Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
McDonald's (
MCD) shares took a hit in early November when the company reported that its
October global comparable store sales
declined by 1.8%, marking the first such slide in 9 years. A good
portion of the decline was surely economically driven. Some of it was
also temporary, given that November's sales later showed a same-store
sales
increase of 2.4%. Still, and despite McDonald's recent
share price revival, I would continue to sell the stock on a very
important alpha driver.
In my expert view as an equity analyst,
McDonald's is coming under important attack by a new and credible threat
within its U.S. core market. It's a threat that I believe is not yet
understood well by other analysts, media nor the market, and so
should be an alpha-critical driver of the shares in the years ahead.
It is structural in its essence and long-lasting in its impact, and
it's one that McDonald's itself seems to have recognized internally and
is attempting to mitigate. The company is facing a changing competitive
landscape and industry structure within the United States due to the
rise of the "better burger" and proprietors popping up everywhere to
serve an increasing variety of them. McDonald's is thus challenged to
defend its home turf, or go the way of many a mature company that have
failed to do so, out to pasture.
The Little Discussed Calendar Anomaly
McDonald's
shares dropped 10.7% from their mid-October closing high set above $94
to their mid-November low set at approximately $84. The catalyst of the
decline was obviously the company's October same-store sales, which
reflected deterioration across all of the company's regional segments.
One factor that affected all markets and that many media outlets and
analysts have failed to note for its importance was the fact that this
year's October measured up poorly against the prior-year period, while
this year's November was at advantage over the prior year. That's
because this year's October included one less Saturday and Sunday (busy
days) and one more Tuesday and Wednesday (less busy), while this year's
November included one less Tuesday and Wednesday (less busy) and one
more Thursday and Friday (busier). The impacts of the monthly
differences were substantial, with October's differences driving down
sales this year and November's driving them higher. This could entirely
explain the directional shift in the last two months of sales, but it
does not explain the gradually slowing pace of growth. Maturing
companies always experience gradually slowing growth, but in some cases,
market share is also threatened by disruptive competition.
| Operating Segment | Oct. Same-Store Sales | Nov. Same-Store Sales |
| United States | -2.2% | +2.5% |
| Europe | -2.2% | +1.4% |
| Asia Pacific, Middle East, Africa (APMEA) | -2.4% | +0.6% |
Some Not "Lovin' It"
Obviously,
the downturn in European sales can be explained by the decline of
economic activity in Europe, which for some markets is still
deteriorating. That was seen in the company's European sales recovery in
November; McDonald's noted an offsetting weight from a hampered German
market. The company's pricing strategy abroad is somewhat different than
its bargain burger game plan employed in North America. So with the
economies of Europe deteriorating, including now economic failings in
linchpin EU states Germany and France, the company's regional sales
spiral there is understandable. It should also be cyclical in nature and
thus a matter that should be overcome with time.
There were also
other, more difficult to measure factors that may have played roles in
the October decline within individual markets. For instance, October
sales within the APMEA segment may have been impacted by roused
anti-American sentiment in the Middle East and parts of North Africa and
Asia due to the controversial film
Innocence of Muslims, a theoretical effect
that we discussed
in late September. Perhaps a lingering impact from the protests is seen
again in November's slower relative same-store sales growth within the
affected APMEA segment against the faster growth in the company's
European and U.S. markets.
The Value Meal Advantage
Without a doubt, every company's most significant challenge
today
is cyclical in nature. The laboring global economy continues to weigh
against the performance of most companies across competitive markets and
is indifferent to monthly anomalies. Though in this regard, the value
offerings of McDonald's set it in the category with those contrarian
ideas that benefit in tough times as others struggle. It's why Wal-Mart (
WMT) and Costco (
COST) have thrived in recent years, while department store rivals like J.C. Penney (
JCP) have been greatly challenged.
