Mcdonald 's The Biggest Chain Of Fast Food Restaurants

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Executive Summary McDonald 's is the biggest chain of fast food restaurants in the world, having over 35,000 outlets and serving around 68 million customers on daily basis in 119 nations and on an average basis every McDonald restaurant serves 1916 customers on daily basis. The project focuses on McDonald’s financial health, strategies, business decisions, performance, growth, projections and opportunities. Company focuses on 5 p’s approach that is people, products, place, price and promotion to increase sales and profitability and getting better by time and not just bigger. Company is looking for a long-term growth and is ready to invest even if it does not yield profit in initial years. Company is able to generate enough cash flow from…show more content…
Further insight can be obtained from the company’s annual report. The company operates in the global restaurant industry and deals with its business as particular geographic segments which includes US, Europe, Canada and Latin America and APMEA (Asia, Pacific, Middle East and Africa). The revenues generated from US is 32%, from Europe is 40% and from APMEA is 23% of the total revenue. McDonald 's worldwide framework involves both Company-owned and franchised restaurants. More than 80% of McDonald’s restaurants globally are represented by franchised restaurants. Company takes into consideration the changes in the economic conditions and assumes estimated future cash flows and additional factors. Company revenue consist of fees from franchised restaurants and also from the sales generated from the company operated restaurants. Management of the company examines results on constant currency basis which excludes the effect of the foreign currency and considers average exchange rate of the prior year to calculate. It can be noticed that the net income of the year 2014 was low by 15% compared to previous two years. Also, the average customer per day of each restaurant decreased by 15 and the impact can be easily measured (15*35,000*365). Please refer to figure 1. In 2014, earning per share decreased to 13% to $4.82. Diluted earnings per share was affected by increase in
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