Zinger Key Points
- Chick-fil-A’s well-known policy of closing on Sundays continues to have a significant impact on the fast-food industry.
- Despite its success, Chick-fil-A’s weekly closure leaves a void competitors rush to fill.
- In a market dominated by tariff tensions, geopolitical surprises, and Fed uncertainty, Matt Maley's technical approach delivers clear entry/exit points for consistent income potential. Try it free for 7 days
Chick-fil-A's well-known policy of closing on Sundays—a decision rooted in its founder's Christian values—continues to have a significant impact on the fast-food industry. While the brand remains one of the most successful chicken chains in the U.S., its weekly closure creates a vacuum that competitors are eager to fill.
What To Know: According to data from Veraset, a location data provider, over a quarter (27.4%) of Chick-fil-A's weekday customers in Atlanta, the chain’s most popular hub, turn to local eateries when the chain is closed. However, major publicly traded fast-food brands also benefit from the Sunday void.
Read Also: Fed’s Beige Book Shows Slight Growth: Consumer Spending Slips As Prices Rise
McDonald’s Corp MCD captures 12.2% of displaced customers, while Wendy’s Co WEN and Burger King, owned by Restaurant Brands International Inc QSR, help drive a 16% shift toward burger restaurants.
Additionally, Chipotle Mexican Grill, Inc. CMG, which offers a fast-casual alternative, benefits from the 8% of Chick-fil-A customers opting for Mexican and Tex-Mex options. Meanwhile, Popeyes—another QSR brand—and KFC, a part of Yum! Brands Inc YUM, see an 11.8% boost from chicken lovers looking for a substitute.
What Else: For investors, this data highlights the resilience of these brands and their ability to capitalize on consumer habits. McDonald's, Wendy's and Chipotle in particular have strong Sunday sales, benefiting from Chick-fil-A's absence.
That said, the entire quick service restaurant industry in Georgia in February took a hit to foot traffic when compared with last year. Three of the four weeks showed a contraction when compared with the prior year, according to Placer.ai, ranging from down 6.3% in the week of February 17 to up 1.65% in the week of February 24. Georgia’s performance has only slightly outperformed the nationwide trends.
As fast-food competition intensifies, understanding how companies position themselves to absorb these customer shifts could be crucial for evaluating stock performance.
Despite its Sunday closures, Chick-fil-A remains dominant, but its competitors have learned how to turn the weekly day of rest into an opportunity.
Read Also:
Source: Veraset, February 2025 and Marketing Director of Veraset, Adam Fachler
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.