In
fact, the company attributed its November revival to its Dollar Menu
and promotional efforts tied to the Cheddar Bacon Onion sandwich and its
seasonal and specialty beverages. The company also noted the importance
of its breakfast business and the overall value provided by its
offerings through the month. In tough times like these, McDonald's is
supposed to pick up business from the casual dining companies that
Darden Restaurants (
DRI) and Brinker International (
EAT)
operate. There's another factor today, though, which I believe is going
to play an increasingly important role in the performance of McDonald's
and its shares.
The Better Burger Challenge
What I
see happening in the United States versus the company's other markets is
something relatively new and ultimately more important. A vulnerability
in the fast food segment and more specifically a threat to the bargain
burger flippers, including McDonald's, Burger King (
BKW) and Wendy's (
WEN), has been uncovered and is being exploited.
I
believe proven demand for a "better burger" signals an important
secular change to the company's industry structure and competitive
environment in America. This industry issue threatens McDonald's
directly, and could mean a shift in market share away from all the basic
burger joints serving low-cost meals. Thus, I believe the experts whom
I've seen attributing recent sales fluctuations and share volatility in
MCD to the efforts of long-time rivals like Burger King and Wendy's are
missing the real issue.
The Big Problem Facing McDonald's
While Red Robin Gourmet Burgers Inc. (
RRGB)
has been announcing its differentiating factor in its name since its
founding in 1969, it seems entrepreneurs have finally noticed an
economic value-added opportunity hiding right in front of our collective
salivating mouths. Now big, tasty and juicy burgers are drawing in
customers who used to go to McDonald's but who were always willing to
pay more for a better burger, or at least a different burger served up
in an environment other than the colorful iconic McDonald's franchises
that now cover the world over.
There is certainly traction in the
"better burger" segment, as evidenced by the popularity and growth of
new brands including Shake Shack and Five Guys. But the story and
opportunity extend far beyond those two names, with brands burning new
ground across the country. I can see very clearly in my own neighborhood
on Manhattan's Upper East Side that there is a new buzz about burgers.
There
are chains boasting "organic burgers," which you might think true
burger lovers wouldn't care about or might even avoid, but not after the
documentary Food Inc. and the widely publicized "pink slime" issue. I
don't know anybody who would knowingly eat pink slime, and so suddenly
organic meat matters to more people than just health nuts. Others offer
exotic meat burgers like lamb, bison and ostrich for those truly seeking
something different. I've tried both bison and the lean ostrich meat
over the course of my meat-loving life, and have found both tasty. Shops
like the Shake Shack location on the Upper East Side of Manhattan are
doing blockbuster business. In fact, I know one successful pizza shop
operator on the Upper East Side who is now opening up burger joints in
the neighborhood serving up better burgers.
In Manhattan's
fishbowl test market, I see new burger places popping up everywhere. I
can walk to Shake Shack's 86th Street spot without much effort. So as,
where I once had to walk five blocks to find both Burger King and
McDonald's locations, I now have at least five other specialty burger
options within the same distance. The burger joints are basically
everywhere now, and they're all taking market share from McDonald's,
Burger King, Wendy's and friends.
It seems people have always been
willing to pay up for a juicy better burger that costs a little more,
but it's always been at diners and family style restaurants like Denny's
(
DENN). The
thing is that people rarely venture to those types of restaurants for a
burger specifically. Now hungry meat-eaters have a slew of restaurants
to choose from providing a variety of premium quality, organic and
exotic burgers to satisfy the needs of those seeking something special.
The
threat to McDonald's is relatively new, and portends to bring
structural change to the burger industry niche. What was an oligopoly is
suddenly dynamically competitive, where price loses some of its pull
for a good many consumers. McDonald's is not asleep at the wheel though.
You can see that it has recognized the threat internally and has
shifted its strategic focus to face the challenge.
