Chick fil A Stock

Chick-fil-A is one of the largest American fast-food chains. Its headquarters is in College Park, Georgia and is a privately held family business.

Chick-fil-A was first founded on May 23, 1946, as the Dwarf Grill by S. Truett Cathy. Later, the name was changed to Dwarf’s house until rebranding as a Chick-Fil-A in 1967.

It wasn’t long before the popularity of Chick-fil-A soared. The business generates more income per restaurant today than any other fast-food chain.

Ranking 8th in U.S. sales, Chick-fil-A is the most-frequented fast food restaurant in thirty-eight out of fifty states. Except for Hawaii, Alaska, and Vermont, the company has made its presence felt in every other state of the United States.

The company is likely to become the third-largest fast-food chain within the next two years. The company operates over 2,605 stores, mainly in the United States.

About Chick-fil-A

Chick-fil-A is an American fast-food chain, which is popular for its chicken sandwiches. Chick-fil-A restaurants are closed on Sundays. It is also closed for business on Thanksgiving and Christmas.

The word ‘chick’ in the name ‘Chick-Fil-A’ denotes the main item that is Chicken. Capital A in the company’s name is intended to suggest that their chicken is “top quality grade A”. There is no question that because of these values, the business model implemented by Chick-fil-A was a success.

Dan Cathy is the current CEO, and Bubba Cathy is the company’s executive vice president. Both reported $11 billion in collective fortune, making them America’s 15th-richest family.

Great food with high Standards

In their kitchens, they emphasize fresh and simple ingredients. Ever since the beginning, they have been serving chicken that is whole breast meat.

Top-quality has always been the company’s approach to food. As the chicken is the core of the Chick-Fil-A menu, they serve only whole, boneless chicken breasts.

The Chick-Fil-A menu is nutritious and sustainable. There are healthier choices on the Chick-Fil-A menu.

The company has standardized its’ menu. The menu is made of high-quality ingredients and nutritious items such as Egg White Grill and Kale Crunch Side etc.

The company is known for its’ friendly workers who serve without discrimination. The Christian values of kindness and respect are deeply engrained within the business philosophy of the company. The staff abides by that value system and deliver great customer service. This makes the customers feel at home while enjoying their grilled chicken sandwich.

Is Chick-Fil-A stock available to the public?

The founder of Chick-fil-A was S. Truett Cathy, a dedicated Southern Baptist. He attended and taught Sunday School at the First Baptist Church in Jonesboro, Georgia. Truett Cathy made his children sign a contract that Chick-fil-A would always remain a private company before Mr. Cathy died in 2014.

Mr. Cathy felt that the public would not understand their Christian family values. And under shareholder pressure, they might have to compromise with their values.

This, in itself, volumes about the quality of management. You, as an investor, should look for the management values in a firm going public. Chick-fil-A is not a public company. However, management displaying ethics through action is a great thing for a company and its’ investors.

As an investor, one concern might be that is the company losing out on business opportunities because of their values? One must consider what does the management defines its’ values and what are its’ implications for the business?

As an investor, one must think of business opportunities and firm valuation. However, this is exactly the concern Mr. Cathy must have had about compromising his values under the pressure of shareholders.

Chick-fil-A is a family-owned private business. If they went public, most likely, the company would do great. However, Truett Cathy never decided to go public with the company.

Chick-Fil-A maintains a distinctive culture and has found success by doing so. Chick-fil-A’s corporate values do tend to resonate very strongly with Latter-day Saints. If it went public, many of the purposes Chick-fil-A believes are essential to its brand, such as the closing practice on Sunday, would also change.

How to take part in brand success?

Just because Chick-fil-A stocks are not publicly traded does not mean you can’t be part of their success. How can one do that? The response is via the franchise. Selected franchisees earn the desired rights to run a Chick-fil-A franchised restaurant chain. It is for an initial financial fee of $10,000.

The costs of building the premises are covered. If they’re done, they give you the branch keys so you can run. First, you need to give Chick-Fil-A 15 % of the daily profits. Secondly, you must pay them 50 % of your net sales after taxes at the end of the month.

Chick-fil-A franchisees need to be passionate about serving delicious food and hospitality.

Alterntives to Chick Fil A Stock Price and Alternatives

Yum! Brands (YUM) (includes Kentucky Fried Chicken KFC)

Yum Brand Inc.is a popular American fast food Corporation. It was founded on May 30, 1997. Besides KFC, Yum operates Pizza Hut and Taco Bell worldwide, except in China. They operate 43,617 restaurants, including 2,859 business-owned and 40,758 franchised restaurants.

KFC is best known for its fried-chicken worldwide. You will not invest in KFC directly because it is not an independent public company.

In Yum! Brands’ portfolio today, KFC is both the fastest growing and most profitable franchise. The company is becoming profitable as the profit margins jumped to 31 percent of revenue from 27 percent a year earlier.

McDonald’s (MCD)

McDonald’s is an American fast-food company. It was founded in 1940 as a restaurant in California, United States.

As of 2019, McDonald’s annual revenues are US$ 21.0 billion. MCD serves more than 69 million customers daily in over 100 countries across 38,695 restaurants.

Burker King (via Restaurant Brands International (QSR))

Burger King (BK) is a global hamburger fast food restaurant chain in the USA and was founded in 1954 in Miami, Florida.

As of December 31, 2019, Burger King had 18786 restaurants in over 100 countries. Almost half of them are located in the United States.

How to Analyze and Trade Chick fil A Shares

Stock research websites are the best place to start researching specific IPOs. The stock market websites allow you to set up alerts for specific news about a company. You could set up an alert with the combination of the company name and the term IPO, for example, “Chick fil A IPO.”

As an exchange-listed company, Chick fil A would be one of the best stocks to invest in right now. The best stock charting software can be used for a more extended due diligence process before making the final decision.

Then, you can use the best stock apps during the IPO. The chances are that you get some stocks at the original IPO price. Alternatively, you can buy and sell your preferred number of shares on the IPO data or at any time later by using the official stock ticker symbol within your trading platform.

Once invested, you can use your brokerage account or one of the best app to monitor stocks to manage your positions within the portfolio.

Final Words

Chick-Fil-A is one of North America’s fastest-growing and most profitable fast-food operations. The company is widely known for maintaining its’ values and purpose. Given that the company wants to maintain a distinct identity, it is unlikely to go public anytime soon. The only way is to be a part of the company is to own a franchisee.

Related Blog Posts:

Updated: November 11, 2020

About the author: Alexander is the founder of daytradingz.com and has 20 years of experience in the financial markets. He aims to make trading and investing easy to understand for everybody, and has been quoted on Benzinga, Business Insider and GOBankingRates.