The 40 Most Profitable Restaurant Franchises in 2026

Restaurant Management

Updated on

1.11.25

Sarah Schnebert

Content & SEO manager

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The 40 Most Profitable Restaurant Franchises in 2026

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In 2026, restaurant franchising continues to prove its resilience. However, the very idea of profitability for restaurant chains is changing.

Unit economics, digital presence, cash flow velocity... The most profitable franchises in the US today aren’t just revenue machines. They are focused on smart profit margins, data-based insights and strategies, automation for better service, scalable and sustainable profitability, high operational leverage...

‍Whether you’re investing $500K or $5M+, you need data-backed clarity, financial discipline, strategic execution and online marketing mastery.

In this guide, we break down the top 40 most profitable restaurant franchises in the US, and explain exactly how to evaluate a franchise’s true ROI, using benchmarks from brands like McDonald’s, Chick-fil-A, Bojangles, Domino’s, and more.

Want more business inspiration? Check out the Top Dessert Brands Ruling America in 2026 or the Best French Restaurateurs in the US.

1. What is Franchise Profitability?

Understanding franchise profitability from an operator-investor perspective is quite different than from a single-location manager.

Profitability in franchising isn’t just sales. It’s the intersection of :

AUV (Average Unit Volume) shows the revenue potential of a single location.

Bottom-line margins (EBITDA), reflect how efficiently a store converts sales into profit.

Capital structure (capex, rent, buildout time)

Operational leverage (labor, COGS, tech stack) shape your real margins

Cash-on-cash returns (measure how fast your investment pays you back).

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Most importantly, it's crucial to understand that high AUV ≠ high profit.

Some brands have $3M+ AUVs, but 5–7% profit margins due to heavy labor or rent burdens. On the other hand, others generate $1.2M with 18% net margins and faster breakeven.

Again, your business model will vary depending on your size, location, concept, etc.

In 2026, opening in a high-traffic area with a strong brand is no longer "enough" to break even.

Restaurant chains have to face chance. New ways of searching for food online, 2026 SEO trends, AI trends and AI visibility strategy like GEO or AIO (visibility on ChatGPT), brand new AI-fueled marketing tools for automation and greater ROI, food trends, new habits... A mix of challenges, and, as usual, opportunities to get ahead.

The new profitability formula also includes:

Brand strength with strong guidelines
Digital-first visibility (SEO, GEO, GBP, reviews)
Demand generation and reservations through local marketing
Menu simplicity + fulfillment speed
Brand reputation via social & UGC

Most of all, franchises need to focus on their greatest asset and core value: their brand. Groups that succeed always manage to balance a strong core brand with hundreds of locations across the country.

The Top Key Metrics to Evaluate Franchise Profitability

Metric	Description	Why It Matters
AUV	Avg. annual revenue per location	Core sales benchmark
EBITDA per unit	Profit before interest/capex	Measures true cash-generating power
Cash-on-cash ROI	Net cash ÷ investment	Key for multi-unit scaling decisions
Labor/Food %	Operating expense ratio	Indicates margin efficiency
Same-store sales	Growth in existing units	Signals strong ops & marketing
Remodel ROI	Sales lift from upgrades	Justifies reinvestment
Digital Presence	SEO, reviews, GBP, Google Posts	Directly drives foot traffic & revenue

Franchise Performance Benchmarks (2026)

Category	Avg. Revenue	Profit Margin	Cash Flow Potential	Notes
Top QSR (e.g. McDonald’s Franchisee)	$3.97M	12–15%	$500K–$700K	78% of stores > $3M AUV
Corporate QSR (McOpCo)	$4.79M	15–18%	N/A	Median: $4.61M
QSR Avg (All Chains)	$1.53M	10–12%	$150K–$200K	Based on 200K+ units
Full-Service (e.g. BWW)	$2.35M	6–10%	$140K–$220K	Higher fixed cost burden
Coffee Chains (Dunkin', Starbucks)	$1.2M–$1.7M	12–18%	$200K+	High frequency + low food cost
Pizza Chains (Franchisees)	$798K–$1.3M	12–16%	$100K–$250K	Strong delivery efficiencies
Bakery/Snack (Crumbl, Krispy Kreme)	$1.8M–$2.7M	15–20%	$250K–$400K	Lean labor, high price per item

2. Top 40 Most Profitable Restaurant Franchises in the US in 2026

*Ranked by AUV, systemwide sales, unit count, and investment ROI.

We analyzed 100+ top brands across QSR, fast casual, bakery, coffee, and pizza, and selected the top 40 based on revenue performance, margin profiles, and growth potential.

