Monday, April 27, 2015

Who's better: Kentucky Fried or Chick-fil-A?

Chick-fil-A will be bigger than KFC if trends continue, says analyst Mark Kalinowski

Who's better: Kentucky Fried or Chick-fil-A?

"KFC - which has held the number-one market share within the quick-service chicken segment for decades - will eventually lose the top slot to privately-held Chick-fil-A," writes analyst Mark Kalinowski of Janney Montgomery Scott in a report to clients today.

He still recommends KFC-Taco Bell-Pizza Hut owner Yum Brands to investors, "based in part on meaningful growth opportunities outside of the United States, most notably China"; but he notes "unfavorable marketshare trends" for all three of Yum's major brands within the U.S.

Chick-fil-A could take a decade or more to pass KFC based on sales trends. That "would be a remarkable changing of the guard," since less than a decade ago KFC was still four times larger. But Chick-fil-A offers "superior" operations (including faster service according to industry bible QSR), a focused marketing campaign ("Eat Mor Chikin") that KFS lacks, and rising same-store sales (4% this recessionary year).

Plus - while KFC is everywhere - Chick-fil-A has room to grow, with no presence in 12 states and little in some big states like Illinois.

Who has the best fast-food chicken?
Chicken from a burger chain
Not a fast-food poultry fan
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at or 215 854 5194.

Joseph N. DiStefano
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