...|McDonald’s Corporation. | |Financial Ratios | | |(TTM) |FY |FY | |Dunkin Donuts | |Fiscal Year |2012 |2011 |2010 |Industry | | |Profitability Ratios (%) | | |Gross Profit Margin |39.20% |39.60% |40.00% | 59.54% |78.09% | |Net Profit Margin |19.82% |20.38% |20.55% |5.03% |16.46% | |Return on Assets |15.98% |16.94% |15.90% |8.29% |3.36% | |Return on Equity |36.82% |37.92% |34.51% |16.08% |19.83% | |Liquidity Ratios ...
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...McDonald’s By Philip Wolfe and Carrie Lettiere Contents Introduction 2 Strategic Focus and Plan 3 Mission Statement 3 Core Competencies 3 Competition/SWOT Analysis 4 Competitors 4 SWOT ANALYSIS 5 Strengths 5 Weaknesses 5 Opportunities 6 Threats 8 Franchise Costs 9 Conclusion 10 Works Cited 12 Introduction McDonald’s was started as a drive-in restaurant in 1940 by Dick and Mac McDonald as McDonald’s Bar-B-Q in San Bernardino, California. After shutting down for three months to make renovations, in the December of 1948, they reopened as McDonald’s. In only a decade after that, they were able to open 100 McDonald’s restaurants and sell over 100 million hamburgers. As the years went on, they opened even more restaurants not only nationwide, but also around the world. They introduced memorable mascots such as Ronald McDonald, provided new options such as the famous Big Mac, and began giving to those needy with the construction of McDonald Houses. Later on they went to acquire other businesses such as The Boston Market, Chipotle Mexican Grill, and Donatos Pizzeria, “in an attempt to diversify its operation” (“McDonald’s Corporation”). Around the world there are currently over 36,000 McDonald’s restaurants in 119 countries. In 2011, McDonald’s was approved of the trademark Mc. From 2012 through 2020, McDonald’s shall be, “the official restaurant on-site at the Olympic Games” (McDonald’s Corporation”). BrandZ ranked McDonald’s as the #5 Most Valuable...
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...Financial Analysis of McDonald’s Corporation (MCD)-NYSE 2111 McDonald’s Drive Oak Brook, Illinois 60523 1-800-244-6227 Business 5200 Finance for Managers PART 1, COMPANY OVERVIEW: a. Brief description of the company: McDonald’s is the leading global foodservice retailer with more than 34,000 local restaurants serving approximately 69 million people in 118 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local men and women. b. Company History: Dick and Mac McDonald opened their eponymous burger stand in 1948 in San Bernardino, California. Under the guidance of Ray Kroc, a onetime milkshake-mixer salesman wowed by the restaurant's success, McDonald's franchises grew swiftly: by the end of the 1960s, there were more than 1,000 across the U.S. The first international franchise opened in 1967 in British Columbia, and was followed by another in Costa Rica later that year. From there, the chain spread steadily: over a six-month period in 1971, Golden Arches popped up on three new continents, as stores launched in Japan, Holland and a suburb of Sydney. A Brazilian McDonald's opened in 1979, bringing Ronald McDonald to South America for the first time. McDonald's reached its sixth (and, barring a sub-Arctic drive-thru, final) continent in 1992, with the opening of a restaurant in Casablanca, Morocco. Four years later, the company heralded the expansion into its 100th nation...
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...Introduction McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. McDonald's operates over 34,000 restaurants worldwide, employing more than 1.7 million people. Although it has consistently outperformed its rivals, McDonald’s is facing same pressures from global economy and rising ingredient costs that are squeezing the entire industry. Focusing on its core brand, McDonald's began divesting itself of other chains it had acquired during the 1990s. Notably, McDonald's has increased shareholder dividends for 25 consecutive years, making it one of the S&P 500 Dividend Aristocrats. In October 2012, its monthly sales fell for the first time in nine years. This paper will discuss the financial statement analysis of McDonald’s Corporation. The purpose of financial statement analysis is to examine 2011 and 2012 financial data so that the company’s performance and financial position can be evaluated and future risks and potential can be estimated. Financial statement analysis will provide valuable information about trends and relationships, the quality of the company’s earnings, and the strengths and weaknesses of its financial position by analyzing its profitability, liquidity, activity and debt. Financial statement analysis will also help to improve financial decision-making and strategic planning. Profitability Profitability is determined by analyzing Return on Assets(ROA)...
