If you are interested in expanding your investment portfolio or you just want to see what companies you can buy stock in, this article is perfect for you.

Today we will be focusing on Chick-Fil-A and whether you can buy stock in this company. Chick-Fil-A is one of the largest American fast food restaurant chains, with a speciality in chicken sandwiches. Its revenue in 2018 was 10.5 billion USD, and it has 2,605 locations of restaurants.

This article will describe a bit more about the company and provide an explanation into options on how to invest in it.

Let’s dive into it.

Can you buy stock in Chick-Fil-A?

Chick-Fil-A could be a profitable investment as it is one of America’s top fast-food chicken chains. Only three states in the United States do not have a restaurant, Alaska, Hawaii and Vermont. It is predicted that by the end of 2021, Chick-Fil-A will become the third-largest fast-food restaurant, behind McDonald’s and Starbucks. However, you actually cannot buy stock in this company.

Chick-Fil-A is not a publicly-traded company and has vowed never to take the business public. This is because, they worry that their Christian family values, that run through the brand, may not be preserved in the hands of the public.

Why might you want to buy stocks in Chick-fil-A?

Chick-Fil-A could be a profitable investment as it is one of America’s top fast-food chicken chains. In 2018, it generated $10 billion in total sales. You can see why it is an attractive investment as it generates a massive amount of money. It is also on the path to continue to do so.

Why can’t you invest in Chick-fil-A stock?

You cannot buy stock in Chick-Fil-A. This is because it is not a publicly-traded company. This means that it is owned privately and does not seek investment from the public for growth. Interestingly, before the creator of Chick-Fil-A, S. Truett Cathy, passed away, he got his children to sign a contract that stated that Chick-fil-A will always remain a private company. This is because, they worry that they’re Christian family values, that run through the brand, may not be preserved in the hands of the public. Cathy’s three children inherited $11billion dollars through the ownership of the company. Clearly, they hold enough funds to run the companies with this, rather than seeking capital from outside investors.

Is there Any Way to Invest in the Company?

You can become a Chick-Fil-A Franchisee. This is where you apply to become a Franchisee on the company website. It costs $10,000 dollars to open one of its franchises in the US. The attractiveness of this is that Chick-Fil-A covers the costs of purchasing a building, and buying equipment, so there are no start-up costs. This offers you the chance to build a business. However, it is extremely competitive to become a franchisee. Every year they receive around 20,000 applications and only 75-80 of these are accepted. This means that the percentage of your application being accepted is a mere 1%. According to the Chick-Fil-A franchise information group, a franchise owner can expect to earn an attractive average of around $200,000 a year. But you shouldn’t see this as an investment, because the franchisee or ‘operator’ does not actually own or receive equity in their business. They can only own one location and cannot sell or pass them on to the next generation. Though these factors may make it seem like an unattractive option, it is successful for Chick-Fil-A because of its low franchise fee, making it accessible to many.

The Requirements of Becoming a Chick-Fil-A Franchisee

Chick-Fil-A is looking for people who are free of any other business ventures and will be extremely hands-on with the branch. They have to give 50% of their net profits to Chick-Fil-A and also be willing to promote Christian values. Although, you do not have to be Christian yourself. But you do have to participate in group prayers during training and management meetings. Other requirements include working full-time at the franchise and being unable to select the location of your Chick-Fil-A restaurant. To get started, you fill out the application form on their website.

What other Similar Companies could I Invest in?

McDonald’s (NYSE: MCD), some say, is a good stock to buy. This is because it has steady growth. Investments can be risky but McDonald’s has provided consistent returns to investors. McDonald’s is one of the biggest fast-food giants, it has restaurants in 120 countries across the world. It continues to expand and grow each year, appearing to not slow down anytime soon.

Why is there a Controversy Surrounding Chick-fil-A?

Chick-Fil-A has an extremely controversial record. It supports anti- LGBTQ causes and therefore experiences a lot of backlashes. The Oracle in Reading did not renew its lease in 2018 after being opened only a week. It is an extremely Christian company, for example, they are not open on Sundays and have poured millions into support groups that oppose same-sex marriage.

Patrick Harvie, the first openly bisexual member of the Scottish Parliament to come out, called for the boycotting the MacDonald Hotels and challenge their association with Chick-fil-A as he called it a “toxic U.S. company”.

This article has demonstrated that whilst Chick-Fil-A is a prominent fast-food chain in the United States, more globally, it has experienced backlash for its religious views. If you wanted to invest in this company, you would need to apply to open a franchise as you cannot buy stock in the private company, and will not be able to in the future. Chick-Fil-A will never become a publicly-traded company, so you should let go of your hopes of buying Chick-Fil-A stock.

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