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Chick-Fil-A Stock

If you are asking yourself, why is Chick-Fil-A so profitable? You are at the right place.

Chick-fil-A is one of America’s most popular brands. This sandwich emporium is also the country’s fastest-growing food chain. Moreover, it is surpassing Popeyes and KFC in recent years.

Furthermore, they have cultivated a loyal customer base over the years for numerous factors. It includes delicious chicken, strong customer service, and popular cow ads stating “Eat Mor Chikin.”

An Overview of Chick-Fil-A

Chick-fil-A’s story starts in the 1940s in the Atlanta suburb of Hapeville. Moreover, their roots have always kept the company grounded through its growth over the years. 

In 1946, Truett Cathy opened a small diner in Hapeville, Georgia, named dwarf Grill. In this tiny diner, Truett Cathy developed the original signature Chick-fil-A Chicken Sandwich. Also, it is the same place where the food chain developed the quality of customer service.

This family-owned business has grown into one of the largest food chains beyond its simple roots. Now, they serve ingredients to guests in forty-seven states and Washington, D.C. 

Chick-fil-A pioneered the concept of restaurants in shopping malls as they opened their first mall location in 1967. Plus, they opened their first standalone restaurant in 1986.

Each of Chick-fil-A restaurants (over 2,672 restaurants) today is owned by local small businesses. It is operated as an independent franchise operator all over and has its headquarters is in College Park, Georgia.

Chick-fil-A has grown beyond the USA as well. Chick-fil-A opened its first restaurant outside of the USA in September 1994. This restaurant was inside a student food court at the University of Alberta in Edmonton, Alberta, Canada. 

They also opened their first restaurant outside of North America in 1996 in Durban, South Africa. Later, they opened restaurants in the U.K. and Aviemore, Scotland, which was closed down later.

Here are some of their notable accomplishments in terms of quality of service:

  • In 2018, Airport Revenue News named Chick-fil-A “Best Franchise Brand.”
  • Temkin Experience Rating survey recognized Chick-fil-A for customer experience.
  • In 2019, Chick-fil-A Inc. was named the top fast-food restaurant chain by Newsweek in America’s Best Customer Service Report.
  • Also, in 2019, Chick-fil-A was named the “Most Respected Quick-Service Brand” and “Best Brand for Overall Experience” by QSR Magazine’s Readers’ Choice Awards.

So, is Chick-fil-a publicly traded stock? What is chick fil a stock symbol?

Chick-fil-A is not a publicly traded company. Most probably, it may remain that way for the foreseeable future.

Truett Cathy was a devout Southern Baptist, and his religious beliefs had a major impact on the company. Hence, they may fear that going public may not preserve their Christian family values.

An Insight into the Company Profile of Chick-Fil-A

The overall value of Chick-fil-A stock is approximately 4.5 billion dollars. So, Chick-fil-A stock price would skyrocket following the similar trends of other restaurants in the fast-food industry. 

Moreover, Chick-Fil-A ranks seventh nationwide among the fast-food chain restaurants. Furthermore, it is on its way to becoming the third-largest fast-food chain in a few years. It will be behind only Starbucks and McDonald’s.

Additionally, Chick-Fil-A makes a profit margin between six to nine percent. Moreover, in recent years, they made a margin above 10 percent, generating more free cash flow for stakeholders.

Hence, it is no surprise that many people who want to invest in fast food might have their eye on Chick-fil-A stock. So, how can you profit from Chick-fil-A performance? Read on to find out more.

Before that, we shall take a look at the company’s profile. Check out this table below for some valuable information.

Total Number of Employees 140,000
Total Number of Shareholders Private Family-Owned Business  
List of Management Board Members/Key Management Persons Dan T. Cathy – Chief Executive Officer Bubba Cathy – Senior Vice President
List of Supervisory Board Members Tim Tassopoulos – President and Chief Operating OfficerJon Bridges – Executive Vice President, Chief Marketing OfficerAndrew Cathy – Executive Vice President, OperationsAnita Costello – Executive Vice President, InternationalSusannah Frost – Executive Vice President, DevelopmentOnome Okuma – Executive Vice President, Chief Digital OfficerBrent Ragsdale – Executive Vice President, Chief Financial OfficerCliff Robinson – Executive Vice President, Chief People Officer Lynette Eaddy Smith – Executive Vice President, General Counsel

Source 1: https://www.chick-fil-a.com/board-officers

Source 2: https://www.chick-fil-a.com/board-officers/board-of-directors/dan-cathy

Source 3: https://www.chick-fil-a.com/board-officers/board-of-directors/bubba-cathy

Chick-Fil-A – Financial Indicators

Why is Chick-Fil-A so profitable? Answers to this and more questions on Chick-Fil-A’s finances are available in this section. Refer to the table below to get a better idea of the finances of Chick-Fil-A in 2020.

