GALGOTIAS UNIVERSITY

Research Project Report On:

Burger King vs Mc Donald’s – A comparative study between
Burger King and Mc Donald’s Rivalry

FOR THE PARTIAL FULFILMENT OF THE REQUIREMENT

FOR THE AWARD OF

BACHELOR OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF: SUBMITTED BY

Mr. Aijaz Ahmad Khan Arisha Riyaz

(Mentor, DEPARTMENT OF 18GSOB1010353

SCHOOL OF BUSINESS) BBA Third Year (SEM 6)

1
 ACKNOWLEDGEMENT

It is my privilege to express my sincerest regards to my project mentor, Dr.

Aijaz Ahmad Khan for his valuable inputs, able guidance , encouragement,
whole-hearted cooperation and constructive criticism throughout the
duration of my project. I deeply express my sincere thanks to our Head of
Department Mr. Jitin Sir for encouraging and allowing us to present the
project on the topic “Burger King vs Mc Donald’s – A comparative study
between Burger King and Mc Donald’s Rivalry”.

I take this opportunity to thank all our lecturers who have directly or
indirectly helped in my project. I pay our respect and love to my parents and
all other family members and friends for their love and encouragement
throughout my career. Last but not the least I express my thanks to my
friends for their cooperation and support.

2
 OBJECTIVES OF THE STUDY

 An understanding of marketing rivalry between MNCs i.e. how

marketing rivalry arises, reasons behind companies getting involved in
feuds, how feuds contribute to revenue generation and brand image and
vice versa.
 Organisation structure and thorough details about the internal
environment of the involved companies.
 Various marketing strategies used by companies during marketing feuds.
 Understanding marketing strategies and various fields or platforms
available for marketing a brand.
 Companies’ steps towards their consumers amid fuming feud i.e. how
they treat their customers, offers made by them to attract customers and
what else they can do to satisfy their customers in order to gain customer
loyalty so that they don’t shift to rival’s company anytime.
 Consumer behaviour/ reaction amid feud.
 Effect of feud in the financial management of the involved companies i.e.
sources of finance, investment of capital on new infrastructure, new
product and advertisements and promotions ,impact on revenue
generation, etc.
 Financial performances of respective companies throughout ongoing feud
as well as pandemic and at last, a survey analysis for real time
comparison based on consumers' preferences.

RESEARCH METHODOLOGY

In order to make this report I will majorly use secondary data collection
research methodology (i.e. reviewing available data) from various sources of
3
information i.e. the use of internet(Wikipedia, company website, blogs,
marketing web pages etc.), data from annual reports of the companies and
some news headlines.
I will also conduct a consumer feedback survey covering consumers of all
age groups and the annual reports of both the organizations that I will choose
for my comparative study will further help me to achieve the objectives of
this report. I will use primary as well as secondary data collection and
analysis while preparing my report.
Exploratory research will be carried out in making of this industrial research
project report.

Table of Contents:

S no. Content Page no.

4
 1. Introduction 6

2. Organizations’ Structure 7-8

3. Mission and vision statements 8-9

4. Porter’s five forces 10-12

5. Span of control 12

6. Effectiveness of organizations 13-16

7. Value, People and Profit Proposition 16-20

8. Framework of Technologies used by both the 21

brands

9. Marketing Strategies used by both the companies 22-28

10. Customer Usefulness 29

11. Consumer behaviour amid feud 30-31

12. Financial Management, Sources Of Finance 32-35

13. Financial Performance 36-41

14. Customer feedback data analysis 42-46

15. Conclusion 47

INTRODUCTION

Burger King and McDonald’s have been battling for more than 60 years to
secure the largest share in the Food industry worldwide. Both products are

5
brand-owned, with the resources to support global advertising with a global
presence. Over the years, Burger King Vs McDonald's has been the online
battle itself and is one of the most frequently discussed topics among teens.
The battle between the two major food chains, Burger King and McDonald's
has been going on for years (specifics, over sixty years). Even the term
‘burger battles’ originated in the seventies after a series of competitive
advertising campaigns launched by two chains.
Over the years, these two fast food giants have continued to have various
disputes. They even continue to tease their competitors from time to time,
which in turn attracts customers. Both companies are always able to come up
with new and effective marketing strategies that make them more
competitive. Only what is on the big boards and posters has finally entered
the communications realm over the past decade, making things very violent
and very entertaining (for viewers). In fact, Burger King, with its Whopper
and McDonald’s with Big Mac, are the two best-selling industries when it
comes to menu. Both have been able to apply the techniques that have
turned into their greatest success. One of the most important parts of their
success is their positioning strategy which has enabled them to gain
competitive advantage and reach millions of customers.

