burger-king-revenue

Burger King Revenue

Burger King generated almost $5 billion in revenue in 2020, compared to $5.6 billion in 2019. Similarly to McDonald’s, Burger King runs a heavily franchised business model.

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McDonald’s Business Model

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McDonald’s is a heavy-franchised business model. In 2021, over 56% of the total revenues came from franchised restaurants. The company’s long-term goal is to transition toward 95% of franchised restaurants (in 2020, franchised restaurants were 93% of the total). The company generated over $23 billion in revenues in 2021, $9.78 billion from owned restaurants and $13 billion from franchised restaurants. 

Who Owns Burger King

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Burger King is an American multinational chain of fast-food restaurants that is headquartered in Miami, Florida. The first Burger King restaurant, then known as Insta-Burger King, was opened in Jacksonville, Florida, in 1953 by Keith Cramer and his stepfather Matthew Burns. Burger King Worldwide merged with the Canadian coffee chain Tim Hortons in 2014. This precipitated the formation of parent company Restaurant Brands International, which is part-owned by former Burger King owner 3G Capital.

McDonald‘s Organizational Structure

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McDonaldโ€™s has a divisional organizational structure where each division โ€“ based on geographical location โ€“ is assigned operational responsibilities and strategic objectives. The main geographical divisions are the US, internationally operated markets, and international developmental licensed markets. And on the other hand, the hierarchical leadership structure is organized around regional and functional divisions.

McDonald’s PESTEL Analysis

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McDonald’s SWOT Analysis

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Franchising Business Model

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Franchising is a business model where the owner (franchisor) of a product, service, or method utilizes the distribution services of an affiliated dealer (franchisee). Usually, the franchisee pays a royalty to the franchisor to be using the brand, process, and product. And the franchisor instead supports the franchisee in starting up the activity and providing a set of services as part of the franchising agreement. Franchising models can be heavy-franchised, heavy-chained, or hybrid (franchained).

Coca-Cola Business Model

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Coca-Cola follows a business strategy (implemented since 2006) where through its operating arm – the Bottling Investment Group – it invests initially in bottling partners operations. As they take off, Coca-Cola divests its equity stakes, and it establishes a franchising model, as long-term growth and distribution strategy.

Coca-Cola Mission Statement

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Coca-Cola’s Purpose is to “refresh the world. make a difference.” Its vision and mission are to “craft the brands and choice of drinks that people love, to refresh them in body & spirit. And done in ways that create a more sustainable business and better-shared future that makes a difference in peopleโ€™s lives, communities, and our planet.”

Read Also: McDonald’s Business Model, Coca-Cola Business Model, Coca-Cola Distribution Strategy.

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