McDonalds and Wendys by joeman123

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History- McDonald’s The history of McDonald’s began in 1940, when two young entrepreneurial brothers by the names of Dick and Mac McDonald opened a small fast food store in San Bernardino, California. The first five years the McDonald brothers kept the store alive, but it wasn’t until the war was over that the business began to boom. The soldiers were back, and they were hungry! Dick and Mac prospered in the first 12 years of business, and then in 1953, they decided to franchise it by assisting a man by the name of David Fox to open up his own store in Phoenix, Arizona. When he had opened it, the McDonald

brothers were surprised to see it being the exact same as the original store. He had told them, "Why change it? It's great as it is”. It was at this very point that Dick and Mac McDonald decided that they would continue franchising the name that they had started. It wasn’t until 1954 that a salesman from Chicago, Illinois by the name of Raymond Albert
Shown above is the third McDonald’s ever built. Located in Des Plaines, it was owned by Ray Kroc.

Kroc began to notice the impressive fast service and profitable business that the lone location in San Bernardino was displaying. He headed out west and convinced the brothers to allow him to open his own store in Des Plaines, Illinois. Right from the first day of opening, revenues were through the roof. By 1961, there were already 130 McDonald’s locations, and Kroc decided to buy out the McDonald’s brothers for $2.7 million. The name McDonald’s began to grow rapidly for a private firm, and in 1963 McDonald’s launched a company mascot to help promote this company to make it even larger. This mascot was none other than Ronald McDonald, whom to this day is still the mascot. In 1965, a big change happened for McDonald’s when Kroc made the executive decision to allow McDonald’s to go public. At the time, 100 shares of stock were sold for $2250, which equates to 74360 stocks and $3,300,000 in today’s times. Kroc knew that in order to make his company thrive from this point on, he would have to strategize and find a way to mass produce his products and convince Americans that their want for a McDonald’s burger is actually a need. He did so by emphasizing elements of the burgers that sounded appealing, “McDonalds advertises 1.6 ounces of beef patties with no more than 18.9% fat...” (John Ingham, Biographical
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dictionary of American business leaders). Kroc also made sure to stress that artificial fillers such as soybeans are banned from being added to the burgers. This showed the people of America that McDonald’s food is pure quality. In 1974, McDonald’s took their first step toward social responsibility when they teamed up with former Philadelphia Eagle, Fred Hill, and started up Ronald McDonald’s House (see appendix 1-F). This was a place where families of the critically ill children would stay while their children receive their treatment. The Ronald McDonald’s House is still around today and is quite a large charitable organization. In 1985, McDonald’s had finally grew large enough to be worthy of being added to the 30-company Dow Jones Industrial Average, and even today is among this elite category of business throughout the world. Their continuous booming success did not let off a bit, and was especially proven in 1994 when Kuwait City, State of Kuwait. On the day of opening, 15000 people showed up to order food, “The line at the drive thru was seven miles long...” ( McDonald’s used this event to demonstrate to the public that their slogan at the time, “Good times, great taste” was understood in any language throughout the world. History- Wendy’s Wendy’s International Inc., the number three hamburger chain in the United States, has grown to become one of North America successful fast-food restaurant chains. The Wendy’s chain was created by R. David “Dave” Thomas, who gained his knowledge from his passion of dining out. At a young age, he was fascinated with how different restaurants use different techniques to sell their food. By understanding selling techniques, Wendy’s was able to flourish in a short amount of time and mature. Not until Dave Thomas and Phil Clauss, an entrepreneur, entered the restaurant business, owning a Kentucky Fried Chicken, did Dave really get the experience for becoming successful in the fast-food industry. After turning around four unprofitable franchises in Columbus, Ohio, Dave saw the opportunity to start his own fast-food chain, which we know today as Wendy’s. This first Wendy’s Old Fashioned Hamburgers Restaurant opened on November 15, 1969 in Columbus, Ohio.




Thomas named his new venture after his eight-year-old daughter Melinda Lou, or Wendy, her nickname. The first restaurant was created with a simple menu that resulted in labour cost being reduced. Doing more with less, is one concept that Thomas was able to successfully apply in Wendy’s. Wendy’s set a different eating environment then other fast-food restaurants. The restaurant also used expensive fresh beef and was able to save production costs by serving square hamburger patties instead of circular ones. These concepts were quickly criticized, despite the fact Wendy’s would grow to become a top influence in the fast-food market. The business soon became a hit and quickly started to expand. A second location was opened in Columbus, Ohio and Thomas began to franchise his idea in 1972. From that moment forward, Wendy’s began to create franchisees at a rate of ten per month. Acquiring geographic licenses, establishing adverting

campaigns and incorporating the new pick-up window were just a few ideas that Thomas was able to capitalize on. By 1974, after six years since the first store was open, Wendy’s net income reached a record high of $1 million, and total sales revenue reached $25 million. With this great news, Wendy’s opened its first restaurant in Canada and started to expand globally in 1975. By 1976, Wendy’s went public offering 1 million common shares at $28 per share. Wrapping up the 1970’s was Wendy’s first national advertising campaign in 1977. For Wendy’s, the 1980’s were filled with slow expansion, heavy competition and a fall in restaurant standards. Thomas dropped from CEO to senior chairmen in 1982, marking the start of Wendy’s hardships. McDonald’s and Burger King, two other major fast-food chains, began to improve their service and menus. This made it significantly harder for Wendy’s to expand. Original franchisees were intimidated by this competition, therefore selling them off to new owners who ignored the high standards of Wendy’s. Service, quality and sanitation became increasing worse as time passed. The end of the 1980’s was marked with a 20 percent failure rate in all Wendy’s restaurants and appointing of a new CEO.




James W. Near, an owner of many small successful fast-food restaurants in Columbus, was given the chance to bring Wendy’s back to life. Thomas knew he was a born leader and could lead the falling fast-food chain into success. As soon as Near became CEO he dramatically changed the organization. He removed all failing restaurants and replaced them with a new design. He replaced many managers, directors, executives and even employees to the point where many people who trusted him, started to doubt his ideas. He installed many new programs with the organization and developed the companies menu by attacking health concerns. This marked a new beginning to a future filled with development, expansion and innovation. Throughout the 1990’s, Nears decisions had a successful impact on the firm shown through gaining many awards, merging with Tim Horton’s and increasing adverting campaigns. “Wendy’s was voted by consumers to have the best food in the fast-food burger business, the best menu variety, and the most pleasant atmosphere” (Funding Universe, Wendy’s International Inc., In December of 1995, Wendy’s merged with Tim Horton’s, a popular Canadian coffee and baked goods chain. This brought more attention to the restaurant as Tim Horton’s customers were introduced to the great food, service and menu. Adverting campaigns started to make a difference and increased customer knowledge of products served. Going into the new millennium Wendy’s was now considered a huge threat to other fast-food chains. Today, Wendy`s can be found in numerous locations and when looking at their menu, you can see the constant change from new and old products. Wendy’s does an excellent job of adverting new products, through television commercials, shown on the company website. In early 2002, Dave Thomas passed away after losing a fight with liver cancer. His concepts and ideas will never be forgotten but most importantly, his loving personality made workers thrive to become the best they can be.

