- 1992-1999 Pre-Greenberg era (Part 1 in Figure 2): Volume growth was driven by store openings, but with stable profits, leading to a growth in stock price as well. Note that the Big Mac price moves in step with inflation.
- 1999-2004 Greenberg era (Part 2 in the Figure 2): Volume growth came at the expense of profits. Note that the Big Mac price reduces in real terms. Furthermore the “Made for you” would have added further costs in the system. As a result, the stock price declined
- Beyond 2004, Cantalupo era and beyond (Part 3 in the Figure 2): Sharp increase in the price of Big Mac (as a proxy for all product prices) that drives an even stronger increase in stock price than in the early 1990’s
About the authors:
Kedar Gharpure is the Director of B2B Growth Consulting Ltd. He has served business heads of several Fortune 250 and Private Equity owned B2B companies on growth strategy and commercial transformation.
Vidya Ranade is the founder of Decodexis, a company that provides bespoke analytics and consulting services to clients in marketing & sales, operations and R&D.