II) Organizational structure

McDonald's
6
McDonald's Corporation has its own organizational structure. In this type of
structure, a business organization is divided into units that are assigned
responsibilities according to operational requirements. Each category covers
a specific area of work or a set of strategic objectives. This corporate
structure is independent of organizational support and flexibility in meeting
the business needs of the various organizational structures and markets. The
structure of the McDonald's organization has the following features,
arranged in terms of the importance of affecting the functioning of the food
business:
• Position of international management
• Performance-based categories
• Career-based teams

1. Land Management Area: McDonald's Corporation has a global

management board to coordinate all of its operations worldwide. This aspect
of organizational structure emphasizes corporate governance in the context
of corporate governance and governance.
2. Operating-Based Categories: Prior to the restructuring that is 1 July 2015
McDonald’s had segments in areas such as the U.S., Europe, Asia pacific
but after the restructuring the company used functioning as the basis for new
phases in its organizational structures. The new distribution is a) US b)
Leading global markets c) High growth markets d) Primary markets and
companies.
3. Work-Based Teams: McDonald's keeps work-based teams in its corporate
structure. Like HR, sustainability and asset management. Each party is under
the leadership of the executive council or general manager. This
organizational structure enables McDonald's Corporation to focus on the
core functions of its business.

Burger King

7
Burger king has an organizational structure that works on its own. The three
main pillars of its structure are global integration, working groups such as
basic business business groups such as HR, IT, finance etc. and spatial
divisions such as:
• North America
• Europe, the Middle East and Africa
• Latin America and the Caribbean
• Asia Pacific

III) Vision and Mission

McDonald's
Mission Statement: “to be a favourite place for our customers and a way to
eat and drink.”
McDonald's global operations are aligned with a global strategy called Plan
to Win, which focuses on different customer experiences. People, Products,
Location, Price and Promotion. They are committed to continually
improving their performance and improving the knowledge of their
customers.
McDonald's guiding philosophy is:
• Responsible Leadership: Macdonald’s is committed to using its scale
effectively. They believe in caring for food, developing a sustainable growth
model and being a good employer for millions.
• Progress: Driven growth by innovation.
• Local integration: Living in harmony with the community in which they
work. Local-owned restaurants with local staff giving back to the
community through a variety of programs.

8
Vision Statement: "to go faster to drive profitable growth and become the
best McDonald's to serve many customers a delicious meal each day around
the world."
McDonald's vision is to be the best fast food experience in the world. Being
the best way to provide outstanding quality, service, cleanliness, and price,
to make all customers at all restaurants smile.
Vision Statement Method-
McDonald’s used the Targeting method to set up their Vision Statement.
Use Qualitative Targeting for the following vision objectives-
• Increasing the number of customers
• Distribute global reach
• Improved understanding of food taste
• Increasing profits

Burger-King
Mission Statement: “Provide affordable, fast-food, attractive, and clean
food.”
Burger King's guiding principle is to work collaboratively with all
stakeholders and individuals in the communities in which they live and
work. Sharing local grievances, providing services, and doing their part to
help people in the community.
Vision Statement: "to be the most profitable business of QSR, with a strong
system of franchises and big people, who serve the best burgers in the
world."
Opinion statement method-
McDonald’s used the Targeting method to set up their Vision Statement.
Apply Quantitative Targeting for the following vision objectives-
• Gaining a leadership position in the fast food industry in terms of profits

9
• Build a strong Franchise System
• Serve the best burgers
IV) Porter's five forces

McDonald's
McDonald's key strategy is to maintain the quality and market potential that
directly affects the business. A key element of MacDonald's strategy from
the beginning was to own all the goods MacDonald's built on does not
matter if the property is owned or owned. The rental fee differs from
property to property, but it is estimated that McDonald generates more
money for the rental of the property than the franchise fee he charges.
Operational and operational strategy:
At McDonald the company's business strategy is to make food available
faster to its customers at a much lower competitive price but to maximize
profits by reducing product costs and increasing business worldwide.
Reducing costs with efficient equipment:
To reduce the cost of McDonalds purchases most vegetables especially
potatoes directly to farmers, this helps McDonald not only reduce the cost of
producing chips but also provide its customers with fresh salad vegetables.
This also helps McDonald to avoid falling prices in the market.

