In 2013, McDonald's reported profits of almost $6 billion on sales of $28 billion. For that same period, Burger King posted a profit of almost $234 million on sales of $1.1 billion. So McDonald's is a better marketer, right? Sales and profits provide information to compare the profitability of these two competitors, but between these numbers is information regarding the efficiency of marketing efforts in creating those sales and profits. Appendix 2, Marketing by the Numbers, discusses other marketing profitability measures beyond the return on marketing investment (marketing ROI) measure described in this chapter. Review the Appendix to answer the questions using the following information from McDonald's and Burger King's incomes statements (all numbers are in thousands):

Calculate profit margin, net marketing contribution, marketing return on sales (or marketing ROS), and marketing return on investment (or marketing ROI) for both companies. Which company is performing better?

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McDonald'sBurger Kin,g $28,105,700 $1,146,300 $10,902,700 |$951,000 Marketing Expenses $1,600,500 S 321,600 Net Income (Protit) S5,585,900 S233,700 Sale Gross Profit