Comparison of History McDonald’s and Wendy’s are both very profitable organizations. Although they were both destined for success, their path there was much different. McDonald’s all started with two brothers who opened a small business to make some extra money for themselves and fortunately
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Ray Kroc found them and make McDonald’s big. On the other hand, Wendy’s started when Dave Thomas had been a franchisee of KFC, and gained valuable experience that he knew he could bring to a fast food restaurant of his own. In terms of growing, McDonald’s had been set in a straight line the whole time of expanding McDonald’s and McDonald’s only. Wendy’s on the other hand worked at buying other fast food restaurants like Tim Horton’s and Baja Fresh Mexican Grill. At times both companies had experienced ups and downs along the way. However, both prevailed through any tough times and managed to maintain profitable business built on a solid foundation.

Structure and Location- McDonald’s McDonald’s began as a small single location in 1940. Since then they have grown internationally and today there are over 31,000 locations in 119 countries across the world with just a little over 1.5 million employees within the total organization and they receive approximately customers 47 per million day.

McDonald’s head office is currently located in Oak

Brooke, Illinois, and it is here that all the genius business ideas were created and

stemmed out to the world. McDonald’s is a franchise based company and makes its money from franchisees

paying them a percentage of sales—this is known as
Shown above is Hamburger University located in Oak Brooke, Illinois.

paying royalties. Unlike most franchises, McDonald’s doesn’t charge and extra fees, but rather charges rent. 85% of McDonald’s restaurants are owned by a franchisee, and the other 15% of restaurants are operated directly by the corporation. In 1961, a 130,000 square foot training
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facility was erected in Oak Brooke where franchisees train in areas such as chemistry, marketing and cooking; this institution is known as Hamburger University. This university is still

operational and has 5,000 people attending each year and over 70,000 people have graduated with their McDegree since opening. While the menu of McDonald’s may be frequently changing from year to year, they have always maintained a solid structure which is internationally recognized as a profitable and socially responsible company. McDonald’s, which is already one of the biggest businesses in the world is still growing at such a hurried pace. A solid foundation and immaculate head start to the growth of the company began with the founder of McDonald’s Corporation, Raymond Kroc. Since the retirement of Kroc some changes in names in the upper organization have been made. McDonald’s credits its continued success in the new century to the top management which includes President and Chief Operating Officer, Ralf Alvarez, along with the around the world Presidents, Jose Armario, Tim Fenton, Dennis Hennequin, and Don Thompson. McDonald’s is doing all in their power to move with the flow of society in all ways. With the new health wave that has stuck North America in the past decade McDonald’s adapted by releasing a healthier choice of menu. This menu has shown significant success as over 540 million snack wraps were sold in 2007. McDonald’s has also taken advantage of making their service as convenient as possible by offering 24-hour drive through service. According to McDonald’s 2007 annual report, there are over 24,500 McDonald’s locations worldwide that offer 24-hour service. Structure and Location- Wendy’s Wendy’s International Inc. is the parent company of Wendy’s restaurant and its

headquarters are located in Dublin, Ohio. Some key people that should be recognized in the company are; Chief Executive Officer, Roland C. Smith, President, J. David Karam, and Chief
Wendy`s International Inc. Headquarters Dublin, Ohio

Marketing Officer, Kenneth C. Calwell.


company is in the business of functioning, developing and franchising an organization that offers
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a standard menu of sandwiches to the customers wants. “At December 2006, there were 6,673 Wendy’s restaurants in operation in the United States and in 20 other countries and territories. Of these restaurants 1,465 were operated by the company and 5,208 by the company’s franchises” (Wendy’s International Inc, Annual Report 2006). In 2006, Wendy’s International Inc completed its public offering of Tim Horton’s and sold its longest investment, Baja Fresh Mexican Grill. The company aims itself towards bringing the customer a distinctive product with quality. To ensure that quality is maintain throughout all restaurants, the company makes many visits to individual locations to ensure rules and standards are being met. The New Bakery Company of Ohio, Inc. provides buns for most of the Wendy’s restaurants in the U.S. For other international restaurants, the company has small bakeries in these countries that provide the buns. During the company’s overall operations, there has been no shortage of food, equipment, fixtures or other products. In comparing profits made during the year, it’s proven that the company’s business is seasonal. The revenue is higher in the summer then in the winter months. Wendy’s has registered trademarks and service marks through the United States Patent and Trademark Office. Some of the trademarks include “Wendy’s”, “Old Fashioned Hamburger”, and “Quality is our Recipe”. Also, the company has rights to use Dave Thomas as advertising image. In 2000, the company paid for the right to use his image, voice, caricature and name in any adverting techniques. The company’s two adverting funds are Wendy’s U.S and Wendy’s of Canada. These two adverting funds use the newspaper, television, radio and internet as the primarily source to get customers informed about Wendy’s. Wendy’s International Inc. has created a research and development group that does ongoing tests of products and views if recent advertisements have been used efficiently. Fresh ground beef and a unique dining atmosphere are two examples of strategies that Wendy’s was able to capitalize on. The company must abide by many government regulations and has so far shown that these regulations are met by having no problems with government agencies. Government incentives such as minimum wage and taxes have significantly affected the company’s performance. The principal energy sources for the company’s operations are electricity and natural gas. “As of December 31, 2006, the Company employed 46,000 people, of




whom approximately 45,000 were employed in company operated restaurants. The total number of full-time employees at that date was 7,000” (Wendy’s International Inc, 2006 Annual report).

Comparison of Structure and Location Being two fast food restaurants that are in direct competition, much of the basic structure is fairly similar. However, there are still significant differences that are clearly outlined that define the two companies. To start, McDonald’s is considerably larger than Wendy’s and therefore employs many more people. Along with this, not too many businesses in the world have a university devoted to training their restaurant owners; McDonald’s, of course, being the one that does. They differ in structure in that Wendy’s is looking to expand outside of their organization by purchasing other corporations to try turning them around into a more profitable business. McDonald’s is staying content with their organization and are working on building what they presently have in front of them. Success can is through strategies of both companies.

