Product and competitive environment McDonald’s Corporation (MDC) known for its famous golden arches is the number one largest chain of fast food restaurant in the world. With headquarters in the United States and restaurants in 120 countries serving around 86 million customers a day. About 80% of the restaurants are operated by a franchisees or affiliates. McDonald's revenues come from the expenses paid by the franchisees such as fees, royalties, rent, as well as sales in company-operated restaurants. According to Hoovers, McDonald's Corporation in 2013 made and annual revenue of $28,105.7 compared to $27.5 billion made in 2012.
“More than 70% of McDonald's restaurants worldwide are owned and operated by independent local men and women.” (mcdonalds.com). These restaurants are being fuelled by local staff of 1,600,000 around the world. In resent past McDonald’s achievements are spread in different areas. In January 2007, company opened its first drive-thru restaurant at a Sinopec gas station location in Beijing. This was a result of the strategic partnership McDonald’s formed with the China’s largest oil producer.
Largest fast food market share McDonald’s serves more than 70 million people around the world in more than 120 countries. “You will see McDonald’s, everywhere you go”. You can see McDonald’s in airports, malls, cities, highways and parks. b. Strong Global Brand McDonald’s is currently the 6th most important brand in the world.
The company has celebrity spokespeople, and sponsors major sporting leagues, including the NFL (Janoff), NBA (Young), and NASCAR (Boarman). They also sponsor global sporting events including the Olympics and the FIFA World Cup (Sponsorships). Huge franchise: McDonald’s has roughly 35,000 local restaurants and serves more than 100 countries each day (Chalabi). McDonald’s serves 62 million customers daily, which is greater than the population of Great Britain (Khan). This leads them to sell more than 75 hamburgers each second of every day (Feridun).
Burger King faces tremendous competition. McDonald’s controls half of the entire fast-food market in Japan having 2,000 outlets and generating $2.5 billion in sales. KFC has 1,040 stores making it number two in the fast-food market. The most effective way to analyze Burger King’s situation is through the SWOT analysis method. One of Burger King’s most important strengths is its strong market position.
McDonald?s manages its system by geographical segments. The largest in terms of both revenue and restaurants is McDonald?s USA. In the United States (U.S.), McDonald?s has over 12,300 traditional restaurants, plus approximately 1320 satellite locations in facilities like hospitals. They serve more than 21.8 million customers a day. Approximately 85.5 percent of the restaurants are operated, under franchise agreements, by local independent business people, Owners/Operators (www.mcdonalds.com, Flakes, B. personal communication).
Intro The McDonald's Corporation is the largest chain of fast food restaurants in the world. It is franchised in over 119 countries and serves an average of 68 million customers daily. The company started in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald in the United States. They reorganized their business as a hamburger stand in 1948. In 1955, Businessman Ray Kroc joined the company as a franchise agent.
When asked who would open the new hamburger stands, Ray Kroc said that he would do it. In 1955 in Des Plaines, Illinois, Ray Rroc opened his first restaurant and made $366.12 in revenues on his first day. Now there are nearly 27,000 restaurants and 43 million customers served by 1.5 million employees each day in 119 countries. In 1999 there were 1,790 McDonald's restaurants opened and 90% of those were outside of the United States. McDonald's continues to grow extremely fast.
They sold around 1000 burritos a day after a month of its establishment. Then he opened various numbers of locations in Colorado but they come up with an opening outside of Colorado which is in Kansas City in 1998. The largest investor for chipotle was McDonald. Chipotle increased its business from 16 restaurants to 500 restaurants by 2005. It was ranked eight in regards to the US Sale which later jumped into ranked third in 2010.
It consists of over 3200 restaurants in over 119 countries. McDonald's start global expansion in 1971 they opened in different parts of Asia and European nations. McDonalds has many competitors like Burger King, Wendy’s, Hardees and many others. It is one of the popular companies of fast food industry over the world. One of fast and quick service restaurant in the world.