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...Business Strategy Analysis: McDonald’s Corporation is the world’s largest fast-food chain in the restaurant industry, serving on average 69 million customers a day. Their stores are corporate or franchised owned, with franchising being highly beneficial to their success by producing 32% of their total revenue. McDonald’s is in a highly competitive industry with market saturation because of low barriers to enter. The industry competes on price, quality, and service. McDonald’s faces competition with full-service restaurants and fast-food restaurants in the area. Their main competitors are Burger King, YUM! Brands, and Wendy’s International. The industry has faced scrutiny on the quality of their products because of a more health concise society. McDonald’s strategy for success is based off of cost efficiency, product development, and marketing and promotions. These factors help form the strong brand that McDonald’s is today. Since their establishment with Ray Kroc, they have focused on driving their success from the 3-legged stool principal representing: McDonald’s employees, the owner/operators, and their suppliers. The stool needs all three to have a good balance in order to function, without either one of the legs success cannot be achieved. All three of them work together to create new products, to reduce costs, and to achieve outstanding customer service. There is commitment in helping all three legs of the stool to succeed. The suppliers play a key role by providing high...
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...choose from. Their mission is to be “The best, now and for generations... and a place where people can achieve their dreams” (Darden 10K, 2012). According to their most recent 10-K report (2012), there are many key points for review. “Of the 1,961 restaurants across the United States & Canada none of them are franchised” (Nation’s Restaurant News, 2012, p.1). Domestically Darden doesn’t offer franchise opportunities. However, they do have 28 restaurants outside of the United States operated and independent to third parties. Other key points are company sales and stocks. The total company started out in 1970 with 3.5 million in sales ending with 7,998.7 million, with 9.5% attributing to alcohol, in 2012, showing significant growth. Stock prices were at a high 55.84, low 40.69, and closed at 53.06 per share as of May 27, 2012. Ford Equity research (2013) projects that Darden will perform in line with the market over the next 6-12 months based on key factors such as earnings strength, relative valuation, and recent price movement (para. 1). “To support future growth, they are striving to change in two important ways: modifying their organizational structure to better leverage their existing experience and expertise, and they are adding new expertise in additional areas that are critical to future success” (Darden 10K, 2012). Five key executives who are most responsible for moving this organization forward is Clarence Otis, CEO, Andrew Madsen, CFO, Ronald...
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... This assignment will discuss current macroeconomic conditions in the US and how these conditions have affected two monopolistically competitive firms, McDonald’s and Verizon. This paper will explore how the two companies responded to the macroeconomic conditions in terms of their stock performance, current and future sales revenue, current and future products, labor costs and hiring decisions. 1.1 The Current Economic Conditions The current macroeconomic situation is fragile. The US economy is clearly in terrible shape, but what is unclear is how we got there. Many experts trace the origins of the current economic situation to the housing bubble that came about earlier this decade (Tanneeru, M). According to the estimate, the real GDP of the US increased .25 of 1 percent over its level in the 1st quarter of 2011. The growth rate of the economy is still volatile and while any increases in real GDP are welcome, they are not sufficient to reduce the unemployment pool (Watkins, T, 2011). 1.2 McDonald’s and Verizon McDonald’s Corporation franchises and operates McDonald’s restaurants in the global restaurant industry. They serve a varied, limited, value-priced menu in more than 1,000 countries worldwide. By adding Dollar Menu items and introducing high-margin beverages such as coffee and fruit smoothies, McDonald’s has broadened its appeal beyond the young men who account for the biggest share of sales at mother other fast food chains (Reuters, 2011). Verizon...
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...Financial Analysis of the McDonald’s Corporation MCD, NYSE (New York Stock Exchange) One McDonald's Plaza, Oak Brook, IL 60523 Map +1-630-6233000 (Phone) +1-630-6235700 (Fax) Abstract McDonald’s is the most famous and well-known fast-food company in the world. This case study examines McDonald’s from a financial standpoint. This case study will be broken down in three parts. Discussed first will be a full description of McDonald’s corporation, including its background, followed by a financial overview with comments for each financial category reviewed, the a comparison of financial ratio’s between McDonald’s and it rival Burger King derived from their 2009 and 2009 annual reports. Finally a support will be provided based off of all findings. Part One: Company Description The McDonald’s Corporation is a well-known restaurant chain that franchises and operates fast food restaurants worldwide. Reuters (2011) states that each restaurant is operated either by the Company or by franchisees. This includes conventional franchisees under franchise arrangements, and foreign affiliated markets and developmental licensees under license agreements. The company’s mission is to be our customers' favorite place and way to eat (McDonald’s, 2011). Company history McDonald’s history originates in 1940, when it started out as McDonald’s Bar-B-Que by Dic and Mac McDonald. In 1948 McDonald’s was officially founded serving only nine items, which included a 15-cent hamburger...