Ethics and Social Responsibility- McDonald’s Over the years, McDonald’s has been under a hot stop light of ethical questions in relation to what they are serving the public. For years people have blamed McDonald’s to be a significant contribution to childhood obesity, and feel that McDonald’s is not ethical because of this fact. There are various aspects of McDonald’s that people sometimes leave unnoticed in which a lot of credit is deserved on the part of their organization. In the past four decades, McDonald’s has truly shown the world that not only can they survive as one of the largest firms ever existing, but also that they are socially responsible and do in fact give back to the community in many ways. Their first action of social responsibility, as briefly stated above in the history section, happened in 1974 when Philadelphia Eagle Fred Hill worked together with McDonald’s to open up a house in which families of sick children and live while their seriously ill children receive treatment. This was the first Ronald McDonald house to be built, which was
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in Philadelphia. Since then, the amount of Ronald McDonald Houses across the world has accumulated to a total of 271 in 50 different countries throughout the world. According to the New York

Times, as of 2005, over 10 million families have been welcome to the Ronald McDonald house since the foundation opened. As advertized in all McDonald’s stores across the world, “ten cents from every happy meal sold at participating McDonald’s restaurants is directed to RMHC (Ronald McDonald House Charity)” ( This action, in Canada alone, has raised over $14 million since January 2004. McDonald’s Canada has clearly identified on their website what their current areas of social responsibility are, and how they wish to improve them in
Shown above is the Ronald McDonald House Charities Logo, founded in 1974.

the future. This section is backed by the support of McDonald’s Canada’s president, Louis Mele. It states on the report that McDonald’s Canada does their best to give back to Canada, even in economic terms. McDonald’s Canada buys the majority of its supplies here in Canada, thus imputing over $700 million back into our economy. McDonald’s is one of the leaders in Canada for youth employment, having over 50% of their staff under the age of 18 years. For the last 25 years, McDonald’s has been contributing right back to those youths who contributed to them by offering academic scholarships. Right from the beginning of this scholarship’s existence, it has been very beneficial as McDonald’s has donated over $2 million to thousands of students across the world. There are many categories in which one may receive a scholarship from McDonald’s; their main one being “The McScholar of the Year” for outstanding academics. Environmentally, there is a limited amount that a fast food restaurant can do. However, McDonald’s knows that if each store does their small part, there will be a big difference. McDonald’s all across the world are avid recyclers. They ensure that all of the paper menus in which they give to you when purchasing a sit-down meal are made from 100% recycled paper. McDonald’s also seeks to maintain its contribution to recycling by reusing delivery crates and reducing the weight of packaging material. In fact, 95% of the cardboard that is used behind the
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counter at McDonald’s is recycled in order to keep a healthy environment. Also, McDonald’s is beginning to catch on to today’s green revolution as they have built some locations in Alberta that are partially powered on wind-generated electricity. McDonald’s even turned off their lights this year in support of earth hour, and challenged the rest of the country to do the same. McDonald’s has always been criticized for their unhealthy products which have always sold to the public. They especially received a fair deal of negative publicity when a Morgan Spurlock documentary film was released in 2004 which showed the negative health related effects on a human body when they consume only McDonald’s food for one month straight. Although this may have turned some people off McDonald’s food, their strong corporation prevailed through this harsh criticism and bounced back releasing new products to suit a healthy lifestyle. This included salads, fat-free yogurts, and fruit that made their menu appealing to the community from a wellbeing standpoint. McDonald’s has even added a nutrition calculator to their website to ensure that their customers are receiving their adequate daily servings of nutrition, along with a healthy low consumption of fat.
Ethics and Social Responsibility- Wendy’s

Wendy’s International Inc. has created ethical and social responsibilities which are stated in the company’s Standards of Business Practises. In today society, a company must target their stakeholders and make sure their needs and desires are met. In the process of fulfilling these needs, the company must carry out ethical behaviour towards the environment, its customers, its employees, and its investors. Upon looking through Wendy’s standard of business, it was soon made clear that strategies have been put to action. These strategies focus on the ethical and social responsibilities the company hopes to target, beginning with managerial ethics. Wendy’s has set standards of behaviour that guide individual managers in their work, which are found in company’s Standards of Business Practices. Standards for managers can be found on the company’s website under the Code of Behaviour section. Allowing stakeholder’s




access to the Code of Behaviour provides further knowledge about how the company plans to achieve their needs while using ethical behaviour. The Code of Behaviour is set to target the relationships between managers to employees or organization or other economic agents. These three relationships are closely monitored and are given specific outlines that managers must follow. The relationship between manager and employees is clearly defined in the company standards of business. As part of a manager’s job, they must fire and hire many employees to improve the company. These decisions are solely based on the fact that the employees did not fulfil their job regardless of their race, religion, and sex. Discrimination is taken seriously and leads to direct removal from the company. Managers are expected to set an example for their employees, by showing them how to carry out these standards. Employees are encouraged to report any problem to managers. Managers are to give every employee the privacy and respect they too demand from them. Working conditions, as set by laws, are expected to fulfil the safety of all workers. Not only does the relationship between managers and employees have a significant factor but how managers are to treat the organization. Managers are to set an example for other employees with regards to honestly, integrity and respect. Employees are given the right to know what is happening in the organization and it’s the job of a manager to accomplish this. It is stated in the Standards of Business Practices that “it is not acceptable to offer, give, solicit or receive any form of bribe or kickback. This principle applies to all Wendy’s employees, agents, franchisees and distribution worldwide, regardless of location.” The fast-food industry has many competitors but since the beginning, Wendy’s has proven itself to be a company with strong ethical behaviours. These ethical behaviours must also be focused on other economic agents, such as stockholders, suppliers, dealers and unions. Wendy’s is a global company, which operates in many communities that follow specific legal, ethical and cultural standards. Wendy’s International Inc. obeys all these laws, and expects that their vendors, agents and franchisees will also do the same. The company built its reputation
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by improving its quality of food. Wendy’s International Inc. abides by all international laws, treaties, and regulations, including the U.S. Foreign Corrupt Practices Act (FCPA). Many large companies, such as Wendy’s International Inc., adopt written codes of ethics to illustrate their intent to do business in an ethical manner. The role of these corporate ethics and values are showed through the organizations policies called a purpose, vision, mission and values. The purpose of Wendy’s International Inc. is to prepare a fresh, made-to-order meal that allows its customer to receive the exact meal they want with superior quality. The organization visions itself to be the quality leader in everything they do. Wendy’s Standard of Business Practises states “Our guiding mission is to deliver superior quality products and services for our customers and communities through leadership, innovation and partnerships”. Doing the right thing is the basis of everything Wendy’s does. It is also clearly stated on Wendy’s website that “Quality is Our Recipe. Treat People with Respect. Profit Means Growth. Give Something Back. These simple statements have been Wendy’s values since our humble beginnings.” These core principles and organizational values will remain unchanged as long as Wendy’s is operating. For further information about Wendy’s Code of Ethics, you can visit the organizations website or contact there Ethics Director. Wendy’s International Inc. has created a collection of ethical behaviour codes that focus on the environment, its customers, its employees and its investors. These represent the major corporate stakeholders that the company must satisfy. Wendy’s has invested to meet those needs by creating several social groups that focus on each group specifically. In this investment, Wendy’s has provided more labour to make sure that their products have less impact on the environment. They plan to use natural resources efficiently and protect the local community from any harmful pollution. This is done by implementing recycling in every restaurant. Wendy’s has created a program called Wendy’s Animal Welfare Program. The purpose of this program looks at the humane treatment of animals. Livestock is not a part of Wendy’s business but they want to ensure that government regulations are being followed to those suppliers. Proper animal handling, food safety and quality and transportation methods are three targets that the animal welfare program constantly improves and develops.









