Competitive Profile Matrix for McDonalds Burger King Holdings and Yum! Brands, Inc.

Prepare a Competitive Profile Matrix that includes McDonald's Burger King Holdings, and Yum! Brands, Inc.

Wendy's (WEN)
Founded in 1969, based in Dublin, Ohio, and operating over 6,600 restaurants, Wendy’s International, Inc., owns 1,400 of the 6,600 restaurants. With 44,000 employees in 2007, Wendy’s ranks fourth in the industry, behind McDonald’s, Yum!, and Burger King. The company is well known for its unique square single, double, or triple made-to-order burgers and fries, and alternative menu items, such as baked potato, chili, and salads. Its new low-priced menus directly compete for market share with MCD. It holds a unique position in the industry as an old-fashioned eating place in the fast-food business and was recognized in 1986 as the most favorite quality brand by QSR Magazine for the second year in a row and earned first place for customer satisfaction in the limited service restaurants category in that year’s American Customer Satisfaction Index survey. With revenues of £2,450 million in 2007, Wendy’s currently operates as a subsidiary of the Wendy’s/Arby’s Group, a private company.
Starbucks Corporation (SBX)
Even though Starbucks is no direct competition for MCD’s core business, MCD is now in the lighting ring with Starbucks for the specialty coffee niche. Therefore it is important to view Starbucks as a new direct competitor. Starbucks was founded in 1985 by Howard Schultz, who recently came out of retirement to serve as chairman, CEO, and president. The company is usually grouped with the high-priced, high-margins specialty eateries industry. Starbucks’ annual revenues are $10.04 billion, less than half of MCD’s. Starbuck’s gross margins at 54.24 percent are 17 percent points higher than McDonald’s. With 176,000 employees and strong brand recognition, Starbucks is seen as a leader in the specialty eateries industry.
External Threats
Because of its global reach and brand recognition, MCD continues to face significant threats to its aggressive growth strategy at home, one of which is the growing awareness among the medical and scientific community as well as the public of the direct relationship between diet and health. A joint research study recently conducted at the University of California, Berkeley, and Columbia University and published in March 2009 concluded that the presence of a fast-food restaurant within 500 feet of a school is associated with at least a 5.2 percent increase in the obesity rate in that school, suggesting significant health benefits of banning fast-food restaurants close to schools if communities are interested in fighting the growing epidemic of obesity among young adolescents in America.