McDonald’s Versus Burger King: Whose Franchisees Perform Better?
McDonald’s (NYSE:MCD) earns almost an eight times higher revenue than Burger King (NYSE:QSR), owing to twice the number of franchised restaurants and comparatively larger footfall. However, lately McDonald’s has found itself struggling, owing to an industry-wide slowdown in sales and people’s changing preference towards organic and healthier food. Furthermore, the average number of customers visiting McDonald’s annually has been falling consistently. In 2015, the number had come down to 650,700, as compared to the high of 740,000 in 2011.
On the other hand, Burger King (BK), owned by Restaurant Brands International, has successfully turned around its business, growing at a much higher annual growth rate than McDonald’s meager 0.7% per annum. This growth, in part, is attributable to the company’s quirky and innovative menu items like Mac n’ Cheetos, Oscar Mayer hot dogs, Egg-normous burrito, and Chicken Fries Rings which have succeeded in attracting customers. Furthermore, BK’s store expansion plans in China and other developing countries have supported the company’s revenues.
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Consequently, we see that although McDonald’s has a much higher average revenue per franchised restaurant, its annual growth rate has slowed down recently.
Have more questions on McDonald’s? See the links below.
- McDonald’s Slows Down In Q2’16, Despite Growth In Comparable Store Sales
- McDonald’s Q2 FY 2016 Earnings Preview: Investment In Quality, All Day Breakfast To Drive Revenues
- McDonald’s 2016 Revenues To Decline YoY Despite Improvement; To Pick Up Pace Thereafter
- What’s McDonald’s Fundamental Value Based On Expected 2016 Results? (Updated After Q1 2016)
- By What Percentage Have McDonald’s Revenues And EBITDA Grown Over The Last Five Years?
- What Is McDonald’s Revenue & EBITDA Breakdown? (Updated After Q1 2016)
- How Has McDonald’s Revenue And EBITDA Composition Changed Over 2011-2015?
- McDonald’s Q1 FY 2016 Earnings Preview: All Day Breakfast To Drive Comp Sales In The US
- Where Will McDonald’s Revenue And EBITDA Growth Come From Over The Next Three Years? (Updated After Q1 2016)
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