Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

A Tale of Two Deals - Chick-fil-A & McDonald's

By 
Ethan Chernofsky
August 27, 2019
A Tale of Two Deals - Chick-fil-A & McDonald's
SHARE
Explore our free tools to get timely insights into key industries
Check out the latest trends for
No items found.
Key Takeaways

QSR Magazine recently released its annual Top 50 ranking of the largest restaurant and food chains. Two of the biggest stories in this year’s list were the continuing dominance of McDonald's at the top spot, and the rising power of Chick-fil-A, which jumped two spots to number five.

Earlier this month, Chick-fil-A also came in as the top Fast Food Chain in MBLM’s annual Brand Intimacy study. And the impact was felt with the brand pushing past the $10 Billion sales even while operating less than a sixth of the stores that McDonald's has. This amounts to an incredibly high revenue per unit figure that drives the brand's incredible value.

Interestingly, both companies ran significant campaigns in August, so we decided to compare the relative impact of each while analyzing the unique characteristics of the industry’s golden arched standard and the rising powerhouse.

August Deals - BOGO vs. Mac & Cheese:

McDonald’s BOGO

On August 13th, McDonald’s ran a Buy One, Get One deal that saw an extended menu on offer for only $1. The deal was part of a wider push by the brand to boost US store visits in an attempt to rectify previous moves that failed to deliver to the brand's high expectations. As CEO Steve Eastbrook said, “There [were] also some decisions we made with the best intentions that just didn’t work as well as we’d hoped.” So did the new campaign drive visits?

Not really. Visits to McDonald’s nationwide on the 13th were 15.0% below the baseline for the period beginning August 1st, 2018, and running through August 14th of 2019. And this may identify one of the few faults for the King of Fast Food. The calendar is incredibly steady with nearly year-round demand being impacted only by seasonality. There are limited self-created spikes, and while this shows steady performance, it also indicates a relative weakness in manufacturing spikes in interest and visits.

Chick-fil-A Mac & Cheese:

Chick-fil-A, on the other hand, looks to have found another winner with their latest menu addition. Traffic on the day of the release -August 12th - was 28.3% above the baseline for the same period. Comparing it with the same Monday in August 2018 - August 13th - saw a nationwide visit increase of 27.3%. While much of this does speak to the wider growth of the chain, there is a powerful element here that indicates the brands increasing capacity to drive excitement.

Long Term Effect?

It is hugely important to note that this analysis does not indicate a problem with McDonalds. The company has shown consistently strong visit performances, has a menu that delivers visitors throughout the day and has a powerful brand that resonates around the world. Looking Year-over-Year, the brand saw July visits in 2019 that were 11.1% above the baseline for the period between July 2018 and July 2019. This was over 13% higher than July 2018, when visits were 9.8% above the baseline.

Yet, Chick-fil-A has managed to position itself as one of the few brands with the long term potential challenge McDonald's. They do this with a powerful per-store impact that allows them to efficiently grow revenue as they increase their physical footprint.

The question of innovation will be one that both brands will need to grapple with. Whether it be new menu items or even exciting technology acquisitions, the growth of Chick-fil-A remains among the more interesting narratives to watch.

Learn how downtown regions across US cities are measuring up with our free tools.
Check out the latest trends for
No items found.

Related Topics

SHARE
Get 3 brand & industry
breakdowns every week
Subscribe to the newsletter
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.