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...McDonalds SWOT Analysis Case Study Report McDonald’s BACKGROUND: Brothers Richard and Maurice McDonald founders of McDonald’s Corporation grew from a single drive-in restaurant in San Bernardino, California in 1948 to the largest food service organization in the world. In 1955 Ray Kroc opened firs McDonald’s in Des Plaines, Illinois and became exclusive franchising agent for the company. By 1991 McDonald’s owned $13 billion of fast-food industry, operating 12,400 restaurants in 59 countries (Ezine). The company recorded revenues of $21,586 million during the fiscal year ended December 2006 and increase of 8.8% over 2005 (Yahoo Finance, 2007). SWOT ANALYSIS: Strengths: The greatest strengths of McDonald was introducing people to the fast food and creating an image in people minds of fast food culture. McDonalds has over 30,000 branches in 120 countries and 80% of its revenues is derives from eight countries like Canada, Brazil, Germany, France, Japan, UK, Australia and US (Ezine). The biggest strength that the case study focused on was strategy – market leadership and buyer supplier relations. Shamsie stated that “the bigger success came in the form of McGriddles breakfast sandwich which was lunched nationwide in June 2003” (Dess, Lumpkin & Eisner, 2007, p. 692).New breakfast addition gave the firm comparative advantage in the market place and brought about 1 million new customers each day. Weaknesses: The same factors which are consider strengths are also weakness...
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...Financial Analysis of the McDonald’s Corporation MCD, New York Stock Exchange One McDonalds Corp Plaza Dept. 332 Oak Brook, IL 60523 630-623-3154 Sheena Harper-Nelson Webster University COMPANY OVERVIEW: Brief description of the company McDonald’s is one of the largest fast food restaurants today. There are over 35,000 restaurants in 117 countries at the end of 2013. Out of those restaurants, 26,338 are franchised or licensed. That is over 80 % of the company. There are only 6,399 restaurants operated by The Company (McDonald’s). McDonald’s is a corporation that involves serving meals fast. McDonald’s is a customer service based company. Base on Wall Street journal, McDonald’s was one the two companies that ended 2008 with a gain (www.aboutmcdonalds.com) Company history McDonald’s has been around since 1940. It was founded by Dick and Mac McDonald’s their first store was a Bar-B-Q restaurant in San Bernardino, Ca. They closed the Bar-B-Q for only 3 months to make alterations. The first menu had nine items, hamburger, cheese burger, soft drinks milk, coffee, potato chips and slice of pie. In 1949 the world famous fries replaced the potatoes. McDonald’s opened their 100th store in Fond Du Lac, Wisconsin. In 1962, the McDonald’s in Denver, Colorado was the first to get indoor seats. On McDonald’s 10th anniversary the stock was $22.50 per share. Ronald McDonald’s appeared in his first commercial in 1966. The Big Mac was introduced in 1968. It has...
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...of Redbox University of Saint Mary Cairo Team November 9, 2012 Redbox Coinstar, Inc., through its subsidiaries, provides automated retail solutions primarily in the United States, Canada, Puerto Rico, Ireland, and the United Kingdom. The company owns and operates self-service Redbox kiosks that allow customers to rent or purchase movies and video games; and self-service coin-counting kiosks where consumers can convert their coin to cash, a gift card, or an E-certificate. Coinstar, Redbox's parent company, is led by a savvy management team. By maximizing the value of Redbox and investing in new technologies it is the best way to capture opportunities along with various dimensions such as new customer segments, geographic, product segments, and strategic moves. Coinstar has built a promising future by taking their kiosk-based business to a new level. Strategic investment, position and new technology lead the way to the competitive advantage in the movie rental industry. The Redbox Company is a subsidiary of Coinstar Inc.; it is a kiosk run retailer which provides movie rentals to consumers at an inexpensive rate. Redbox Automated Retail LLC began operations in 2004 with funding provided by McDonald's Ventures, a subsidiary of McDonald's Corporation. The initial Redbox vending machines were placed in a number of McDonald's fast-food restaurants. (Thompson, Peteraf & et al, 2012) As of December 31, 2011, the company had 35,400 Redbox kiosks in 29,300 locations...