Adoption Canada, created in 1992, is committed to lowering the number of children in foster homes by moving them to a loving family. Dave Thomas was adopted himself when he was a young child, so this campaign meant more to him than anything in the world. Since its incorporation in 2003, the foundation has been a success and is still in its growth process. This campaign is an example of an ethical behaviour that aims towards the local community. Wendy’s is also involved in local communities by offering high school student two wards; Wendy’s Classis Achiever Scholarship and Wendy’s Heisman Scholarship. The Wendy’s classic achiever scholarship is aimed towards recognizing students who excel in academics and who are also able to maintain involved in activities throughout the community. This scholarship helps to support the student personal confidence as they move towards post-secondary education. The Wendy’s Heisman scholarship focuses on students who are able to keep high academic marks while participating in many sport teams in the school environment. In 2007, the processes of applying for this scholarship were changed because now students were a loud to recommend themselves. Overall, more students have become involved in their school community. The company’s most important asset, its employees, is carefully observed for ways to improve their work experience. Wendy’s provides its employees with equal opportunities for rewards and advancements without regards to race, sex, or other discriminating factors. People who have little education and a limited amount of training are given the opportunity to work for Wendy’s. This provides job for many people, while providing them with the security and safety they want in return.

Comparison of Ethics and Social Responsibility Companies like McDonald’s and Wendy’s that are on such a large scale in the business world cannot possibly survive with such strength unless they maintain both ethics and social responsibility. The spotlight is shinning on them way too much, and when they show signs of
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lacking in these areas that is when they begin to lose revenue. Both companies have taken great leaps of social responsibility in similar ways; by helping children. McDonald’s made Ronald McDonald’s House to help accommodate families with severely ill children. Wendy’s went about helping children as well by giving the children who have been put up for adoption a nice place to live; known as the Dave Thomas Foundation. Another key area where these two companies are socially responsible is giving back to those who gave to them. Both Wendy’s and McDonald’s offer scholarships to their

academically achieving employees to help fund their post secondary education. Some teens may be unable to afford going to school. Fortunately these companies give away many thousands of dollars each year to help these particular kids. As far as it goes in helping the environment, both companies do their part in making a cleaner world by cutting back on the amount of natural resources used, along with continually encouraging their employees to recycle any appropriate items that are commonly misconceived as garbage.

Human Resource Policies- McDonald’s For many years, McDonald’s has emphasised to their employees that working for McDonald’s is not only a job, but potentially a career. McDonald’s has policies set in place for each level of employee in order to keep them satisfied so that they will stay within the organization, and rise to new levels within the company. The restaurant crew is the lowest level of employment in which McDonald’s offers. This job mainly applies to teens who receive their starting pay at minimum wage. McDonald’s will train these people to be outgoing with

customers and allow them to gain experience talking to people along with receiving basic hospitality skills. The benefits of working at this level are that it is a great way to get a foot into the working world, the work schedules are fairly flexible, and you are eligible to be promoted into management. The second level of employment at McDonalds is shift management. In other areas of business, this term is sometimes known as the crew chief or foreman. The shift manager is the
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one who keeps the business running smoothly on a day to day basis, as their duties include watching over the restaurant crew and helping them out with their various duties. The benefits of working as a shift manager are receiving medical coverage (in countries that is applies), paid holidays and vacation, funding towards education, and reimbursement for day care. The next level of employment in the McDonald’s organization is assistant manager. This job position is similar to shift management, however there is added responsibility and to a greater degree. An assistant manager at McDonald’s would in charge of inventory, managing the budget, managing HR, and making sure basic McDonald’s quality and service has been met. Benefits of an assistant manager are the same as that of shift manager, however, an assistant manager receiver more annual income. The restaurant manager is the next level of employment at McDonald’s, and is also the third highest level of employment within the company. The restaurant manager oversees the overall operations of the business and has to watch over each level of employment below them. It is their job to be the main thinker of the store by project profits and determining what the business needs to do to become more successful. The restaurant manager makes the most money out of all the employees at the single location. His personal profit is directly related to what he puts into the company; i.e. the harder he works, the more money he makes. However, being a franchisee and under the umbrella of the McDonald’s name, he is required to pay royalties back to the McDonald’s corporation. A variable percentage is set by top management by McDonald’s, and he is responsible to pay McDonald’s a certain percentage of what his store gross profits. Benefits of restaurant

manager include paid vacation and holidays, funding toward education, receiving medical coverage, and reimbursement for day care. The next level of employment at McDonald’s is known as above management. These employees are set in place to look after restaurant managers and provide assistance. At this level one can be set in many different areas depending on what he or she specialize in. Organizational supervisor is one that watches over
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the restaurant managers and ensures that they are taking the correct steps in organizing their business and that they stay on task and don’t fall behind. Training consultant is one who teaches both one-on-one and in classes to help the restaurants managers learn how to teach others within their own businesses; training consultants are very big on the motivational factor. Next is the business consultant. It is their duty to ensure that restaurant managers are optimizing sales and profits. Lastly in the above management category are the human resources consultants. When new McDonald’s locations are frequently appearing everywhere, it is their duty to make sure that employment in these new locations is filled and that they maintain a full staff. Benefits of above management include paid vacation and holidays, funding toward education, receiving medical coverage, and reimbursement for day care and more. Lastly, there is top management. Top management are the few people at the top of the organization who have the most control of the company. The president(s) and anyone in C-level are considered a part of top management. There are very few members in this category because these positions are ones in which require a lot of skill and specialization. The main benefit in this category is income. Member of top management in McDonald’s are making well into the millions of dollars in annual income. There is a lot of work, planning, organizing and foresight that is involved in these positions, but if it is done effectively then the business will prosper and so will their profit. McDonald’s is a company that really emphasises the fact that when you apply there, that you are not only applying for a job, but a career. McDonald’s is very keen on internal promoting within the company and allowing people to move up based on their performance. This saves McDonald’s money because they now can spend less on external recruiting, and more money in other areas. Along with saving money, it allows people in management positions to be able to relate with their workers because they have been in their position before. A lot of the McDonald’s recruitment is online at which encourages people to bring in a resume to an individual location, and it also informs people about franchising opportunities to allow more experienced business people to join as a McDonald’s owners.




