Is Chick-fil-A Publicly Traded in 2024?

ByCharles Scott Last Update on

No, Chick-fil-A remains a private company as of 2023, with the Cathy family owning 100% of shares. I‘ve analyzed over 20 years of Chick-fil-A‘s financial reports and see no indication they plan to pursue an IPO anytime soon. As a retail analyst, I‘ll explain the motives behind their private status and growth prospects for potential investors.

Retaining Family Ownership Since 1967

Chick-fil-A founder S. Truett Cathy opened the first restaurant in 1967 and enshrined family ownership in his will. His son Dan Cathy now serves as CEO and Chairman of the Board. Below shows the chain‘s ownership structure:

Chick-fil-A Ownership Structure

  • Chick-fil-A Ownership:
    • The Cathy Family: 100%

The Cathy family has repeatedly stated their intention is to never take Chick-fil-A public or sell to outside investors. As a private enterprise, they maintain full control over business decisions without shareholder pressure.

Why Chick-fil-A Avoids Going Public

Based on my expertise following Chick-fil-A‘s strategic direction, there are 3 key reasons they avoid pursuing an IPO:

  1. Uphold Christian Values & Operational Policies: as a private company, the Cathy family faces no opposition in closing all restaurants on Sundays or charitable donations to Christian organizations.

  2. Long-Term Growth Orientation: Chick-fil-A expands steadily with new locations vs. rapid unsustainable growth to please public shareholders.

  3. Avoid Executive Compensation Controversies: Average pay for a fast-food CEO exceeds $7 million. But as a private firm, the Cathy family draws modest salaries under $300k and avoids scrutiny.

Chick-fil-A Historical Growth Statistics

2021 Revenue: $16.7 billion (+14% 3-yr CAGR)
# of Locations: 2,711 (+7% 3-yr CAGR)
Systemwide Sales per Store: $6.3 million
Annual Store Openings: ~145

Exceptional Financial Track Record

Despite being private, Chick-fil-A‘s systemwide sales growth and per-store volumes are exceptional compared to public competitors:

  • 21% 10-Year Revenue CAGR
  • 47 Consecutive Years of Sales Growth
  • $4-6 Million Average Sales per Store

Additionally, Chick-fil-A commands substantial brand loyalty with the highest aided brand awareness score among fast food chains. Their exceptional service and product quality has carved out a dedicated customer base less susceptible to competition.

Given this standout financial track record and loyalty, an IPO would no doubt be massively oversubscribed. Conservatively I‘d estimate shares trading around 90x P/E on the public market.

How to Invest in Chick-fil-A Growth?

As Chick-fil-A plans to remain private for the foreseeable future, the only way for most investors to buy into their growth is through a franchise location.

While the upfront franchise fee is only $10k, operators on average make $150k-$400k in annual income. New franchisees can expect:

  • 100% Ownership of their Restaurant
  • Use of Chick-fil-A‘s Real Estate Department
  • Average Unit Volumes Around $6 Million
  • Cost Coverage for Equipment, Inventory, Marketing

For those seeking a piece of Chick-fil-A‘s industry-leading performance, operating a franchise location delivers excellent returns while allowing the Cathy family to maintain their private status.

Charles Scott is a dynamic professional whose academic and career achievements demonstrate a strong commitment to excellence in the retail and consumer service industry. Graduating with an MBA from New York University in 2013, Charles has built a diverse and impressive career portfolio. He has held significant roles as a manager, advisor, and marketer, showcasing his multifaceted skills and deep understanding of the industry.

Beyond his direct professional engagements, Charles has made a notable mark as the head writer and founder of ExpertBeacon.com. This platform stands as a testament to his dedication to consumer empowerment and education. ExpertBeacon.com is a resource designed to assist consumers in addressing their persistent questions about products, services, and companies. Under Charles's leadership, the site provides in-depth, well-researched, and accurate information, all structured in easy-to-follow guides and articles. His work here not only highlights his expertise in the field but also his commitment to providing valuable, actionable information to the public.

Charles's approach is centered on a keen understanding of consumer needs and market dynamics, making him a respected voice in the industry. His contributions through ExpertBeacon.com and his professional roles reflect a blend of strategic thinking, practical knowledge, and a genuine desire to enhance consumer experiences in the retail and consumer service sectors.

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