Revenue Generation 4.3 billion U.S. dollars
Net Operating Profit 842.76 million U.S. dollars
Key Performance Indicators   Chick-fil-A’s sales increased by 13% between 2019 and 2020 Chick-fil-A’s stores have the highest foot traffic in the fast-food industry in 38 U.S. StatesChick-fil-A’s sales are about 50% more than McDonald’s (MCD) sales

Financial Analysis Summary

As per the reports by the Forbes, Chick-fil-A has tremendously profitable sales, and they make over fifty percent higher than McDonald’s. Also, their sales grew between 2019 and 2020 by 13%.

One of the important reasons for its record is the higher menu price points. Although their investment is comparatively the same as their competitors, they have generated a massive pricing demand and power. They earn a fat profit margin every year.

The profit margin of Chick-fil-A is about 6 to 9 percent. It has a consistent profitable financial performance.

It has accomplished all this while being closed on all Sundays. It is in observance of the founder’s Christian faith. 

Is Сhick-Fil-A Publicly Traded?

Chick-Fil-A is not publicly traded. Hence, there is no Chick-Fil-A stock price or ticker symbol. This company is, as mentioned earlier, privately owned.

The estimated worth of 4.5 billion dollars is divided between the children of the founder S. Truett Cathy. The private equity firms are divided in the family between the three sons.

Moreover, Chick-Fil-A has no plans to go IPO even after becoming such a popular fast-food restaurant. One of the important reasons they are not going public is that they believe that IPO will change the company’s Christian values.

Furthermore, S. Truett Cathy had his three children sign legal documentation before his death in 2014. So, they will likely keep it private almost forever.

Top Alternative of Chick-Fil-A Stock and Where You Can Invest

Chick-fil-A is not available publicly. Hence, it is not possible to invest directly in its stock. However, there are alternatives to benefit from this company’s profits.

Firstly, you can move on and invest in its competitors, which are available for public investment. Or, you can open a Chick-fil-A franchise.

So, let’s take a look at some of the competitors below:

Buy McDonald’s (NYSE: MCD)

McDonald’s is a lucrative alternative for Chick-fil-A. This original fast-food giant has an annual gross profit of 11.115 billion dollars and annual revenue of 21.077 dollars. Plus, an operating income of 9.07 billion dollars annually in 2020.

Moreover, McDonald’s is larger and operates across the world. In 2019, it had over 38,500 franchises across the world. Plus, their sales growth is comparatively higher in countries outside of the USA.

Chick-fil-A and McDonald’s have a similar strategy for picking franchises. Hence, they have a similar success rate. They both employ various similar measures to ensure a high-quality franchise.

Some more alternatives are listed below:

  • Buy Chipotle Mexican Grill (NYSE: CMG)
  • Buy Shake Shack (NYSE: SHAK)
  • Buy Domino’s Pizza (NYSE: DPZ)

Franchise

The second alternative is to buy a Chick-fil-A franchise. You can buy a Chick-fil-A franchise for 10,000 dollars. It is also a lucrative option since the company covers up all the start-up costs.

A Chick-fil-A franchise is extremely profitable. However, franchises receive zero equity, and it is extremely centralized.

On the other hand, it is extremely hard to buy a franchise since they accept only 70 to 80 applications per year. Moreover, Entrepreneur claims they only accept 0.4% of franchise applicants.

Key News on Chick-Fil-A Stock

Chick-fil-A has introduced the Grilled Spicy Chicken Deluxe Sandwich, and it has been in the news for some time. It is a grilled version of a spicy favorite. It has received positive feedback from guests.

Furthermore, BurgerKing trolls Chick-fil-A on Twitter. This news has been very trending since June.

FAQs

How Does Chick-Fil-A Make So Much Money?

Chick-fil-A offers only high-quality meals and charges more for the meal. Hence, they make more money than most of their competitors.

When Will Chick-Fil-A Go Pubic?

Chick-fil-A will probably never take the business public because the family has vowed never to do so.

What Is the Chick-Fil-A Stock Symbol? 

Chick-fil-A does not have any stock symbol since its privately owned.

Summary

Chick-fil-A is a centralized and tightly regulated company. Even when you are investing in their franchises, you can not invest in more than one.

Further, they have vowed never to go public. The high-profit margins can seem lucrative, yet there is no way to invest in any Chick-fil-A Stock. So, it is better to go with the alternatives.

Also Please See here other interesting article about  Mint Mobile stock 

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