The 40 Most Profitable Restaurant Franchises in 2026

Restaurant Management
Updated on 
20.11.25
Sarah Schnebert
Content & SEO manager
Blog
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, AI revolution, 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, AI-fueled tools for automation and better service, scalable and sustainable profitability, high operational leverage...

Over 46 million potential diners weekly: thats how much clients could be up for grabs with Artificial Intelligence in 2026 according to All about AI.

As AI trends are reshaping restaurant discovery, it's estimated that AI will have twice the conversion rate of Google, ~ 6,7 % vs ~3,9 % for Google, for over ~700M weekly users.

💰 For more figures and tips, make sure to watch our full webinar on How AI is Reshaping Hospitality and How Restaurants can leverage AI for profit.

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.

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).
  • 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.

    2. Franchise Profitability: The AI Shift

    Let's face it: today, 1 out of 5 American uses an AI to pick a bar or a restaurant. That numbers goes up to 40% for younger generations.

    Moreover, as AI-powered discovery is reshaping everything we know about online growth, restaurant chains have to face a challenge. Either adapt to the way AI trends changes hospitality, and seize a huge financial opportunity, or, risk a "tech gap" and become invisible by keeping traditional methods.

    So, from automation gains with AI-fueled marketing tools to AIO strategies (visibility on ChatGPT), restaurant groups have a lot

    68% of CMOs and CTOs in restaurant groups declared that AI tools and automation have now surpassed paid media as their top investment priority (Source: FS/TEC Conference).

    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
    $1.48 trillion dollars: that's how much financial impact Generative AI should have on the Hospitality market is estimated around (Source: FirstPageSage)

    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. Focusing on making your brand and locations unmissable online should be your main target. 

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

    The Top Key Metrics to Evaluate Franchise Profitability

    The Top Key Metrics to Evaluate Franchise Profitability

    Metric Description Why It Matters
    AUVAvg. annual revenue per locationCore sales benchmark
    EBITDA per unitProfit before interest/capexMeasures true cash-generating power
    Cash-on-cash ROINet cash ÷ investmentKey for multi-unit scaling decisions
    Labor/Food %Operating expense ratioIndicates margin efficiency
    Same-store salesGrowth in existing unitsSignals strong ops & marketing
    Remodel ROISales lift from upgradesJustifies reinvestment
    Digital PresenceSEO, reviews, GBP, Google PostsDirectly drives foot traffic & revenue

    Franchise Performance Benchmarks (2026)

    Franchise Performance Benchmarks (2026)

    Category Avg. Revenue Profit Margin Cash Flow Potential Notes
    Top QSR (e.g. McDonald’s Franchisee)$3.97M12–15%$500K–$700K78% of stores > $3M AUV
    Corporate QSR (McOpCo)$4.79M15–18%N/AMedian: $4.61M
    QSR Avg (All Chains)$1.53M10–12%$150K–$200KBased on 200K+ units
    Full-Service (e.g. BWW)$2.35M6–10%$140K–$220KHigher fixed cost burden
    Coffee Chains (Dunkin', Starbucks)$1.2M–$1.7M12–18%$200K+High frequency + low food cost
    Pizza Chains (Franchisees)$798K–$1.3M12–16%$100K–$250KStrong delivery efficiencies
    Bakery/Snack (Crumbl, Krispy Kreme)$1.8M–$2.7M15–20%$250K–$400KLean 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
    1Chick-fil-A$7.5M$22.7B3,109Highest AUV in QSR; low investment to enter
    2Raising Cane’s$6.56M$4.96B82897% corporate; extreme throughput & margin
    3Bojangles (Boneless)$3.24M$1.88B813Optimized new format with high breakfast mix
    4Hawaiian Bros$3.09M$119.5M48Fast-growing; compact build and low SKUs
    5Chipotle$3.2M$11.1B3,644Corporate-only; targets $4M/unit with automation
    6Culver’s$3.69M$3.68B997Midwest powerhouse; premium product + loyalty
    7Panera Bread$3.23M$6.78B1,156Strong catering and drive-thru expansion
    8QDOBA (Top Quartile)$2.3M+$1.2B747Multiple revenue streams; flexible formats
    9Cheba Hut$2.3M$122M65Unique branding; high ticket average with bar
    10Firehouse Subs$1.34M$1.15B1,191Top 25% units hit $1.34M AUV; major franchisee support
    11Shipley Do-Nuts$1.2M (Top 50%)$307M367Flexible formats; strong margin profile
    12Potbelly (Traditional)$2.29M$559M429Tech-forward design with low-cost digital kitchen
    13Chicken Salad Chick$1.49M$352M270Simple model, no fryers, closed Sundays
    14Fazoli’s$1.44M$287M207Italian QSR; low build costs, strong brand
    15Pancheros$1.52M$111.5M73High ticket; fresh-press tortillas & streamlined ops
    16Jersey Mike’s$1.32M$3.73B2,997Explosive growth; strong ops support
    17Ellianos Coffee$1.02MNA51Double drive-thru; projected 100+ units by 2025
    18Smoothie King$661K$722M1,152Low build cost + expanding health trends
    19Beans & Brews$696K$46.5M80High-altitude roasting; drive-thru model
    20McDonald’s (Franchise)$3.97M$53.4B13,559Consistently strong ROI; 78% units above $3M
    21Burger King$1.64M$11.0B6,701Remodels boosting per-unit profitability
    22Domino’s Pizza$1.35M$9.5B7,014Lean ops + dominant delivery logistics
    23Papa John’s$1.23M$3.85B3,291Franchise-friendly, high-margin pizza model
    24Pizza Hut$839K$5.5B6,557High scale, optimizing new prototype builds
    25Marco’s Pizza$932K$1.05B1,117Franchise-first brand with strong ROI
    26Little Caesars$900K$3.5B3,705Efficient model, strong brand recognition
    27Crumbl Cookies$1.84M$1.0B+1,058Massive AUV, low labor, high margin
    28Krispy Kreme$2.76M$991M57Premium AUV in limited footprint
    29Jeff’s Bagel Run$1.5M (Top Unit)NA<10Small but powerful emerging QSR
    30Wendy’s$2.1M$12.5B5,933Restructuring, focusing on drive-thru formats
    31Popeyes$1.82M$5.73B3,148Massive per-unit gains with remodel push
    32Tim Hortons$1.19M$776M630Strong Canada/U.S. crossover profitability
    33Subway$495K$9.65B19,502Low cost, high volume; undergoing turnaround
    34Shake Shack$3.9M$1.35B44Premium burger concept with strong margins
    35Freddy’s Frozen Custard$1.9M$988M515Mid-size chain with fast-growing unit economics
    36El Pollo Loco$2.3M$1.1B173Strong regional concept; optimized for throughput
    37Checkers & Rally’s$1.17M$853M532Drive-thru focused with updated AI tech
    38Wingstop$2.14M$4.76B2,204Lean menu, explosive growth, high-margin
    39Tropical Smoothie Café$1.01M$1.42B1,514Health-focused, simple model with high repeat
    40Dutch Bros$2.02M$1.82B312Fast-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.

    We put The double bites to satisfy you

    Increase your visibility on Google and social networks with Malou.