McDonald’s competitors in the fast food industry include Burger King, Wendy’s, In-N-Out Burger, Subway, Chipotle Mexican Grill, Panera Bread, KFC, Chick-fil-A, Popeyes, Starbucks, Dunkin’, Tim Hortons, Domino’s, Pizza Hut, Papa John’s, Saladworks, Sweetgreen, Culver’s, Shake Shack, and Whataburger. These competitors offer a range of burgers, sandwiches, pizza, fried chicken, coffee, healthy options, and regional specialties, providing consumers with alternative choices in the fast food market.
Burger Chains:
- Burger King: A global fast food chain known for its burgers.
- Wendy’s: A fast food restaurant famous for its square-shaped burgers.
- In-N-Out Burger: A regional fast food chain renowned for its fresh burgers.
Fast Casual Chains:
- Subway: A global fast food franchise specializing in submarine sandwiches.
- Chipotle Mexican Grill: A chain serving Mexican-inspired fast casual cuisine.
- Panera Bread: A bakery-cafe chain offering soups, salads, sandwiches, and bakery items.
Fried Chicken Chains:
- KFC: A global fast food chain specializing in fried chicken.
- Chick-fil-A: A fast food restaurant known for its chicken sandwiches and customer service.
- Popeyes Louisiana Kitchen: A chain serving Cajun-inspired fried chicken and seafood.
Coffee and Breakfast Chains:
- Starbucks: A global coffeehouse chain offering a variety of hot and cold beverages.
- Dunkin‘: A chain serving coffee, donuts, and breakfast sandwiches.
- Tim Hortons: A Canadian coffeehouse chain known for its donuts and coffee.
Pizza Chains:
- Domino’s: A global pizza delivery chain.
- Pizza Hut: A renowned pizza restaurant chain.
- Papa John’s: A pizza delivery and takeout chain.
Healthy Fast Food Options:
- Subway: A popular fast food franchise known for its fresh sandwiches.
- Saladworks: A salad-focused fast food chain.
- Sweetgreen: A fast casual restaurant specializing in healthy salads.
International Fast Food Chains:
- KFC: A global fast food chain specializing in fried chicken.
- Taco Bell: A fast food chain offering Mexican-inspired cuisine.
- Burger King: A global fast food chain known for its burgers.
Regional Fast Food Chains:
- Culver’s: A fast food chain known for its ButterBurgers and frozen custard.
- Shake Shack: A popular fast casual chain offering burgers, hot dogs, and milkshakes.
- Whataburger: A regional fast food chain famous for its hamburgers.
Key Highlights:
- Burger Chain Competitors: McDonald’s competes with Burger King, Wendy’s, and In-N-Out Burger in the burger-focused fast food sector. These chains offer a variety of burger options to cater to different tastes.
- Fast Casual Chains Rivals: Subway, Chipotle Mexican Grill, and Panera Bread are competitors offering fast casual dining experiences, with options ranging from sandwiches and salads to Mexican-inspired cuisine.
- Fried Chicken Chains Competition: In the fried chicken category, KFC, Chick-fil-A, and Popeyes Louisiana Kitchen are prominent competitors, providing consumers with choices for fried chicken and related menu items.
- Coffee and Breakfast Chains Challengers: Starbucks, Dunkin’, and Tim Hortons are rivals in the coffee and breakfast sector, serving a variety of coffee beverages, baked goods, and breakfast options.
- Pizza Chains Alternatives: Domino’s, Pizza Hut, and Papa John’s compete in the pizza delivery and takeout market, offering a range of pizza choices to customers.
- Healthy Fast Food Options Rivals: Subway, Saladworks, and Sweetgreen offer healthier alternatives in the fast food landscape, focusing on fresh ingredients and salads.
- International and Regional Chains: KFC, Taco Bell, Burger King, Culver’s, Shake Shack, and Whataburger are part of the competition, offering a mix of international and regional specialties.
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Who Owns McDonald’s
The major institutional shareholders comprise The Vanguard Group (8.83%) and BlackRock (7.1%). Major individual shareholders include Kevin Ozan (Executive Vice President and Chief Financial Officer), Stephen Easterbrook (President and CEO), and John Rogers, Jr., an investor, philanthropist, and Ariel Capital Management founder. And a few other individual shareholders.
