Is Ronald McDonald the Real Burger King?
Fast food joints are facing tough times. And while McDonald’s (NYSE:MCD) sales still aren’t what the company would like (sales at U.S. restaurants fell 1.4 percent in February), it’s still doing more business than its rival burger chains, including its biggest competitor, Burger King (NYSE:BKW), according to a recent BusinessWeek report.
To put the McDonald’s lead into perspective, the company took in $89.13 billion in sales in 2013, according to BurgerBusiness.com, which collected the information via companies’ annual 10-K filings. In addition, the average McDonald’s in the U.S. drew about $2.6 million in revenue last year.
Burger King, on the other hand, drew in less than half that in 2013, with the average restaurant garnering about $1.2 million in 2013; Burger King’s annual global sales put it well behind McDonald’s as well: The company brought in just over $16 billion.
Nick Setyan, senior vice president in charge of equity research at WedBush, told BusinessWeek that there are a number of reasons why McDonald’s seems to consistently trounce rival Burger King: “Everything from marketing to site selection to product initiatives and franchise selection have been historical factors,” he said.