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McDonald's vs. Burger King: Battle of the Brands

Posted Apr 9th 2007 11:14AM by Eric BuscemiEric Buscemi RSS Feed
Filed under: Products and services, Consumer experience, Competitive strategy, Marketing and advertising, McDonald's (MCD), Burger King Hldgs (BKC), Battle of the Brands

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This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and watch out for more Battle of the Brands posts.

The Hamburglar vs. The Creepy King

Looking at the financial data for McDonald's Corporation (NYSE: MCD) and Burger King Holdings Inc (NYSE: BKC) tells us that McD's cooks BK on market cap ($53.7B to $2.9B), and that both stocks are up big since BK started trading last May (McD's is up 29%, BK is up 24%). But these brands aren't really found in the numbers. Let's look at the factors that make these fast-food giants the top two burger chains in the land.

The Menu

What's the first thing you think of when someone says McDonald's or Burger King? Probably their signature sandwiches -- the Big Mac and the Whopper -- because they are what make the brands. There are two factors to look at here -- taste and health.

As far as taste goes, my nonscientific survey says that both sandwiches are flawed (yes, I used writing this blog as an excuse to eat fast food twice in the same week). With the Big Mac, most of my problem was finding the two all-beef patties in a sea of buns and lettuce it was surrounded by. With the Whopper, my criticism is that the burger should come with cheese on it without you having to ask (or pay extra). The burger is supposed to be their top-of-the-line; they could at least throw a slice of cheese on it for you, with you making it "your way."

No need for a nonscientific survey for the health content, I just went to the company websites and found the nutritional information (McD's here and BK here). Now this might surprise you, but neither sandwich is what the surgeon general might refer to as "part of a healthy, balanced diet." That being said, one sandwich is "healthier" than the other. The Big Mac, weighing in at 540 calories, 29 grams of fat, and 45 grams of carbs, is the better alternative to the Whopper, which boasts 670 calories, 39 grams of fat, and 51 grams of carbs. And that is without cheese on it.

As for the rest of the menu, most of it is comparable -- chicken sandwiches, fish sandwiches, burgers, fries, and a value menu. The only other differentiator (other than which brand makes tastier fries, a debate for which both sides have rabid supporters) is the kid's menu. McDonald's has the Happy Meal, a term that is usually part of a child's vocabulary before "Dada." Burger King also has a Kids Meal with similar goodies -- a burger or chicken nuggets, fries and a drink -- but it doesn't have the same appeal. Why, you ask? Marketing. Which leads me to my next topic.

The Marketing

McDonald's single biggest accomplishment is their ability to market to children. A great percentage of their business comes from children asking begging their parents to take them to McDonald's. For years, Burger King had no answer to this. It had a sad Kid's Club with B-level promotions, while McDonald's co-marketed with children's hits such as Disney, Mattel, and Barbie.

So how did Burger King gain ground on Ronald, Grimmace, and the Hamburglar? By not competing with them at all, but by targeting a slightly older demographic. It began with the "subservient chicken" ad campaign, capturing the Adult Swim teen audience, and has continued with the "Creepy King" and his Xbox games.

Another diversion in strategy for the two companies is what they are advertising to adults. McDonald's has been advertising their salads, looking to appease the mothers who bring their children into the golden-arched restaurants, while Burger King has gone the other direction, promoting the Stacker sandwich, a sandwich made of layers of meat and cheese stacking up to four burgers high. This sandwich, I can imagine, caters more to the young stoners that would play an Xbox game based on a fast-food brand.

Regardless, Burger King's strategy of avoiding McDonald's strengths has paid off, and both chains and their shareholders are savoring the success.

Be sure to vote in our poll for Burger King or McDonald's as your preferred brand, and let us know why you love it in the comments. Results of all Battle of the Brands match-ups coming soon.

Tags: battle of the brands, BattleOfTheBrands, big mac, BigMac, bkc, burger king, BurgerKing, creepy king, Eric Buscemi, EricBuscemi, hamburglar, Happy Meal, mcd, mcdonald's, mcdonalds, subservient chicken, SubservientChicken, whopper

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