I'm sure the
renovation of the old legacy McDonald's store layout, making it new and
comfortable for more than just children, is a move toward its new
competitors' efforts to reach grownups. McDonald's work behind the
counter has been as aggressive, with an executive chef geared menu
renovation taking shape over the last decade. Promotional sandwiches
like the Cheddar Bacon Onion and the McRib are innovative efforts to
meet the new meat seekers. McDonald's even spells it out in its
commentary for discerning readers. In its November sales release, the
company discusses "optimizing its menu, modernizing the customer
experience and broadening accessibility to its brand." The company
continues, saying that all this is to meet the day's "economic and
competitive challenges." Optimizing its menu means providing its own
"better burgers" and other specialty sandwiches and beverages, a move
away from the cheapest burger competition it has waged against Burger
King over the last several years. By broadening its brand, the company
hopes to appeal to the less price sensitive burger buyer.
Unfortunately
for MCD shareholders, the McDonald's brand may be too well established
to fend off the up and comers just now making a name for themselves. If
that is the case, the nation's most important food service employer may
do better to just buy one of its new challengers outright. Sometimes
it's better to buy a brand to reach a new niche than to extend an
established brand. Obviously, this is not likely to happen unless the
company realizes market share loss, and determines it is unable to stave
off the competitive threat via its current menu and store enhancements.
Thus, over the near term, I expect MCD's historical valuation to prove
unreliable as a forecasting tool. Instead, MCD should test old low
values, and trade below its mean valuation.
According to data provided at Forbes.com, MCD trades at a premium to its five-year average
low P/E ratio and its
lowest P/E ratio over that same period. MCD is just a bit off its five-year
average P/E ratio currently.
MCD Valuation and Implied Price
Implied
prices and price targets are based on analyst consensus EPS estimates
for 2012 and 2013 of $5.31 & $5.78 as found at Yahoo Finance.
| PERIOD | P/E | Implied Current Value | Implied Price Target | Implied Appreciation or Depreciation |
| Trailing 12-Months | 16.5 | 87.58* | 95.37 | +8.9% |
| 5-Year Average | 19.5 | 103.55 | 112.71 | +29% |
| 5-Yr. Ave. Low | 14.6 | 77.53 | 84.39 | -3.6% |
| 5-Yr. Lowest | 12.2 | 64.78 | 70.52 | -19% |
* $87.58 is the price taken as the current price and used in all appreciation/depreciation to target price calculations.
Because
of a media blitz favoring McDonald's, highlighted by a positive push
for MCD by heavily followed pundit Jim Cramer, the stock might see more
upside before the better burger buries it. However, I expect it will get
cheaper on a valuation basis as my thesis is realized by a thus far
inattentive analyst community and as legacy-loyal portfolio manager
favor fades away.
Old money will stick with the stock near-term
based on its discount to historical average value. As a result, outsized
gains (alpha) should be available for those willing to take short
position against the stock. The perennially positive portfolio manager
might do fine to buy the shares of newcomer rivals as they undoubtedly
begin to go public over the next several years, or consider seeking
private equity investment or franchise opportunity in start-ups. I
believe that current holders of MCD should at least hedge their risk.
My
study of historical P/E ratios shows the stock is still short of its
5-year average, with 29% in capital appreciation upside if it were to
reach that average mark in 2013. That's the appeal for the legacy
interests, but the argument misses the new threat, which in my
estimation should lead capital out of the stock with momentum as the
threat becomes apparent in regular in operating results. While it may be
much to expect the stock to quickly fall to its lowest P/E mark of the
last five years of 12.2, it should easily find the five-year average low
P/E of 14.6 if a bit of evidence of market share loss materializes. So,
in my estimation, if this realization occurs in 2013, the stock could
depreciate in value by between 3.6% and 19% over the coming year. If it
takes more than a year for the evidence to turn up, well then the stock
should still underperform the market over that multi-year period. Given
the outlined risk, I would definitely look to other names for relative
industry exposure.
Relative to earnings per share growth, the
stock also appears easily overvalued, even after considering its
dividend yield of 3.5%. Analysts covered by Yahoo Finance agree that the
company should grow at an 8.8% average rate over the next five years.
