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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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