Human Resource Policies- Wendy’s The foundation of human resource policies is directed at attracting, developing, and maintaining the workforce. In attracting qualified human resources, the company must plan using job analysis and forecasting of demand and supply of labour. When someone goes to Wendy’s restaurant to find work, the job description will be clearly printed on the application form. Wendy’s

forecasts it external supply of labour as young adults, immigrants, and seniors. Since Wendy’s has forecasted its future supply of labour, the company must set its benefits towards these individuals. By hiring these individuals, this would be referred to as external recruiting. Recruiting is the process of looking for qualified workers for opened jobs in a company; it can be done both internally and externally. Wendy’s offers its employees many opportunities to advance in positions. After the restaurant receives your application, an interview would confirm that the position is suitable for you. The first position that people get hired to, also an example of external recruiting, is the restaurant team. The advantages of working for the restaurant team are that it provides many people with a flexible job that offers numerous opportunities for advancement. The restaurant provides training for all new employees so that all rules and standards are met but mostly importantly make sure the person completes their job efficiently and safely. Looking at the table, one can see that a high percentage of employees are given the opportunity of advancement within the company. These jobs can be divided into two categories, full-time and part-time. After working with the company and gaining bottom line experience, the next position available would be the shift manager. This is an example of internal recruiting because a person within the company receives a higher position. In this role, you are an organizer for all new and pervious working restaurant crew members. This position allows your leadership skills to develop because your role is to ensure that during your shift, everything is moving productively




and efficiently. Through being promoted, you would receive more benefits and higher pay. Benefits included by Wendy’s are paid holidays and medical coverage. Restaurant Operations Manager, also known as the franchisee, is in control of the restaurant at that specific location in making important decisions for that restaurant itself. In this position, the person is able to keep all operation under control and build a team that will lead the restaurant to success. Training and choosing the right assistant manager is a very important task for them, and then hiring any lower employees. If this process is done properly, it will guarantee that the crew member will succeed in their work. Wendy`s International Inc. set programs that are developed and are placed in all Wendy`s restaurants. It`s the job of the operation manager to successful employ these programs in their restaurant and orient all employees. Wendy`s has proven that it bases its employment on equal opportunity as opposed to a person’s race, religion, sex and skin colour. Also another important issue that must be dealt with when in this position is health and safety. You must provide your working staff with a safe working environment because a company`s most important asset is its employees! Next, it`s the job of the professional support team, commonly referred to as beyond management, to establish concrete policies and regulations that all company franchisees must obey. These ideas are constantly viewed and changed to enhance company performance. Wendy`s is a growing company in today’s fast-food industry, not just by its quality of food but by its strong human resource policies.

Comparison of Human Resource Policies

In order to satisfy employees of two companies in direct relation, they must have very similar policies so that the skill amongst their employees is competitive. Once one company changes policy for the better of the employees, the other company must follow otherwise they lose any competitive edge that they had. The level of employment is the same in both companies. The levels of employment within a restaurant start with the restaurant crew at the bottom, the shift manager above them, the assistant manager who is second in charge of the restaurant, and lastly, the restaurant owner.
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Outside of the restaurant there is a team of professional consultants who are in charge of assisting restaurant managers in areas that each consultant specializes in. On top of it all, there is top management who look after the operations of both Wendy’s and McDonald’s as a whole.

Current Product Offerings- McDonald’s Back when McDonald’s first opened in San Bernardino, California, their menu was limited to only three items of burgers, milkshakes, and french-fries. Today, McDonald’s menu has grown rather dramatically as they now offer breakfast menu, lunch, and dessert. The variety of food at McDonald’s is virtually endless, as one could enter and get a new combination of food every day for the length of one’s entire life. In 1968, Jim Delligatti, one of Ray Kroc’s first franchisees, wanted to come up with a burger to compete with a new burger introduced by Big Boy restaurant. Thus, the Big Mac was born and has been McDonald’s most popular burger since. Other especially popular burgers that can be found at McDonald’s are the Quarter Pounder and the McChicken, and for the children is the Happy Meal. The basic McDonald’s menu is fairly standard internationally. However, minor changes can be For

found in different countries of the world.

example, in the Maritime Provinces and New England, one would find the McLobster on the menu due to being close to the shoreline and having easy access to lobster. And as surprising as one may find it, some European countries like Czech Republic and Germany even offer a McBeer as one of their beverages. McDonald’s has done its best with its products to satisfy every customer. To those who don’t enjoy beef, they put chicken burgers and chicken nuggets on the menu. For those who don’t eat meat at all, the added filet-ofish. McDonald’s restaurant has recently been adapting to a new form of customer—the one who is conscious about their health. They have done so by adding a variety of new products such as the Snack Wrap, Yogurt and Fruit Parfait, in 2004 they released Premium Salads, and last year launched a Deli Menu. McDonald’s has strategized their menu and are very successful
McDonald’s Wendy’s


with what they have done. They have identified all of their potential target market, and have came up with a product that will satisfy everyone; whether the meal is for breakfast, lunch, or dinner, for an adult or child, or even for a healthy lifestyle, McDonald’s has invented a meal to suit you.
Current Product Offerings- Wendy’s

“At Wendy’s, we believe in choice. Choice in toppings. Choice in dressing. And the choice to select from a wide variety of nutritious options.” (Wendy’s International Inc. Website). With this statement, Wendy’s sets the bar on customer satisfaction. They strive to deliver a product that will assure each customer receives what they want with quality standing behind it. The nutritional guide for all products offered by Wendy’s can be found on the company website. This is an important guide that customers should view if allergies are a concern. Also articles can be found on the company website informing customer about any menu changes or suggested eating options, i.e. looking for the low fat meal. All Wendy’s restaurants offer a standard menu featuring hamburgers, chicken sandwiches, side dishes and a frosty desert. In addition to these products, some Wendy’s restaurant offers an assortment of promotional toys. Wendy’s is most famous for its square fresh ground beef hamburger patties. Using fresh ground beef is a major difference in hamburger quality, which is not used by any other fast-food restaurant. There are two different sizes of square hamburger patties; a “Junior” 1.78 ounces and a “Single” 4 ounces. These two different sizes of hamburger patties are sold in a single, double or triple sandwich with varying topping to create most of the
The New Wendy’s Mushroom Swiss burger Melt released in November 2008.

hamburger menu. These extra toppings can include bacon, mushrooms, and cheese other then condiments. Most of the restaurants hamburger buns are made by The New Bakery Co. Of Ohio, Inc. “At December, 2006, the Bakery supplied 640 restaurants operated by the Company and 2,340 restaurants operated by franchisees.” (Wendy’s International Inc. Annual Report). Chicken sandwiches, nuggets, stripes and fish fillet sandwiches make up the other portion of menus that Wendy’s offers. The chicken that is used for sandwiches and wraps can be placed
McDonald’s Wendy’s


in three different categories; home-style, grilled, crispy and spicy. These can be combined with different topping to create a specific meal for the customer. Also the fish used can be placed into two different categories; home-style and grilled. All meals can be ordered separately or in a combo. The combo includes the sandwich, a side dish and a fountain drink. The customer can choose from strawberry yogurt squeezer, mandarin oranges, side salad, baked potatoes, chilli, french-fries, or chocolate chip cookies as a side dish. Fountain drinks comes in three different sizes, small, medium and large. Other then Wendy’s using fresh ground beef for its hamburgers, it can be also famous for its frosty. The Frosty, a very thick milkshake, has been sold to customer since the beginning of Wendy’s restaurants. In 2007, Wendy’s created a breakfast menu trying to compete with other large fast-food chains such as McDonalds and Burger King. This menu has been changed over many times and the company predicts that by the starting of 2009 its breakfast menu will be a huge success. Wendy’s does offer healthy choices through different types of salads. The company has also made an attempt to use low-fat oils in there cooking.