Get 3 brand & industry breakdowns every week

Subscribe to the newsletter
What “eggs”actly is going on with eggs right now? 
Placer 100 Index, February 2025 Recap 
Why Chipotle’s 2025 Outlook Looks Conservative
Sportswear in the New Year
Placer.ai February 2025 Office Index: Is The Recovery Stalling? 
Discount and Dollar Stores in a Strong Position to Start 2025
Placer.ai Mall Index: February 2025
Allbirds: Flying Towards New Opportunities
Beauty Retail: Changes, and Challenges Ahead
Who Attends the Super Bowl and the Daytona 500?
The $1B Question: Why Dave’s Hot Chicken Is a QSR Powerhouse
Kroger’s Grocery Dominance in 2025
Walmart Goes to the Mall: Insights From the Monroeville Acquisition
Gap Inc. in 2025 – Recapping 2024 and Uncovering Banana Republic’s Athleisure Opportunity 
Department Stores Providing Value in Today’s Retail Landscape
Dine Brands Maintains Their Broad Appeal
Best Buy: Fully Charged for 2025
Shopping Centers Provide Havens for Residents Affected by the LA Fires
National Retail Chains Utilize Stores to Support LA Fire Relief Efforts
Dutch Bros. & Sprouts: Beverage-Led Success
Off-Price Apparel: Off to a Strong Start in 2025
Visitation Trends and Shopping Behaviors at Walmart & Target 
Restaurant Success in 2025: Experience, Convenience, and Familiarity
Home Improvement Segment Shows Stability
Fitness Starts Strong in 2025
The Meat of the Matter: Bloomin’ Brands in 2024
The Beat of the Bowl: Visitation Patterns for CAVA and sweetgreen
Women's Sports on a Roll: Packed Stadiums, The Sports Bra Bar & Restaurant, and Impacting CRE
Year of the Dragon, Luckiest Animal in the Zodiac: Will that Luck Hold for Asian-Themed CRE?
Washington DC: How the Population in Our Nation's Capital has Evolved Following the Pandemic
What First Half 2024 Visit Trends Tell Us About What to Expect in the Second Half
What Does Walmart’s Results Mean for Other Discretionary Retailers?
Warehouse Clubs: Younger Visitors Support Growth
Wayfair: Early Impressions from Wayfair's New Wilmette Store
We're All Mad for March Madness: NCAA Women's Basketball is Breaking All Sorts of Records
Warehouse Clubs: Finding the Perfect Timing
Ulta: A Thing of Beauty
The Sweet Smell of Success: How CPG Brands are Bringing Their Brands to Life with Experiential Stores
Urban Outfitters: High Income, Specialty Fleets Still Thriving
The Silver Lining to Mall Anchor Department Store Closures
Ulta Beauty: Store Visits and Target Partnership Driving Category Market Share
The Secret to Trader Joe's Success in 2023
Tractor Supply: Visitation Share Gains Continue Despite Weather-Related Disruptions
Takeaways from the 2024 Fast Casual Executive Summit
The Lure of Waikiki and Beyond: The Feel of Fifth Avenue on Oahu?
Target: Circle Week Shows Signs of Success
Suiting Up in Boston: Newbury Street Suitsupply Store Showing Signs of Strength
Takeaways from Shoptalk Fall
Stew Leonard’s: Specialty Grocery Still a Shining Example
Small Towns, Deepening Pockets: How Migration is Changing the Face of Boise
Studs: Reinvigorating the Accessories Category
South Asian Influence on Sports, Groceries, and Malls
Starbucks: Silver Linings After a Difficult Quarter
Shopping "High-Low": Escada and Club Monaco share space in Beverly Hills
Round1 Entertainment Expands with Spo-Cha Concept
Self-Storage: More Industry Consolidation Ahead
Self-Storage: Consolidation Driving Year-Over-Year Increases in Visits
Return to Office is Hot in Miami: Placer's New Return to Office Dashboard Launches
Restaurants: Bifurcation Here Too
Self-Storage: More Consolidation as Public Storage Acquires Simply Self Storage
Return to Office Insights: Miami and New York in the Lead
RFDC Takeaways: Lessons from CAVA and Other Restaurant Visit Share Winners
Pop-Ups Drive Excitement and Foretell Brand Demand
Restaurants: Where Do We Stand After Q1 2024
Restaurant Outlook 2024: Year of New Location Expansion Plans?
Reformation: Building an Apparel Destination
Pickleball and Padel: Saviors for Malls, but Threats to Tennis Courts?
Regional Grocery Update: Consumers Seeking Out Lower Prices
QSR Visit Trends: What Gives?
Performing Arts: Takeaways from the California Presenters Conference and Spotlight on Arizona Venues
Public Storage: Self-Storage Demand Resilient
QSR Chicken: Driving the Industry's Growth
Planet Fitness: Signs of a More Resilient Fitness Club Visitor?
Parks, Recreation Centers, and Redeveloped Malls: Community Glue
Outlet Malls: Ontario Mills Leads Black Friday, Arundel Mills Tops November Visitation
Olympics Boost: PR is Priceless
Olympic Inspiration: Is the Fitness Category Bringing Home the Gold?
Outlook for Holiday Thrifting: Inflation, Sustainability, and Gen Z Fuel Growth
Oklahoma, OK!: The Opening of Tulsa Premium Outlets Kickstarts Excitement
"Must-Have" Tenants for 2025: Top Brands to Elevate Your Outdoor Shopping Center
National Restaurant Association Show Takeaways: Who’s Winning the Food Fight?
Non-Traditional Anchors: Cheers or Jeers for Those Replacing Sears?
McDonald's: Where Do Whitespace Opportunities Exist?
Megamalls: All-Day Experiences, Entertainment, and Dining
Mercado Gonzalez: This Mexican Food Hall is a Magnet
Messi Mania hits Miami and LA
Luxury Outlet Malls: Seeing Strong Back-to-School Traffic and the Lure of Luxury
McDonald's: "Adult Happy Meal" Sets a High Bar for QSR Promotions
McDonald’s Swift E. Coli Response Should Minimize Traffic Impact, and SpongeBob’s a Hit at Wendy’s
Measuring the Impact of California’s Minimum Wage Increase on Restaurants
McDonald’s Joins the Restaurant Value Wars of 2024
McDonald’s and the Evolving State of Food Retail
How Have Winter Storms Impacted Retail Visits?
Luxury and Sustainability are the Ethos Driving 1 Hotels
Market Spotlight: How New Mexico Highlights its Cultural and Arts Scene to Drive Business and Leisure Tourism
Marine Layer: "Perfect for a 7-Day Weekend Kinda Lifestyle"
Market Spotlight: Downtown DC Breathes a Sigh of Relief as Washington Wizards and Capitals Stay Put
Kroger/Albertsons: Assessing the Aftershock
Lions and Tigers and Bears, Oh My!: Aquariums and Zoos trends from A to Z
Limited Too: Brand Relaunch Has Millennials in Mind