Want to buy Chick-Fil-A stock? Well, unfortunately that’s not an option. The company has been privately owned since it was founded in 1946, and intends to remain that way. Let’s take a look at the company and see what’s made it a household name.
Buy Chick-Fil-A Stock
Back in 1946, a little restaurant called the Dwarf Grill was opened in Hapeville, Georgia. Samuel Truett Cathy opened the diner in close proximity to the Atlanta Assembly Plant for Ford Motors (NYSE: F), and the plant workers offered a steady stream of patrons for the little grill.
The restaurant thrived for 15 years, but meanwhile other restaurants were popping up and increasing in popularity. In 1954, Burger King (NYSE: BKW) opened its doors, introducing a truly fast food. A year later in ’55, the McDonald’s (NYSE: MCD) empire was born. A little diner in the American South was suddenly facing a lot of competition.
Cathy found it suddenly necessary to think outside the box. It was in 1961 that he discovered a tool that would position him as a force to be reckoned with: the pressure fryer. This little appliance would allow Cathy to cook a piece of fried chicken in the same amount of time that Burger King and McDonald’s were cooking a burger. They added their chicken sandwich to the menu, and by doing this, created their brand.
In 1967, Cathy opened his first Chick-Fil-A restaurant in a suburban mall’s food court. Since that first restaurant, Chick-Fil-A has expanded to own almost 2,000 locations across the US and Canada, including college campuses, hospitals and airports. The company markets its food as an alternative to the standard cheeseburger meals, and has thus far been successful. So why can’t you buy Chick-Fil-A stock?
Chick-Fil-A Stock Price
Chick-Fil-A stock price, if there were such a thing, would likely follow the trends of other restaurants in the fast food industry. Despite their marketing claims, there’s really not too much different about Chick-Fil-A’s service. Right, they don’t offer burgers, but they’ll happily sell you a fried chicken sandwich and some waffle fries with every bit the health benefits of a Wendy’s bacon cheeseburger.
What makes Chick-Fil-A stand apart, and what may likely be its demise should it choose to go public, is that it was founded as a Southern Baptist company. Cathy was a staunch believer in the strict Southern Baptist fundamentals, and that’s gotten Chick-Fil-A into some trouble in the past.
The store chooses not to open on Sundays, which is not entirely uncommon for businesses. Hobby Lobby (also privately owned), for example, follows this same guideline, and it hasn’t hurt their business either. But if Chick-Fil-A chose to seek input from investors, those investors may vote in favor of those extra profits doled out by the Sunday afternoon crowd.
Chick-Fil-A in the Public Spotlight
Chick-Fil-A has put itself in the spotlight surrounding LGBT issues, as well. It would be simple to delve into American politics. But suffice it to say that the United States has continued to enact and redact policies such as DOMA and North Carolina’s House Bill 2. If you’re not familiar with these, they are policies which restrict the rights of gay and lesbian individuals. As these policies make headlines, so does Chick-Fil-A.
It’s not unusual for a corporation’s spokesperson to react to news by offering the public a summary of that company’s stance. But after the Defense of Marriage Act was in part struck down, Chick-Fil-A Chief Operating Officer Dan Cathy stated that America, as a whole, was “inviting God’s judgment” among other choice words.
Inevitably, boycotts ensued. Had an investor held stock in the company, he’d likely have seen the Chick-Fil-A stock price plummet.
Chick-Fil-A Stock Quote
We obviously can’t give you a Chick-Fil-A stock quote. But we can let you know how the business is doing, despite boycotts and competition. In short, they’re doing extremely well. Chick-Fil-A restaurants average annual revenues three times higher than that of KFC restaurants. Average Chick-Fil-A restaurant sales are just over $3 million per year, while even McDonald’s stores only generate about $2.5 million.
But why? First, consumer surveys point to customer service and cleanliness as the reasons for continued patronage. It would seem that despite the fact that Chick-Fil-A employees are generally paid just above minimum wage, they’re trained to excel in friendliness and a culture of “putting the customer first.”
Chick-Fil-A Value and Prices
Second, it stands to reason that Chick-Fil-A food prices greatly contribute to their profits. While a Chick-Fil-A chicken sandwich price averages over $3, it’s available on the dollar menu at other chains. These prices are comparable to the dine-in chains, yet Chick-Fil-A has justified its higher prices via its marketing.
Finally, in the late 200s and the early 2010s, fast food restaurants faced a lot of criticism from the media. The restaurants were blamed as the cause of America’s obesity epidemic. In 2004, filmmaker Morgan Spurlock released Supersize Me. This hotly debated documentary detailed the effects of dining solely on McDonald’s food for 30 days. Subway, a privately held company, quickly changed its marketing to promote itself as a healthy alternative to fast food, despite the restaurant providing, well, fast food. And Chick-Fil-A, as recently as 2016, began its crusade to tout itself as a healthy choice.
In reality, Chick-Fil-A offers food products with a similar fat and calorie content to McDonald’s, but in conjunction with Chick-Fil-A’s marketing efforts, consumers still tend to believe that by choosing the restaurant, they’re choosing a healthy option. This has contributed to the company’s success.
Chick-Fil-A Stock News
Of course you won’t see too much Chick-Fil-A news regarding stocks. But they’ve made headlines recently as new locations are announced. Student group Lambda at Pittsburgh, Pennsylvania’s Duquesne University has begun to lobby against the arrival of a Chick-Fil-A location on campus. The students cite the potential loss of a “safe feeling” as the reason for their opposition.
Chick-Fil-A is one of the fastest growing and most successful fast food operations in North America. Despite its heated involvement with political issues, the company has retained a large market share. It is even larger than that of KFC. And while you can’t buy stock in Chick-Fil-A, you can certainly follow the company as it makes controversial headlines.