As McDonald’s fortunes collapse, various other fast food restaurants are growing in the marketplace. Burgers and fries are being replaced by popular alternatives. Some are new, and other alternatives are classic staples. KFC’s wide selection of baked and fried chicken is hardly new, but the popularity of the chain is growing. Many entrepreneurs are showing interest in purchasing a KFC franchise. Doing so is not exactly cheap. The costs of starting up a KFC franchise location ranges from $1.3 to $2.5 million.
Of course, a large number of the entrepreneurs who are able to afford the startup costs discover KFC restaurants are a good investment. With the right location, millions upon millions in sales could be generated through the store’s coffers.
Hedge-fund manager and Citadel CEO Kenneth Griffin might very well agree that a KFC chain is a good investment. Griffith has shown huge profits can be earned from any serious business endeavor provided the right vehicle is chosen and the primary owner willing to effectively manage it.
Based on current stock prices and market conditions, McDonald’s would not be high on any entrepreneur or hedge-fund manager’s top list. KFC, however, could be a decent alternative to those with an interest in the world of fast food. Based chicken is healthy and fried chicken is perennially popular. Red meat and deep fried French fries, however, are losing a lot of their appeal. Just ask the management at McDonald’s.