The purpose of this study is to assess a company’s future financial health. This study provides a "hands on" experience to synthesize the finance concepts that we learned throughout the course by applying them to a "real life" individual or organization. On this study I elected to assess McDonald Corporation’s future financial health.
McDonald’s Corporation franchises and operates McDonald’s restaurants in the global restaurant industry. These restaurants serve a menu at various price points providing value in 119 countries globally. As of December 31, 2011 out of the 33,510 restaurants in 119 countries around the world 27,075 were franchised or licensed (including 19,527 franchised to conventional franchises, 3,929 licensed to developmental licensees and 3,619 licensed to foreign affiliates primarily in Japan and the Company operated 6,435. McDonald’s menu includes Big Mac, Quarter Pounder with Cheese, hamburgers and cheeseburgers, Filet-O-Fish, Chicken McNuggets, some chicken sandwiches, salads, Snack Wraps, French fries, oatmeal, shakes, sundaes, McFlurry desserts, soft serve cones, pies, soft drinks, McCafe beverages, coffee and other beverages.
McDonald’s, the world famous fast food restaurant has been successful across the years. Over the years, they have ensured there is no change in their services, and product line, but kept the quality high and maintained the standards across their branches. Not only do they offer customers a delicious meal, but also offer something for the children and adults alike- their happy meal! Children look forward to the doll inside, while parents look forward to watching their children enjoy a meal without a complaint. Now we’ll see and find out what was their growth? How much was their annual sales? And any future plans.
Investors and other external users of financial information will often need to measure the performance and financial health of an organization. This is done in