At present, the stock price of McDonald's is about $204, and the total market value is about $654.38+056 billion.
Yum's share price. Brands is only about 1 10, and the total market value is only about 35 billion dollars, which is equivalent to the share price of McDonald's about twice that of Yum! Its market value is about 4.5 times that of Yum!
As for the market value of McDonald's is higher than that of Parkson Restaurant Group, this is normal, because McDonald's has more advantages than KFC in scale and profit.
In fact, from the perspective of price-earnings ratio, the price-earnings ratio of McDonald's and Yum! Brands is similar. McDonald's price-earnings ratio is about 27.6 times, while Yum! Brand accounts for about 25.5%. The gap between them is not very big, so it can be seen that the valuation logic of the two is similar.
The total market value of McDonald's is much higher than that of Yum! Because its scale is much higher than Yum! We can see it by simply comparing some data.
1. Number of stores. Up to now, McDonald's has more than 35,000 stores worldwide, while KFC has only about 1.8 million stores worldwide.
2. Operating income and net profit. 20 18 McDonald's 2102.5 billion USD, with a net profit of 5.923 billion USD; Yum! Group's operating income was US$ 5.688 billion and its net profit was US$ 65.438+US$ 54.2 million. It is equivalent to McDonald's operating income is about 3.7 times that of Yum! Brand, its net profit is about 3.85 times that of Yum! Brand.
KFC's business in China is independent. China is the most important market for McDonald's and KFC.
But from 20 16, Yum! China started with Yum! After the spin-off, Brands was listed on the new york Stock Exchange on 20110+1. It owns the exclusive operation and authorized operation rights of KFC, Pizza Hut and Taco Bell in China market, and completely owns the chain restaurants of Oriental White and Little Sheep.
According to Yum!' s annual report data. China's revenue of Yum! Brands in 20 18 years! China reached US$ 8.42 billion in 20 18, equivalent to about RMB 56 billion. The net profit was $708 million. This means the turnover of Yum! China is much higher than Yum! The group's business in other parts of the world still has a great impact on the overall operating income of Yum! Catering group.
Therefore, there is a big gap between Yum brands at present. The brand is comparable to McDonald's in terms of operating income and profit scale, so the gap in market value is understandable.
At present, both McDonald's and KFC basically adopt the mode of direct operation and joining. However, McDonald's is obviously superior to KFC in the development of franchise mode. At present, a large part of McDonald's income comes from rent, and franchise stores have become the main source of income for McDonald's.
For McDonald's, franchise stores are basically a stable business. McDonald's only provides brand and training support, and then McDonald's will choose its own address before inviting investment. McDonald's is very vicious in site selection, and their vision will be very long-term. Generally, they will evaluate the contract with the owner for 20 or 30 years, so that they can earn a considerable rent difference after attracting investment. In addition, franchisees must pay a certain licensing fee to McDonald's every year, which is generally about 4.5% of the turnover, so McDonald's can earn considerable profits from these franchisees every year.
For example, in 20 16, the total revenue of McDonald's was $24.6 billion, including 153 billion for direct stores and $9.3 billion for franchise. Of the franchise turnover of $9.3 billion, the rent is $6 1 billion, the license fee is $3 1 billion, and the rest 1% is the deposit. In addition, in 20 16, the operating profit of McDonald's direct stores was only about 2.6 billion dollars, while the profit of franchise stores reached 7.6 billion dollars, which is equivalent to about 3/4 of McDonald's profits coming from franchise stores.
Because of this, McDonald's annual operating income and profits are very considerable, and earnings per share are much higher than Yum!
For example, in the first quarter of 20 19, the earnings per share of Yum! Brands is about $0.85, while McDonald's earnings per share reach $65,438+$0.74, which is about twice that of KFC.
Based on various factors, McDonald's has more advantages than KFC at present, so it is easier to be recognized by investors. Therefore, it is reasonable that the stock price is higher than Yum. And the market value is much higher than Yum!
