Positioning of a company has to do with activities that they either do better than their competitors or innovations that they carry out at affordable prices. McDonald’s is one such company that does these activities well enough to get to the leading position.
Wider Menu Choice: Unlike many of its competitors McDonald’s has a very affordable price range and a wider menu choices catering to all age groups. On the other hand Burger King is more focused on very specific customer base. Wendy’s categorize themselves in the diet food category.
Price: The consumer prices are quite low and affordable that is why the company is able to sell volumes.
Financial Positioning: Burger king is behind McDonald’s in operating margins, earnings per share (EPS), and P/E ratio.
The company also uses technology to its fullest to carry out their operations worldwide. They deliver in record time with very few employees. The reason it is a leader also has more to do with its family bonding slogans. They talk about family, give goodies to kids in the happy meal segment, and also has a wide menu where every member of the family can enjoy with respective families (David, 2009).
8B
Amount Needed: $1,000 M
Interest Rate: 5%
Tax Rate: 38%
Stock Price: $50.00
# of Shares Outstanding: 1000 M
Note: I have considered EBIT normal range from the balance sheet of McDonalds given in Exhibit 5/ page 31.
During recession as well as during the boom time the company must go for full Debt option. The EPS ranges are high in the debt option (YourArticleLibrary.com: The Next Generation Library, 2014).
Citation:
David, F. (2009). Strategic management. Upper Saddle River, N.J.: Pearson Education.
YourArticleLibrary.com: The Next Generation Library,. (2014). EBIT-EPS Analysis in Leverage: Concept, Advantages and Other Details. Retrieved 28 February 2016, from http://www.yourarticlelibrary.com/financial-management/ebit-eps-analysis-in-leverage-concept-advantages-and-other-details/44224/
