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
 on 
August 27, 2019
A Tale of Two Deals - Chick-fil-A & McDonald's

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.

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
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.
Pent-Up Demand Ahead of October Sales Events
4 Strategies Retailers are Using to Drive Traffic to Their Venues
5 Key Regional Grocery Players Impressing in 2023
Upscale Kitchenware Trending Up
Costco Finds More Room for Growth
Four C-Store Chains Making an A-Grade
National Parks + Outdoor Summer Activities
Diving Into Darden: Summer 2023 Update
The Summer Event Effect
Messi: Massive in Miami
Looking Back on Back to School 2023
The Anchor Recap: August 2023
Placer.ai Office Index: August 2023 Recap
Placer.ai Mall Index: August 2023 Recap
Placer.ai White Paper Recap: August 2023
Starbucks Pumpkin Spice Latte Strikes Again
Big Scoop: We All Scream For Ice Cream
Sports Away: Lululemon & Nike’s Momentum Continues
Summer Visits Heat Up For Recreation and Outdoor Gear Chains
No CSS overwrite - July 2023 Office Index Recap
Staging - August 2023 Mall Indec
Mid-Atlantic Grocery Deep Dive
Experiential Chains Heating Up This Summer
Petco Goes Big by Going Small
Ulta Beauty: Leading the Discretionary Pack
Discount and Dollar Chains Continue to Thrive
Summer of Sports: DICK’s Sporting Goods and Hibbett Sports
Off-Price: Succeeding Into Summer
The Anchor Recap: July 2023
Superstores Maintaining Pandemic Gains Amidst Economic Headwinds
2023: Home Improvement at the Halfway Point
July 2023 Office Index Recap
Placer.ai Mall Index: July 2023 Recap
widget test
The Taylor Swift Visit Lift
Southwestern Grocery Dive
July 2023 White Paper Recap: Halfway Point Review & Quarterly Index
Yum! Brands: Driving Dining Visits
Slurpees and Summer Movies Stimulate Consumer Foot Traffic
Cool Beans: Summer Coffee Update
Checking In on Back to School 2023
Crocs and New Balance Tip The Scales
Burger Bliss: Shake Shack and In-N-Out Stacking Visits
Chipotle & McDonald's Continue to Reign Supreme
Vibenomics and Placer.ai Partner to Enhance Retail Media In-Store Measurement
California Grocers Here We Come!
Marriott’s Different Audiences
Bonchon and Kura Sushi Thrive in the Fast-Casual Scene
A Shoe In: Footwear Climbs to the Top
Cheers! Raising a Glass to Beverage Retail
Placer.ai Office Index: June 2023 Recap
Placer.ai Mall Index June 2023 Recap – A Turn of the Tide and a Dive into Open-Air Lifestyle Centers
Local Kitchens: Redefining the Restaurant
Unlocking Urban Insights: The Value in Manhattan’s Employees
Ohio State Parks On The Rise
How is Inflation Impacting the High-Income Shoppers?
Five Fast-Growing Dining Chains
What To Expect From Prime Day and July Sales Events in 2023
The State Of Fashion: How Are Apparel Retailers Faring in 2023?
2023’s Latest Dining Success Story: GEN Korean BBQ House
The NBA Finals: A Location Intelligence Perspective
Moving the Market: The Impact of Domestic Migration on Housing Costs
Post-Pandemic Museum Update
The Darden-est Things
The Enduring Demand for Urban and Suburban Retail
Leveraging Data to Evaluate the Impact of Municipal Investments
Trader Joe's Success Amidst Food Inflation and Changing Consumer Behavior
Placer.ai Office Index: May 2023 Recap
Fitness at its Fittest: Staying Strong in 2023
Movie Theaters, Off-Price, and Home Improvement: May 2023 Recap
Placer.ai Mall Index - May 2023 Recap
What’s Working for Bath & Body Works?
Why Are Specialty Grocers Thriving in 2023?
The CAVA Craze: A Location Intelligence Perspective on the Mediterranean Marvel
How Will Primark’s US Expansion Impact Target?
All Eyes on Eyewear
Northwestern U.S. Grocery Dive
Return of the Lunch: Salad Chains Are Thriving
Retail Media Networks – Off the Beaten Track
Bet Your Bottom Dollar: Discount and Dollar Stores Drive Foot Traffic
Ulta & Lululemon: Discretionary Spending On The Up
The Score After Q1: Sporting Goods Chains
Who Uses NYC Airports: Biting Into The Big Apple’s Main Transport Hubs
Off Price: Strength in The Face of Retail Challenges
Visits Improve for Home Improvement
Walmart, Target & Wholesalers in Q1 2023 – The Return of Mission-Driven Shopping?
Department Store Roundup: Q1 2023
Placer.ai Office Index: April 2023 Recap
Placer.ai Mall Index, April 2023 – A Rebound on the Horizon?
How Will Bed Bath & Beyond’s Bankruptcy Impact the Retail Space?
Buffet Restaurants: Filling Up on Foot Traffic
Thrift Stores: Vintage Visits Drive New Age in Apparel
The Windy City: A Hub of Post-Pandemic Opportunity
Diving into Dining Traffic - Q1 2023
Bring On The Joe
A Dollar (or more) For Your Thoughts: Five Below and pOpshelf
Dining Out With The Cheesecake Factory
Retail Foot Traffic Recap – March 2023
Digging Into 2023: McDonald’s and Chipotle Update
Placer.ai Office Index: March 2023 Recap