What is Arby’s stock price, and are they publicly traded? Unfortunately, investors cannot purchase shares of Arby’s because it is a private company. However, McDonald’s (NYSE: MCD), Chipotle (NASDAQ: CMG), and Shake Shack (NYSE: SHAK) are fast food stocks that traders can invest in.
We all have our favorite fast food restaurants growing up. Whether hamburgers, fried chicken, or submarine sandwiches, getting a quick hot meal on the go was a treat. But what about a roast beef or pastrami sandwich covered with melted American cheddar?
Not many people will have Arby’s on their list of favorite fast-food restaurants, but the Georgia-based chain has a very loyal fanbase.
Arby’s fills a niche in the fast food market that other brands cannot compete with. It has loyal fans and a strong international presence. Arby’s is starting to check off all the boxes that make a company a great investment.
In this article, I’ll discuss Arby’s corporate history, investing in Arby’s stock, and why some other fast food giants should be a part of your long-term portfolio.
Table of Contents
Arby's Introduction (No Stock Symbol)
Arby’s is an American multinational fast-food restaurant founded in Boardman, Ohio, in 1964. Brothers Forrest and Leroy Raffel, who were involved in the restaurant equipment business, established Abry’s.
The two believed there was a hole in the fast-food industry for consumers who wanted something other than hamburgers. The Raffel brothers wanted to start a sandwich business called Big Tex, but another restaurant was using that name.
So Leroy and Forrest named their restaurant Arby’s, a phonetic name for the letters R and B, which stands for Raffel Brothers.
The first Arby’s store opened in Boardman, Ohio, and served sandwiches and soft drinks. At $0.69 per sandwich, Arby’s charged more than four times as much as hamburgers. The luxurious restaurants and expensive menus were meant to attract a more upscale consumer.
Arby’s expansion was swift as the company opened more than 50 locations annually in the 1970s.
During this period of expansion, Arby’s will add some of its more well-known menu items, including its curly fries and beef and cheddar sandwich. You can’t buy Arby’s stock, though.
Arby's Ownership History
The next few decades would be tumultuous for Arby’s as the company changed ownership multiple times. The Raffel brothers sold Arby’s to the Royal Crown Cola Company in 1976 for $18 million.
In 1984, Arby’s was acquired through a hostile takeover by the DWG Corporation, which would later sell the company to the RTM Restaurant Group for $71 million.
2008 Triarc, one of Arby’s largest franchisees, acquired Wendy’s. The company would rename itself the Wendy’s/Arby’s Group, although it would split by 2011. In 2011, the Roark Capital Group bought Arby’s, which would operate the brand under its restaurant division, Imagine Brands.
As of 2024, Arby’s has over 3,400 franchises worldwide. These stores are in Canada, Costa Rica, Egypt, Mexico, South Korea, Turkey, and Saudi Arabia. Arby’s stock was never made public, even with all the different owners.
Can You Buy Arby's Stock?
So all of this begs the question: can you buy Arby’s stock? Is Arby’s a publicly traded company in 2024? The answer to these questions is, unfortunately, a no. At one point in 1970, the Raffel brothers did attempt to take Arby’s public by filing an IPO.
The IPO never went through as the stock market fell, and a severe recession kicked in. This recession would last until 1975 when events like the Vietnam War, Watergate, and the resignation of President Nixon occurred.
Arby’s was never publicly traded and has always been privately owned. The Raffel brothers founded the company, which was acquired from them by private equity. Never in its 59-year lifespan has Arby’s stock ever been publicly traded.
Arby's Stock Competitors
Since we can’t buy Arby’s stock, are there other fast-food restaurant chains we can invest in? There sure are! Many of Arby’s direct rivals are publicly traded, so you can certainly have exposure to fast food in your portfolio.
Why would you want to invest in fast food? Most of the time, these restaurants have a strong brand presence worldwide. In addition to that, these fast-food restaurants generally have high-margin businesses with loyal customers.
Everyone knows that fast food is bad for your health. However, investing in fast-food restaurants has been great for long-term portfolios. Here is our list of the best fast-food stocks to own in 2024.
1. McDonald's (NYSE: MCD)
Any discussion about fast food stocks has to begin with McDonald’s. The golden arches are one of the most recognizable logos in the world. You can find a McDonald’s restaurant in nearly 120 countries worldwide at any of the more than 41,800 locations.
It is the largest restaurant company in the world by a mile, with a market cap of $181 billion. The stock is a component of the S&P 500, the S&P 100, and the Dow Jones Industrial Average.