Porter's analysis of McDonald's five forces:

1. Competition or competition - You are strong
The fast food industry is one of the most competitive businesses today. The
competition is intensifying day by day with new entrants in the form of
international and local people.
2. Ability to negotiate with buyers or customers - Powerful
There are many food discovery options McDonald's offers to its customers.
Therefore, they can switch to other restaurants without the cost of switching.

10
3. Supportive Negotiation Power - Weak
There are a number of suppliers who are willing to cater to McDonalds due
to its high sales volume.
4. Threat to replace or replace - Sturdy
There are many players in the fast food industry who offer different products
such as pizza, switching to it that does not involve huge costs.
5. Threat of new entrants or new entrances - Medium
As McDonald's is a worldwide distribution, any newcomer should build a
sales chain to compete internationally.

Burger King
The company's main competitive strategy is cost savings. According to
Michael Porter's model, this common strategy involves reducing costs,
resulting in lower prices.
Burger King uses cost leadership by formulating policies to reduce costs
based on the economy of the economy and the prevention of errors. The
purpose of a financial strategy based on this common competitive strategy is
to reduce operating costs so that Burger King products can be offered at
lower prices.
1. Competition or competition - You are strong
Burger King has a big rivalry with firms like McDonalds and Wendy's.
Therefore, there are probably no replacement costs available.
2. Ability to negotiate with buyers or customers - Powerful

11
Low exchange costs are associated with the ease of transferring from Burger
King to other companies. This situation empowers customers to make
decisions that directly affect Burger King's business. In addition, there are
many substitutes for Burger King products, thus giving consumers more
choice

3. Supportive Negotiation Power - Weak

There are many suppliers competing to offer their products to firms like
Burger King. In terms of supply, there is a lot of supply of raw materials and
ingredients. These situations reduce the influence of suppliers to Burger
King and other fast food companies.
4. Threat to replace or replace - Sturdy
Customers can easily transfer from Burger King to something else (low
switching costs). In addition, there are many alternatives to choose from,
including good restaurants and home cooking. These circumstances
reinforce the threat of Burger King's replacement.
5. Threat of new entrants or new entrances - Medium
Low exchange costs indicate that it is easy for consumers to move from
Burger King to new (newly joined) firms. However, new entrants face
medium costs because large firms like Burger King benefit from a level
economy that many new firms do not have.

V) Span of Control

McDonald’s
At McDonald’s the span of control of the manager is narrow. A narrow span
of control reduces delegation and managers can do more work.

12
 Burger King
The span of control at Burger King is narrow as well. It ensures tight control
over subordinates and the manager can closely supervise the daily operations
resulting in better co-In.

VI) Effectiveness of an Organisation

McDonald’s: Goal Attainment Based Approach should be used to

measure McDonald’s Effectiveness.

Profitability ratio Description The company

Gross profit margin indicates the percentage of McDonald’s Corp.’s gross profit margin
Gross profit margin revenue available to cover operating and other ratio improved from 2016 to 2017 and
expenditures. from 2017 to 2018.

McDonald’s Corp.’s operating profit

Operating profit A profitability ratio calculated as operating
margin ratio improved from 2016 to
margin income divided by revenue.
2017 and from 2017 to 2018.

McDonald’s Corp.’s net profit margin

An indicator of profitability, calculated as net
Net profit margin ratio improved from 2016 to 2017 and
income divided by revenue.
from 2017 to 2018.

13
 Liquidity
Description The company
ratio

Current A liquidity ratio calculated as current McDonald’s Corp.’s current ratio improved
ratio assets divided by current liabilities. from 2016 to 2017 but then deteriorated
significantly from 2017 to 2018.

Quick A liquidity ratio calculated as (cash plus McDonald’s Corp.’s quick ratio improved
ratio short-term marketable investments plus from 2016 to 2017 but then slightly
receivables) divided by current liabilities. deteriorated from 2017 to 2018 not reaching
2016 level.

Cash A liquidity ratio calculated as (cash plus McDonald’s Corp.’s cash ratio improved from
ratio short-term marketable investments) 2016 to 2017 but then deteriorated
divided by current liabilities. significantly from 2017 to 2018.

14
Burger King
Goal Attainment Based Approach should be used to measure Burger King
Effectiveness.
Restaurant Brand International (Burger King’s parent company).

