McDonald's 4 divisions are expected to make $21.5 billion for full-year 2019
(1) US Market - $8.1 billion (37%),
(2) International Lead Markets - $7.8 billion (36%)
(3) High Growth Markets - $4 billion (19%)
(4) Foundation Markets - $1.7 billion (8%)
McDonald's Business Model
What Does McDonald's offer?
The Company operates and franchises McDonald’s restaurants, which serve a locally-relevant menu of quality food and beverages in more than 100 countries. McDonald’s franchised restaurants are owned and operated under one of the following structures - conventional franchise, developmental license, or affiliate.The Company is primarily a franchisor, and on 31st December 2018 approximately 93% of McDonald's restaurants were owned and operated by independent franchisees. Franchising enables an individual to be his or her own employer and maintain control over all employment related matters, marketing, and pricing decisions, while also benefiting from the strength of McDonald’s global brand, operating system and financial resources.
The Company's first and largest segment. It covers all the company owned and franchised restaurants across the country.International Lead Markets:
The segment includes established markets like Australia, Canada, France, Germany, the U.K. and related markets.High Growth Markets:
The segment includes markets that the Company believes have relatively higher restaurant expansion and franchising potential including China, Italy, Korea, the Netherlands, Poland, Russia, Spain, Switzerland, and related markets.Foundation Markets & Corporate:
The segment includes the remaining markets in the McDonald's system, most of which operate under a largely franchised model. Corporate activities are also reported within this segment.
What Are The Alternatives?
Major competitors are companies like Burger King, KFC, Subway, and other fast food chains.
What Is The Basis of Competition?
McDonald’s restaurants compete with international, national, regional, and local retailers of food products. The Company competes on the basis of price, convenience, service, menu variety, and product quality in a highly fragmented global restaurant industry.The Company’s primary competition are quick-service eating establishments, casual dining full-service restaurants, street stalls or kiosks, cafés, 100% home delivery/takeaway providers, specialist coffee shops, self-service cafeterias, and juice/smoothie bars.
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