Welcome to the World of Burger King

Have it your way

 History of
Burger king
 Burger King was founded in 1953 by Keith Kramer and Matthew
Burns opened the first Burger King restaurant in Miami, Florida

The restaurant chain introduced the first Whopper sandwich in

1957

Burger King had long-term exclusive contracts with Coca Cola and
with Dr. Pepper/Seven-Up to purchase soft drinks for its
restaurants.

the company owned or franchised 12,174 restaurants in 76

countries and U.S. territories, of which 1,387 were company-
owned and 10,787 were owned by franchisees
 Burger King’s recently introduced Pizza Burger was a 2,530-calorie
item that included four hamburger patties, pepperoni, mozzarella,
and Tuscan sauce on a sesame seed bun

QSR sales had grown at an annual rate of 3% over the past 10

years and were projected to continue increasing at 3% from 2010

Burger is the second largest FFHR chain in the world as

measured by number of restaurant and system-wide sales right
now
 Sell quick service food to fulfil our guest's needs more
accurately, quickly, courteously, and in a cleaner
environment than our competitors.
 Grow profitably and responsibly, and provide career
advancement opportunities for every willing member
of our organization.

Vision
 Offeringreasonably priced quality food,
served quickly, in attractive, clean
surroundings
•Better restaurant operations

•Branded affordability

•Menu variety and beverage choice

•Grow market share

•Maintain debt-to-capital levels to 35-40%

•Create long-term profitable growth for shareholders

Slogan
Internal environment

Corporate Resources

 Product : Burger King produces flame-broiled hamburgers,

chicken and other specialty sandwiches, French fries, soft drinks,
and other low-priced food items.

 Marketing Mix Price : Burger King recently joined

Hamburgers, Cheese burgers .

 Promotion : Burger King operates its business via franchises in

worldwide. Burger king value menu featuring six items at less
than $1.
Turnover Ratios Dec31, Dec31, Dec31, Dec31, Dec31,
2012 2011 2010 2009 2008
Inventory turnover 226.52 231.22 219.06 214.17 210.96

Receivables turnover 20.04 20.23 20.42 21.45 25.26

Payables turnover 24.14 28.09 25.51 35.76 37.91

Ratio Comments
Inventory turnover Burger king Corp.'s inventory turnover improved
from 2010 to 2011 but then slightly deteriorated from
2011 to 2012. This means performance regarding
inventory increase.

Receivables turnover Burger king Corp.'s receivables turnover deteriorated

from 2010 to 2011 and from 2011 to 2012.

Payables turnover Burger king Corp.'s payables turnover increased from

2010 to 2011 but then declined significantly from 2011
to 2012.
 Dec31, Dec31, Dec31, Dec31, Dec31,
2012 2011 2010 2009 2008

Net fixed asset turnover 1.12 1.18 1.09 1.06 1.16

Total asset turnover 0.78 0.82 0.75 0.75 0.83

Equity turnover 1.80 1.88 1.65 1.62 1.76

Ratio Comments
Net fixed asset turnover Burger king Corp.'s net fixed asset turnover improved from
2010 to 2011 but then slightly deteriorated from 2011 to 2012
not reaching 2010 level.
Total asset turnover Burger king Corp.'s total asset turnover improved from 2010 to
2011 but then slightly deteriorated from 2011 to 2012 not
reaching 2010 level.
Equity turnover Burger king Corp.'s equity turnover improved from 2010 to
2011 but then slightly deteriorated from 2011 to 2012.
 Dec31, Dec31, Dec31, Dec31, Dec31,
2012 2011 2010 2009 2008

Current ratio 1.45 1.25 1.29 1.14 1.39

Quick ratio 1.09 1.05 1.22 0.96 1.18

Cash ratio 0.69 0.67 0.82 0.60 0.81

Ratio Comments

Current ratio Burger king Corp.'s current ratio deteriorated from 2010 to
2011 but then improved from 2011 to 2012 not reaching
2010 level.

Quick ratio Burger king Corp.'s quick ratio deteriorated from 2010 to
2011 but then slightly improved from 2011 to 2012.