15
 VII) Value, People and Profit Proposition
McDonald's
McDonald's value proposition states that "McDonalds stands for
friendliness, cleanliness, consistency, and simplicity". They incorporate the
customer experience into the context of what they do, dedicate themselves to

16
the people, run the business responsibly, give back to the communities in
which they work and work and strive for improvement.
In March 2017, Macdonald’s launched its Velocity Growth program to
strengthen their profit proposal. They introduced this growth program to
make the most of their competitive advantage, unparalleled global
performance and brand awareness.

The key pillars of this growth strategy are:

• Retain : Customer retention, expanding power points by focusing on
mornings and family events.

• Regain: Recover lost customers by improving the taste and quality of food,
improve usability and provide a solid value.

• Transform: Converting unusual customers into more dedicated customers

with coffee and snacks.

• Digital: Rebuilding customer connections - whether they eat, download,

pass or order delivery.

• Delivery: Bringing McDonald's experience to more customers - in their

homes, in their bedrooms, in their workplaces and more.

• Future experiences: Raising customer awareness in professional

restaurants and food groups that keep them alive.
When it comes to people’s proposal, at McDonald’s, every employee
participates in decision-making. All employees must work within their
means and provide ideas on how to delegate work within the team.
Managers give more importance to working in a team than doing each one.

17
At McDonald's, ideas flow freely within the group and are freely discussed
thus ultimately achieving their goal. This applies to both the company's
approach to achieving individual goals in line with the objective of the
organization.
The management of the organization encourages employees to do more
work by involving them in decisions that affect the purpose of the
organization.
This approach contributes to employee productivity and they feel it is
important to be part of an organization by providing value. They pay all
employees at the same level and the manager always tries to know the
strengths and weaknesses of the employees. To overcome this difficulty,
they offer appropriate training and skills development programs.

Burger King

The Burger King price proposal is simple and concrete. They believe in
serving high quality, good taste, and the cheapest food in the world. Staying
competitive and increasing visibility, they are constantly delivering a
marketing campaign that is not in line with the results with good results.
In 2015, Burger King sent an open letter to McDonald’s proposing that the
two brands combine their most popular meal and make McWhopper, a
special contribution to World Peace Day. McDonald’s rejected the proposal,
but Burger King left the winner by successfully managing the number of
people he wanted.
Burger king has used new age strategies such as integrating news platforms,
which provide customer engagement opportunities, viral marketing, smart
pricing, trollish promotions and the use of simple and thought-provoking
ideas.
Burger King's Whopper Detour has been the epitome of this brand.
Redirected McDonald's customers to the nearby Burger King to get a
sandwich only, earning a Mobile Grand Prix at the Cannes Lions

18
International Festival of Creativity. They have used many such ideas to
reinforce their profit proposal.

19
McDonald’s response to BK’s open truce letter:

20
 VIII) Framework of Technologies

McDonald's
• Drive-Thru, where customers can order McDonald's food on the go. Online
ordering / delivery 24/7
• Online and online credit card payments online and offline
• Free Wi-Fi connection across all McDonald's branches
Networking (Facebook)

Burger king, on the other hand, uses Engineering Technologies to improve

their business.

Burger King
Plans for the Burger King of Tomorrow - a new Burger King model - were
released last quarter, and the organization expects to unveil the model soon.
With new features, advanced open-air menu boards, and self-service stands,
the organization embracing new highlights will greatly enhance the client
experience.
Burger King's commitment to innovation is not limited to the client's
experience. The organization uses innovation to improve all aspects of
operations, including drive, program progress, and referrals.
Burger King uses Engineering Technologies to improve their business.

21
IX) Marketing Strategies

 Social Strategy-

McDonald's

With the classic product, McDonald's certainly refreshes on social media.

Two highlights in the content strategy of its Spotify channel and the much-
loved Instagram, both inviting digital audiences to "smile." The Spotify
channel has a playlist corresponding to McDonald's meal times ("Awake!,"
"Late Night"), and the Instagram feed is full of old, artful frying posts and
user-created photos.

22
McDonald’s showcases amazing visual content and redesigns it to all
channels. Their blog posts and text-based content have a hip voice and a new
one playing on social media talk. McDonald cleverly co-ordinates public
posts with events such as the hashtag of the #McDOneGoal World Cup and
World Cup organization posts.

