Friday, August 5, 2016

Adjusting for inflation, how have 4 major Chicken Fast Food Restaurants fared since 1991?

I saw the graphic below on a twitter account I follow from Nations Restaurant News.

The numbers you see are in "millions"--put 6 zeroes at the end of the numbers (in front of the decimal) to get the full value.

It shows sales figures for 4 major chicken chains in 1992 (blue column is 1991 sales figures).  These numbers are interesting as they stand, I suppose, but what do they represent in more current dollars?

I used the column in BLUE as it is a firm dollar amount from the prior year--1991.  I used the Bureau of Labor Statistics calculator to adjust the numbers into 2014 dollars.  Those numbers are in the box "2014 Dollars (Inflation Adjusted)".

The RED arrows point to the inflation adjusted sales figure. Example: For KFC, sales of $3,200,000,000 ($3.2 Billion dollars) in 1991 would be equivalent to $5,562,000,000 ($5.525 Billion dollars) in 2014 dollars.

I used 2014 because from HERE I was able to find the latest yearly sales figures for these 4 companies.  Those numbers are in the box "2014 Actual Sales".

Now, this is the fun part!  Look at the differences that occurred over time.

Actual Total Sales for all 4 chains are 71% higher than the inflation adjusted figure. It is good to be in the chicken business, right?

What other observations can you make about these 4 companies?

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