Is McDonald’s stock a good investment? As prices, cost of materials, and wages continue to rise, fast food isn’t as affordable as it once was. MCD is down by about 15% in 2024 but has returned about 17.5% over the past five years. While you shouldn’t expect life-changing gains from owning McDonald’s stock now, it is still a rock-solid company with a 2.66% dividend yield.
It is also a certified S&P Dividend Aristocrat, which has raised its dividend for 48 consecutive years. Two more years, and it will be a Dividend King. As a result, it’s a great Arbyy’s stock alternative.
2. Chipotle Mexican Grill (NASDAQ: CMG)
If you were wondering what the world’s second-largest publicly traded restaurant chain is, you’ve come to the right place. Although it has only operated since 1993, Chipotle is a $77 billion business with over 3,400 locations worldwide.
As for the stock, Chipotle has blown McDonald’s out of the water. Over the past five years, CMG has returned 280% to shareholders, including 26% in 2024.
The stock recently underwent a massive 50-for-1 stock split and is trading at its lowest share price in years. As of July 2024, Chipotle has not paid a dividend to shareholders. However, it’s still a great Arby’s stock alternative.
3. Domino's Pizza (NYSE: DPZ)
Domino’s is a quintessential American pizza chain. This company is now in over 90 international markets with over 20,000 locations worldwide. Domino’s is also a very successful and popular stock in which to invest.
Over the past five years, DPZ has returned an impressive 87% to shareholders, including 17% in 2024. It is the world’s sixth-largest publicly traded restaurant company and the second-largest pizza chain next to Yum! Brands’ (NYSE: YUM) Pizza Hut.
Domino’s is known for its innovation in the fast food and food delivery industries. After a heavy investment in its online ordering systems, Domino’s has one of the best online ordering sites in the restaurant industry. It has also tested autonomous delivery vehicles and recently added electric vehicles to its fleet.
4. Shake Shack (NYSE: SHAK)
Shake Shack is one of the shiny new fast-food chains that went public via an IPO in 2015. During the first day of trading, shares were $21.00 but hit as high as $47.00. After a hot start to public trading, Shake Shack has leveled off in recent years.
As its menu items have higher prices than most other fast food restaurants, Shake Shack has struggled during times of higher interest rates and inflation.
Shareholders have seen a return of just 16% over the past five years. As a result, this includes the 17.5% return the stock provided in 2024. Despite the struggling stock, Shake Shack has continued its aggressive global expansion. It now operates over 400 locations, with more than 140 opened outside the United States.
5. Restaurant Brands International (NYSE: QSR)
Restaurant Brands International is a restaurant chain conglomerate based in Toronto, Canada. The stock is dual-listed on both the Toronto and New York Stock Exchanges.
RBI owns multiple fast-food restaurant chains, including Burger King, Popeyes, and Tim Hortons. Across all its brands, it operates more than 30,000 locations in more than 100 countries.
This stock has not seen the same returns that others on this list have had. Over the past five years, shares of QSR have returned a loss of 1.0% to shareholders. While the stock hasn’t done much, QSR pays shareholders a quarterly dividend with an annualized yield of 3.21%.
Final Thoughts: Arby's Stock
As you can see from our list, fast food stocks have been a mixed bag for long-term investors. Getting in early seems to be the key. As these restaurant chains expand and improve gross margins over time, the stock reflects the well-run business. Once cash flow is abundant, companies also begin to pay dividends to shareholders.
These companies can see cyclical impacts on their business. For example, the recent increase in inflation has even impacted fast-food restaurants. They used to be considered the cheapest dining option.
Blue-chip fast food stocks can offer stability as well as a quarterly dividend. Newer fast food stocks can provide higher growth but come with more risk. As they expand globally, there will be a lot of capital expenditure and reinvestment of revenues.
Unfortunately, Arby’s doesn’t fall into either category. Why? Because you can’t buy Arby’s stock on any stock exchange. If it was public, would you buy Arby’s stock?
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Frequently Asked Questions
No, you cannot buy Arby's stock on any stock exchange. Roark Capital owns Arby's and operates under its restaurant division called Inspire Brands.
Although they were a part of the same company as recently as 2011, Wendy's does not own Arby's. Wendy's is a publicly traded company under the ticker NASDAQ: WEN.
No, Inspire Brands is a private company that falls under the umbrella of Roark Capital. Inspire Brands owns well-known restaurant chains like Baskin Robbins, Buffalo Wild Wings, and Dunkin' Donuts.
Arby's does not own Subway, although Roark Capital owns it. Roark acquired Subway on April 30, 2024, for $9.6 billion. As of now, there are no plans for Roark to take Arby's or Subway public.
