mcdonalds-vs-burger-king

McDonald’s vs. Burger King

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Comparison

McDonald’s vs Burger King Comparison

Fast-food leaders head-to-head comparison

Customer Segments Value Proposition Channels Customer Relationships Key Activities Key Resources Key Partnerships Revenue Streams
Key Elements
Customer Segments
Fast-food consumers
Value Proposition
Convenient dining, iconic menu items
Channels
Restaurants, drive-thrus, delivery services
Customer Relationships
Quick service, consistency
Key Activities
Menu development, franchise management
Key Resources
Brand, franchise network, supply chain
Key Partnerships
Franchisees, suppliers, promotional partners
Revenue Streams
Product sales, franchise fees, royalties
businessengineer.ai · Updated 2026

In 2020, McDonald’s generated over $19 billion in revenue, compared to Burger King’s almost $5 billion in revenue, in the same period.

ElementsMcDonald’sBurger KingSimilaritiesDifferencesCompetitive Advantage
Customer SegmentsFast-food consumersFast-food consumersBoth target fast-food consumers looking for quick and affordable meals.While both serve fast-food consumers, McDonald’s has a broader customer base and international presence. Burger King focuses on specific menu offerings and marketing strategies.Broad Customer Base (McDonald’s), Focus on Customization (Burger King).
Value PropositionConvenient dining, iconic menu itemsFlame-grilled taste, customizable itemsBoth offer convenient dining options and iconic menu items. McDonald’s emphasizes its globally recognized menu. Burger King highlights the flame-grilled taste and customization options.McDonald’s menu is known for its consistency worldwide, while Burger King focuses on the flame-grilled taste and “have it your way” customization.Iconic Menu (McDonald’s), Customization (Burger King).
ChannelsRestaurants, drive-thrus, delivery servicesRestaurants, drive-thrus, delivery servicesBoth use restaurants, drive-thrus, and delivery services to serve customers.McDonald’s has a larger global restaurant network, while Burger King has fewer locations but emphasizes convenience and speed of service.Extensive Restaurant Network (McDonald’s), Convenience Focus (Burger King).
Customer RelationshipsQuick service, consistencyQuick service, customizationBoth prioritize quick service to meet customer demands. McDonald’s emphasizes consistency in menu items and service. Burger King focuses on customization, allowing customers to tailor their orders.McDonald’s aims for a consistent dining experience globally. Burger King emphasizes the “have it your way” approach, giving customers more control over their orders.Consistency (McDonald’s), Customization (Burger King).
Key ActivitiesMenu development, franchise managementMenu development, franchise managementBoth engage in menu development and franchise management.McDonald’s has a more extensive and standardized menu. Burger King focuses on menu items like flame-grilled burgers and unique promotional offerings.Menu Specialization (Burger King), Extensive Menu Options (McDonald’s).
Key ResourcesBrand, franchise network, supply chainBrand, franchise network, supply chainBoth rely on their brand recognition, franchise networks, and supply chains to operate efficiently.McDonald’s has a larger global presence and a well-established brand. Burger King focuses on its flame-grilled cooking process and unique menu items.Global Brand Recognition (McDonald’s), Flame-Grilled Process (Burger King).
Key PartnershipsFranchisees, suppliers, promotional partnersFranchisees, suppliers, promotional partnersBoth collaborate with franchisees, suppliers, and promotional partners to support their operations and marketing efforts.McDonald’s has a larger network of franchisees and global suppliers. Burger King has partnerships tied to its unique menu items and promotional campaigns.Extensive Franchise Network (McDonald’s), Unique Menu Partnerships (Burger King).
Revenue StreamsProduct sales, franchise fees, royaltiesProduct sales, franchise fees, royaltiesBoth generate revenue through product sales, franchise fees, and royalties from franchisees.McDonald’s has a larger revenue base due to its extensive restaurant network. Burger King’s revenue is derived from a smaller number of restaurants but focuses on higher-margin menu offerings.Diverse Revenue Streams (McDonald’s), Focus on Margin (Burger King).
Cost StructureFood and labor costs, marketing expensesFood and labor costs, marketing expensesBoth face costs related to food and labor, as well as marketing expenses.McDonald’s has a broader international presence, resulting in higher overall operating costs. Burger King focuses on cost control while offering unique menu items.Cost Control (Burger King), Global Presence (McDonald’s).