McDonald's major marketing strategies:

Another competitive advantage McDonald's has managed to achieve is its

product balance. To help the company improve its exposure to foreign
businesses, McDonald's has implemented major branding strategies by
engaging and sponsoring popular organizations such as FIFA and the
Olympics. In addition, in order to survive in a competitive market,
McDonald's is making rights in various parts of the world to live up to the
expectations of various target groups with a combination of products offered
to customers.

23
 Burger King

Burger King also knows social media, showcasing its hashtag game with a
digital #chickenredemption campaign and massive advertising efforts. Not
every media campaign continues to focus on the big picture, but Burger
King boldly uses its resources.

Burger King on Facebook:

Burger King has the largest fan base on Facebook, unlike its Twitter and
Instagram channels, which has nearly 8.5 million followers on its main

24
Facebook page. The brand added 203K followers in the analysis period,
growing by 2.45% of followers, which is about 513 more fans per day.

BK campaign during COVID19:

Earlier in 2020 people were advised to stay at home and get used to
socializing to reduce the spread of COVID-19.
To promote social segregation, Burger King launched the "Stay Home of the
Whopper" campaign, taking an interesting look at his iconic tag line, asking
people to stay home and order instead of buying burgers.

BK on Twitter:

25
Twitter is basically Burger King's throne. Unlike Facebook and Instagram,
where banter tends to revolve around products and deals, Twitter is where
Burger King expresses his opinion, casting a shadow over his competitors.

BK's (4Ps) Marketing Mix –

Burger King uses its marketing integration (4Ps) as a response to the

changing and global environment of the world's fast-growing restaurant
industry. Marketing integration is a combination of strategies and strategies
to effectively use the marketing system. In this case, Burger King's
marketing combination aims to increase competition with various players.

I. Product integration: Burger King's main product lines are as follows:

1. Burgers
2. Chicken and fish
3. Sides
4. Salads and vegetables
5. Drinks
6. Sweets / Desserts

This product combination supports Burger King's standard strategy using

scale economics from the mass production of a limited number of product
lines.

II. Location: The following are the places Burger King uses to distribute
his products:

1. Restaurants
2. Mobile application
3. Delivery website

26
In addition to restaurants, customers can use the Burger King mobile app to
access special and free offer coupons. Customers can also use the company's
website to place their home delivery orders.

III. Promotion: Burger King uses the following promotional / marketing

strategies:
1. Advertising
2. Sales promotion
3. Personal sale
4. Public Relations

Burger King relies heavily on advertising to promote its products. The

company advertises online and on TV and prints the media. In addition,
Burger King uses marketing campaigns in the form of coupons and other
offers through its website and mobile app.

IV. Prices: Burger King's pricing strategy relies heavily on its standard
cost management strategies, which reduce costs and prices. In this part of the
marketing mix, the fair price of the products is considered. Burger King's
pricing strategies are as follows:

1. Market pricing strategy

2. Bulk pricing strategies

Burger King uses the market pricing strategy as the main pricing method.
This pricing strategy involves setting prices based on existing market
conditions, including supply and demand conditions and prices of competing
firms. The second pricing method of Burger King is a bulk pricing strategy.
For example, consumers can buy wholesale food and baby food at bulk
prices that are less expensive than buying wholesale foods. This part of the
marketing mix shows that Burger King is more focused on market
conditions to find its prices.

27
  External Advertising:

McDonald's:

McDonald's advertising outside Burger King are almost identical. Similar to

its website, McDonald’s is very simple and uses the power of emotion and
communication with its customers. They also often use pictures of hot drinks
with hot drinks that look attractive and encourage tired employees to get into
McDonald's on their way to work. McDonald’s also relies on the fact that its
brand is very different from its display boards which are very simple but
impressive in itself.

Burger King:

Burger King's billboards are much smaller than their campaigns and
advertisements, often taking a note from McDonald's book and using only a
well-designed picture of attractive food with prices and deals written on it.
The typography on Burger King's billboards is still much bolder than
McDonald's always branded.

28
 X) Customer Usefulness:

McDonald's:

McDonald's puts nutritious content at the centre of the site, anticipating

questions from consumers - a smart PR initiative and a clever SEO strategy.
McDonald's prioritizes customer needs and requirements; that is why it
strives to be their favourite place to eat and drink. Customers are the most
important part of a company. That’s why McDonald’s menus and recipes are
specifically designed to satisfy consumer preferences. The product aims to
create a fun and safe environment for targeted markets where they will be
able to enjoy good food at low prices. In addition, the company aims to
provide people with fresh and quality food, so it adopts the idea of "burger
cooked when you order" in this way, ensuring customer satisfaction.

