Question
This is more information regarding the same question posted earlier. I am really stuck as to what question 2 is asking, so I wanted to
This is more information regarding the same question posted earlier. I am really stuck as to what question 2 is asking, so I wanted to post as much information as possible to help me get information on how to answer question number 2.
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 expense.
Selected Financial Data
Required:
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.
Question 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 state
Buffalo Wild Wings | McDonald's | ||||||||||||
2007 | 2008 | 2009 | 2010 | 2011 | 2007 | 2008 | 2009 | 2010 | 2011 | ||||
# of stores operating at year-end: | |||||||||||||
Company-owned | 161 | 197 | 232 | 259 | 319 | 6,906 | 6,502 | 6,262 | 6,399 | 6,435 | |||
Franchised | 332 | 363 | 420 | 473 | 498 | 24,471 | 25,465 | 26,216 | 26,338 | 27,075 | |||
Revenues ($ in millions): | |||||||||||||
Company-owned stores | 379.7 | 488.7 | 555.2 | 717.4 | 16,560.9 | 15,458.5 | 16,233.3 | 18,292.8 | |||||
Franchise fees | 42.7 | 50.2 | 58.1 | 67.1 | 6,961.5 | 7,286.2 | 7,286.2 | 8,713.2 | |||||
Total | 422.4 | 538.9 | 613.3 | 784.5 | 23,522.4 | 22,744.7 | 22,744.7 | 27,006.0 | |||||
d as a percentage of each franchisees sales revenue.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started