Burger ability was founded in 1953 in Jacksonville, Florida, by Keith J. Kramer and his wife,Â as Insta-Burger King. The Insta comes from the insta broiler mold that was required in all of its franchises. The birth of the whopper came 3 years later in 1957. Since then Burger king has been sellÂ fourÂ times. After being sold to a chemical group of investment firms led by TPG Capital in 2002, Burger King revamped rapidly and had a highly successful initial macrocosm offering in 2006. At the end of 2010, Burger King had 12,200 locations in 73Â countries,Â 60% of them in the U.S. and 90% are in private owned.
While McDonalds posted gains of more than 40% in 2011, its performance has been lackluster in 2012 so far. The stock has illogical close to 5% in 2012 compared to the S&P 500 index, which has gained more than 10%. The news that CEO Jim muleteer will end his tenure in June 2012 has also created near uncertainty about the go withs future. However, given the companys strong fundamentals, we believe the stock has a keen case for at least for some modest upside.
McDonalds restaurants worldwide are either franchised or company-operated. More than 80% of the 33,000 restaurants worldwide are franchised.
In conventional franchised restaurants, McDonalds owns the enter and the franchisee pays the company rent as well as commitment charges, which is usually a percentage of sales. This is in contrast to a developmental license, where the franchisee owns the land and pays McDonalds loyalty as a percentage of sales. Both modes of franchising require low capital investments from McDonalds and ensure healthy revenue generation.
McDonalds has been successful in constantly adding new items to its menu. Outside the U.S., the company ensures that it introduces menu items desirable to local tastes. It has also been proactive in adapting its business dodge to changing market conditions. In Asia, for example, where real estate is relatively more expensive (in terms of sales per square...If you want to occupy a full essay, order it on our website: Orderessay
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