Comparison of Current Product Offerings

Although when one thinks of the basic products between offered between the two companies, they don’t think of much difference; burgers, fries, and drinks. However, it is the slight product differentiation that causes one to excel over another. Wendy’s food suits their target market of adults with their more elegant choices like baked potatoes, chilli, and mandarin oranges. McDonald’s food does not reach the same level of sophistication that Wendy’s does because McDonald’s has a younger target market. However, they still do have plenty of food that adults would much prefer over a child. A big part of product offerings is timing. McDonald’s had one distinct advantage over Wendy’s for many years, and that was the breakfast menu. It wasn’t until mid-summer that Wendy’s launched their first breakfast menu in Peterborough, Ontario as a test, and is only now making its way across Canada. On the opposite end, Wendy’s was the first of the two companies to introduce healthy choices to the consumer, but McDonald’s was not far behind them as they




followed suit by doing the same only two years later. Now although the food may be similar, it is the small variations that companies use to compete with one another. Marketing Mix- McDonald’s The greatest contribution to McDonald’s successful life is solely because of the incredible marketing that has been put forth by the organization. The intelligence of their business started with the mastermind, Ray Croc, as he led the way to a booming future. He was the creator of the famous “Golden Arches” that are an internationally recognized symbol, and is usually one of the first things that people notice as they turn onto a street where a McDonald’s is located. One of the reasons for this is that yellow is one of the two most perceptible colours to the human eye, and therefore makes their symbol stick out in a crowd ahead of the competing fast food stores. Raymond Kroc took the science behind this took advantage; their outstandingly attractive symbol goes along with one of the reasons they are uniquely distinguishable across the world. In the fast-food industry, the colour of yellow has been branded by McDonald’s. What is meant by this is that when one mentions fast-food and the colour yellow, immediately people will think of McDonald’s. As outlined in “Business- Sixth Canadian Edition”, marketing is based on four P’s; Product, Place, Price, and Promotion. McDonald’s is well aware of this, and has included each one of them on the 2007 annual report to allow the consumers to see for themselves that they are setting goals in all aspects of marketing and are doing all in their power to satisfy the customer in each area. Along with the four P’s, McDonald’s added one of their own P which is People. This is a rather intelligent aspect of their marketing, because it allows one to see that they are not only achieving the minimum of the four P’s, but going the extra mile to satisfy another, being the customer. It shows that they not only care about running a successful business, but also the fact that they care about the wellbeing of their patrons.
Outlined in this McDonald’s advertisement are: Place- at McDonald’s, Promotion- free toy, Product- Happy Meal, and Price- 10DHS (equal to US $1.11)




Over the years, McDonald’s has gotten into the minds of consumers worldwide with their catchy slogans that they use to promote themselves. The McDonald’s advertisements not only focus on their products, but also the experience one takes delivery of which gives them a warm feeling in everyday life. They have set the goal of allowing their customers to feel “at home” every time they think of their visits to McDonald’s. The following is a list of slogans from that have been used since opening:
McDonald’s is Your Kind of Place (1967) You Deserve a Break Today (1971) We Do it All for You (1975) Two-all-beef-patties-special-sauce-lettuce-cheese-pickles-onions-on-a-sesame-seed-bun (1975) You, You’re The One (1976) Nobody Can Do It Like McDonald’s Can (1979) Renewed: You Deserve a Break Today (1980 & 1981) Nobody Makes Your Day Like McDonald’s Can (1981) McDonald’s and You (1983) It’s a Good Time for the Great Taste of McDonald’s (1984) Good Time, Great Taste, That’s Why This is My Place (1988) Food, Folks and Fun (1990) McDonald’s Today (1991) What You Want is What You Get (1992) Have you Had your Break Today? (1995) My McDonald’s (1997) Did Somebody Say McDonald’s (1997) We Love to See You Smile (2000) There’s a little McDonald’s in Everyone (2001) – Canada Only i’m lovin’ it (2003) Source:

As one can see, McDonald’s is aiming to give the consumer a welcoming feeling and allow them to sense that they have earned a break, and there is no better place to relax than at McDonald’s. By having such slogans, it takes pressure off the minds of their customers, and allows them to make an easy worry free decisions on where they should eat. Currently, one of McDonald’s distinct marketing strategies is that their major target market is children ages 3-11 and their parents. The parents of these children are ultimately the ones who make the decision of where they are going to eat. In reaction to this knowledge, McDonald’s made a meal suited for this ideal situation. They took an ordinary burger, fries, and drink, added an inexpensive toy and gave it an appealing name. The meal is known as the “Happy meal”. It allows parents to have an easy choice when it comes to buying fast food for their children because there is a meal that is tailored to their situation that is inexpensive, will feed their child, and will also satisfy them because it comes with a toy. This satisfies three of the




P’s; the product is made for children, the price is inexpensive, and the name is catchy and promotes itself. However, the fourth P, place, is satisfied when entering the McDonald’s building. Once the child walks into the McDonald’s they see the live size cartoons of Ronald McDonald and other characters, along with a “Play Place” which exist in many locations, immediately, the child feels welcomed. Market Mix- Wendy’s In 2006, Wendy’s established an “Innovation and Strategy” group being led by Ian Rowden, executive vice president and chief marketing office. These groups can be put into three categories; research and development, strategic insights and innovation and operations innovation. In each group, marketing mangers work towards a specific plan and work to improve Wendy’s overall marketing plan. For Wendy’s to achieve a successful marketing plan they must clearly identify their target market. Wendy’s products appeal to an adult market, 18- to 34-yearold customers, because they offer a limited amount of children meals. They do offer toys with children meals, but it is not overly advertised. Wendy’s restaurants are viewed as a more mature atmosphere with carpet floors, old fashioned lights, and a neutral colouring scheme. Looking at television commercials, you can quickly see that it focuses more on people who are older and need a quick meal. The following subheading will explain how Wendy’s achieves to meet the needs and desires of their target market through products, price, place and promotion. Product: Wendy’s offers a standard menu of hamburgers, chicken sandwiches, side dishes and a unique frosty desert. Children meals are a small component of their menu because the company focuses its products towards adults. Giving customers a product that uses fresh ground beef, instead of frozen meats, is an example of product differentiation. Knowing that Wendy’s hamburger only use fresh ground beef, more customers are attracted to a different meal. Many of their hamburger and chicken sandwiches haven’t changed for a while now because the products have always been successful. Knowing this information, its sets the starting point for Wendy’s marketing plan. To achieve further success, Wendy’s expands on these products. The research and developing group is constantly creating new products and ways of efficiently getting these products to their customers. The Wendy’s New Mushroom Swiss Burger is an example of a
McDonald’s Wendy’s