Burger King:

The site has pages dedicated to their dedication to their customers, food, and
environment, but they do not support it with examples like McDonald's.
Evidence is important for consumers when it comes to healthy eating, and
Burger King will do well to add more details of a healthy diet or food source
to their mix of content.

29
Burger King's main goal is to provide quality food. In addition, they aim to
provide instant services, reasonable prices, and all of this in an attractive and
clean environment. The brand empowers its guests to customize their food
according to their preferences and lifestyle. At the moment, all of these
foods are presented with healthy enough food details to satisfy customers. In
addition, the product supports and invests in its people, whether customer,
employee, or supplier.

XI) Factors influencing Consumer behaviour

McDonald's
1) Custom-feature: Culture is one of the main causes of consumer demand
and behaviour. McDonald's food items carefully according to local culture
and traditions. For example, a new Vegetarian menu in India as some people
do not eat meat.

2) Social aspect: The key factors here are family, reference team and
status. The buyer is heavily influenced by a family member. A trust team has
the power to create an opinion or position for people about a product.

3) Personal feature: Some of the most important factors that influence

consumer behaviour are: economic status, employment, age, lifestyle and
sense of independence. Different consumer age group has different product
purchase behaviour. McDonalds targets almost everyone from children,
students, adults and entrepreneurs. The children offer delicious food with
Disney toys or other items to attract them. For teens and students, some
foods are expensive and cheap for them. On top of this there is their free Wi-
Fi for free internet access. For seniors and business people, they like to

30
choose things that are quick and time consuming and this is exactly what
McDonalds does, they serve fast food and there is a Drive through many
business type shoppers on the go.

4) Psychological aspect: There are four key factors that affect consumer
behaviour. This is motivation, understanding, learning and beliefs and
attitude. For example, McDonalds will be creating a variety of delicious
food items such as burgers, fries, wraps, etc.

Burger King:

An advertising study revealed that 49% of Burger Kings clients are part of
the 18% of people identified as eating a normal diet. A Burger King
audience aimed at men, 18 to 35 years old who eat fast food 9 to 16 times a
month. While they are only 18% Burger King customers, they account for
about half of all store visits. Burger King customers are people who want to
enjoy safe, delicious fast food and drinks. The majority of Burger King's
customers are in the 15-40s age group in developing countries and in
developed national customers of all ages opt for the Burger King fast food
chain.
For healthy consumers, points for Burger King’s Word of Mouth began to
rise on September 17th at 11, and then reached 16th September 26, where he
has lived since.
All outcomes were divided into two groups: adults with children under 18
years of age, and adults 18 years and older who considered themselves
healthy or well.
BK is the leading international organization of QSR, already having
excellent hygiene and cleanliness procedures. From the point of view of

31
making a decision-making position, consumers make food choices, or the
product offered with the burger king ensures that they always have
something new to offer their customers.

XII) Financial Management

i. Financial planning:

McDonald’s: Financial planning consists of six steps:

32
 ii. Investment Strategy:
The following 4-step process is the basis to a successful investment strategy:

33
In addition to the basic categories of investment, equity and fixed income,
they offer, where appropriate, private equity and private housing programs.
They also have access to third-party financial managers where additional
expertise is required.

iii. Financial sources:

34
 Internal Financial Sources:
One of McDonalds' main sources of revenue is sales revenue. From the sales
made by McDonald's restaurants, the proceeds subtract all the costs incurred,
giving it extra money. This amount is kept by the business and is used to
finance its expansion into new market areas by establishing new restaurants
or the purchase of new goods.

Another source of funding for McDonalds Inc. royalty from franchises.

McDonalds continues to be known as one of the largest retailers in the world
with more than 75% of McDonald's restaurants owned by franchisees. This
means that McDonald's benefits the most from these franchises as they send
their payments to the franchiser. Franchising is therefore one of McDonald's
major financial sources.

 External Financial Sources

McDonald also earns joint ventures. Partners donate business funds and
McDonald's benefits to this business relationship because with these large
funds, it is able to fund its business.

McDonald's can get money from bank loans. Among the major sponsors of
McDonald's Kuwait is the National Bank of Kuwait (NBK) which allows for
the provision of various forms of credit to McDonalds.

