McDonald’s Vs Starbucks:
McDonald’s overview
The largest network of fast food restaurants in the world is undoubtedly McDonald’s, as they serve more than 50 million people every day in their 37,000 outlets that are expanded in more than 120 nations. However, Independent franchisees own and run more than 75% of McDonald’s restaurants globally. In California, brothers Dick and Mac McDonald opened the first McDonald’s in 1940 as a barbeque joint. They introduced a Speedee Service System(SSS) in 1948, a precursor to today’s “fast food” restaurants.
Starbucks overview
The most prominent coffee brand, Starbucks, was established in 1971 in Seattle, Washington. Now, it operates in more than 23,000 outlets throughout 70 countries. The leading chain of coffee stores around the world is undoubtedly Starbucks. Along with their best-selling coffees, Starbucks also offers a wide variety of food items, like pastries and sandwiches.
Who makes more money: McDonald’s vs Starbucks
There’s no denying that both McDonald’s and Starbucks are hugely successful businesses. But when it comes to profits, there’s a clear winner: McDonald’s.
In 2018, McDonald’s had a net income of over $5 billion. That same year, Starbucks’ net income was just over $3 billion. So not only does McDonald’s make more money overall, but it also has a higher profit margin. McDonald’s also has a lower price point than Starbucks. While Starbucks is known for its premium coffees and drinks, McDonald’s offers a more affordable fast-food option. This makes McDonald’s appealing to a wider range of customers, including budget-minded consumers who might not otherwise visit a Starbucks. So while both McDonald’s and Starbucks are raking in cash, it seems that McDonald’s is doing it just a bit better.
Who has more stores: McDonald’s vs. Starbucks
When it comes to the number of stores, McDonald’s has the lead over Starbucks. McDonald’s has over 37,000 locations worldwide, while Starbucks has just under 32,000. So if you’re looking for a convenient place to get your coffee fixed, chances are there’s a McDonald’s nearby, which indirectly gives McDonald’s a major advantage when reaching potential customers.
Interestingly, though, when it comes to the US market specifically, Starbucks has more stores than McDonald’s. As of 2022, Starbucks has approximately 17,000 stores located just in the US locations compared to McDonald’s, approximate13,000 outlets there in the US. Another interesting fact is that California has the most outlets of Starbucks as well as McDonald’s.
Market and Growth: McDonald’s vs. Starbucks
Comparing the two companies market capitalizations shows that Mcdonald’s is worth more than Starbucks. As of writing this, Mcdonald’s has a market cap of $190.12 billion, while Starbucks has a market cap of $101.33 billion.
So even though McDonald’s generates more revenue and has a higher market cap, investors believe that Starbucks is a better long-term investment. There are some reasons for this discrepancy. First of all, Starbucks is expanding considerably more quickly than McDonald’s. In the past three years, Starbucks’ revenue has increased by 25%, while McDonald’s revenue has only increased by 5%.
Coffee: McDonald’s vs. Starbucks
McDonald’s is one of the most affordable options when it comes to coffee, known as McCafe, with a small cup costing just $1. Starbucks, on the other hand, is renowned for its high-quality coffee. A small cup costs around $2.50, but many people feel that it’s worth the extra money. Starbucks coffee is smooth and rich. When it comes to caffeine, a 16-ounce cup of coffee at Starbucks contains 360 mg of caffeine, while McDonald’s offers only 150 mg of caffeine.
Service: McDonald’s vs. Starbucks
When it comes to service, Starbucks is miles ahead of McDonald’s. They’re more accurate when taking orders, and ordering through their website or mobile app is easier. Starbucks received a score of 78 on the American Customer Service Index, which is considered to be good customer service. On the other hand, the customer service at McDonald’s only received a 70, which indicates that things haven’t changed much in the past year.
Conclusion
It’s tough to say who the clear winner is between McDonald’s and Starbucks. Both are wildly successful businesses and very popular in huge countries like the USA and India. However, McDonald’s is much more affordable and offers more variety than Starbucks, but Starbucks has better quality coffee than McDonald’s.
Who founded Mcdonald’s?
Ray Kroc founded McDonald’s in 1955.
Who founded Starbucks?
Jerry Baldwin founded Starbucks in 1971.
