Competitor Analysis
The main competitors for McDonald's include Yum! Brands, Darden Restaurants and Starbucks restaurants. Though the Golden Arches currently leads its competitors in terms of share price and market cap, McDonald's has a lower price-to-earnings ratio in comparison to Yum! Brands and Starbucks Corporation (See figure 1). The stock performance for McDonald's for the five-year period is disappointing when compared to competitors Starbucks and Yum! Brands (See figure 2). |
Market Share
McDonald’s is the market leader in fast food restaurants in the USA, with a market share of 21.7 percent in 2013 followed by Yum! Brands, Doctor’s Associates, Wendy’s International and Burger King.
The Golden Arches face tough competition from local regional restaurants in the region that together have 54 percent of the market share (Figure 3). The current figures have, however, changed as the sales and profits of McDonald’s have declined with respect to its competitors. |