 Long-Term Financial Sources

Leasing: To simplify its operating costs, McDonalds inc. enter into a
contractual agreement with stakeholders and other parties and use their
assets for the agreed period.

Burger King:

35
 Burger King operates under a franchise program. ‘QSR Asia’ owns the
‘Burger King India’ and its franchise rights. Everstone Capital is owned by
QSR Asia. The promoter owns around 99.39% of the shares. Burger King
allows people to set up their own businesses as a Burger King Franchiser
and grant them the rights to start their own businesses. Under the Burger
King franchise, the franchisee buys equipment, including and permits to run
the franchise for ten years. All Burger King franchisees Use the appropriate
branding, menus, layouts and Burger King management systems. Burger
King franchising is also increasing by taking out loans.

Revenue is made mainly by selling products. Early public contributions also

impact on its financial resources. According to a recent report, a fast-
growing restaurant recipe, Burger King India Ltd raised a raised 364.5 crore
in a group of institutional investors before the opening of the first public
deposit for registration.

Anchor assignment is made at ₹ 60 per share. Fidelity Funds-India Focus

Fund is the largest investor with an allocation of 8.23% of the bank's share
of investments followed by Eastspring Investments India Consumer Equity
Open Ltd and the Singapore Government of 7.13% and 6.79%, respectively.

XIII) Financial Performance:

36
 McDonald’s:

Financial Summary
For the fiscal year ended 31 December 2020,Mcdonald's Corp revenues
decreased 10% to $19.21B. Net income before extraordinary items
decreased 23% to $4.73B.Revenues reflect International Operated Markets
segment decrease of 17% to $9.57B, U.S. segment decrease of 2% to$7.83B,
International Lead Markets segment decrease of 17%to $9.57B, U.S.
segment decrease of 2% to $7.83B.

37
MCD Income Statement

Gross margin TTM 50.77%

Operating margin TTM 38.13%

Net Profit margin TTM 24.63%

Return on Investment TTM 10.47%

McDonald's Reports Third Quarter 2020 Results

 McDonald's topped analysts' estimates for earnings and revenue in its

latest quarter.

38
  The company said its U.S. same-store sales turned positive in the third
quarter, rising 4.6%.
 Diluted earnings per share of $2.35 increased 11%; excluding
strategic gains, diluted earnings per share of $2.22 increased 5%

Burger King:

39
Income Statement
Its current market capitalisation stands at Rs 5242.99 Cr. In the latest
quarter, company has reported Gross Sales of Rs. 8412.38 Cr and Total
Income of Rs.8468.29 Cr. 
 Higher than Industry Revenue Growth:
A higher-than-industry revenue growth represents increased potential for the
company to increase their market share. Over the last 5 years, revenue has
grown at a yearly rate of 119.71%, vs industry avg of 15.89%
 Increasing Market Share:
Market share is the percentage of an industry's total sales going to a
particular company. It gives a general idea of the size of a company v/s its
competitors. Over the last 5 years, market share increased from 0.27% to
12.11%

Financial Summary
For the six months ended 31 December 2020, Burger King India Ltd
revenues totalled Rs.2.6B. Net loss totalled to Rs. 675.3M.

40
The increase in losses was mainly because of increased expenses in the form
of finance cost (lease rentals), cost of material consumed (increased sales),
and depreciation because of the increase in the number of restaurants in FY
20. The profitability and sales of H1FY20 are affected due to lower footfalls
and sales due to the pandemic.
Although the same-store sales(SSS) grew at 29.21% and 6.11% in FY 2019
and in the nine months ended December 31, 2019, respectively, the SSS
decreased by 0.30% in Fiscal 2020 and by 56.90% in the six months ended
September 30, 2020, primarily due to the impact of the COVID-19
pandemic.

41
42
XIV) Consumer Feedback Data Analysis (A Survey)

For my project report, I have conducted a survey which consists of

feedbacks regarding customer preferences. In this survey, I have asked
people of different age groups to share and rate their experiences and food
brand preferences.

 Here, most of the consumers belong to Gen Y and Gen Z. These are
youngsters and kids who prefer consuming fast foods more.

43
 This chart shows the buying behaviour of the consumers. We all know in
this era, people have become more health conscious when it comes to
what they consume. Here too, majority of consumers choose their food
brands based on the quality of food and the healthy food options that
brands offer which is followed by foods offered at reasonable rates.

