C5-1 McDonald's and Buffalo Wild Wings: Comparing two restaurant chains (LO 5-1) Selected Financial Data Buffalo Wild Wings 2007 2008 2009 2010 2011 2012 2013 McDonald's 2010 2011 2014 2007 2008 2009 2012 2013 2014 161197232259 332 363 420 473 319 498 381 510 434 559 491 6,906 591 24,471 6,5026,2626,399 25,465 26,216 26,338 6,435 27,075 6,598 27,882 6.738 28,691 6714 29,544 Number of stores operating at year-end: Company-owned Franchised Revenues ($ in millions): Company-owned store sales Franchise fees Total $379.7 $488.7 $555.2 $7174 $964.0 $1,185.4 $1,423.0 42. 7 50.2 58.1 67.1 76.6 81.4 93.2 422.4 538.9 613.3 784.5 1,040.6 1,266.8 1,516.2 $16,560.9 $15,458.5 $16,233.3 $18,292.8 $18,602.5 $18,874.2 $18,169.3 6,961.5 7,286.2 7,841.3 8,713.2 8,964.5 9,231.5 9,272.0 23,522.4 22,744.7 24,074.6 27,006,0 27,567,0 28,105.7 27.441.3 Required: 1. Determine the amounts of sales revenue per company-owned store and franchise fees per franchised store for each year and each company. In these computations, use the average number of stores open during the year. 2. Assume that for both companies sales at company-owned stores are the same (on a per store basis) as sales for the same company's franchised stores. Estimate each company's franchise fee rate, which is stated as a percentage of each franchisee's sales revenue. 3. Perform a cause-of-change analysis from 2008 to 2011 for each company to disaggregate the increase in revenues from company-owned stores between growth in the average number of average stores open and growth in revenues per store. Also perform a cause-ofchange analysis from 2011 to 2014. 4. Perform similar analyses for franchise fee revenues. 5. What do your analyses from requirements 3 and 4 tell you about the companies' growth strategies and how they differ from each other and over time? C5-1 McDonald's and Buffalo Wild Wings: Comparing two restaurant chains (LO 5-1) Selected Financial Data Buffalo Wild Wings 2007 2008 2009 2010 2011 2012 2013 McDonald's 2010 2011 2014 2007 2008 2009 2012 2013 2014 161197232259 332 363 420 473 319 498 381 510 434 559 491 6,906 591 24,471 6,5026,2626,399 25,465 26,216 26,338 6,435 27,075 6,598 27,882 6.738 28,691 6714 29,544 Number of stores operating at year-end: Company-owned Franchised Revenues ($ in millions): Company-owned store sales Franchise fees Total $379.7 $488.7 $555.2 $7174 $964.0 $1,185.4 $1,423.0 42. 7 50.2 58.1 67.1 76.6 81.4 93.2 422.4 538.9 613.3 784.5 1,040.6 1,266.8 1,516.2 $16,560.9 $15,458.5 $16,233.3 $18,292.8 $18,602.5 $18,874.2 $18,169.3 6,961.5 7,286.2 7,841.3 8,713.2 8,964.5 9,231.5 9,272.0 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 company's franchised stores. Estimate each company's franchise fee rate, which is stated as a percentage of each franchisee's 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-ofchange 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