Assignment
Assignment
ID: 20211169
Course: Intro. To Marketing
Assignment 1
1)What is Product
Definition: Product refers to the functions and features of a good or
service
The all-time high McDonald's stock closing price was 274.52 on October
28, 2022.
The McDonald's 52-week high stock price is 274.81, which is 0.1% above
the current share price.
The McDonald's 52-week low stock price is 217.68, which is 20.7% below
the current share price.
The average McDonald's stock price for the last 52 weeks is 251.24.
5) Profit
July 26 (Reuters) - McDonald's Corp (MCD.N) on Tuesday reported comparable
sales and profit above market expectations even as expenses soared, as the burger
chain benefited from steady online demand, new product launches and higher
prices.
The chain's global same-store sales jumped nearly 10% in the second quarter
compared with expectation of a 6.5% rise.
Even so, the Chicago-based company said it is considering whether to add more
discounted menu options because soaring inflation - particularly in Europe - is
leading some lower-income consumers to "trade-down" to cheaper items and to
buy fewer big combination meals, Chief Financial Officer Kevin Ozan said during
a call with investors.
U.S. sales rose 3.7% for the quarter, versus estimates of about 3%, driven by menu
price increases in the high single digits, Ozan said.
The number of customers per order declined. Drive-thru sales, which soared during
the pandemic, dropped back to pre-pandemic levels as restaurants reopened, he
said.
Meanwhile, McDonald's expects its costs for food and paper to be 12% to 14%
higher through this year.
Total expenses surged 25% to $4.01 billion in the second quarter, weighing on net
income, which nearly halved to $1.19 billion, or $1.60 per share.
The results included $1.2 billion of charges related to the sale of its business in
Russia. On an adjusted basis, earnings per share of $2.55 exceeded estimates of
$2.47, according to Refinitiv data.
Total revenue fell 3% to $5.72 billion and missed expectations of $5.81 billion, hit
by weak demand in China due to COVID-19 resurgences and related government
curbs.
6) Sales
"Our third quarter 2022 performance demonstrated broad-based business
momentum as global comparable sales increased nearly 10%. I remain confident in
our Accelerating the Arches strategy as our teams around the world continue to
execute at a high level," said McDonald's President and Chief Executive Officer,
Chris Kempczinski. "As the macroeconomic landscape continues to evolve and
uncertainties persist, we are operating from a position of competitive strength. I
also want to thank our franchisees, who have done a tremendous job navigating
this environment, while providing great value to our customers."
Burger King is probably the most direct competitor for McDonald's, with its staple
Whopper challenging the Big Mac in the burger war. Burger King recorded over
$20 billion in revenue for the full year ending 2020 worldwide.4
As of the end of 2020, Burger King had more than 18,000 locations in more than
100 countries, with roughly 11 million daily visitors worldwide. Independent
franchisees own nearly all of those restaurants. Once a publicly-traded company,
Burger King became private after it was purchased by 3G Capital in 2010 for $4
billion.5 Burger King is owned by parent company Restaurant Brands
International, which also owns Tim Hortons and Popeyes.6
Wendy’s
Wendy’s is a fast-food restaurant chain with more than 6,800 locations worldwide.
Like Burger King and McDonald's, Wendy's focuses on burgers, fries, and other
classic American food.
As of July 30, 2021, Wendy's had a market cap of $5.1 billion, with the stock
trading around $23 per share. The average trading volume was about 4.8 million
shares per day.7 The company reported revenue of $1.71 billion in 2020.8
However, total system sales were higher because sales at franchised locations are
not included in consolidated revenues.
Yum Brands
The company's stock was trading around $131 per share and had a market cap of
$39 billion as of July 29, 2021.10 The company's revenue exceeded $5.6 billion for
the full year in 2020.11
Subway
Subway is one of the largest restaurant chains in the world in terms of size, with
over 37,000 locations in nearly 100 countries, as of Aug 2021. The company’s
menu consists primarily of sandwiches and salads.
Chipotle
Chipotle is a fast-casual restaurant chain serving tacos, burritos, bowls, and salads.
The company was formed as a small local chain which earned significant
investment from McDonald’s before its 2006 initial public offering (IPO). Chipotle
operates more than 2,800 locations in the U.S., Canada, the United Kingdom,
Germany, and France—none of which are franchised. The company has a higher
price point than its fast-food competitors, and its slogan is "food with integrity."
Starbucks
The company reported net revenue of $23.5 billion for 2020.15 As of July 30,
2021, Starbucks’ share price was about $121, and the firm's market cap was $143
billion.16