Adjusting for the yield, we can use a figure of 12.3% as the denominator
in our P/E-to-growth estimate. At that mark, the five-year average low
P/E of 12.2X looks most appropriate for those seeking better than
average market performance. More importantly, the P/E on the 2013 EPS
estimate of $5.78 measures 15.2X, giving us a PEG ratio of 1.2. That's
expensive for a stock whose operating performance might come into
question next year.
Conclusion and Key Risks
The
"better burger" issue is an important consideration for McDonald's
investors today and poses a threat to historical valuation precedence.
Given that threat and the ground already recovered since the November
same-store sales report, I would not add to holdings of MCD today. On
the fluffy support of interests in the stock and pundits lacking
understanding of the changing industry dynamics MCD must contend with,
and given that it could benefit further from a fiscal cliff relief
rally, I would look to any further gains over the next few weeks as
opportunity to sell out of current holdings. For those capable and
willing of taking short interests, I would suggest them on such
strength. Finally, remember that MCD's greatest support today is derived
from its Asian opportunity, which is a risk short interests must
consider and contend with. However, even that opportunity comes into
question when Iran is finally engaged and on any disruption to energy
flow into the Asia Pacific region.
This article was sent to 13,236 people who get email alerts on MCD.
Five Guys
From Wikipedia, the free encyclopedia
Five Guys Enterprises, LLC/
Five Guys Holdings, LLC, doing business as
Five Guys, is a
fast casual restaurant chain focused on
hamburgers,
hot dogs, and
French fries, with its headquarters in the
Lorton community in
unincorporated Fairfax County, Virginia.
[1][2] The first Five Guys restaurant opened in 1986 in
Arlington County, Virginia, and between 1986 - 2001 they expanded to five locations scattered through the DC-metro area.
[3]
In early 2003, the chain began franchising, opening the doors to
rapid expansion. In just a year and a half, permits had been sold for
over 300 franchised locations, catching the attention of the national
restaurant industry.
[3]
As of 2012, Five Guys has over 1000 locations open throughout the
United States and Canada and over 1500 locations under development.
[3] They were proclaimed the fastest growing fast food chain, with a 32.8% sales increase from 2010 to 2011.
[4]
Food
A Five Guys' bacon cheeseburger.
Five Guys restaurants offer complimentary peanuts.
The Five Guys' menu is centered on hamburgers offered with
American cheese or
bacon,
kosher style hot dogs,
grilled cheese and vegetable sandwiches. Five Guys uses buns that are sweeter and "eggier" than normal buns.
[5] Fresh-cut
French fries are the sole side item, available salted only in "Five Guys style" or seasoned "
Cajun style".
Complimentary roasted in-shell peanuts are offered for on-site
consumption at most locations, with signage alerting potential customers
who may have a peanut allergy. Peanuts are not permitted to be taken
out of the restaurant, out of concern for spreading the allergen.
[6]
Some outlets
[7] also offer egg sandwiches on Five Guys' buns for breakfast.
Restaurants
Interior of a Five Guys restaurant in Charlottesville, Virginia
A Five Guys restaurant usually has a simple layout of red-and-white
checkered decorations, a single counter for purchasing and picking up
food, and a few tables and chairs.
Kitchens are open, with bags of potatoes stacked in customer space, dating to when lack of storage required it.
[5]
Most restaurants offer wall-mounted cork boards with a stack of notecards and crayons next to them for customers to draw on.
As of April 2012, there are more than 1000 locations across 40 states
and in the Canadian provinces of Alberta, Saskatchewan, British
Columbia, Manitoba, Ontario and Quebec.
[8] An additional five stores open every week.
[5]
History
Five Guys was founded in 1986 by Janie and Jerry Murrell, Jerry and
the couple's four sons, Matt, Jim, Chad, and Ben, being the original
"Five Guys".
[9][10]
The Murrells had a fifth son, Tyler, two years later. Today all five
sons, the current "Five Guys", are involved: Matt and Jim travel the
country visiting stores, Chad oversees training, Ben selects the
franchisees, and Tyler runs the bakery.
