McDonald’s Corporation Analysis
1) Summary of the Company: McDonald’s Corporation is the world’s largest chain of hamburger fast food restaurants. There are over 31,000 McDonald’s locations worldwide primarily selling hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, and desserts.
2) Financial Ratios Analysis:
1. Net Profit Margin- The net profit margin of 18.34 percent for 2008 indicates that 18.34 cents of net income was generated for each dollar of sales. The significant increase of 7.83 percent, from 2007’s 10.51 percent, yielded an additional $1.84 billion in profit on the company’s $23.52 billion in revenue.
2. Gross Profit Percentage- McDonald’s gross profit percentage for 2008 was
…show more content…
15. Free Cash Flow- McDonald’s FCF increased from 2007’s $1.16 billion to almost $2 billion, which is a huge increase indicating the company has enough to cash flow from operations to purchase property, plant, and equipment and pay dividends to shareholders.
3) Recent Company News: On 2/16/10 Burger King, the second largest U.S. hamburger chain after McDonald 's, said it would serve Starbuck’s “Seattle 's Best” coffee in about 7,250 U.S. outlets by September making it a direct challenge to McDonald’s strong sales of its new coffee items. On the other hand, TheStreet.com Ratings Investment Analyst Jake Lynch recently reported McDonald’s to be a top dividend-paying stock to buy because its fourth-quarter net income increased 23% to $1.2 billion, revenue jumped 7.3% to $6 billion, and its stock has increased 15% in the past year.
4) Company Strengths: Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.
5) Threats & Risk Factors: The key
McDonald’s Corporation are the most successful and popular fast food brand in the world, holding the largest fast food market share and being the leading fast food restaurant chain in terms of world sales (8%). They are the second greatest outlet operator with more than 34,000 outlets, serving worldwide to 69 million customers daily, across 119 countries. Their brand is the seventh most valuable and
This measures the relationship between net profits and sales of a firm. The net profit margin is indicative of management’s ability to operate the business with sufficient success not only to recover revenues of the period, the cost of merchandise or services, the expenses of operating the business and the cost of the borrowed funds, but also leave a margin of reasonable
McDonald's has successfully created a brand/name for itself as the leading fast food retailer in the world. It is somewhat of impossibility for one to not come across a McDonald's with over 30,000 local restaurants in over 100 countries (McDonald's, 2011). Those restaurants are owned either by a franchise owner or a corporation; a percentage of all the earnings from a franchise owner, including a percentage from their annual revenue go to McDonald's.
Almost sixty-four percent of its stock holders held are institutions. Places such as, Bank of America, Northern Trust Corp, Wellington Management Co and many others that are interested in this company’s growth. Since opening in the middle of 1960’s, McDonald’s any one can recognize its trademark golden arches. We as Americans cannot turn a street corner without seeing a different McDonalds down the road. They are located everywhere, but that just means more profit for the company and its stockholders. The company owns and leases out real estate primarily in connection with its restaurant business. It generally owns the land and buildings or secures out long-term leases for the restaurant sites.
In this report I will be reviewing McDonald’s 10-K SEC Filing for the year ending in December 31, 2015. This review will include items regarding their deferred taxes, tax provisions, earnings per share and investing and financing activities just to name a few. These type of items help investors determine how well a company is doing and if
McDonald’s had been losing revenue to some of its competitors, namely Wendy’s and Burger King; but in October, these figures grew by .9% when the market shares reached $27.4 billion in total revenues. McDonald’s earned nearly $25 billion more than its closest competitors. At a recent investors’ meeting, McDonald’s stated that it is returning $30 billion to its shareholders through dividends and shared buybacks(Reeves, 2015).
REFERENCES•www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008
McDonald's is the world's largest chain of fast food restaurants, serving more than 58 million customers daily. In addition to its signature restaurant chain. McDonald's restaurant is operated by a franchisee, an affiliate,
This means that McDonald’s is bringing in the most total profits, and by a significantly higher percentage.
McDonald’s corporation started in 1944 as a drive-in restaurant in California. This single location was started by Dick and Mac McDonald. That location was altered in 1948, when the start of the 19 cent cheeseburger became popular. They had continued growth over the years and by 1965 there were over 700 restaurants in service. Since that time they have grown dramatically. As of 2011, they are operating in 119 different countries. They have more than 35,000 restaurants and over 1,8 million employees. McDonald’s direct competitors are Burger King and Yum brands (Taco Bell, KFC, Pizza Hut). Forbes profile describes McDonald’s as “As of December 31, 2011, of the 33,510 restaurants in 119 countries 27,075 were franchised or licensed (including 19,527 franchised to conventional franchisees, 3,929 licensed to developmental licensees and 3,619 licensed to foreign affiliates (affiliates)-primarily Japan) and 6,435 were operated by the Company. McDonald's menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Snack Wraps, French fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages and other beverages.” They are considered #6 by Forbes on the World’s Most Valuable Brands. Their dollar menu and attention given to children’s products in their much marketed Happy Meal’s have brought them much attention and wealth.
McDonald's is the world’s leading food service retailer with more than 30,000 local restaurants in 121 countries serving 45 million customers each day.
McDonald's Corporation (McDonald’s) is the world's largest foodservice retailing chain. The company is known for its burgers and fries which it sells through over 30,000 fast-food restaurants in over 119 countries. A majority of McDonald’s restaurants are operated by franchisees. The company also operates restaurants under the brand name ‘The Boston Market’. The company operates primarily in the US and the UK. It is headquartered in Oak Brook, Illinois and employs 465,000 people.
In 1954 Ray Kroc became the first franchisee appointed by Mac and Dick McDonald in San
McDonalds is counted as one of the world 's leading foodservice retailers in more than 100 countries, with more than 36,000 restaurants serving approximately 69 million people every
MCDONALD is leading fast food business started in 1955. Headquarter is in Oak Brook, Illinois US. It’s running more than 35,000 outlets worldwide. The majority of McDonalds outlets are from the outside of the United States are the franchise with the market share of $27.5 million restaurant started by Richard and Maurice McDonald. Further this business purchased by Business Man Ray Kroc owns more than 45,000 employees, people work for franchise are 1.5 million of