product that differs from the rest of the menu to attract more customers. All that Wendy’s has done to change the product was put a mushroom topping mix on their classic single hamburger. Wendy’s has also stated that it plans to expand on its beverage business by giving their customers are large selection of pops and milkshakes. Wendy’s has a variety of products, very different from other large fast-food chains, which target adults and aim to meet their needs. Price: In the fast-food industry, customers are willing to pay for a product that has quality standing behind it. Wendy’s slogan “Quality is Our Recipe” clearly proves to customers that each product purchased will meet their needs. Since Wendy’s targets adults, they have set their prices in a reasonable range for the quality of their meal. When a customer purchases a meal that does not fulfil their expectations, they can return the meal in exchange for a new meal with no extra charge. Wendy’s offers a limited amount of value meals, which is made up of a combination of single items which is less expensive than if they were bought individually. This technique allows people who consume more to obtain food at a lower cost. Wendy’s set its prices for their products depending on many external factors, such as the economic conditions. Looking at the company’s previous years expenses, they can set their prices to meet their profit objectives.

Place: In the fast-food industry, restaurants are concerned with selling their final products to their customers. It’s the job of company, Wendy’s International Inc., to send these products to Wendy’s restaurants and make sure selling procedures are being followed. Since 1995, the company has owned Tim Horton’s Inc. These restaurant units “are leased on a 50/50 real estate joint venture between Wendy’s and Tim Horton’s.”(Wendy’s International Inc. Annual Report 2006). This is with the exception of Tim Horton’s or Wendy’s restaurants that were made pervious to this merging still running. The restaurant atmosphere is very different than any other fast-food restaurant. Carpet floors, old fashioned
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lights, bentwood chairs, and neutral paint colours make up the inside of the shared restaurant. Other then customers walking in to order their meals, a drive-through is set up on both parts of the restaurant for customers on the go. Promotion: The company contributes in two advertising funds which are Wendy’s U.S and Wendy’s of Canada. Both funds use television, radio, newspaper, and the internet as their source to communicate information about products. Both the company owned restaurants and franchised owned restaurants are required to give a certain portion of retail sales to these funds, these payments are called royalties. The company’s new Mushroom Swiss Burger is advertised in all three of sources stated above. Other specific ideas and products that are being campaigned to the public are increasing late night hours, a new breakfast menu, customer feedback system and promoting a healthy eating menu. Health agencies have always created terrible reviews about products offered by fast-food chains. In an attempt to receive an improved review, Wendy’s has launched a new health menu consisting of salads and use of low-fat oils. Other techniques that Wendy’s use to communicate to customers is by using its image in many movies scenes and television shows. These messages are picked up subconsciously, however do work and are powerful forms of advertising. For Wendy’s to maintain success in today’s fast food industry, they focus on their customers. Customers have the right to quality products and fair pricing. All nutritional information about each product is provided at every Wendy’s restaurant location and also placed on the company’s website. All new products are adverted and the customer has the right to know what and how these products are being made. In 2005, Wendy’s adverted “Eat Great Even Late” slogan which gave customers the opportunity to eat at the restaurant after 12 am. This new idea brought a new set of individuals to Wendy’s and increased profits.

Comparison of Marketing Mix The biggest aspect to talk about when it comes to marketing between McDonald’s and Wendy’s is their target markets. Although the food and service is very similar, as part of their
McDonald’s Wendy’s


strategies they shoot for a different age range amongst their customers. As stated above, McDonald’s appeals to children ages 3-11 along with their parents, whereas Wendy’s is aiming toward adults. Each company centres their style of business around their target market. If one were told specifically told the target market of each of the two businesses, they wouldn’t have a very hard time at all deciphering the four P’s that they use to market their business. Both McDonald’s and Wendy’s make it clear that their products, price, place and promotion are suited toward their target market. In terms of the slogans used by each company, there are two different approaches between McDonald’s and Wendy’s. McDonald’s is aiming to promote the experience that one receives when enjoying McDonald’s food, “We love to see you smile”, and “We do it for you”. The approach that Wendy’s takes is talking about the quality of their products, “Eat Great, Even Late”, and “Quality is our Recipe”. Another distinct way to recognize the fact that these are two competing companies is that many McDonald’s locations offer 24-hour drive through. It took Wendy’s a long time gain on McDonald’s in the late drive-through area, and even though they aren’t quite at the point of 24hour drive through, they do have most drive throughs open until 2 a.m. Financial Situation- McDonald’s McDonald’s has been a rapidly growing company since going public and more so in the last decade with such dramatic changes occurring to their menu. Revenues from McDonald’s grew by 27% from 2005, 2006 and year ending 2007 to $22.79 billion, a record high in the organization (see appendix 1-B). Also in this time frame, the corporation grew 9% in operating income to $3.879 billion. It has come a long way since only 10 years ago in 1998 the revenue was almost half as much at approximately $12.4 billion. McDonald’s comparable sales in 2007 had increased 6.8%, which also marked five years in a row of increasing their net sales. The amount of dividends McDonald’s pays their shareholders is rapidly increasing year by year, and has increased 170% in the last three years (see appendix 1-C). In 2007 alone, approximately $5.7 billion was given back to shareholders though dividends.




McDonald’s is listed on the New York Stock Exchange as MCD and currently (as of November 20, 2008) contains the following information: Opening price- $54.73, Closing price$52.91, High- $56.30, Low- $52.58, and Volume of 15,883,319 shares. As one can see by looking at the graph (appendix 1D), you are able to see that stock prices fluctuate throughout the year. However, when one takes a closer inspection it is clear that the peak times throughout the year occur during holiday months. Fastfood restaurants strive during holiday months, and are at their very best in the summer. At the end of the 3rd quarter (November 30, 2008), McDonald’s released their most recent financial statement of this year. According to this statement, the McDonald’s corporation owns $28134.4 million in total assets and total liabilities of $15.0828 million. At this time frame in the year, McDonald’s revenue was up to $17957.4 million, which is up from last year where it was $17033.0 million. This information is followed up with net income of $3327.9 million which means that net income is up 297% from the previous year! Financial Situation- Wendy’s The source of this information has come from the most recent annual report, 2006, of Wendy’s International Inc. The total amount of current assets amounts to $457,614,000 and the total amount of current liabilities amounts to $394,666,000 for 2006. Looking at the company’s current ratio, current assets over current liabilities, there has been a small increase from 2005 to 2006. The company has done a better job of financing its assets to cover liabilities. Cash and cash equivalents, accounts receivables, and adverting fund restricted assets make up a large portion of the company’s current assets. Accounts payable and current portion of long-term
McDonald’s Wendy’s

