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Mcdonald Analysis

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Mcdonald Analysis
Mc Donalds Analysis
S No. Name Ratio (%) Strength/ Weakness
1 Net profit margin 18.34 Strength
2 Operating profit margin 27.39 Strength
3 Return on equity 32.23 % Strength
4 Return on assets 15.15 % Strength
5 Total revenue in Europe 3.23 % Weakness
6 Total operating income (Europe) 66.07% weakness
7 Total assets (Europe) -3.16% Weakness
8 Total Expenditures
(Europe) 9.71% Weakness
9 Sale growth 6.14% Strength
10 Dividend growth per share 28.8% Strength
11 Total asset s 0.82% Weakness
12 Liquidity ratio 1.38% Weakness
13 Earnings per share 29 % Strength
14 Price to book value 4.52 Strength
15 Price to sales 2.57 Strength
16 P/OP(Price operating profit) 9.38 Strength
17 P/E(price earning) 14.02 Strength
18 Fix Asset turnover 1.16 Strength
19 Equity turnover 1.76 Strength
20 Asset turnover 0.83 Strength

Mc Donald’s is the dominating player in the fast food industry however as we can see through the analysis that there are certain areas where Mc Donald’s can improve its performance.
Mc Donald’s EFE Matrix
McDonalds is one of the Americas largest fast food chain. It was opened in 1940. McDonalds head quarter is at Oak Brook Illinois. Being the market dominator in the fast food market it is necessary to understand what is making McDonalds a leader in its market segment. So for that we will go through an EFE Matrix.

External Factor evaluation (EFE) is the widely known strategic tool to measure the external environment of a company. External environment mainly consist of political, legal, economical, social and technological factors. There is two main component of EFE Matrix one is Opportunities and the second one is Threat. Means opportunities represents the window of future growth for an organization and the threat represents the factor which could be devastating for a company future growth and could harm the Market position of the organization.

EFE Matrix for McDonald’s
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