Question
McDonald's Corporation franchises and operates more than 30,000 fast service resturants in 119 countries. Buffalo Wild Wings francises and operates more than 500 resturants in
McDonald's Corporation franchises and operates more than 30,000 fast service resturants in 119 countries. Buffalo Wild Wings francises and operates more than 500 resturants in the United States. Buffalo Wild Wings features chicken wings and a full ar in its resturants. Financial Information for each years is as follows. EBI donates after-tax earnings before interest expense.
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 |
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.
Assume that both companies sales at company-owned stores are the same (on 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.
Perform a cause of change analysis from 2008 to 2011 for each of the company to disaggregate the increase in revenue from company owned stores between growth in the average number of average stores open and growth in revenue per store.
Perform a similar analysis for franchise fee revenue
What do your analyses from requirement 4 and 5 tell you about the companies growth strategies?
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