Question: McDonald's and Buffalo Wild Wings: Comparing two restaurant chains.
McDonald's 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
|
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
|
|
McDonald's
|
|
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
|
Required: 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.
Selected Financial Data Buffalo Wild Wings McDonald's 2009 2010 2007 2008 2009 2010 201 I 2007 2008 Number of stores operating at year-end:
Company-owned 161 197 232 259 319 6,906 6,502 6,262 6,399 332 363 420 473 498 24,411 25,465 26,216 26,338
Franchised Revenues in millions): 16,560.9 15,458.5 16.2333 13,20 379.7 488.7 555.2 717.4
Company-owned stores 6,961.5 7,2862. 1,8413 42.7 50.2 58.1 67.1
Franchise fees 23,522.4 22,744.7 24,074.6 422.4 538.9 613.3 784.5 Total