McDonald's (stock code MCD), the closing price on Friday was $204.26, with a total share capital of 764 million shares and a total market value of155.964 billion. In 20 18, McDonald's global revenue was 2102.5 billion yuan, and its net profit was 5.924 billion dollars.
Last Friday, the closing price of Yum! Brands, the parent company of KFC, was 1 10.27 USD, with a total share capital of 306 million USD and a total market value of 33.74 billion RMB. In 20 18, the total income was 5.688 billion yuan and the net profit was10.542 billion yuan.
Therefore, the data can tell everything. Regardless of the number of stores opened, global coverage, total operating income and net operating profit, McDonald's is significantly ahead of KFC's parent company Yum! Brands. Brands, not to mention other brands such as Pizza Hut and Taco Bell. Therefore, it is not surprising that the market value of McDonald's is several times that of KFC.
In China, KFC is the first foreign fast food brand to enter. At present, it operates 6,000 restaurants in China, while McDonald's currently has only 2,500 restaurants in China. In business circles in China, there are still great differences between them.
Finally, McDonald's China is now sold to CITIC Group Holdings, and part of the equity of KFC China is sold to "Ma Yun Dad".
First of all, to answer this question, we should first pay attention to the daily operation of the macro capital market.
In 20 16, the turnover and profit of McDonald's reached 254.1300 million and 4.529 billion dollars respectively, ranking 420th among the world's top 500 companies in 20 16, while KFC failed to enter the list of the world's top 500 companies. The two fast food giants that are popular all over the world always do business together. Why McDonald's makes more money than KFC? Let's explore the mystery.
1. Selling is not just a product, but a way of life.
In the eyes of many people, McDonald's and KFC are gourmet fast food, junk food and unhealthy, especially in China. However, McDonald's sells not only fast food, French fries, hamburgers and fried chicken, but also an American lifestyle, which makes the products more valuable and connotative, and makes more consumers willing to pay for this happy, interesting, convenient and relaxed atmosphere and culture, but KFC did not explicitly put forward this point.
Step 2 explode to the extreme
McDonald's representatives of French fries and hamburgers choose more, love more and sell more. French fries are divided into three sizes: large, medium and small, and packaged with ketchup to become an upgraded explosion, so that consumers have more different choices.
McDonald's has 1 1 kinds of hamburgers, and the unit price of hamburgers ranges from 7.5 yuan to 2 1 yuan. Consumers who buy hamburgers usually buy drinks, which can also drive the sales of other items.
In 1962, McDonald's sold/kloc-0 billion hamburgers, and in 2002, it sold/kloc-0 billion hamburgers. The sale of hamburgers has played an important role.
There are only four choices for KFC's representative fried chicken: New Orleans roasted wing, spicy chicken wings, finger-sucking original chicken pieces and crispy chicken. Compared with McDonald's two explosive products, the choice of more than ten items is much weaker. The unit price of fried chicken is only 1 1 yuan and1.5 yuan, so the unit price of fried chicken is low, with few choices and low sales.
3. Let consumers feel affordable and convenient marketing.
In marketing, McDonald's is better than KFC. Mcdonald's has carried out single product marketing activities many times, such as buying one get one free French fries, which is better than directly giving 50% discount. If a person can't eat two fries, he will definitely invite friends, which is equivalent to consumers advertising McDonald's for free and becoming the consumption of two or more people. Consumers generally don't just buy French fries, but also order drinks, hamburgers, fried chicken and so on. This is invisible to the passenger flow and consumption directly driven by 50% discount. A series of preferential activities were launched for Hamburg, such as limited time 10 yuan enjoying the original price of 20 yuan Big Mac, 3 yuan buying 8 yuan Pie, 12 yuan buying big chicken chops, etc.
