II. Horizontal and Vertical Analysis Form
1. Horizontal Analysis
2. Vertical Analysis
III. Ratio Analysis & Comparison
McDonalds and Burger King are two leading franchises in the fast-food industry which sells burgers, french fries, soft drinks, desserts and sandwiches. Fast-food industry used to be a prosperous industry. In 1970, Americans spent about $6 billion on fast food. In 2000, they spent more than $110 billion. Americans now spend more money on fast food than on higher education, personal computers, computer software, or new cars. They spend more on fast food than on movies, books, magazines, newspapers, videos, and recorded music combined
McDonalds, with more than 31,000 stores worldwide, is without doubt the biggest company in the industry. Burger King is following McDonalds in the industry. As these two companies are number one and two in the industry. It might seem that everything is going well in these two companies, and that there are no problems ahead of these companies. However, along with McDonalds and Burger King, fast-food chains are having a hard time due to a ‘well-being’ movement.
Since the documentary movie ‘Super size me’, McDonalds and other fast food restaurants were heavily criticized. In accordance, as well-being and slow food are in trend, McDonalds even announced, on March of 2006, that it would include nutritional information on the packaging of all its products. With such an effort McDonalds’ net income has increased. However, Burger King is still having a hard time.
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