Question: This is more information regarding the same question posted earlier. I am really stuck as to what question 2 is asking, so I wanted to

This is more information regarding the same question posted earlier. I am really stuck as to what question 2 is asking, so I wanted to post as much information as possible to help me get information on how to answer question number 2.

McDonalds Corporation franchises and operates more than 30,000 fast-service restaurants in 119 countries. Buffalo Wild Wings franchises and operates more than 500 restaurants in the United States. Buffalo Wild Wings features chicken wings and a full bar in its restaurants.

Financial information for each company follows. EBI denotes after-tax earnings before interest expense.

Selected Financial Data

Required:

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.

Question 2. Assume that for both companies sales at company-owned stores are the same (on a per store basis) as sales for the same companys franchised stores. Estimate each companys franchise fee rate, which is state

Buffalo Wild Wings McDonald's
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
# of stores operating at year-end:
Company-owned 161 197 232 259 319 6,906 6,502 6,262 6,399 6,435
Franchised 332 363 420 473 498 24,471 25,465 26,216 26,338 27,075
Revenues ($ in millions):
Company-owned stores 379.7 488.7 555.2 717.4 16,560.9 15,458.5 16,233.3 18,292.8
Franchise fees 42.7 50.2 58.1 67.1 6,961.5 7,286.2 7,286.2 8,713.2
Total 422.4 538.9 613.3 784.5 23,522.4 22,744.7 22,744.7 27,006.0

d as a percentage of each franchisees sales revenue.

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