Competitive Profile Matrix| McDonalds| Burger King

Holdings| Yum! Brands Inc| Critical Success Factors|

Weight| Rating| Score| Rating| Score| Rating| Score|
Advertising| .15| 4| .6| 2| .3| 3| .45|
Product Quality| .15| 2| .3| 1| .15| 3| .45|
Price Competitiveness| .10| 3| .3| 2| .2| 4| .4|
Management| .10| 3| .3| 1| .1| 2| .2|
Financial Position| .15| 4| .6| 2| .3| 3| .45|
Customer Loyalty| .15| 3| .45| 2| .3| 4| .6|
Global Reach| .15| 4| .6| 3| .45| 2| .3|
Market Share| .05| 3| .15| 1| .05| 2| .1|
Total| 1.0| | 3.3| | 1.85| | 2.95|
With more than 31,000 restaurants in 118 countries
and serving nearly 60 million consumers daily,
McDonalds (MCD) has grown to be the largest food
service merchant worldwide. It is because of this that
McDonalds ranks higher than both Burger King Holdings
(BKC) and Yum! Foods Inc. (Yum) in just about every
category of the Competitive Profile Matrix (CPM). The
2008 year end numbers show that McDonalds revenue of
$22.99 billion doubled that of Yum and more surprisingly
almost ten times the revenue of Burger King. Yum ended
the year with a net income of $928 million, which sounds
like a good year until you see that MCDs year netted
$4.35 billion (David, 2011). McDonalds was able to
increase their net income by almost 80% from 2007 to
2008 thanks in large part to their global modify their
menus to meet the local consumers diet needs such as
offering vegetable patties and pushing their chicken
menu in India, where cows are worshipped and not eaten.
Even McDonalds is not immune to decline sales and slow
economic growth however, as was evident in 2006 when

the company was forced to cut costs by 40% in China to

reverse declining sales (David, 2011). Customer loyalty
and price competitiveness are areas that favor Yum!
Brands Inc. simply due to the fact of the companys.
However because of the 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. MCD continues to encounter
lawsuits brought about around the world by activists and
iterate parents of children less than 18 yrs of age.
Around 1990 in the McLibel Trial, better known as
McDonald's Restaurants v. Morris & Steel, activists from a
small group known as London Greenpeace with no
affiliation with the Greenpeace organization printed and
distributed information under the title, "whats wrong with
McDonald's? The corporation wrote to the group
demanding them to retract and apologize, but when the
two key activists refused to back down, MCD sued them
for libel. It turned out to be not only one of the longest
cases in British civil law, but it also turned out to be a
public relations nightmare for MCD.