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XYZ Capital to Grow Fast Food Chain Business

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Case Type: Growth Strategy

Case Style: Interviewer Led

Industry: Restaurants & Food Chain

Case Type: Growth Strategy

Industry: Restaurants & Food Chain

Case by bain & Company

McKing’s is an American fast food company which operates under a franchise model. They are best known for their hamburgers, cheeseburgers and french fries. They also feature products like salads, fish, smoothies, soft drinks, wraps, desserts etc. The company operates 5000 stores in the US as of 2018.

Mr. Mac Milan founder and owner of McKing’s Food chain has recently sold his entire stakes (~80% of company) to an Investment Firm, XYZ Capital for around $500 mn & announced his retirement.

Our client XYZ Capital, has approached us to devise a growth strategy for the franchise chain business. What would you recommend?

Additional information (To be provided only on request)

  • There are four major players in fast food chains in the US. (Burger King, IN-N-Out Burgers, El Pollo Loco, McKing’s)
  • Market research suggests that there is no to little perceived difference in meals served by these chains except for EL POLLO LOCO whose offerings are preferred by health conscious customers

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A good recommendation will include listing multiple growth strategies for McKing’s. An excellent recommendation will also include an action plan for adopting those strategies along with risks associated with them.

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Some of the basic accounting terms that you will learn include revenues, expenses, assets, liabilities, income statement, balance sheet, and statement of cash flows.

Chart of accounts

A chart of accounts is a listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger.

Trending Topics

Break-even Point

Depreciation

Activity Based Costing

Credits & Debits

Bank Reconciliation

Manufacturing Overheads

Non-manufacturing Overheads

Improving Profits

standard costing

A chart of accounts is a listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger.

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