Cash ratio Burger king Corp.'s cash ratio deteriorated from 2010 to
2011 but then slightly improved from 2011 to 2012.
 Dec31, Dec31, Dec31, Dec31, Dec31,
2012 2011 2010 2009 2008

Debt-to-equity ratio 0.89 0.87 0.79 0.75 0.76

Debt-to-capital ratio 0.47 0.46 0.44 0.43 0.43

Interest coverage ratio 16.64 17.26 16.53 14.71 12.78

Return on Sales Dec31, Dec31, Dec31, Dec31, Dec31,
2012 2011 2010 2009 2008

Operating profit margin 31.21% 31.58% 31.04% 30.08% 27.39%

Net profit margin 19.82% 20.38% 20.55% 20.01% 18.34%

Return on Investment

Return on equity (ROE) 35.73% 38.24% 33.80% 32.43% 32.23%

Return on assets (ROA) 15.44% 16.68% 15.47% 15.06% 15.15%

PORTERS FIVE FORCES
MODEL

Porter five forces are-

•Industry competitiveness
• Power of buyer
•Power of supplier
• Threat of new entrants
• Threat of substitutes
 any groups in
Europe and In all parts of
Individual country and
USA clamor for
state policies outside the
the actions
enforced by country
taken by the
the government
state
government check all these
pertaining to
greatly elements
the hygiene, before issuance
influenced the
health and of any kind of
international
fitness license in the
operations of
proposition of respective
Barger King .
eating fast states
food
SOCIAL FACTORS:
Working within many groups
Increase employment
Customers now opting for more healthy options which
offers more healthier foods.
Internal Factors Strengths (S) Weaknesses (W)

External Factors SO Strategies WO Strategies

Introduce home Open new branches and
Opportunities (O) delivery outlets.
Improve the products, Advertise more to
it as per tastes of reduce customers
people around the confusion.
world. Acquire more
Offer various side marketing strategy to
dishes. increase sales

ST Strategies WT Strategies
Threats (T) Increase the Keep pace with the
percentage of sales than customers changing food
major competitors habit
Produce healthy and Reduce concentration
hygienic food on the specific markets
Internal Strategic Factors Weight Rating Weighted Comments
Score
Strengths:
Strong market position 0.05 4.2 0.21 Help them to get
the customer.
Greater franchise mix 0.20 5.0 1.00 Good for the
company profit.
Geographic Diversification 0.15 3.9 0.60 Helpful for
international
Established Market Share 0.10 2.5 0.25 market
Enhances profits
promotes growth

Weaknesses:
Market concentration 0.20 3.0 0.60 Can affect its
operations.
Scattered Marketing 0.10 2.2 0.33 Fail to efficiently
Campaign promote products.
Lack of advertisement 0.10 2.0 0.30 Damage the
business growth.
Lack marketing strategy 0.10 2.0 0.30 Disadvantage spot
in competitors areas
Total score 1.00 3.59
External Strategic Weight Rating Weighted Comments
Factors Score

Opportunities:
New products 0.15 4.1 0.61 It can increase their
development profits.

Brand Licensing 0.20 3.2 0.64 Increase the company’s’

Project brand awareness
Expand in Asia market 0.15 5.0 0.75 Important for their brand.

Threats:
Intense competition 0.20 2.5 0.50 Have to increase sales.
Raise of cost 0.15 2.2 0.33 Should minimize the cost.
Changing consumer 0.15 2.0 0.30 Maintain the menu of the
eating habits food.

Total score 1.00 3.13

 Barger King should focus greatly
on building good customer
relationship and uphold customer
retention.
 Having a more comfortable
seating and
 Dining environment that would
make dining-in more desirable to
more customers
 There are three main reasons for
Barger King to focus on the children:
(1) Children are one of the biggest
consumers groups to McDonald’s

(2) Barger King believe that focusing on

children can build the stable business, and
will provide the best engine to encourage
the whole family to come to McDonald’s.

(3) By Building a brand loyalty with the

children, Barger King more likely to be
successfully today and in the future.

In my opinion, Barger King is not just selling the happy meal to

children; it is selling the American culture to the children – the
enjoyable individual life.
 The burger king have to focus on international
expansion so that they can cover new market in
the Middle East and Asia.
 The burger king can do operation analysis of the
in-store work and speed up the system.
 Introduce the home delivery at any place.
 They can target all ages people to market their
product.
 They can introduce more healthier food items to
the health concern people.
BYE BYE, SEE U AT BURGER KING