.
The beef sandwiches, which are all typically marked up 350 percent are: basic hamburger (1/8 lb. beef, catsup, pickle), cheeseburger (same as basic but with cheese added), Quarter Pounder (basic but with 1/4 pound of beef), Big Mac (2 beef patties, two buns, cheese, lettuce, tomato, pickle and sauce.
A recent trend within the company has been to open smaller units in airports, bus stations, and hospitals. In America, McDonald's has approximately 42 percent of the fast food market. Its' major competitors are shown in Table 1 below.
Table 1: McDonald's and its Competition
* TRICON Global Restaurants is KFC, Pizza Hut, and Taco Bell and is a former PepsiCo subsidiary.
The company's American stores sell a concentrated line of foodstuffs, each of which operates with a different cost ratio.
The table below shows the percentage of gross revenues each product adds to the bottom line, and the typical markup and margin. (This is based on one chain of 65 McDonald's and should not be considered typical for the entire chain.)
(Percentage of gross exceeds 100 percent because some items are part of combo packages.)
There are five main competitive priorities that have been identified for McDonald's based on research gathered for this report. The first is to stop diminishing market share. The next priority is to improve menus to be more competitive. The company also needs to offer franchisers better deals. Another priority is to improve fin
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