The story at Dairy Queen in recent years has been a global one. Its U.S. footprint of 4,212 stores declined by 42 in 2024, year-over-year, as average-unit volumes came in at $1.165 million, essentially in line with 2023’s $1.168 million, according to the upcoming QSR 50, which will be fully released in August. But in early May, the company told The Minnesota Star Tribune it collected $6.4 billion in sales around the world (the U.S. total was $4.909 billion, per the QSR 50). And by 2030, it wants franchisees to reach $10 billion, or more than 4,500 Blizzards sold per minute.
In the article, management said they shared a “10 by 30” goal internally roughly a year prior. CEO Troy Bader, who became top executive in 2018 following COO roles, hadn’t discussed it publicly, however, until the Berkshire Hathaway annual meeting in May (the company has owned Dairy Queen since 1998).
Bader noted Dairy Queen had a “positive” first quarter following a year of growth and would lean deeper into value while expanding its global reach to hit that $10 billion mark. Additionally, it would become “more unified and much more consistent” as it scaled.
The brand claims about a third of Americans went to Dairy Queen at least once last year. On average, they visited three times throughout the calendar. It has an 11 percent share of the country’s chicken strip market and food sales mix about half of revenue at DQ Grill & Chill locations.
There are north of 7,700 Dairy Queens worldwide, including more than 1,600 in China. Nearly two-thirds of the company’s 419 total openings last year took place there. Dairy Queen, for decades, sold just treats in China. It recently debuted some “Blizzards and Burgers” locations Bader told The Star Tribune generated strong interest from a franchisee.
Dairy Queen also recently shared it wants to expand in the Middle East, namely Saudi Arabia, where it has a defined supply chain and units in Bahrain, Kuwait, Oman, and Qatar.
Like much of its QSR peer set, though, Dairy Queen has battled through macro pressures stateside. Bader told Reuters there were signs customers were dining out less, but he still felt American franchisees could withstand headwinds, including dealing with tariffs. He said sales and transactions grew in Q1—“somewhat uncommon” versus the industry—before flattening in April.
His thoughts on tariffs: they have the potential to dampen demand from guests weary of high interest rates and multiple years of inflation. Also, lagging sales could pressure operators facing tariff-related costs on cooking equipment, uniforms, and ingredients like bananas, pineapples, and vanilla. Yet the seemingly always changing scope means you can’t overreact. “When I think about our largest market, the U.S., I think it’s quite manageable,” Bader told the publication. “Most of our products and ingredients are grown, produced, raised, processed and distributed in the United States.”
Dairy Queen added it didn’t plan to raise franchisees’ costs. However, operators building new stores or scraping old ones might face challenges trying to keep cost burdens off customers. Simply, QSRs aren’t eager to take more price.
And getting back to growth, Bader said in the Star Tribune article there was plenty of room for the Midwestern and rural-born brand to web out. There are no stores in New York City (Manhattan specifically) and “very few” in L.A. and downtown Chicago. As shared, he wants Dairy Queen to become more consistent in its menu, positioning, appearance, and execution as it drives outward from its base.
Dairy Queen’s 2024 performance essentially surfaces through two buckets, per its recent FDDs—one for its Grill & Chill/Brazier licensed business and another for its Limited Brazier, DQ Treat & DQ Soft-Serve Only arm.
Starting with the first, Dairy Queen ended 2024 with 1,971 of the food-plus treat concept. That was up two, year-over-year, following the same measure in 2023 and growth of 13 the year prior. Of those, 1,969 are franchised and two company owned—a number that hasn’t changed over the three-year window. All of its growth is coming with franchisees. There were also 113 transfers (from franchisees to new ownership not corporate), basically aligned with 101 in 2023 and 108 in 2022.
The map does show whitespace. Only Minnesota (130), Illinois (134), Indiana (155), Georgia (200), and Kentucky (131) had triple-digit franchises year-end 2024. New York had 22 and California 38.
Last year’s growth included 28 terminations, 30 openings, and no refranchising. Both the openings (30 versus 41) and terminations (28 compared to 39) were step-downs from 2023. In 2022, the numbers were 38 and 25, respectively.
Dairy Queen projects to open 38 new franchised outlets in fiscal 2025 under its Grill &Chill/Brazier licensed distinction. There are 26 agreements signed presently with no outlets opened.
The company also touts 567 “subfranchised” territory operator outlets of the concept. That grew by one in 2024 after declining by six in 2023. There were five openings and four terminations last year. These are pretty spread out in the U.S. as well: Washington (62), Virginia (59), Utah (22), Iowa (20), Montana (32), Nevada (12), North Dakota (34), Ohio (93), Oregon (88), Pennsylvania (69), South Dakota (33) all hold double-digit stores.
Lastly, in 1980, ADQ acquired the Texas territory operator’s subfranchisor rights in more than 900 subfranchised Dairy Queen restaurants, none of which carry the Dairy Queen/Brazier or DQ Grill & Chill food lines because of various arrangements. Most of the Texas DQ restaurants offer a non-food system called “Texas Country Food.”
The company closed 2024 with 568 of those, an 11-store drop, year-over-year, following declines of six and one in 2023 and 2022, respectively. There were three openings and 14 terminations. Naturally, all of these were in Texas. Six openings are projected for fiscal 2025.
As for performance, the straight average for gross sales upped to $1.648.666 million from $1.433.380 million. Below is a larger breakdown:
The total investment to begin a single DQ Grill & Chill franchise ranges from $1.516.2 million to $2.543.050 million, inclusive of a $45,600 fee paid to the franchisor or affiliate. Grill & Chills offer indoor seating (outdoor in certain spots) with a menu of soft-serve, treat, food, and beverage items. There are “street” locations (freestanding streetscape, or strip mall spots with less than 500,000 gross leasable area, and “captive-venue” units based in shopping malls or centers, enclosed or open air, like a lifestyle center, with a minimum of 500,000 square feet of gross leasable area, transportation terminals, hospitals, college and university facilities, parks and recreation areas, office buildings, and other venues that cater to high-volume foot traffic.
DQ Treat comprises DQ Treat stores under the trade name DQ/Dairy Queen in “street locations” and DQ/Orange Julius in “captive-venue” spots. These sell soft-serve treat and beverage products and a limited number of approved food items.
DQ Grill & Chill has offered franchises since 1962. The same is true of the Treat division, which had 727 stores operating as of December 31. There was also one Dairy Queen/Fuel Center (franchising was offered from 1990–1998), 15 under the Brazier Food Service Addendum (franchising began in 1982) and, as shared, 568 Texas DQs (an opportunity that started in 1980).
Dairy Queen had 2,853 international franchises operating outside the U.S. and Canada at 2024’s end—a process that ignited in 1971.
The DQ Treat division—a unit that requires a total investment of $549,100–41.604.700 million to get open ($25,200 upfront fee)—retracted by 24, year-over-year, per its respective FDD. That after declines of 38 and 39 in 2023 and 2022, respectively, sliding the total count from 828 at the start of 2022 to 727 ahead of 2025. There were 47 transfers following 39 and 43. The largest Treat footprint in the U.S. was Michigan, with 104 (down four in the past two years). Minnesota (61), Indiana (43), Colorado (42), and Ohio (41) followed.
There are no projected Treat openings for fiscal 2025 and just one franchise agreement signed but not opened—in New Mexico.
Like the Grill & Chills, there’s a subfranchised territory distinction. The company exited 2024 with 358 of those, down 13, year-over-year. Illinois (72), New Jersey (64), Pennsylvania (40), and Arizona (39) are the big markets here. Dairy Queen isn’t projecting any openings on this side, either, for fiscal 2025.