Rank	Brand	AUV	Systemwide Sales	U.S. Units	Notes
1	Chick-fil-A	$7.5M	$22.7B	3,109	Highest AUV in QSR; low investment to enter
2	Raising Cane’s	$6.56M	$4.96B	828	97% corporate; extreme throughput & margin
3	Bojangles (Boneless)	$3.24M	$1.88B	813	Optimized new format with high breakfast mix
4	Hawaiian Bros	$3.09M	$119.5M	48	Fast-growing; compact build and low SKUs
5	Chipotle	$3.2M	$11.1B	3,644	Corporate-only; targets $4M/unit with automation
6	Culver’s	$3.69M	$3.68B	997	Midwest powerhouse; premium product + loyalty
7	Panera Bread	$3.23M	$6.78B	1,156	Strong catering and drive-thru expansion
8	QDOBA (Top Quartile)	$2.3M+	$1.2B	747	Multiple revenue streams; flexible formats
9	Cheba Hut	$2.3M	$122M	65	Unique branding; high ticket average with bar
10	Firehouse Subs	$1.34M	$1.15B	1,191	Top 25% units hit $1.34M AUV; major franchisee support
11	Shipley Do-Nuts	$1.2M (Top 50%)	$307M	367	Flexible formats; strong margin profile
12	Potbelly (Traditional)	$2.29M	$559M	429	Tech-forward design with low-cost digital kitchen
13	Chicken Salad Chick	$1.49M	$352M	270	Simple model, no fryers, closed Sundays
14	Fazoli’s	$1.44M	$287M	207	Italian QSR; low build costs, strong brand
15	Pancheros	$1.52M	$111.5M	73	High ticket; fresh-press tortillas & streamlined ops
16	Jersey Mike’s	$1.32M	$3.73B	2,997	Explosive growth; strong ops support
17	Ellianos Coffee	$1.02M	NA	51	Double drive-thru; projected 100+ units by 2025
18	Smoothie King	$661K	$722M	1,152	Low build cost + expanding health trends
19	Beans & Brews	$696K	$46.5M	80	High-altitude roasting; drive-thru model
20	McDonald’s (Franchise)	$3.97M	$53.4B	13,559	Consistently strong ROI; 78% units above $3M
21	Burger King	$1.64M	$11.0B	6,701	Remodels boosting per-unit profitability
22	Domino’s Pizza	$1.35M	$9.5B	7,014	Lean ops + dominant delivery logistics
23	Papa John’s	$1.23M	$3.85B	3,291	Franchise-friendly, high-margin pizza model
24	Pizza Hut	$839K	$5.5B	6,557	High scale, optimizing new prototype builds
25	Marco’s Pizza	$932K	$1.05B	1,117	Franchise-first brand with strong ROI
26	Little Caesars	$900K	$3.5B	3,705	Efficient model, strong brand recognition
27	Crumbl Cookies	$1.84M	$1.0B+	1,058	Massive AUV, low labor, high margin
28	Krispy Kreme	$2.76M	$991M	57	Premium AUV in limited footprint
29	Jeff’s Bagel Run	$1.5M (Top Unit)	NA	<10	Small but powerful emerging QSR
30	Wendy’s	$2.1M	$12.5B	5,933	Restructuring, focusing on drive-thru formats
31	Popeyes	$1.82M	$5.73B	3,148	Massive per-unit gains with remodel push
32	Tim Hortons	$1.19M	$776M	630	Strong Canada/U.S. crossover profitability
33	Subway	$495K	$9.65B	19,502	Low cost, high volume; undergoing turnaround
34	Shake Shack	$3.9M	$1.35B	44	Premium burger concept with strong margins
35	Freddy’s Frozen Custard	$1.9M	$988M	515	Mid-size chain with fast-growing unit economics
36	El Pollo Loco	$2.3M	$1.1B	173	Strong regional concept; optimized for throughput
37	Checkers & Rally’s	$1.17M	$853M	532	Drive-thru focused with updated AI tech
38	Wingstop	$2.14M	$4.76B	2,204	Lean menu, explosive growth, high-margin
39	Tropical Smoothie Café	$1.01M	$1.42B	1,514	Health-focused, simple model with high repeat
40	Dutch Bros	$2.02M	$1.82B	312	Fast-moving coffee brand with cult following

🔥 In 2025, some groups grew traffic by +160% in 3 months, others stagnated. More in our exclusive report on Groups Digital Performances in 2025. *2,000 restaurant locations analyzed. 250 groups benchmarked.

Franchise Profit ≠ Foot Traffic Alone. Digital Drives Revenue.

Profitability in restaurant franchising in 2026 isn’t just about chasing brands with high AUVs. Tt’s about backing proven operational models that deliver repeatable, bankable cash flow.

The smartest operators this year are focusing on:

Multi-unit deals with EBITDA-positive brands
Drive-thru-only and modular builds to reduce capex
Maximizing labor efficiency and SKU simplicity
Value-focused marketing and digital channels

Franchises like Chick-fil-A, Bojangles (boneless format), and Hawaiian Bros prove that simplicity scales, and that profitability isn’t just possible, it’s programmable when you focus on the right metrics.

According to Harvard Business Review, gaining just +1 star on Yelp drives a +9% boost in revenue.

And digital visibility is no longer optional:

72% of customers choose a restaurant based on local Google ratings and content.
47% of searches include "near me" — and Google ranks relevance, distance, and prominence, not brand name.

At Malou, we give franchises an edge:

+174 new customers/month/location (tracked lift)
+4.7% average revenue increase
1-click updates to 100+ Google Business Profiles
Automated, tone-customizable review responses
AI-assisted SEO Posts, performance benchmarking, and UGC amplification

The most profitable brands in 2026 all share one trait: they dominate digitally. From SEO to AI, social media or local pages, they build strong, reliable ecosystems.

Let's talk strategy? Call one of our experts at +1 929 494 52 10 or run a free restaurant diagnosis.

📈 Learn from top brands past year experiences. How did Hospitality groups became more profitable with Marketing in 2025? Here's everything top management should know in our latest ebook on Digital Marketing's ROI for restaurant groups.

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