Have you ever visited Chick-fil-A and left amazed by its smooth service? They have to be one of the most well-run establishments in the country. The consistency of quality from location to location is unmatched by any other fast food restaurant. Which begs the question: when can investors buy Chick-fil-A stock?
Chick-fil-A has been growing rapidly in recent years. The company opened its 1,000th restaurant in 2012, and it now has over 2,700 restaurants in the United States and Canada. It is one of the fastest-growing fast food chains in the world. And they’re not going to slow down any time soon.
If the company is so well managed, you can only imagine how well Chick-fil-A stock must do on Wall Street. Unfortunately, Chick-fil-A stock does not trade on any stock market exchanges. But why is that?
Why Chic-fil-A Stock Isn’t Public
Chick-fil-A is privately owned by the Cathy family. The family has said that they are not interested in selling the company. The main reason is they believe that going public would change the company's culture. Join Wealth Daily today for FREE. We’ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: “Why You Need to Fire Your Money Manager.”
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However, just because buying Chick-fil-A stock isn’t an option today doesn’t mean it won’t be tomorrow. Today, we’ll explore the various possibilities Chick-fil-A stock could become available to the public. We’ll also evaluate some other existing fast food stocks.
Chick-fil-A: A History of Success
Chick-fil-A was founded in 1946 by Truett Cathy in Hapeville, Georgia. The company's first restaurant was a Dwarf Grill, which served hamburgers and other fast food items. In 1964, Cathy launched the first Chick-fil-A restaurant, showcasing a special blend of spices in their chicken sandwich.
The chicken sandwich was an instant success, and Chick-fil-A quickly became one of the most popular fast food chains in the United States. The rest is history.
The company's philosophy is based on Christian values. It is known for its commitment to giving back to the community. It has also been at the center of controversy for donating to “anti-LBTQ+” causes. Chick-fil-A is also infamously closed on Sundays–another part of their Christian philosophy.
Most notably, the company donates a portion of its profits to charities that support families and children.
Can I Buy Chick-fil-A stock?
I wish. However, No. As stated previously, Chick-fil-A is a privately owned company. They do not offer public shares of their company right now. There are also no plans or discussions of a Chick-fil-A initial public offering (IPO), either.
However, it’s still possible to invest in Chick-fil-A. You can invest in Chick-fil-A through a rigorous franchise application and approval process. It requires time, money (at least $10,000), and a major commitment. Also, even if you check all of the boxes, Chick-fil-A still might deny you. You can learn more about owning a Chick-fil-A franchise on their website.
How Much Does Chick-fil-A Stock Cost?
Chick-fil-A stock holds no value until it goes public on a stock exchange. Essentially, Chick-fil-a stock does not exist. At least not as far as the public is concerned.
Alternatives to Chick-fil-A Stock
Although you can’t buy Chick-fil-A stock, you can buy other fast food stocks. We have written about fast food stocks before here at Wealth Daily. I highly encourage you to read those articles.
McDonald’s (NYSE: MCD) is perhaps the most popular fast food stock. It would certainly be stiff competition for Chick-fil-A stock if it ever makes an appearance on Wall Street. Other fast food stocks like Wendy’s (NASDAQ: WEN) and Yum! Brands, Inc. (NYSE: YUM). These are considered the “Big 3” of the fast food industry.
If Chick-fil-A stock were to make a public appearance, they would have their work cut out for them.
Chick-fil-A Financial Growth
While competing with MCD, YUM, and WEN would be hard, Chick-fil-A stock could do it. When you look at the company’s financials, you’ll see why.
In 2023, Chick-fil-A's revenue approaches $19 billion, a significant increase from $11 billion in 2022. McDonald’s revenue comes in at $23 billion. But things get even more interesting when you break down revenue by store.
Each McDonald’s store reportedly brings in $2.7 million in sales, according to Business Model Analyst. Each Chick-fil-A store? They reported an average of $8.1 million in revenue per store. That’s 3 times as much per location.
Wendy’s comes in a little lower than MCD at $2.1 million in average revenue per store. Perhaps Chick-fil-A’s number would shrink if they went public. One thing is for sure, we’ll never know unless Chick-fil-A stock becomes a reality.
How Does Chick-fil-A Make So Much Money?
Chick-fil-A is able to make more money by charging more. The company uses higher-quality ingredients than its competitors. Because they have higher-quality ingredients, they can charge higher prices.
Companies like McDonald’s market their value items heavily. It makes sense that the company with a higher quality product would make more money per capita. Especially if they’re not beholden to shareholders.
Chick-fil-A’s unique business model has allowed them to grow substantially. It’s hard to imagine that they will change anything in the near future. Perhaps if there is a change in leadership they might entertain a public offering. Until then, we must invest in other fast food stocks.
The Final Say on Chick-fil-A Stock
We love Chick-fil-A as a company. If it was possible, I would buy Chick-fil-A stock right now. Unfortunately, the time frame for a Chick-fil-A IPO is unknown. It’s quite possible that it will never happen.
Luckily there are other fast food stocks that investors can take advantage of. Some of them even pay a big dividend. While Chick-fil-A is a private company, there are still ways to invest. Other than investing in private companies through certain offerings, you can apply for a franchise.
Knowing how much each Chick-fil-A location makes, it wouldn’t be a bad idea to apply. If you’re interested in investing in private companies, then I highly suggest you take a look at Main Street Ventures.
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