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...In the case of Pelman v. McDonald’s Corp, the parents of two teenage girls claim that McDonalds was responsible for their daughter’s obesity. One of the girls said that a “McMuffin for breakfast and a Big Mac meal for dinner was her regular diet.” (Wald, 2003) While the other one would eat Happy Meals three to four times a week. When this case went in front of the court, Judge Robert W. Sweet stated this “opinion is guided by the principle that legal consequences should not attach to the consumption of hamburgers and other fast food fare unless consumers are unaware of the dangers of eating such food.” (McLean, 2003) He felt that if consumers knew the potential risks of eating McDonald’s, they wouldn’t be able to blame McDonald’s when they supersize their meals. There were many counts that were brought up in the lawsuit: Counts I and II stating that the value meal was not actually a value, therefore they were deceiving their customers; Count III stated that they were negligent because their food products were “high in cholesterol, fat, salt and sugar when studies show that such foods cause obesity and detrimental health effects”; (McLean, 2003) Count IV stated that McDonald’s failed to warn their customers that their food products could cause health problems and cause individuals to become obese; and Count V stated that McDonald’s failed to market their food products as addictive, both physically and psychologically. This case was dismissed in court in 2003. Judge...
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...market is forecast to have a value of $239.7 billion, an increase of 19.2% since 2009. Market volume The global fast food market grew by 3.9% in 2009 to reach a volume of 208.1 billion transactions. Market volume forecast In 2014, the global fast food market is forecast to have a volume of 248.7 billion transactions, an increase of 19.5% since 2009. Market segmentation I QSR is the largest segment of the global fast food market, accounting for 70.9% of the market's total value. Market segmentation II Americas accounts for 47.4% of the global fast food market value. Market rivalry While particular segments of the fast food market can be concentrated - for example, the burger segment is close to being a Burger King / McDonald's duopoly - the market as a whole is fairly fragmented, with many independents as well as larger chains. Global - Fast Food ©...
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...of eating out. India is a young country with almost 60 percent of people in the age window of 18- 35 years which are also the most spending years, hence QSR. The first foreign Quick Service restaurant and casual dining entered Indian Market around 20 years ago. Although Quick Service Restaurants contributes to only 2-3% to India’s GDP, the market is worth INR 247,680 crore (USD 48 billion) and is expected to grow to INR 408,040 crore (USD 78 billion) by 2018. It comprises of food services that are organized such as full service casual and fine dining restaurants, hotels, bars and lounges, cafes and frozen dessert formats as well as unorganized sector such as Dhabas, street stalls, roadside vendors, food charts etc. The concept of QSR has gained prominence in India because of the affordable, competitive pricing and convenient quick service to the ever growing population. QSRs face few challenges in terms of Health and hygiene, beating local competition, monitoring multiple outlets in various cities, holding on to the customers as QSR customers are easy to sell to but also easy to lose, maintaining quality service, localization of menu and building a cost effective supply chain. Foreign QSRs have more 63% of the market shares but there are many Indian chains such as Haldiram’s, Faasos, Goli Vada Pav etc. that are flourishing in the market that is growing at almost 25% per year. There are almost 45 foreign brands which have 1900 outlets all over India. Café Coffee Day Café Coffee...
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...Bayswater Andrés Lema Eric Shoubridge Farhana Aslam Felipe Hessel Rosa Montes Todd Hanlon 5th December 2012 1: The Financial, Business and Economic Environment for McDonald’s Introduction: The Fast Food Industry and McDonald’s The modern system of fast food franchising is believed to have started in the mid 1930’s when Howard Johnson franchised his second location to a friend as a means to expand operations during the Great Depression. In addition, the drive-thru concept brought explosive growth through delivering food-on-the go. “Fast Food” was added to the Merriam-Webster dictionary in 1951, and U.S. fast food companies are now franchised in over 100 countries. In the U.S. alone there are over 200,000 restaurant locations. Revenue has grown from $6 billion in 1970 to $160 billion in 2011, an 8.6% annualized rate (Sena, 2012). Fast food franchises focus on delivering high volume, low cost, and high speed products. Frequently, food is preheated or precooked and served to-go, though many locations also offer seating for onsite consumption. With all stands, kiosks, or sit-down locations, food is standardized and shipped from central distribution points. Consumers enjoy being able to get a familiar meal in each location, and menus and marketing are the same across all stores (Sena, 2012). McDonald’s (MCD) was founded in California in 1940 under the name “McDonald’s Bar-B-Q”. The original founders, Dick and Mac McDonald, reopened the restaurant in 1948 as a drive-in boasting...
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