Jim Skinner, Chief Executive Officer (seated, right) and Ralph Alvarez, President and Chief Operating Officer (left). Key reasons for such a profitable organization


obligations form most of current liabilities. A key feature about the balance sheet is that the net value of property and equipment make up more than half of the company’s assets. In comparison with 2005, the net value of property and equipment has slightly lowered. Total revenue for 2006 was about $2.43 billion, approximately the same as 2005. “Same-store sales increases were 0.8% for U.S. company-operated restaurants and 0.6% for U.S franchised restaurants in 2006. We ended 2006 with seven consecutive months and three straight quarters of positive samestore sales” (Wendy’s International Inc. Annual Report 2006). Net income from 2005 to 2006 decreased dramatically by $129,755,000. The company opened a total of 122 restaurants during the year throughout the U.S and other countries. Looking at the income statement, operating income from 2005 is about 4.4 times larger than the company produced in 2006. Therefore since 2005’s operating income was 4.4 times larger than 2006, net income was much lower in 2006. There was an increase of 0.3% in company-operated restaurant margin from 2005 to 2006, suggest that the company has done a better job of improving sales. Wendy’s International Inc. is listed on the New York Stock Exchange as WED and currently (as of November 20, 2008) contains the following information: Opening price- $3.22, Closing price- $2.89, High-3.30, Low- $2.81, and Volume of 4,416,865 shares. Looking at the graph (Appendix 1-E), the price of Wendy’s stocks has slowing decreased during the year of 2008.
Financial Situation – Comparison Both companies are two large fast-food chains that have been successful financially in the past years. Comparing McDonald’s and Wendy’s overall worth and revenue cannot be done fairly because McDonalds is such a powerhouse in the fast-food market. Currently, McDonald’s is the number one fastfood chain and Wendy’s is third. Total revenue for McDonald’s is about 11 times more than Wendy’s revenue. This statement proves how much McDonald’s dominates in today’s growing fast-food market. In comparing both balance sheets, McDonald’s holds a much greater amount of current assets and lower amount of current liabilities. Therefore, McDonald’s has a much greater current ratio then Wendy’s giving them the ability to finance their assets easier over liabilities. McDonald’s Wendy’s

30 As of November 20, 2008, McDonald’s closing stock price is $52.91 while Wendy’s is only a mere $2.89. Looking at appendix 1-D and 1-E, it’s made clear that both stock prices are able to fluctuate during the year. McDonald’s stock prices were relatively high during the year while Wendy’s decreased from a high to a low price during the entire year. If someone was to choose between these two companies to invest in, most likely McDonald’s would be selected because of its overall average stock price fluctuation. Wendy’s would be more of a risky company because its history shows a decreasing stock price. Another huge difference between these two large companies is the amount of stocks that both companies offer. McDonald’s offers 15,883,319 stocks while Wendy’s only offers 4,416,865 stocks as of November 20, 2008. Even though this number is variable, trends on the NYSE show that McDonald’s is much greater in stock volume. To see an excellent visual representation of the stock offering by major fast-food chains, see appendix 1-A. McDonald’s owns 19% of total stock offered whereas Wendy’s only own 2%. McDonald’s offers the greatest amount of stock in the fast-food industry as shown in the diagram.

Conclusions- McDonald’s Ever since Raymond Kroc became a part of the McDonald’s scene in 1954, the company moved only in one direction... up! He was able to successfully take a small-name fast-food restaurant, expand it, and sell it to the public through stocks. All of this was done while keeping in consideration all ethical practices and McDonald’s even contributed back to the community through various actions of social responsibility. McDonald’s has always maintained respect for their customers by offering them their distinguishable food and treating them with respect and care. McDonald’s has maximized their variety of products which has led to new customers entering the store. McDonald’s has done a great job at focusing their business operations around their target market. However, as a suggestion to help improve McDonald’s sales, I would recommend that they try to stretch their target market beyond the ages of 3-11, but also from 1118. I say this because McDonald’s focuses on kids, while Wendy’s focuses on adults; thus leaving the teen age group untargeted. McDonald’s should take a leap of action and try to adjust their four P’s to make this territory become theirs. McDonald’s has shown they have what it takes to be the best by expanding not only through North America, but also outside of the continent to Europe, Asia, South America and Africa. They have not only taken on their own opportunities, but have also given others a chance to succeed at life.
McDonald’s Wendy’s

31 Conclusion From the beginning of its opening operations in Columbus, Ohio in 1969 to its expanding North American empire, Wendy’s has grown to be one of the world top fast-food chains. Dave Thomas, its original founder, was able to create such a successful restaurant because of his remarkable amount of passion he had in his work. Thomas seized the opportunity and began to expand this small restaurant to what it has become today. The values, which were created by Thomas, are identical to the company’s very first value statements. This shows how important these statements are to Wendy’s and the amount of support they receive. The company is known for its contribution to the local community through many social responsible campaigns. As the company grew in 1969, the number of locations of restaurants increased. These restaurants are mostly located in the United States with some in other countries such as Canada, South America and Europe. Wendy’s International Inc. bloomed into such a huge corporation that provided people with many job opportunities. The company created more research groups with development projects to enhance the company’s overall performance. Products has been constantly changed and renewed to fit their target market, adults. Human resource policies were reconstructed and marketing strategies were improved. Through the years, Wendy’s has suffered many hardships in the fast-food industry but has still remained a top player. There is always need for improvement. Nevertheless Wendy’s has stayed in a profitable zone, increasing at a small rate shown through total revenue earned.



32 Appendix 1: A)













Wendy International Inc. (2008). Wendy. Retrieved November 20, 2008, from Financial Reports Web site:

Wendy International Inc. (2008). It's Wendy's. Retrieved November 20, 2008, from Wendy's Web site:

The Gale Group, Inc. (2006). Wendy's International Inc. History. Retrieved November 20, 2008, from Funding Universe Web site:

Restaurant News Resources (2006,07,26). Wendy's Creates Marketing Group to Drive Strategy and Innovation. Retrieved November 20, 2008, from Restaurants News Resource Web site:


MacDonald’s (2008). MacDonald’s Canada. Retrieved November 20, 2008, from MacDonald’s Web site:

MacDonald’s (2008). MacDonald's Corporation. Retrieved November 20, 2008, from Corporate Web site:

Boas, M., & Crain, S. (1997). Big Mac: The Unauthorized Story of McDonald's .

Love, J. (1986). McDonald's behind the Arches.



35 Bateman, Need Coffee (2007,06,06). McDonald's Strategic Marketing Mix. Retrieved November 20, 2008, from Associated Content Web site:

Search Engines Used:
Google. Retrieved November 20, 2008, from Google Canada Web site: Yahoo!. Retrieved November 20, 2008, from Yahoo! Canada Web site:



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