[11]
The first Five Guys was in Arlington's Westmont Shopping Center. Buns
were baked in the same center by Brenner's Bakery. This location closed
in favor of another in Arlington at the intersection of King and North
Beauregard Streets, still in operation today.
More followed in
Old Town Alexandria and
Springfield, Virginia,
making five by 2001. Their success encouraged the Murrells to franchise
their concept the following year, engaging Fransmart, a franchise sales
organization. Former
Washington Redskins kicker Mark Moseley, who had gone to work for Fransmart after his
football
career, played a key role in Five Guys' expansion and went on to become
the company's director of franchise development after it ended its
business relationship with Fransmart.
[10][5]
In early 2003 the chain began franchising, opening the doors a rapid
expansion which caught the attention of national restaurant trade
organizations and the national press. The expansion started in Virginia
and Maryland, and by the end of 2004, over 300 units were in development
through the Northeast. Over the next few years the chain rapidly
expanded across the entire United States and into Canada, reaching over
1000 locations by 2012.
[3]
In 2010 the company claimed to have used 123 million pounds (55,791 metric tons) of potatoes and enough
peanut oil to fill the Jungle Cruise ride stream at
Disneyland.
[citation needed]
Reception
Five Guys has received numerous awards in D.C. area publications, including "Number 1 Burger" by
Washingtonian Magazine for seven years.
[citation needed]
Since franchising, it has also received awards in other cities,
including Amherst, New York; Redlands, California; Annapolis, Maryland;
Charlotte, North Carolina; Richmond, Virginia; Huntington, New York;
Charlottesville, Virginia; St. Louis, Missouri; Houston, Texas; Austin,
Texas; Johnstown, Pennsylvania; State College, Pennsylvania;
Philadelphia, Pennsylvania;
[12] Pittsburgh, Pennsylvania;
[13][dead link] Virginia Beach, Virginia;
[14] Jacksonville, Florida;
[15][dead link] Youngstown, Ohio; Schererville, Indiana; Tucson, Arizona; Newburgh, New York and Hampton, Virginia.
[clarification needed]
They have somewhat of a cult following and notable brand enthusiasm.
Five Guys has been rated as one of the most talked about burger brands
online.
[5][16]
As Five Guys continues to expand into the
West Coast comparisons have been made with
In-N-Out Burger, another generally similar fast food chain. The
Los Angeles Times noted that Five Guys's menu items are somewhat more expensive, they lack
drive-throughs,
and are most often found in shopping malls. The newspaper still
conceded that by pricing its products higher, offering bigger burgers
and building larger dining rooms, Five Guys could capitalize on the
recent trend of mid-level places that offer more expensive products than
fast food but cheaper than fancy restaurants.
[4] In reality, however, In-N-Out has more in common with
Checkers (fast food) while Five Guys is a similar model to
Meatheads and
Smashburger
In 2012, Market Force Information, Inc. questioned 7,600 consumers,
and Five Guys ranked No. 1 in food quality and taste, service,
cleanliness, and atmosphere.
[17]
In 2011, Five Guys was ranked first in "Fast Food - Large Chains" and "Best Burger" in Zagat's annual Fast Food Survey.
[18]
Criticism
Men's Health magazine says that Five Guys' meals are unhealthy.
[19] They state that a standard double patty burger, for example, contains 700 calories and 20 grams of saturated fat.
[19] Men's Health
also rated Five Guys' french fries as some of the most unhealthy food
in America, saying that a standard large order of fries contains almost
1,500 calories.
[20] The
Center for Science in the Public Interest
placed Five Guys' bacon cheeseburger, which it says contains 920
calories, among its 2010 list of most unhealthy meals available at U.S.
chain restaurants.
[21]
References
- ^ "Contact Us." Five Guys. Retrieved on October 1, 2012. "10440 Furnace Road Suite 205 Lorton, VA 22079"
- ^ (It previously occupied a different location in Lorton)"Contact (archived)."
