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Tuesday, November 24, 2009

Who has the best fast-food chicken?
Chick-fil-A
KFC
Popeye's
Chicken from a burger chain
Not a fast-food poultry fan

"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.

Posted by Joseph N. DiStefano @ 8:25 AM  Permalink | 9 comments
Comments   
  • 0 like this / 0 don't   •   Posted 9:36 AM, 11/24/2009
    Also - Chik-Fil-A is delicious and actually shows up on those "if you are going to eat fast food, healthwise it is best to eat here" lists whereas KFC tastes terrible and is terrible for yo.
    danF
  • 0 like this / 0 don't   •   Posted 10:16 AM, 11/24/2009
    What about Popeyes? Their biscuits beat KFC sideways in butter-flavor.
    phillygoat
  • 0 like this / 0 don't   •   Posted 10:17 AM, 11/24/2009
    Besides being faster, tasting better, not as greasy, and quicker, it sure is one fact they are much nicer. Did you ever notice how you are thanked and greeted? The people hired at Chik-Fil-A seem to be much more enthusiastic, pleasant, smarter, super clean appearance etc. A very well run operation.
    PHAZED
  • 0 like this / 0 don't   •   Posted 12:01 PM, 11/24/2009
    Not at the one on Delaware Ave, Phazed. Those cats are trying their hardest to dispel Chick-Fil-A's friendly reputation.
    Nutburgers
  • 0 like this / 0 don't   •   Posted 12:49 PM, 11/24/2009
    KFC frequently does not have cooked product to sell during the dinner hour. This has happened to me several times in South Jersey locations. I could understand this occurring late at night or maybe in the period between lunchtime and dinner time but not at the prime dinner hour. I have left and purchased from a different fast food outlet as have many other people who wanted to buy from KFC but could not because they did not have food to sell and the wait (upwards of 15 minutes or more) was going to be too long.
    WDeptfordAbe
  • Comment removed.
  • 0 like this / 0 don't   •   Posted 1:47 PM, 11/24/2009
    What no poll? How do I vote for the question?
    mattsmithe14
  • 0 like this / 0 don't   •   Posted 2:04 PM, 11/24/2009
    KFC goes much better with Colt 45.
    JC Denton
  • 0 like this / 0 don't   •   Posted 2:21 PM, 11/24/2009
    Man, I'd eat Chick-Fil-A anytime. It's the only fast food I'll touch.
    everydayguy


9 comments
About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column in the Philadelphia Inquirer. Joe has been a member of Bloomberg LP’s New York Finance Team, wrote the book “Comcasted,” taught writing at St. Joseph’s University, and studied economics and history at Penn. Reach Joe at 215-854-5194 and JoeD@phillynews.com