McDonald's Corporation franchises and operates more than 36,000 fast-service restaurants around the world. Buffalo Wild Wings franchises and operates more than 1,000 restaurants in North America. Buffalo Wild Wings features chicken wings and a full bar in its restaurants.

Financial information for each company follows.

Required:
1. Determine the amounts of sales revenue per company-owned store and franchise fees per franchised store for each year and each company. In these computations, use the average number of stores open during the year.
2. Assume that for both companies sales at company-owned stores are the same (on a per store basis) as sales for the same company's franchised stores. Estimate each company's franchise fee rate, which is stated as a percentage of each franchisee's sales revenue.
3. Perform a cause-of-change analysis from 2008 to 2011 for each company to disaggregate the increase in revenues from company-owned stores between growth in the average number of average stores open and growth in revenues per store. Also perform a cause-ofchange analysis from 2011 to 2014.
4. Perform similar analyses for franchise fee revenues.
5. What do your analyses from requirements 3 and 4 tell you about the companies' growth strategies and how they differ from each other and over time?

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Buffalo Wild Wings McDonald's 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 20 2012 2013 2014 Number of stores operating at year-end: Company-owed 16 197 232 259 319 38 434 491 6,906 6502 6262 6,399 6,435 6,598 6,738 6,714 Franchised 332 363 420 473 498 510 5 591 24,471 25,465 26216 26,338 27,075 27,882 28,691 29,544 Revenues (S in millions): Company-owned $379.7 $488.7 $555.2 $7174 $964.0 $1,185.4 $1,423.0 42.7 50.2 58.1 67.1 76.6 814 93.2 422.4 5389 613.3 7845 1,040.6 1,266.8 1,516.2 store saks $16,560.9 $15458.5 $16,233.3 $18,292.8 $18,602.5 $18,874.2 $18,169.3 6,9615 7286.2 7,841.3 8,713.2 8,964.5 9231.5 9,272.0 23,5224 22,744.7 24,074.6 27,006.0 27,5670 28,105.7 27,441.3 Franchise fces Total