44
• Consumers believe that McDonald's offer a wide range of products as
compared to Burger King and also they serve better quality products. In this
context, consumers prefer McDonald's over Burger King.

• When it comes to ambience and eating experience at the outlet, our

consumers prefer McDonald's over Burger King. McDonald's has definitely
won this section as they tend to provide their customers a splendid quality of
service at their outlets. Their outlets are designed in a way that attracts
children, teens as well as adults.

45
• When it came to rating their brands, McDonald's was rated 5 stars in more
percentages. Also, if we look into overall ratings for both the brands, it
becomes very clear that McDonald's ratings are way better than that of
Burger King's.

46
• At last, consumers rated McDonald's more than Burger King regarding
better customer services and customer convenient everyday value offers and
discounts on the products offered by respective brands. Though, both the
brands offer certain discounts and offers to their customers at regular basis
but consumers find McDonald's value offers more convenient.

As a result of our survey, we can easily conclude that consumers are very
well aware of the brands they choose. Their decisions are based on the
modern world on goings and they keep knowledge and available information
into consideration before choosing any brand. Turning consumers into their
loyal customers might perhaps be one of the challenging aim for food
industry giants. Though, McDonald's came into existence two years after
Burger King opened, yet it managed to hold the top spot in the industry and
it still holds a strong brand image in the market.

47
 XV) Conclusion

With the help of this report project I’ve not only carried out exploratory
research method but it has also given a better understanding of business
process, management types, use of modern techniques and resources and
strategies that benefits the business activities. I’ve learnt how the businesses
compete with the dynamic competitive global market.
This report has helped in defining various organisations' structures,
frameworks and strategies and make a data comparison between two
different organizations for a better understanding of concept.
However, both McDonald's and Burger King have similarities, their
differences being undeniable when we consider their advertising, food and
community dedication.
In conclusion, when asked the question of which healthy fast food chain is
safe to say there is no clear answer. Even at McDonald’s, if you look at the
healthy food statistics for each item compared to Burger King, it wins the
Burger category. As consumers we need to understand that “fast food” is not
healthy in the first place.
Without a doubt, McDonald's understands the importance of social media. It
works easily with its audience and does a good job of sticking to its
message-to-message image. Burger King is seen playing ketchup on
McDonald's on all aspects of branding, public inclusion. Perhaps with the
investment and time, Burger King can sit on the throne soon.

48
References:

https://www.orchard.co.uk/blog/mcdonalds-vs-burger-king-marketing-
wars--19272.aspx
http://panmore.com/burger-king-marketing-mix-4ps-analysis
https://www.zilliondesigns.com/blog/white-papers-and-ebooks/branding-
burger-king-case-study/
https://thesocialgrabber.com/positioning-mcdonalds-burger-king/
https://www.google.com/amp/s/www.livemint.com/companies/news/burger-
king-ipo-fast-food-chain-raises-rs-364-5-cr-from-anchor-investors/amp-
11606889372331.html
https://www.google.com/amp/s/www.bloombergquint.com/amp/ipos/burger-
king-india-ipo-heres-all-you-need-to-know
https://www.mcdonald-partners.com/products-and-services/financial-
planning/
https://www.researchgate.net/publication/
342702949_Financial_Analysis_of_McDonald's
https://www.gwprime.geospatialworld.net/case-study/how-burger-king-
stole-customers-from-mcdonalds-using-creative-geo-targeting/
https://mediasamosa.com/2020/01/15/burger-king-vs-mcdonalds-ads-fried-
in-a-flaming-feud/
https://www.coursehero.com/file/p6c55rfa/BURGER-KING-5-In-
conclusion-McDonalds-and-Burger-King-are-still-in-competition/
https://m.economictimes.com/burger-king-india-ltd/stocks/companyid-
1997181.cms
https://in.investing.com/equities/mcdonalds-financial-summary
https://in.investing.com/equities/burger-king-india-financial-summary

49
 DECLARATION

I, Arisha Riyaz, solemnly declare that this industrial research project report
is my own original work.
I have correctly acknowledged it with accordance to the university
standards.
I confirm that I have not used work previously produced by another student
or any other person to hand in as my own.
I have not allowed and I will not allow anyone to copy my work with
intention of passing it off as his or her own work.

Name: ARISHA RIYAZ

Adm. No.: 18GSOB1010353

50