McDonald’s Business Model
McDonald’s is a heavy-franchised business model. In 2022, over 60% of the total revenues came from franchised restaurants. The company’s long-term goal is to transition toward 95% of franchised restaurants (by 2022, franchised restaurants were 94.7% of the total). The company generated over $23 billion in revenues in 2022, of which $8.75 billion was from owned restaurants and $14.1 billion from franchised restaurants.
McDonald’s Revenue
Of over $23 billion in revenue in 2022, $8.74 came from company-operated stores, while $14.1 billion came from franchised restaurants. Of over $23 billion in revenue in 2021, McDonald’s generated almost ten billion dollars from company-operated restaurants, while it generated $13 billion from franchised restaurants.
McDonald’s EV/Revenue Multiple
In 2022, McDonald’s EV/Revenue Multiples was 8.33 in 2022, compared to 8.53 in 2021.
McDonald’s Profits
In 2022, McDonald’s generated $6.18 billion in net profits, compared to $7.54 billion in 2021. The company runs a heavily franchised business model, where it has reached its target of 95% franchised restaurants worldwide.
McDonald’s Strategy
McDonald’s finally transitioned to a heavily franchised business model in 2022, reaching its long-term objective of 95% of franchised restaurants vs. its total restaurants worldwide.
Approximately 95% of the restaurants at year-end 2022 were franchised, including 95% in the U.S., 89% in International Operated Markets, and 98% in the International Developmental Licensed Markets.
McDonald’s Employees
McDonald’s had 150,000 employees in 2022, compared to 200,000 employees in 2021 and the same in 2020. The company runs a heavily franchised business model, where most stores are franchised restaurants vs. owned ones. In 2022, McDonald’s franchised locations employed over two million individuals.
McDonald’s Margins
McDonald’s runs a heavily franchised business model, where most of its margins come from franchised restaurants vs. operated ones. For instance, in 2022, franchised restaurants generated $11.75 billion in margins vs. its operated restaurants, which generated $1.37 billion in margins.
Who Owns Burger King
Burger King is an American multinational chain of fast-food restaurants that is headquartered in Miami, Florida. The first Burger King restaurant, then known as Insta-Burger King, was opened in Jacksonville, Florida, in 1953 by Keith Cramer and his stepfather Matthew Burns. Burger King Worldwide merged with the Canadian coffee chain Tim Hortons in 2014. This precipitated the formation of parent company Restaurant Brands International, which is part-owned by former Burger King owner 3G Capital.
McDonald’s Organizational Structure
McDonald’s has a divisional organizational structure where each division – based on geographical location – is assigned operational responsibilities and strategic objectives. The main geographical divisions are the US, internationally operated markets, and international developmental licensed markets. And on the other hand, the hierarchical leadership structure is organized around regional and functional divisions.
McDonald’s PESTEL Analysis
McDonald’s SWOT Analysis
Franchising Business Model
Franchising is a business model where the owner (franchisor) of a product, service, or method utilizes the distribution services of an affiliated dealer (franchisee). Usually, the franchisee pays a royalty to the franchisor to be using the brand, process, and product. And the franchisor instead supports the franchisee in starting up the activity and providing a set of services as part of the franchising agreement. Franchising models can be heavy-franchised, heavy-chained, or hybrid (franchained).
Coca-Cola Business Model
Coca-Cola follows a business strategy (implemented since 2006) where through its operating arm – the Bottling Investment Group – it invests initially in bottling partners operations. As they take off, Coca-Cola divests its equity stakes, and it establishes a franchising model, as long-term growth and distribution strategy.
Coca-Cola Mission Statement
Coca-Cola’s Purpose is to “refresh the world. make a difference.” Its vision and mission are to “craft the brands and choice of drinks that people love, to refresh them in body & spirit. And done in ways that create a more sustainable business and better-shared future that makes a difference in people’s lives, communities, and our planet.”
Read Also: McDonald’s Business Model, Coca-Cola Business Model, Coca-Cola Distribution Strategy.
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