Question
Determine the amount of sales revenue per company-owned store and franchise fee per franchised store for each year and each company? In these computations, use
Determine the amount of sales revenue per company-owned store and franchise fee per franchised store for each year and each company? In these computations, use the average number of stores open during the year.
McDonalds and Buffalo Wild Wings: Comparing two restaurant chains.
McDonalds Corporation franchises and operates more than 30,000 fast-service restaurants in 119 countries. Buffalo Wild Wings franchises and operates more than 500 restaurants in the United States. Buffalo Wild Wings features chicken wings and a full bar in its restaurants.
Financial information for each company follows. EBI denotes after-tax earnings before interest
Buffalo Wild Wings | |||||
2007 | 2008 | 2009 | 2010 | 2011 | |
Number of stores operating at year end | |||||
Company owned | 161 | 197 | 259 | 319 | 319 |
franchised | 332 | 326 | 420 | 473 | 498 |
Revenue in Millions | |||||
Company owned Stores | 379.7 | 488.7 | 555.2 | 717.4 | |
Franchise fees | 42.7 | 50.2 | 58.1 | 67.1 | |
Total | 422.4 | 538.9 | 613.3 | 784.5 |
McDonalds | |||||
2007 | 2008 | 2009 | 2010 | 2011 | |
Number of stores operating at year end | |||||
Company owned | 6,906 | 6502 | 6262 | 6399 | 6435 |
franchised | 25,465 | 25,465 | 26,216 | 26,338 | 27,075 |
Revenue in Millions | |||||
Company owned Stores | 16,560.9 | 15,458.5 | 16,233.3 | 18,292.8 | |
Franchise fees | 6,961.5 | 7,286.2 | 7,841.3 | 8,713.2 | |
Total | 23,522.4 | 22,744.7 | 24,074.6 | 27,006.0
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