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PRESENTATION

Welcome to the World of Burger King

Have it your way

History ofBurger

king

Burger King was founded in 1953 by Keith Kramer and Matthew Burns opened the first Burger King restaurant in

Miami, Florida

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

The restaurant chain introduced the first Whopper sandwich in 1957

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

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

Vision Offering reasonably priced quality food,

served quickly, in attractive, clean surroundings

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.

MISSION

OBJECTIVES

•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 ENVIRONMENTCORPORATE STRUCTURE Burger King used the Matrix structure of

management.

Business operates in 71 countries.

About 40,000 plus employees are employed

at their restaurants.

CORPORATE CULTURE Burger King serves a lot of burgers that is

typically not available in other fast food

restaurant.Burger King does not advertise their products

like their competitorsThey required all of their franchised restaurants

to use the Insta-Broiler oven.

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.

Internal environment

SHORT-TERM (OPERATING) ACTIVITY RATIOS

Turnover Ratios Dec31,2012

Dec31,2011

Dec31,2010

Dec31,2009

Dec31,2008

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.

LONG-TERM (INVESTMENT) ACTIVITY RATIOS

Dec31,2012

Dec31,2011

Dec31,2010

Dec31,2009

Dec31,2008

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.

LIQUIDITY RATIOS

Dec31,2012

Dec31,2011

Dec31,2010

Dec31,2009

Dec31,2008

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.

DEBT AND SOLVENCY RATIOS

Dec31,2012

Dec31,2011

Dec31,2010

Dec31,2009

Dec31,2008

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

PROFITABILITY RATIOS

Return on Sales Dec31,2012

Dec31,2011

Dec31,2010

Dec31,2009

Dec31,2008

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%

EXTERNAL ENVIRONMENTNatural Environment

Burger King was the second largest fast-food

hamburger restaurant chain in the world as measured

by the total number of restaurants and system wide

sales.

Societal Environment Economic Retail sales at company-owned restaurants;

Royalty payments on sales and franchise fees paid

by franchisees Property income from restaurants leased to

franchisees. 

Task Environment

Approximately 90% of Burger King Restaurants are

owned and operated by independent franchisees, many

of them family-owned units that have been in business for decades.

Technological

Automated machine processes eliminating work previously

done by hand increasing the speed, capacity, and efficiency of

manufacturing processes.

Porter five forces are-•Industry competitiveness• Power of buyer•Power of supplier • Threat of new entrants • Threat of substitutes

PORTERS FIVE FORCES MODEL

Political Factors

Individual state

policies enforced by

the governmen

t greatly influenced

the international operations

of Barger King

.

any groups in Europe and USA

clamor for the actions taken by the state pertaining

to the hygiene,

health and fitness

proposition of eating fast food

In all parts of country and outside the

country government

check all these elements

before issuance of any kind of license in the

respective states

SOCIAL FACTORS:Working within many groups

Increase employment

Health fears:Customers now opting for more healthy options

which offers more healthier foods.

Emphasis on food safety

Strengths  

Installing a flexible batch to maximize cocking

flexibility. strong brand image.

Point-of-sale cash register system.

Allowing people to change the way a food item is

prepare.

Weaknesses Expenses are very high. Less efficient to boost a product. High- caloric food items. Marketing only to young man rather than women or old people. Disregarding kids, families and moms to give facilities

Opportunities

Focus on international expansion. Offering healthy menu items. Alternative market in the Middle East, Eastern Europe and Asia. Offering product to all ages people.

Threats Increasing the number of diseases.

Global recession and inflationary treads.

Change in customer test and views regarding

the consumption of food. Change in exchange rates and tax rate.

Increase the cost of raw materisl.

TOWS MATRIX Internal Factors Strengths (S) Weaknesses (W)

External Factors

Opportunities (O)

SO Strategies Introduce home deliveryImprove the products, it as per tastes of people around the world.Offer various side dishes.

WO Strategies Open new branches and outlets.Advertise more to reduce customers confusion.Acquire more marketing strategy to increase sales

Threats (T)ST Strategies Increase the percentage of sales than major competitorsProduce healthy and hygienic food

WT StrategiesKeep pace with the customers changing food habit Reduce concentration on the specific markets

Internal Strategic Factors Weight Rating WeightedScore

Comments

Strengths:Strong market position

Greater franchise mix

Geographic Diversification

Established Market Share

0.05

0.20

0.15

0.10

4.2

5.0

3.9

2.5

0.21

1.00

0.60

0.25

Help them to get the customer.Good for the company profit.Helpful for international marketEnhances profits promotes growth

Weaknesses:Market concentration Scattered Marketing Campaign Lack of advertisement

Lack marketing strategy

Total score

0.20

0.10

0.10

0.10

1.00

3.0

2.2

2.0

2.0

0.60

0.33

0.30

0.30

3.59

Can affect its operations.Fail to efficiently promote products.Damage the business growth.Disadvantage spot in competitors areas

External Strategic Factors

Weight Rating Weighted Score

Comments

Opportunities:New products development

Brand Licensing ProjectExpand in Asia market

0.15

0.20

0.15

4.1

3.2

5.0

0.61

0.64

0.75

It can increase their profits.

Increase the company’s’ brand awareness Important for their brand.

Threats:Intense competition Raise of cost Changing consumer eating habits

Total score

0.200.150.15

1.00

2.52.22.0

0.500.330.30

3.13

Have to increase sales.Should minimize the cost.Maintain the menu of the food.

Customer satisfaction Strategy

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.

RECOMMENDATION 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