Financial Analysis of McDonalds Company
Financial Analysis of the McDonald’s Company
MCD, exchange where traded NYSE
2111 Midwest Road, Oak Brook, IL 60523
(630) 623-3000
PART 1, COMPANY OVERVIEW:
a. McDonald’s is an American fast food chain that sells a variety of fast food alternatives, but most notably has earned its reputation and success for the hamburger. It is the largest fast food chain in the world, with globally recognized “golden arches” symbolizing a reliable meal can be had in over 119 countries. McDonald’s has continued to develop their menu to reflect the desire/demands of their customers. The current CEO of McDonald’s is Mr. Don Thompson.
b. McDonald’s was started in the 1940s as a BBQ restaurant owned and operated by Richard and Maurice McDonald’s in California, U.S.A. The McDonald’s franchise was not established until 1955, when man by the name of Ray Kroc opened the ninth McDonald’s restaurant in Des Plaines, Illinois. By 1961, McDonald’s filed trademark for the company name and “drive-thru” service. Ray Kroc eventually forced the McDonald’s brothers out of the business and successfully spread the company throughout the world. Today, McDonald’s is an international sign of globalization.
c. McDonald’s invests in properties, operates restaurants, and is a franchiser of the McDonald’s chain, in order to make money. McDonald’s operates differently than most franchise companies. Most franchised companies make their money by claiming a percentage of the income made at each chain; however, often times McDonald’s Corporation will purchase the property the franchise is on and charge rent.
d. Arguably, the main thing McDonald’s sells is uniformity and expectations. This is to say, when you order from McDonald’s you know what you will get every single time; no surprises. McDonald’s makes money doing this by selling the food for significantly more than what they purchased it for. McDonald’s also makes money by participating in the strategy discussed
MCD, exchange where traded NYSE
2111 Midwest Road, Oak Brook, IL 60523
(630) 623-3000
PART 1, COMPANY OVERVIEW:
a. McDonald’s is an American fast food chain that sells a variety of fast food alternatives, but most notably has earned its reputation and success for the hamburger. It is the largest fast food chain in the world, with globally recognized “golden arches” symbolizing a reliable meal can be had in over 119 countries. McDonald’s has continued to develop their menu to reflect the desire/demands of their customers. The current CEO of McDonald’s is Mr. Don Thompson.
b. McDonald’s was started in the 1940s as a BBQ restaurant owned and operated by Richard and Maurice McDonald’s in California, U.S.A. The McDonald’s franchise was not established until 1955, when man by the name of Ray Kroc opened the ninth McDonald’s restaurant in Des Plaines, Illinois. By 1961, McDonald’s filed trademark for the company name and “drive-thru” service. Ray Kroc eventually forced the McDonald’s brothers out of the business and successfully spread the company throughout the world. Today, McDonald’s is an international sign of globalization.
c. McDonald’s invests in properties, operates restaurants, and is a franchiser of the McDonald’s chain, in order to make money. McDonald’s operates differently than most franchise companies. Most franchised companies make their money by claiming a percentage of the income made at each chain; however, often times McDonald’s Corporation will purchase the property the franchise is on and charge rent.
d. Arguably, the main thing McDonald’s sells is uniformity and expectations. This is to say, when you order from McDonald’s you know what you will get every single time; no surprises. McDonald’s makes money doing this by selling the food for significantly more than what they purchased it for. McDonald’s also makes money by participating in the strategy discussed