Related Visual Stories

Who Owns McDonald’s

Who Owns McDonald's?
The major institutional shareholders comprise The Vanguard Group (8.83%) and BlackRock (7.1%). Major individual shareholders include Kevin Ozan (Executive Vice President and Chief Financial Officer), Stephen Easterbrook (President and CEO), and John Rogers, Jr., an investor, philanthropist, and Ariel Capital Management founder. And a few other individual shareholders.

McDonald’s Business Model

mcdonalds-business-model
McDonald’s is a heavily franchised business model. In 2023, 61% of the total revenues came from franchised restaurants. The company’s long-term goal is to transition toward 95% of franchised restaurants (by 2023, franchised restaurants were 94.9% of the total restaurants). The company generated over $25 billion in revenues in 2023, of which $9.74 billion was from owned restaurants and $15.43 billion from franchised restaurants.

McDonald’s Revenue

McDonald's Revenue Breakdown
Of over $25 billion in revenues for 2023, $9.74 billion came from company-operated stores, while $15.43 billion came from franchised restaurants compared to $23 billion in revenue in 2022, of which $8.74 came from company-operated stores, while $14.1 billion came from franchised restaurants. And over $23 billion in revenue in 2021, McDonald’s generated almost ten billion dollars from company-operated restaurants, while it generated $13 billion from franchised restaurants.

McDonald’s EV/Revenue Multiple

McDonald's EV : Revenue Multiples
In 2023, McDonald’s EV/Revenue Multiples was 8.43 in 2023, compared to 8.33 in 2022, and 8.53 in 2021.

McDonald’s Profits

McDonald's Profits
In 2023, McDonald’s generated $8.47 billion in net profits compared to $6.18 billion in net profits for 2022, and $7.54 billion in 2021. The company runs a heavily franchised business model, where it has reached its target of nearly 95% franchised restaurants worldwide.

McDonald’s Strategy

McDonald's Heavy Franchised Strategy
In 2023, McDonald’s generated $8.47 billion in net profits compared to $6.18 billion in net profits for 2022, and $7.54 billion in 2021. The company runs a heavily franchised business model, where it has reached its target of nearly 95% franchised restaurants worldwide.

McDonald’s Employees

McDonald's Employees
McDonald’s had 150,000 employees in 2023, compared to 150,000 employees in 2022, 200,000 employees in 2021, and the same in 2020. The company runs a heavily franchised business model, where most stores are franchised restaurants vs. owned ones. In 2022, McDonald’s franchised locations employed over two million individuals.

McDonald’s Margins

McDonald's Owned vs. Franchised Restaurants
McDonald’s runs a heavy franchise business model, where it has been substantially increasing its franchised restaurants while reducing its company-operated ones. For instance, by 2023, McDonald’s had 39,680 franchised restaurants vs. 2,142 owned and operated ones.

McDonald’s Operates vs. Franchised Restaurants Margins

McDonald's Operated vs. Franchised Operating Margins
McDonald’s runs a heavily franchised business model, where most of its margins come from franchised restaurants vs. operated ones. For instance, in 2023, $1.52 billion came from owned restaurants whereas $12.96 came from franchised restaurants.

Who Owns Burger King

who-owns-burger-kint
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

mcdonald-organizational-structure
McDonald’s has a divisional organizational structure where each division – based on geographical location – 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

mcdonalds-pestel-analysis

McDonald’s SWOT Analysis

mcdonalds-swot-analysis

Franchising Business Model

franchising
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

coca-cola-business-strategy
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

coca-cola-vision-statement-mission-statement
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 people’s lives, communities, and our planet.”

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

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