Five Guys. November 28, 2006. Retrieved on October 1, 2012. "Five Guys
Enterprises, LLC 8390 Terminal Road Suite B Lorton, VA 22079 "
- ^ a b c d "About Us". Five Guys. Retrieved 10 November 2012.
- ^ a b [[1]. "LATimes"]. Los Angeles Times. Retrieved 26 November 2012.
- ^ a b c d e Karen Weise (August 11, 2011). "Behind Five Guys’ Beloved Burgers". BusinessWeek.
- ^ "Frequently Asked Questions | Five Guys Burgers and Fries". Fiveguys.com. Retrieved 2012-10-04.
- ^ Washington Dulles International Airport (VA/DC); LaGuardia Airport (NY); Reagan National Airport (VA/DC); Norfolk Naval Base (VA); McPherson Square (DC)
- ^ "History". Five Guys Holdings, LLC. Archived from the original on July 19, 2011. Retrieved April 11, 2011.
- ^ Rosenwald, Michael S. (April 3, 2006). "Five Guys, Taking a Bigger Bite". The Washington Post. Retrieved March 10, 2008.
- ^ a b "Number 1 with a Burger" (PDF). Restaurant Business. August 2006. Archived from the original on July 26, 2007. Retrieved September 13, 2008.
- ^ Liz Welch (April 1, 2010). "How I Did It: Jerry Murrell, Five Guys Burgers and Fries". Inc. (Mansueto Ventures LLC). Retrieved April 10, 2010.
- ^ "Press". Five Guys. Archived from the original on April 14, 2006. Retrieved April 17, 2006.
- ^ "The Best Food – Best Of 2007". The Pitt News.[dead link]
- ^ "Virginia Beach Best Food & Dining". HamptonRoads.com. Landmark Media Enterprises L.L.C. Archived from the original on August 27, 2007. Retrieved June 26, 2007.
- ^ "Jacksonville Magazine's The Best of Jacksonville 2007" (PDF).[dead link]
- ^ Lisa Joy Rosner (March 14, 2011). "Best (Bad for You) Burgers". NetBase. Retrieved Nov 9, 2011.
- ^ Hsu, Tiffany (2012-09-19). "Five Guys voted favorite burger chain, McDonald's near bottom". chicagotribune.com. Retrieved 2012-10-04.
- ^ [[3]. "HuffPostZagat"]. Huffington Post. Retrieved 26 November 2012.
- ^ a b "Five Guys". Men's Health — Eat This, Not That. 2008. Retrieved January 6, 2010.
- ^ "20 NEW Worst Foods in America". Men's Health — Eat This, Not That. Retrieved January 6, 2010.
- ^ Noah Galuten (May 28, 2010). "CSPI Releases Its Annual List Of The Fattiest Foods In America". LA Weekly. Retrieved May 28, 2010.
External links
http://www.fiveguys.com/about-us/faq.aspx
Burger Questions
Why does Five Guys only serve burgers cooked well done?
By cooking all of our burgers juicy and well done we are able to
achieve two goals.
- Ensure a consistent product
- Meet or exceed health code standards for ground beef
We understand that there are varying opinions on what level a
burger should be cooked for optimal flavor and our opinion is that
our burgers taste best cooked juicy and well done.
Does Five Guys serve organic or free range beef?
While our beef is neither organic nor are the cattle free range,
our distributor purchases raw materials from the major meat
suppliers in the US who are required to treat the cattle humanely
and follow all the procedures set forth by the USDA.
Is there pink slime in Five Guys burgers?
Five Guys uses 80/20 ground chuck-high quality ground beef
containing only steer and heifer meat, which does not include any
cow meat or fatty trimmings. We do not use ammoniated procedures to
treat our ground beef. This means that there is NO "pink slime" in
our burgers. Our beef comes from the percentage of companies that
do NOT use these methods.
Return to top.
