Case 15: Great Burger (McKinsey)

Exhibit #1 (to be handed to the candidate)

Exhibit #1

Stores GB HD Financials GB HD
Total 5,000 1,020 Total store sales $5,500M $700M
- North America 3,500 1,000 Parent company revenues $1,900M $200M
- Europe 1,000 20 Key expenses (% sales)
- Asia 400 0 Cost of sales * 51% 40%
- Other 100 0 Restaurant operating
24% 26%
Annual Growth in Stores 10% 15% costs
Restaurant property &
4.6% 8.5%
equipment costs
Corporate general &
8% 15%
administrative costs
Profit as % of sales 6.3% 4.9%

Sales/store $1.1M $0.7M

Industry average $0.9M $0.8M
* Variable costs, mostly food costs

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