Burger King edges up on McDonalds in the "burger wars"
Mihir Oza
Issue date: 2/15/08 Section: Ed-Op
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McDonalds, is considerably America's favorite fast food restaurant, and according to their web site it, "operates over 31,000 restaurants worldwide, employing more than 1.5 million people."
Yet, McDonalds Corporation is hardly excited about their performance from last year. The New York Times reported that in 2007, McDonalds' profits have fallen "32 percent to $2.4 billion," and I can't help but ponder about the sudden change. We shall examine a few possible reasons why people are shunning away the Big Mac.
Are Americans feeling more vigilant and careful about their weight? Or, have the constant TV ads and infomercials for weight loss, which seem to grow in variety and number every year, proved fruitless after all? If neither, than we shall submit to the possibility of McDonald's claim, that the bad winter weather single-handedly hurt their profits for the whole year.
Well, the weather was probably one, but maybe I've omitted the most dangerous possibility: the competitors. According to nyjobsource.com, the top three fast foods chains are McDonalds, Burger King and Wendy's.
Along with McDonalds, Dave Thomas' legacy, Wendy's, shares a similar drawback, a share dropped of 6.2 percent.
Surprising the industry, Burger King came on top last year. The No. 2 fast food chain's "full-year profit rose more than five-fold to $148 million." They've brought about several changes such as longer operating hours and an influx of new restaurants nationally, which have made the home of the whopper, speaking from a front-runner's perspective, the best new fast-food joint.
Burger King's roar in the fast food industry doesn't leave me guessing whether it was health concerns or smarter dieting that caused the decline of the other two chains.
I mean, we're still the most obese country in the world, and most of us consume more fast food than are bodies are meant to digest. Therefore, I'm confident that Americans haven't slowed down their consumption of it.
Getting back to McDonalds' explanation for their loss, the weather only seemed to affect McDonalds and Wendy's. However, Burger King bolted in profits, so the snow piled roads of winter '07 can't be blamed.
After engrossing the above-mentioned possibilities, my hypothetical guess is that McDonalds' change in profits, alongside with Wendy's is simple. Burger King may have just risen in popularity recently, for things like its new "strength in breakfast and late-night offerings."
So the next time you're out hunting to fight a fast food craving, you may find yourself at Burger King instead of your old love, McDonalds.
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