Questions

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 his restaurants.

Financial information for each of the company 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

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 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.

3. 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.

4. Perform a similar analysis for franchise fee revenue

5. What do you analyses from requirement 4 and 5 you about the companies growth strategies?