When you think of any fast-food item, the first thing that would come to mind is McDonald’s. It is the most recognizable and remarkable fast-food brand out there. Only the yellow letter “M” is enough to make us realize what it represents. The entire history of McDonald’s is fascinating. Started from a small outlet to owning an outlet almost in every city of the world. However, during its journey, many other companies have established themselves as well. They are direct competitors of McDonald’s.
In this article, I would aim to provide a competitor analysis of McDonald’s
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Competitor Analysis Of McDonald’s For 2023
Having understood a brief overview of McDonald’s, we can see the competition of McDonald’s in the market. There are various fast-food outlets out there. However, most of them won’t reach McDonald’s in terms of revenue or business expansion. Hence, I would consider the direct competitors of McDonald’s which are the leading brands after it.
Let us begin!
1. Burger King
Burger King is a well-known brand based out of America. It started out as Insta-Burger King in 1953. Over the years, “insta” was removed and it is still known as Burger King. The company started with a primary menu consisting of burgers, french fries, shakes, and desserts. Over the course of time, sandwiches, sliders, and much more were added to its menu.
Comparison: McDonald’s and Burger King
- McDonald’s most-selling item is the Big Mac.
Burger King’s most-selling item is the Whopper sandwich. - McDonald’s McCafe has direct competition from the coffee menu of Burger King.
- McDonald’s has 13,363 restaurants in the United States.
Burger King has 7,257 restaurants in the United States. - McDonald’s has restaurants in around 120 countries.
Burger King has restaurants in approximately 100 countries. - McDonald’s, usually fry their burgers.
Burger King uses their signature gas grill to cook their burgers - The pricing of both outlets is quite similar. The difference is negligible. However, McDonald’s offers a $1 menu that Burger King is not offering.
2. Chipotle
Chipotle’s actual legal name is Chipotle Mexican Grill. It comes under the category of fast-casual restaurants. They have been in the business since 1993. Their food primarily consists of burritos, bowls, tacos, quesadillas, and salads. These 5 food items contain different varieties depending on your order and preferences.
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Comparison: McDonald’s and Chipotle
- Chipotle has a customizable menu consisting of quesadillas, tacos, bowls, salads, and burritos.
McDonald’s focuses on burgers, fries, shakes, and desserts. - McDonald’s is actually a fast-food chain.
Chipotle comes under the fast-casual industry. - Chipotle is present in around 5 countries with approximately 3000+ outlets.
McDonald’s is present in around 120 countries with almost 40,000+ outlets - Chipotle is costlier as compared to McDonald’s. However, we cannot accurately compare the pricing models as the items both offer is quite different. Only a few items are common.
3. Subway
Subway is another American fast-food outlet chain. Subway was founded by Fred DeLuca and financed by Peter Buck in 1965 as Pete’s Super Submarines in Bridgeport, Connecticut. It specializes in submarine sandwiches (subs), wraps, salads, and drinks.
Comparison: McDonald’s and Subway
- McDonald’s specializes in burgers, fries, and desserts.
Subway specializes in sandwiches, wraps, and drinks. - Subway is quite healthy. They offer unprocessed and non-fried items.
McDonald’s has fewer healthy options to choose from. - Interestingly, Subway has 41000+ outlets across the globe.
McDonald’s has around 40000+ outlets as of 2023.
Yes, Subway has more outlets as of writing this article. - Subway offers only Coca-Cola.
McDonald’s offers Pepsi and Coke both. - Subway offers extensive customization for almost every item.
McDonald’s also offers customization but for limited items.
4. KFC
KFC stands for Kentucky Fried Chicken. Another great American fast-food restaurant chain. It is headquartered in Louisville, Kentucky. As the name implies, this outlet specializes in fried chicken. Most items they offer are using fried chicken as their primary ingredient mixed with other cooking techniques.
Comparison: McDonald’s and KFC
- McDonald’s offers burgers and fries as their primary items.
KFC has specialization in fried chicken items. - McDonald’s has a wide variety of items on their menu. It also includes a separate breakfast menu in its outlets.
KFC doesn’t provide a separate breakfast menu. - McDonald’s is present in almost 120 countries
KFC is present in almost 150 countries - McDonald’s has around 40000+ outlets across the globe.
KFC has around 22000+ outlets across the globe. - McDonald‘s is cheaper as compared to KFC.
KFC has priced at a higher end due to chicken as the primary ingredient in almost every item. - Both outlets faced criticisms and allegations of human rights violations.
5. Taco Bell
Taco Bell is an American-based chain of fast food restaurants founded in 1962 by Glen Bell (1923–2010) in Downey, California. Taco Bell serves a variety of Mexican-inspired foods, including tacos, burritos, quesadillas, nachos, novelty and specialty items, and a variety of “value menu” items. The value menu items are nothing but items priced between $0.99 to $2.99.
Comparison: McDonald’s and Taco Bell
- McDonald’s is famous for burgers and fries.
Taco Bell specializes in Mexican food like tacos and burritos. - McDonald’s has fewer healthier options as compared to Taco Bell.
Taco Bell is quite healthy and contains fewer fats in its items. - McDonald’s has around 40000+ outlets across the globe.
Taco Bell has around 7000+ outlets across the globe. - McDonald’s is present in almost 120 countries.
Taco Bell is present in almost 30+ countries. - Taco Bell has a Taco Bell’s Taco Shop, an online store with Taco Bell branded merchandise including hoodies and tees, holiday ornaments, inflatable sauce packets, and wedding-related items.
McDonald’s has a similar clothing line named Golden Arches Unlimited. It includes clothing and other merch.
Comparison Of All Competitors Of McDonald’s
Revenue Comparison
We are taking the revenue and profit numbers for the year 2022. We have taken the revenue and profit numbers from various financial reports along with official announcements made by the company. Still, the numbers may vary depending on the time of writing and reading the article.
McDonald’s | $23.183 Billion | $13.207 Billion |
Burger King | $1.9 Billion | $1.01 Billion |
Chipotle | $8.635 Billion | $0.899B |
Subway | $11 Billion | $4.4 Billion |
KFC | $25.957 Billion | $7.4 Billion |
Taco Bell | $13.2 Billion | $4.2 Billion |
Food Nutritional Comparison
McDonald’s | Burgers, Fries, Desserts | Unhealthy. Contains fats |
Burger King | Burgers, Shakes, Desserts | Moderately unhealthy |
Chipotle | Burritos, Tacos, and Salads | Healthy |
Subway | Sandwiches, Salads, and Wraps | Quite Healthy |
KFC | Fried Chicken items | Unhealthy. Every item is fried |
Taco Bell | Mexican inspired Tacos | Healthy. Low calories. High in fiber and protein |
Franchise Model Comparison
McDonald’s | Yes | 38000+ |
Burger King | Yes | 10000+ |
Chipotle | No | 0 |
Subway | Yes | 20000+ |
KFC | Yes | 19000+ |
Taco Bell | Yes | 6000+ |
Bottom Line
McDonald’s is a remarkable brand in the world. It would be remembered as one of the greatest fast-food chains in history. All the competitors of McDonald’s are gaining rapid growth in their respective ways. However, this does not stop McDonald’s to leverage the power of the brand that they have established over the years. Our competitor analysis of McDonald’s was aimed to provide a detailed yet brief analysis. There are many other fast-food outlets that are emerging and making a mark in this industry. However, they still have a long way to reach where McDonald’s and its competitors are.