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Provide their contribution to the fast food industry, as well as an overview of the industry...

Provide their contribution to the fast food industry, as well as an overview of the industry

Do a long term stock analysis from Wendy's and Mcdonalds using this last 5 years comparison.

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Expert Solution

Founded in the United States in 1969, Wendy’s now has over 6,500 quick service restaurants worldwide. In recent years, the number of company-owned properties decreased from 1,417 in 2011 to 337 in 2017. The majority of Wendy’s establishments are located in the U.S., which is home to almost six thousand Wendy’s restaurants. In 2017, Indonesia had the most Wendy's restaurants outside the United States and Canada, with 83 in total.

A recent survey noted that in the United States, almost 50 million consumers visit Wendy’s restaurants each month. This is shown in the company’s reported total revenue of around 1.22 billion U.S. dollars. The chain received an American Customer Satisfaction Index score of 76 out of 100, which was below the limited service restaurant average of 79, but above market leader McDonald's score of 69.

Over the last thirteen fiscal years, McDonald’s revenue achieved its peak in 2013 at 28.11 billion U.S. dollars. Since this peak, the revenue has decreased annually over the last three years, hitting 22.82 billion U.S. dollars in 2017. In 2017, 8 billion U.S. dollars were generated in the U.S., the largest contribution to the McDonald’s total revenue. Other international lead markets such as Australia, Canada and France were the second largest contributors generating 7.34 billion U.S. dollars.

McDonald’s was founded in California in the United States in 1940. Its products include a variety of burgers, sandwiches, French fries, chicken nuggets, ice cream, soft drinks, and hot beverages. As well as these, McDonald’s serves breakfast items, such as breakfast muffins, pancakes, and bagels. On October 6 2015, U.S. restaurants began serving breakfast items throughout the entire day.

With a brand value of over 88 billion U.S. dollars, McDonald’s is by far the most valuable fast food brand in the world. Its closest competitor, Starbucks, has a much smaller brand value of just over 44 billion U.S. dollars. Starbucks, however, offers a very different range of products than McDonald’s and specializes in coffee. Other leading fast food brands that offer a more comparable range of products to McDonald’s are Burger King and KFC.


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