Chick-fil-A Chain's 40th Anniversary Culminates with 40th Consecutive Year of Positive Sales

Currently the nation's second-largest quick-service chicken restaurant chain (based on sales), Chick-fil-A enjoyed its 40th consecutive year of system-wide sales gains -- a streak that has been sustained since the 61-year- old company opened its first chain restaurant in 1967.

The chain's 2007 sales performance complemented a number of business highlights, including:

• Continued restaurant expansion with a chain record of 80 new locations.

• Introduced chain's first limited-time menu addition, a Mint Cookies and Cream Hand-Spun Milkshake, as a means to sustain its impressive Milkshake sales.

• Zagat's first Fast Food Survey was released in 2007 and Chick-fil-A ranked first in overall service and in the chicken restaurant category.

• QSR magazine's 2007 Best Drive-Thru in America Survey ranked Chick-fil-A first in the food accuracy, menu board appearance and employee smiles categories.

• Awarded a record 174 franchise Operators new cars as part of the chain's Symbol of Success sales incentive program. Through the program, franchisees are awarded a new Ford vehicle of their choice for meeting their annual sales goals.

• Hosted the Chick-fil-A Bowl college football game, which established a number of records. The Bowl was ESPN's highest-rated game, recorded an all-time record team payout of $5.83 billion, and led all bowls in charitable giving -- contributing $1.04 million this year.

• The Chick-fil-A "Eat Mor Chikin(R)" Cows were recognized as one of America's most popular advertising icons in a public vote sponsored by Advertising Week and became the newest members of New York's Madison Avenue Advertising Walk of Fame. A permanent banner to recognize this achievement will be unveiled on Madison Avenue in 2008.

"We have been very blessed with our sales performance, which is a testament to our family of franchise Operators who remain committed to the business and dedicated to attracting the very best restaurant team members," said Chick-fil-A President and Chief Operating Officer Dan T. Cathy. "Their dedication to go above and beyond our customers' expectations with warm, friendly service and gracious hospitality is key to sustaining our momentum. It's said, 'build a strong brand and sales will follow,' and we believe the Chick-fil-A brand will continue to thrive as long as we continue to focus on providing exceptional customer service and high-quality products."

Cathy also noted that Chick-fil-A is making significant menu improvements this year to ensure that its products continue to meet customer expectations. In fact, 2008 is forecasted to be the chain's most aggressive product rollout period in Chick-fil-A history.

In April, Chick-fil-A will introduce a Coffee Caramel Hand-Spun Milkshake -- a limited-time flavor the chain will offer to further promote its popular line of Milkshakes.

The chain is also making significant improvements to some of its cold entrees. In late May, Chick-fil-A is adding a new choice to its line of entree salads, a Chargrilled and Fruit Salad with Harvest Nut Granola Topping, and upgrading the quality and packaging of its existing line of salads. The Chick-fil-A Chicken Salad Sandwich is also getting a makeover. While the recipe and flavor profile of the Chicken Salad will not be changing, the sandwich will now be served on a premium Wheatberry Bread with leaf lettuce. Rounding out its cold entree improvements, Chick-fil-A will begin serving its Cool Wraps in a new multi-grain flatbread recipe.

The chain's biggest entree rollout will come in August, when Chick-fil-A introduces a new Chick-fil-A Chick-n-Strip(R) product that is 50 percent larger than its current strip offering. The Chick-n-Strips will be offered as a 3- or 4-count entree, and will be complemented with a new proprietary dipping sauce, Chick-fil-A Dijon.

In addition to its menu improvements, Chick-fil-A anticipates new store growth to be a major factor in helping sustain its sales momentum. Chick-fil-A is planning to add 88 locations this year, including 70 stand- alone restaurants, five mall/in-line locations and 13 licensed operations (e.g. college campuses, airports and hospitals).

Logos, product and company names mentioned are the property of their respective owners.

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