly preferred Taco Bell, with Sonic being the most popular fast-food restaurant in 14 states, followed by Taco Bell and Wendy’s with nine each. The brand has become more than just a late-night munchie destination. They’ve positioned themselves as the go-to spot for creative Mexican-inspired food that doesn’t break the bank. Their innovative menu items and value pricing have created a loyal following that spans across different demographics and regions.
Starbucks Remains America’s Coffee Kingdom
Coffee shop chain Starbucks followed McDonald’s in second place for sales, and these days, America runs on Dunkin’ – but it’s the largest coffee and donuts brand in the US, with more than 14,000 locations in 39 countries making ~$1.37 billion in revenue each year, welcoming more than five million customers per day. Actually, let me correct that mix-up – Starbucks is still the coffee giant here.
Starbucks has expanded its U.S. footprint by 1,491 locations from the start of 2021 to the end of 2024, and at 16,935 units, it’s fast barreling toward challenging Subway as the largest restaurant chain in America. The “Back to Starbucks” plan features in-store design refreshes to reclaim the “third place,” baristas writing messages on cups again, and the return of the condiment bar, focusing on adding labor instead of equipment to bolster hospitality after multiple quarters of declining sales and traffic. Even when they struggle, they’re still expanding and adapting.
Chipotle’s Fast-Casual Domination
Chipotle has become a fan favorite in large part because its menu items are highly customizable, and they’re served impressively fast, with three-quarters of Chipotle’s sales from the chain’s app and investments in technology that automates tasks. The burrito chain has mastered the art of making healthy-ish food fast, which is exactly what modern consumers want.
However, even success stories have their bumps. Chipotle recently had its worst quarter in five years, with same-store sales falling 0.4% in Q1 2025, as overall restaurant transactions fell 2.3%, though the popular Mexican chain told NBC News it will absorb the costs of tariffs without raising prices. Despite this recent dip, Chipotle’s digital-first approach and customization model continue to attract customers who want control over their meals without sacrificing speed.
Subway’s Slow Slide Downward
Once the world’s largest sandwich chain, Subway is now becoming a cautionary tale in the fast food industry. Declines in U.S. unit count continue to be the major story around Subway, as in 2024, the sandwich chain lost a net of 631 restaurants, finishing the year with 19,502 domestic units, marking the first time the brand has been below 20,000 in about 20 years after reaching a peak of more than 27,000 stores in 2015.
Once the world’s largest sandwich chain, Subway continues shutting down stores nationwide at a concerning pace due to franchise instability creating a domino effect of closures, with many franchisees unable to afford rent or staff wages, accelerating store closures dramatically. Subway’s quality has gone downhill, customers say, with complaints like “Anyone else noticed you get more bread than filling in these sandwiches? You get yours, and it’s barely filling”. The brand is trying to modernize, but the damage seems extensive.
Burger King’s Uphill Battle
The home of the Whopper is facing some serious challenges despite its global recognition. Claiming the joint second spot are Burger King and KFC, as both these fast-food brands incorporate a brand awareness rating of 96 percent among online consumers in the United States. But awareness doesn’t always translate to success.
Restaurant Brands International reported that same-store sales of Popeyes, Burger King and Tim Hortons declined, with Burger King’s same-store sales declining 1.3%, steeper than estimates of a 0.9% decline. In 2024, Burger King finished with 6,701 U.S. restaurants, a drop of 77 units compared to 2023. While executives remain optimistic about improvements, the numbers tell a different story. The chain is struggling to compete with faster-growing competitors who’ve adapted better to changing consumer preferences.
KFC’s Unexpected Decline
This one might surprise you, but the Colonel’s chicken empire isn’t performing as well as you’d think. KFC has been struggling over the past year, with chicken chains like Raising Cane’s, Wingstop, Chick-fil-A, Zaxby’s, Bojangles and Popeyes seeing consumer spending increase in 2024 while KFC saw consumer spending fall by 4% to $4.34 billion, ranking lower than Raising Cane’s and Wingstop.
David Gibbs, the CEO of Yum! Brands, parent of KFC, Taco Bell and Pizza Hut, told analysts that sales at KFC stores declined 2% during the fiscal year, with sales remaining flat during the last three months of the year compared with the same period last year. As far as chicken chains go, Raising Cane’s seems to be a better option in 2025 than KFC, as Raising Cane’s is simply a newer, better, ingredient-play version of KFC – which, sadly, is now such an old chain that it’s atrophied. The once-dominant fried chicken chain is losing ground to fresher competitors who’ve positioned themselves as the new kids on the block with better ingredients and modernized approaches.
The Value Menu Wars Heat Up
Value became restaurant CEOs’ new favorite word this year as McDonald’s rang the alarm for the industry warning consumers have become more “discriminating,” leading to missed sales estimates and shrinking foot traffic, with the response being a $5 combo meal that many rivals followed with their own discounts, causing traffic tied to value menu deals to climb 9% through October.
But here’s the thing – the value wars aren’t saving everyone. Value meals alone won’t save the industry, as the lift from the deals isn’t enough to offset overall traffic declines. As many Americans rein in discretionary spending, breakfast is often the first item on the chopping block, with more Americans opting to grab something at home or skip the meal altogether when consumer uncertainty increases. The chains that are winning are those that can offer genuine value, not just temporary promotions.
The Digital Revolution Continues
About 60% of fast food orders are made through mobile apps or online, with approximately 50 million Americans—or 37% of the U.S. population—eating fast food daily. Digital adoption in the industry has surged in recent years, and there’s no going back now.
Fast food chains are heavily investing in digital solutions to enhance customer experience and streamline operations, with the humble drive-thru having a glow-up and evolving with technology, as customization has become a key differentiator with 207,827 fast food restaurants in the U.S.. The brands that invested early in mobile apps, delivery partnerships, and digital ordering systems are the ones thriving. Those that lagged behind are playing catch-up in a very competitive market.
