It's been a long time since I discussed another company that I wish would go public (CIWWGP)! The odds are pretty high that Chick-Fil-A will never go public because the firm thrives on the fact that they do not have a Board or shareholders to answer to, but I certainly can dream can't I? At the same time, it's important to understand the success of the competitors of publically traded companies, both public and private. As such, the success of a company like Chick-Fil-A could mean more revenue of publically traded chicken or feed providers. On the other hand, the success or lack thereof could mean trouble for other fast-food chicken chains like KFC.
Nevertheless, I really do love Chick-Fil-A, primarily because they put so much care and attention into the food they make and into the care of their employees. This is a great business model that will definitely become the norm for fast-food chains in the future and makes for a good example of social responsible investing.
Chick-Fil-A is an American fast food restaurant chain headquartered in the Atlanta suburb of College Park, Georgia, specializing in chicken sandwiches. Founded in 1946, it has more than 1,850 restaurants, mainly in the southeastern United States. The company's culture is influenced by its founder's Southern Baptist beliefs so all Chick-fil-A restaurants are closed for business on Sunday.
The company retains ownership of each restaurant and selects the restaurant location and builds it. Its franchisees need only a $5,000 initial investment to become an operator. In 2010 Chick-fil-A took the industry lead in average sales per restaurant, making an average of $2.7 million per restaurant (McDonald's was second with $2.4 million per restaurant) - so they are a major player in the industry.
Additionally, in February 2014, Chick-fil-A announced plans to serve chicken raised without antibiotics in its restaurants nationwide within five years, and it is the first quick-service restaurant to set forth a plan and commit to serving only poultry raised without antibiotics. According to the U.S. Food and Drug Administration (FDA), antibiotics used in livestock, many of which are also used to treat humans, have contributed to the rise of dangerous bacteria. In December 2012, the FDA announced plans to phase out certain antibiotics in the food production industry.
Additionally, the company engages in some great recycling practices...as in the video below: