Corporate Finance - comparison between "Mac Donalds" and "Burger King", two leading fast food chians

Résumé du document

The two companies, Burger King and McDonald's have been present in the fast food market since a long time. The turnover of Burger King represents US $2.234 billion and the one of McDonald's is US $22.79 billion, which permits us to see that the two companies are very important and powerful in the fast food market. The main and only part of their activities is to provide food goods to the customers. They are very well developed all around the world. Burger King has 11,000 employees all around the world and McDonald's has the larger number of 400,000 employees all around the world. These companies have the particularity to propose a different offer according to the country they are in. Indeed, they don't propose the same products all around the world and they try to adapt the products to the different hopes of the customers. For example, in India, McDonald's propose only fish and chicken products because the cow is a sacred animal in India so they cannot sell beef products to the Indians customers. Burger King provides tacos , burritos and other Latin food to the South American markets.

Extraits

[...] It has had an effect on the global company profitability because the Latin market represent an important amount of the global earnings of the company. Mac Donald headquarter affirm that this event is very important for the company. The spoken person of the company said “McDonald's Latin American business, after losing money for three straight years earlier this decade, is now profitable thanks in part to three years of double-digit same-store sales increases.”. This citation really shows thath this event changed the profitability of the company. [...]

[...] After the study of the different management element of the two companies, we can say that Mac Donald is better managed than Burger King. Indeed, Mac Donald has the most efficient management and development strategy. However, we can say that Mac Donald dominate Burger King because they are introduced in the market since lot of years and so they dominate it. Mac Donald has more competitive advantage than Burger King thanks to its leader position and that explain why they are better managed. [...]

[...] The main accounting company of McDonalds is called GG&G (Gray, Gray & Gray) and is a certified public accounting firm. They took over the accounting for several McDonald's restaurants in the 1960s.They are not the only company responsible for McDonalds accounting, but there are a main factor in the company's finance sector. The cooperation with McDonalds has earned GG&G a great reputation as an excellent accounting firm and opened up a lot of new opportunities. They advertise with the statement that they are only accountants.” To their core business they add values like: “strategic planners, consultants, business coaches and long-term partners.” GG&G wants your business to grow and helps to be successful in every branch. [...]

[...] It has increased in three years and it has been multiplied by The cash flow generated thanks investing activities is of (1,624,700 million in 2008, (1,150,100 million in 2007 and (1,273,400 million in 2006. It has increased in three years hand has been multiplied by 1.27 in three years. The cash flow generated thanks financing activities is of (4,114,500 million in 2008, (3,996,300 million in 2007 and (5192300 millions in 2006. It has decrease in three years hand has been divided by in three years. a.2) Internal event: Note that the cash financing activities generated is less and less important because Mac Donald has changed its policy of redistribution of wealth. [...]

[...] A difference to GG&G is that KPMG does no advertising with the fact that they advise Burger King. KPMG has so many global companies that they work together with, that they do not need real advertisement or references. KPMG has three lines of services: audit services, tax services, and advisory services. You actually can't compare both companies, because GG&G more looks like a private company, which really focuses their work together with a bunch of McDonalds franchises and KPMG is already one of the biggest accounting companies in the world with several big customers, such as Burger King, Jack in the Box, Electronic Arts, Chrysler and much more. [...]