McDonalds and Buffalo Wild Wings: Comparing two restaurant chains

	Buffalo Wild Wings
	2007	2008	2009	2010	2011	2012	2013	2014
Number of stores operating at year-end:
Company-owned	161	197	232	259	319	381	434	491
Franchised	332	363	420	473	498	510	559	591
Revenues ($ in millions):
Company-owned store sales		$379.7	$488.7	$555.2	$717.4	$964.0	$1,185.4	$1,423.0
Franchise fees		42.7	50.2	58.1	67.1	76.6	81.4	93.2
Total		422.4	538.9	613.3	784.5	1,040.6	1,266.8	1,516.2

	McDonalds
	2007	2008	2009	2010	2011	2012	2013	2014
Number of stores operating at year-end:
Company-owned	6,906	6,502	6,262	6,399	6,435	6,598	6,738	6,714
Franchised	24,471	25,465	26,216	26,338	27,075	27,882	28,691	29,544
Revenues ($ in millions):
Company-owned store sales		$379.7	$488.7	$555.2	$717.4	$964.0	$1,185.4	$1,423.0
Franchise fees		$16,560.9	$15,458.5	$16,233.3	$18,292.8	$18,602.5	$18,874.2	$18,169.3
Total		23,522.4	22,744.7	24,074.6	27,006.0	27,567.0	28,105.7	27,441.3

Required:

1. Determine the amounts of sales revenue per company-owned store and franchise fees per franchised store for each year and each company. In these computations, use the average number of stores open during the year.
2. Assume that for both companies sales at company-owned stores are the same (on a per store basis) as sales for the same companys franchised stores. Estimate each companys franchise fee rate, which is stated as a percentage of each franchisees sales revenue.
3. Perform a cause-of-change analysis from 2008 to 2011 for each company to disaggregate the increase in revenues from company-owned stores between growth in the average number of average stores open and growth in revenues per store. Also perform a cause-of change analysis from 2011 to 2014.
4. Perform similar analyses for franchise fee revenues.
5. What do your analyses from requirements 3 and 4 tell you about the companies growth strategies and how they differ from each other and over time?