McDonald's Corp
Latest McDonald's Corp News and Updates
Company & Industry OverviewsWhy The Americas Segment Is Important For Starbucks
The America’s segment includes revenues mainly from the US, Mexico, and Canada. This segment accounted for 73% of SBUX’s revenues in 2014. Company & Industry OverviewsStarbucks’ Coffee Has Three Revenue Sources
Consumer packaged goods, or CPG, include the sale of SBUX’s coffee and tea-related products—like single-serve tea and coffee products. It also includes several beverages at retail stores. Company & Industry OverviewsMcDonald’s List Of Initiatives That Will Bring A Turnaround
McDonald’s list of initiatives includes simplifying its menu and possibly offering locally relevant menu items. This could be quite a gamble. Company & Industry OverviewsMcDonald’s Says “Strong Competitive Activity” Impacting Sales
According to McDonald’s management, “strong competitive activity” is affecting its sales. Other fast food chains don’t seem to be feeling the competition.Company & Industry Overviews The successful franchise restaurant model
The benefits of the franchise model include the opportunity for the company to grow faster because the franchisee provides the capital for making the restaurant ready for operation, and the franchisor faces lower risk if the store underperforms.Company & Industry Overviews Unit growth equally important for restaurants as same-store sales
Restaurants seek revenue growth in a variety of ways, but after exhausting all options, restaurants pursue a unit-growth strategy to capitalize on these opportunities.Company & Industry Overviews Restaurants add dayparts to increase sales
By opening restaurants for different dayparts such as breakfast, afternoon snacks, or late-night snacks, restaurants believe they will sell more products throughout the day and improve same-store sales. Earnings ReportProduct innovation is Starbucks’ primary focus
Starbucks’ (SBUX) management states that product innovation will be its primary focus as it maintains a lesser focus on its coffee business.Company & Industry Overviews Know about same-store sales to understand restaurants
The two most important drivers of revenue in a restaurant business are same-store sales and unit growth. Same-store sales growth measures the growth at existing stores or locations over a period of time.Company & Industry Overviews The nature of full-service restaurants
Full-service restaurants make up 44% of the market share in the United States. Full-service restaurants usually serve breakfast, lunch, and dinner.Company & Industry Overviews What is a company-operated restaurant model?
In a company-owned restaurant, the company takes ownership of the operation at the restaurant location. The company uses its own financial resources to get the location ready for business.Company & Industry Overviews What is a limited-service restaurant?
Limited-service restaurants can be classified into fast food or quick service, fast-casual restaurants, pizza restaurants, and cafés.Consumer Why Burger King’s restaurant visit program is so important
Burger King (BKW) opened a net of 131 new restaurants in the second quarter, making for a total net new restaurant count of 682 restaurants in the past 12 months. ConsumerWhy consumer confidence is an important economic indicator
Consumer confidence is an economic indicator. It measures how confident consumers are about the overall state of the economy. It also measures how confident people feel about their income’s stability. Their confidence impacts their economic decisions—like their spending activity.Consumer Must-know: Starbucks’ key value metrics—same-store sales
Same-store sales are one of the important drivers in the restaurant industry. Same-store sales directly drives the revenues. It measures the percentage change in the revenues generated by existing restaurant locations over the same period last year.Consumer Must-know: Key metrics in McDonalds’ quarterly earnings
McDonald’s reported flat global comparable sales and negative comparable guest count for 2Q14, which is concerning from a long-term income growth perspective.Consumer Why marketing and advertising are so important for restaurants
Mainstream channels of marketing—like radio, TV, and print ads—are still common. But many restaurant chains have also used social media to increase their brand presence.Consumer Important pros and cons of the company-operated restaurant model
In the last part of this series, we looked at the franchise model. Let’s now take a look at the company-operated restaurant model. ConsumerImportant pros and cons of the franchise restaurant model
The most common business models in the restaurant industry are for franchised and company-operated restaurants. Let’s look at the franchise model in closer detail.Consumer Overview: Assessing the restaurant industry business model
Restaurants are simple businesses. Because we have to eat every day, people often think the restaurant industry is a safe one to invest in.Consumer An industry advantage: Dunkin’ Brands’ operating costs are dieting
Dunkin’ Brands has a very low capital requirement relative to the rest of the coffee retail industry. This is due to its business model, centered around establishing franchises across the world.Consumer Must-know: Dunkin’ Brands is innovating the supply chain
Dunkin’ Brands Group doesn’t typically supply products to its franchises. Revenues derive from royalty fees as opposed to product distribution.Consumer Must-know risks: Why Starbucks should hedge its shrubs
Starbucks indicates that it uses derivative contracts to hedge commodity price risks. These contracts typically don’t have a lifespan longer than five years.Consumer A Starbucks on every corner: A guide to the SBUX business model
This business model has allowed Starbucks to be the first coffee firm to put retail locations in each of the BRIC nations and many more.Consumer Business overview: Why Starbucks deserves your attention
Starbucks began in 1971 as a single coffee shop in Seattle. Today, it’s the world largest coffee retailer, with over 19,000 locations in more than 60 countries (as of FY2013 end). ConsumerMust-know: Majority of fast food workers “not” above 25 years old
Why the unionization of all fast food workers, which would increase the bargaining power of employees and possibly lead to higher wages, in quite unlikely. ConsumerWhy do most workers at McDonald’s work part-time?
Part-time work is most likely an industry-wide characteristic within the food retail business.