McDonald’s Corporation (MCD), Burger King Worldwide Inc (BKW): This Company Missed Estimates, but Can Improve in the Future

What are competitors doing

While McDonald’s is attracting customers with lower prices, Burger King Worldwide Inc (NYSE:BKW) plans on accelerating its expansion in South Africa and other parts of the continent to benefit from the growing middle class. With doubling of the middle class in South Africa in the last eight years, and with the expected expansion of the African economy, this year, the company plans on opening 12 new branches in the African continent.

Burger King’s Partnership with Grand Parade Investments should help the company in its expansion plan and compete against the likes of McDonald’s. But, Burger King Worldwide Inc (NYSE:BKW) is a late entrant into this market and we need to wait and watch if it can pose a serious challenge to McDonald’s.

At the same time, The Wendy’s Co (NASDAQ:WEN), a smaller U.S.-based rival, is coming up with products like the Pretzel Bacon Cheeseburger, which is the latest best selling item on the menu. Wendy’s, known for its Frosty shakes and square hamburgers, may put pressure on McDonald’s in the future through innovative menu items. The company, with its low on calories berry almond chicken salad, has started proving to be a tough competition for McDonald’s.

Conclusion

With competition intensifying, McDonald’s estimates a tough year ahead. The company is trying to shrink its menu from the current 145 dishes so as to provide quicker and better services, and also to improve its drive-through time. With an increase in awareness regarding obesity and calorie intake, McDonald’s Corporation (NYSE:MCD) is trying to add low on calorie, healthier dishes, like the egg-white sandwich. With a revamp of the strategy, McDonald’s plans to attract customers, and thereby, it could perform better in the future.

The article This Company Missed Estimates, but Can Improve in the Future originally appeared on Fool.com and is written by ANUP SINGH.

ANUP SINGH has no position in any stocks mentioned. The Motley Fool recommends Burger King Worldwide and McDonald’s. The Motley Fool owns shares of McDonald’s. ANUP is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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