Faculty of Management

IMBA

Project/Assignment

For

Business Statistics

“Statistical Analysis between MCDONALD’S & BURGER KING”

Year 2019-25

Submitted to: -

Dr. Jaineel Shah

Submitted by: -

RIKITA DODEJA 201900510010050

ANCHAL ADVANI 201900510010003
JAYESH UTTMANI 201900510010337

HARSH MANGLANI 201900510010123

DIYA RAJGOR 201900510010206

JEMIMAH DAISY 201900510010030

PRATIK CHAURASIYA 201900510010024

 ACKNOWLEDGMENT

A project usually falls short of its expectation unless guided by the right person at the right time.
This project would not have been completed without the direct and indirect help and guidance of
such people.

First, we would like to show our sincere gratitude to GLS University, Faculty of Management for
providing us with the unique practical learning opportunity, which really helped us in improving
our analysis skills and using the business math in business perspective also helped in getting a
good knowledge of how to use proper statistical tools. We would like to thank Dr. Jaineel Shah
for his help and guidance.
INTRODUCTION TO COMPANY:

McDonald:

McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant

operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They
rechristened their business as a hamburger stand, and later turned the company into a franchise,
with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona. In
1955, Ray Kroc, a businessman, joined the company as a franchise agent and proceeded to
purchase the chain from the McDonald brothers. McDonald's had its original headquarters
in Oak Brook, Illinois, but moved its global headquarters to Chicago in June 2018.
McDonald's is the world's largest restaurant chain by revenue, serving over 69 million customers
daily in over 100 countries across 37,855 outlets as of 2018. Although McDonald's is best known
for its hamburgers, cheeseburgers and French fries, they feature chicken products
breakfast items, soft drinks, milkshakes, wraps, and desserts. In response to changing consumer
tastes and a negative backlash because of the unhealthiness of their food, the company has added
to its menu salads, fish, smoothies, and fruit. The McDonald's Corporation revenues come from
the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated
restaurants. According to two reports published in 2018, McDonald's is the world's second-
largest private employer with 1.7 million employees (behind Walmart with 2.3 million
employees
 BURGER KING:
Burger King (BK) is an American multinational chain of hamburger fast food restaurants.
Headquartered in Miami-Dade County, Florida, the company was founded in 1953 as Insta-
Burger King, a Jacksonville, Florida–based restaurant chain. After Insta-Burger King ran into
financial difficulties in 1954, its two Miami-based franchisees David Edgerton and James
McLamore purchased the company and renamed it "Burger King". Over the next half-century,
the company changed hands four times, with its third set of owners, a partnership of TPG
Capital, Bain Capital, and Goldman Sachs Capital Partners, taking it public in 2002. In late-
2010, 3G Capital of Brazil acquired a majority stake in the company, in a deal valued at US$3.26
billion. The new owners promptly initiated a restructuring of the company to reverse its fortunes.
3G, along with partner Berkshire Hathaway, eventually merged the company with the Canadian-
based doughnut chain Tim Hortons, under the auspices of a new Canadian-based parent company
named Restaurant Brands International.
The 1970s were the "Golden Age" of the company's advertising, but beginning in the early-
1980s Burger King advertising began losing focus. A series of less successful advertising
campaigns created by a procession of advertising agencies continued for the next two decades. In
2003, Burger King hired the Miami-based advertising agency Crispin Porter + Bogusky (CP+B),
which completely reorganized its advertising with a series of new campaigns centered on a
redesigned Burger King character nicknamed "The King", accompanied by a new online
presence. While highly successful, some of CP+B's commercials were derided for
perceived sexism or cultural insensitivity. Burger King's new owner, 3G Capital, later terminated
the relationship with CP+B in 2011 and moved its advertising to McGarry Bowen, to begin a
new product-oriented campaign with expanded demographic targeting.
Burger King's menu has expanded from a basic offering of burgers, French fries, sodas, and
milkshakes to a larger and more diverse set of products. In 1957, the "Whopper" became the first
major addition to the menu, and it has become Burger King's signature product since.
Conversely, Burger King has introduced many products which failed to catch hold in the
marketplace. Some of these failures in the United States have seen success in foreign markets,
where Burger King has also tailored its menu for regional tastes. From 2002 to 2010, Burger
King aggressively targeted the 18–34 male demographic with larger products that often carried
correspondingly large amounts of unhealthy fats and trans-fats. This tactic would eventually
damage the company's financial underpinnings, and cast a negative pall on its earnings.
Beginning in 2011, the company began to move away from its previous male-oriented menu and
introduce new menu items, product reformulations and packaging, as part of its current owner
3G Capital's restructuring plans of the company.
 STASTICAL ANALYSIS:
Here, we have taken the worldwide annual revenue of 10 years of McDonald and Burger King as
follows:

