Could the South’s poultry peddling juggernaut, Chik-fil-a, surpass McDonalds? A new report from Janney Capital Markets shows that they might do just that, and I don’t think the people who run the Golden Arches will be saying “I’m Lovin’ It” when they read the report.
The report predicts that while Chik-fil-a is nowhere near McDonalds in size, nor will it be anytime soon, the occasionally-controversial Chicken cookers from Atlanta could gain between $6.3 to $9 billion in sales by 2023. Compared to McDonalds, which is estimated to only bring in one billion in sales by that time.
Chik-fil-a, which overtook KFC in 2013 among fast-food and fast-casual chicken restaurants, may not be near overtaking McDonalds in actual locations, revenue, presence, etc., but “could steal much of the burger chain’s potential U.S growth,” according to the Wall Street Journal. The reason for this is the fact that they have room for growth in northern states where they have few, if any, locations. For example, there’s only one Chik-fil-a in Wisconsin and Michigan, but there are 250 and 400 McDonalds, respectively, in those states.
Frankly, I think the chicken is great. Sue me. They make a mighty fine product. I’ve tried to replicate it myself at home thanks to a recipe I found, ironically, on TFM. I can get it just right, but not quite. Nothing’s quite like that chicken in the morning. It’s to die for.
In order to gain traction in northern states, they have a few hurdles to get past. Being closed on Sundays, for one. The anti-gay marriage statements that their President made is another. Sorry, it’s a fact. People aren’t able to separate politics and delicious chicken these days.
What you can’t argue with, is their growth. Just this year, they’re opening 103 new restaurants and entering two new markets, Connecticut and Rhode Island. Personally, I’d like them to open one up right outside my apartment and, well, in my mouth. I shouldn’t have to go down south for delicious, delicious chicken.
Could they overtake Mickey D’s? It’s certainly possible, especially when you consider a new report from the Chicago Tribune that says that McDonalds’ sales are down, and franchisee’s outlooks are “the lowest they’ve ever been.” While it’s definitely unlikely, just because of the sheer size of McDonalds, there’s a few ways they can get butts in seats at the Fast Food giant. Breakfast all day is one of them. Bringing in popular international foods is another.
But they’d better watch their backs, because Chik-Fil-A is gunning for the crown. And if they keep making that finger-licking good chicken, they may just steal it away from them.