Food Allergy, Nutritional Information and Dietary Restriction Questions
Is Five Guys Gluten-Free?
Our buns contain eggs, soy, dairy and gluten.
Do you offer any food which is suitable for vegetarians?
Yes, to a certain extent. Our veggie sandwich and grilled cheese
sandwiches are suitable for lacto-vegetarians. One thing to take
note of is that our veggie sandwich is NOT a veggie burger. Our
veggie sandwich consists of as many "veggie" toppings as you desire
and served on our basic bun. You can add cheese if you please. Our
bread is toasted, but usually on a separate grill from meat
products. However, there is always a chance for cross
contamination, so please check at the individual location where you
are ordering to be certain. Finally, our fries are just plain
potatoes cooked in 100% peanut oil and are suitable for even vegan
diets.
Do any Five Guys products contain soy or dairy?
Our rolls contain both soy and dairy.
Is Five Guys trans-fat free?
Yes! All of our products are trans-fat free. Our ground beef,
like all beef, contains traces of naturally occurring trans-fats
but they are less than 0.5 grams per serving.
Where can I find nutritional information on Five Guys food?
Our nutritional information is listed right on this site. Get a
copy of our
nutritional guide and you will find the
nutritional information broken out by ingredient type so that you
can build your burger!
Return to top.
Peanuts and Peanut Allergy Questions
What type of peanut oil does Five Guys use?
We use 100% peanut oil that is refined and contains only enough
preservatives (less than .004%, so that the oil doesn't foam when
we put our fries in!).
Why can't we take peanuts outside?
Although it is rare that a casual encounter with peanuts will
cause an allergic reaction, we want to limit the risk of someone
unknowingly coming into contact with peanuts.
If so many people are allergic to peanuts, why does Five Guys continue to offer them?
Over the past 20 years, peanuts have become part of the Five
Guys identity. We by no means want to exclude guests from our
store, but at the same time we would not want to disappoint our
peanut eating guests. We make sure that we have signage on our
doors and in our restaurants about the fact that we serve peanuts
in bulk containers as we would never want someone to risk their
health by coming into our restaurants.
Return to top.
Other Questions
Is Five Guys a Publicly Traded Company?
Five Guys is a privately owned company and we do not currently
have plans to go public. However, we get these questions a lot and
we take it as a compliment, thank you!
Does Five Guys Cater?
Unfortunately, we do not cater as our food does not hold up well
under those circumstances. We can accommodate large orders though,
and suggest that you call ahead or fax large orders into your local
store.
Does Five Guys offer Gift cards?
We sell gift cards in almost all of our stores and gift cards
are redeemable at all Five Guys locations. Our gift cards are also
available to
purchase
online.
Does Five Guys plan to add any menu items (i.e. milkshakes, chili, etc.)?
Five Guys does not currently have plans to add any items to our
menu. We follow the philosophy of focusing on a few items, and
serving them to the best of our ability. If we were to add to our
menu, then you can guarantee that we would only do so if we could
serve the highest quality product possible. For example, there are
a lot of great milkshakes out there, and at this point we think
that others are doing it better than we could!
How can I find out when a store near me will be open?
Five Guys is constantly opening new locations across the nation
and we do our best to list stores that are opening within the next
few months on our website. Unfortunately, we can rarely predict the
exact date that a store will open until just a few days prior, so
we are not able to provide actual opening dates.
Does Five Guys offer coupons or discounts?
Five Guys does not offer any coupons or discounts. Heck,
employees at the Five Guys can only get free burgers if they are
working in the store! Why? We strive to serve the highest quality
product possible, at a reasonable price, everyday! We do not
discount the price of our product because we refuse to discount the
quality of our product.
Is there a place to buy Five Guys t-shirts?
Yes! We have an
online store, just
click on the link on our front website page and it will take you
right to the store! We do NOT sell t-shirts, hats etc. in our
stores as we like to make sure we are focused on the most important
part of the Five Guys experience… the burgers and fries!
Return to top.