Company McDonald Burger King

REVENUE REVENUE
YEAR
(MILLION US$) (MILLION US$)

2009 22745 2540

2010 24075 2500

2011 27006 2340

2012 27567 1970

2013 28106 1150

2014 27441 1060

2015 25413 1100

2016 24622 1140

2017 22820 1220

2018 21025 1650

 Chart Title

30000

25000

20000

15000

10000

5000

0
2009 2010 2011 2012 Mcdonald
2013 Column1 2015
2014 2016 2017 2018
 INDIVIDUAL SERIES
Individual series is a statistical series in which all the observations are listed out and all the
observations have a frequency of 1.

MEAN:
The arithmetic mean is the average of the numbers: a calculated "central" value of a set of
numbers.
It is also known as average.
x̅ = Σ x/n

Mean of McDonald of 10 years is 25,082 million USD. Whereas, mean of Burger King of 10
years is 1,667 million USD.

So, we can interpret that the average revenue of McDonald is higher than Burger King.

Revenue (In 25082

Million USD)

MEAN

25082 USD)
Revenue (In Million

MEDIAN:
The median is the middle number in a sorted, ascending or descending, list of numbers and can
be more descriptive of that data set than the average.

FORMULAFOR MEDIAN=

Median of McDonald is 25017.5 million USD whereas median of Burger King is 1435 million
USD.

So, here we can interpret that the middle value of McDonald is higher than Burger King.

Revenue (In 25082

Million USD)

MEDIAN

25082 USD)
Revenue (In Million
 STANDARD DEVIATION:

Standard deviation measures the dispersion of a dataset relative to its mean.

FORMULA=

Standard deviation of McDonald is 2425.767462 whereas standard deviation of Burger King is

617.8646022
So, here we can interpret that standard deviation of McDonald is higher than Burger King.

Revenue (In 25082

Million USD)

STANDARD DEVIATION

25082 USD)
Revenue (In Million
 RANGE
The difference between the lowest and highest values is called range.
Formula= highest value - lowest value

The range of revenue of McDonald is 7081 million USD. Whereas range of revenue of Burger
King is 1480 million USD.
So, here we can interpret that the range of revenue of McDonald is higher than Burger King.

Revenue (In 25082

Million USD)

RANGE

25082 USD)
Revenue (In Million

CORRELATION
Define
Correlation means association - more precisely it is a measure of the extent to which two
variables are related. There are three possible results of a correlational study: a positive
correlation, a negative correlation, and no correlation.
Formula

The correlation between McDonald and Burger King is -0.199546857.

There's low degree of negative correlation between them
It can be interpreted that if McDonald revenue increases Burger King revenue decreases and vice
versa

CO-EFFICIENT OF VARIATION:
The coefficient of variation (CV) is a statistical measure of the dispersion of data points in a data
series around the mean. The coefficient of variation represents the ratio of the standard deviation
to the mean, and it is a useful statistic for comparing the degree of variation from one data series
to another, even if the means are drastically different from one another.

FORMULA= STANDARD DEVIATION/MEAN*100

CV of McDonald is 9.67% whereas the CV of Burger King is 37.06%
So, here we can interpret that the CV of revenue of Burger King is higher than McDonald.

BURGER KING MACDONALD

CONCLUSION
By analyzing both the companies we can conclude that there is ups and downs in both the
companies but McDonald is more successful, consistent and a reliable company than Burger
King (as an investment also).

THANK
YOU