Corporate Performance Of Mcdonald 's Corp

2588 Words Dec 26th, 2014 11 Pages
1.0 Introduction
1.1 Background of Study
Public companies have a variety of stakeholders, such as shareholders, bondholders, bankers, suppliers, employees, and management. All these stakeholders need to monitor the firm and to ensure that their interests are being served. They rely on the company’s financial statements to provide the necessary information (Brealy et al., 2008).
In this work, the corporate performance of McDonald’s Corp has been evaluated in terms of review of the company’s financial statement. McDonald’s Pro Forma financial statements for the next two fiscal years were produced in order to determine if the firm’s anticipated performance is in line with their targets and also to determine future financing needs of the company. This was followed by the complete financial ratio analysis of McDonald’s Corp, its Return on Equity (ROE) DuPont analysis, and its Economic Value Added (EVA). These analyses were carried out to determine the soundness of the company’s financial policies and also to make decision on whether to invest in the company’s stock or not.
1.2 Overview of McDonald’s Corp
McDonald’s Corp, headquartered in Oak Brook Illinois, is the leading global foodservice retailer with more than 34,000 local restaurants serving 69 million people in more than 118 countries each day (McDonald’s Corp, 2012). The company is listed under the New York Stock Exchange (NYSE) market and belongs to the restaurant industry. McDonald’s rich history began with their…
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