In terms of package, it is rich and varied, with more choices. There are also package activities such as Mai Qu Chicken Box, Three-person Package and Five-person Package, which firmly lock in the consumption of two to many people such as friends and family.
In the Alipay service window, McDonald's will have new marketing activities every week, get a hearty breakfast for free, cultivate consumers' habit of eating breakfast at McDonald's, and send dessert discount coupons, single product discount activities, discount packages and other activities to attract more consumers to spend regularly.
The marketing activities of hamburger, drinks and chicken chops with drinks 17 yuan's dinner package have cultivated consumers' habit of coming to McDonald's for lunch and dinner, reduced consumers' complicated and hesitant choices when faced with many delicious foods, and given them a simple and convenient choice.
McDonald's has really brought benefits and convenience to consumers, at the same time, it has cultivated consumers' American lifestyle and eating habits, made consumers fall in love with American lifestyle, and enabled consumers to drive more passengers through word of mouth, driving the unit price and turnover.
In contrast, KFC has relatively few marketing activities for explosions. It offers a variety of snack packages, including French fries, chicken nuggets, spicy chicken wings and squid from 29 yuan. Marketing activities are more aimed at the whole family barrel and the lack of single products. This package is only applicable to the whole family bucket package.
KFC chose Lu Han, a star that young people like, as the spokesman of the target consumer group, and put many advertisements on TV, but it did not do as well as McDonald's in the actual welfare of consumers.
4. Details reflect advantages
In terms of operation, McDonald's introduced the method of separating cash register and meal taking from 20 15, which improved the time of ordering and meal taking, and the meal preparation staff could know the ordering information at the first time. Later, in the face of the huge queuing pressure in the food gathering area during the peak period, they changed to the way of taking numbers and calling numbers. After ordering, consumers look for empty seats and wait for the display screen to call for the meal, which decomposes the queuing pressure in the meal taking area, improves efficiency, saves consumers' time and improves consumers' satisfaction.
However, KFC has always used the way of ordering food for consumers and then ordering food for the next consumer. The subtle differences between the two operations have brought different benefits, and the ability of McDonald's to receive consumers in a single store has been greatly improved. In the same level, McDonald's single store turnover is higher.
With the passage of time, from a single store to a region and then to a large region, the gap has gradually widened, and unconsciously, the two have gradually drifted apart in the eyes of the capital market.
50% of McDonald's annual income comes from real estate rent, 40% from brand authorization and 65,438+00% from restaurant operation. Now McDonald's covers the most luxurious business district in the world. Buying and selling popular shops, charging high franchise store rents. Among the 36,000 McDonald's stores in the world, 45% of the land is directly owned and 70% of the stores are leased. McDonald's owns tens of thousands of properties in the most prosperous prime location in more than 0/00 countries and regions around the world.
McDonald's real estate business model was founded by its chief financial officer Harry Soneborn in 1950s. 1956, he founded McDonald's franchise real estate company, with the goal of buying cheap shops in places with convenient transportation and gradually improving them, and finally formed the franchise concept of McDonald's.
The distance between KFC and McDonald's. Maybe it's just the tens of thousands of pieces of real estate.
The reason why KFC is more popular than McDonald's in China is directly related to its ingredients and the hunger gene of the people. KFC directly bites the meat, which really doesn't hurt. McDonald's mostly appears in the form of minced meat, and what can be involved in "minced meat" is the most clear in China people's hearts, which can be said to be leftovers. Even if the reputation is good, biting meat is still practical. "Don't eat anything with stuffing when you go out"-this is obviously cheated.
Because you only see that KFC and McDonald's in China are equal. In the United States, KFC is pure rubbish, the number of stores is less than one tenth of that of McDonald's, and it is poorly decorated, with few varieties and low style.
They just do almost everything in China, and they can't see KFC in the United States, okay?
KFC will vomit after eating for a week, and McDonald's can eat for another week. It tastes good.
McDonald's is a real estate company.
The person who asks this question may not have been abroad.