Preview

Mcdonalds

Powerful Essays
Open Document
Open Document
4049 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Mcdonalds
Sheridan College | McDonald’s Report | Finance Group Project Assignment | | Group Member: | Aman KumarIbrahim KhanRyan TanSakina KhanSheldon Coelho |

|

Table of Contents Introduction 3 Key Success Factors 3 Key Issues and Problem 5 Managerial Problem 5 Financial Problem 7 Analysis 8 Financial Analysis 8 Important ratios to notice 8 Current ratio 8 Quick Ratio 8 Cash Ratio 9 Cash and equivalents 9 Goodwill 10 Account Payables 10 Times interest earned 10 Debt Ratio 10 Net Working Capital Ratio 11 Return on Equity 12 SWOT Analysis 12 Strengths 12 Weakness 13 Opportunity 13 Porter 5 Forces 14 Competitors 14 Threat of Substitute 15 Power of Supplier 15 Power of Buyer 15 Alternatives 16 Alternatives analyzed 16 Recommendation 17 Implementation 18 Conclusion 18 References 19

Introduction
McDonald 's Corporation is the world 's largest chain of fast food restaurants, serving nearly 47 million customers daily through more than 31,000 restaurants in 119 countries worldwide. McDonald’s sells various fast food items and soft drinks including, burgers, chicken, salads, fries, and ice cream. Many McDonald’s restaurants have included a playground for children and advertising geared toward children, and some have been redesigned in a more 'natural ' style, with a particular emphasis on comfort: introducing lounge areas and fireplaces, and eliminating hard plastic chairs and tables. Each McDonald 's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporations ' revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants
Key Success Factors

McDonald’s key success factors have been its franchises. Majority of the total sales comes from sales from franchises. The chains owned by McDonald’s bring in very few of the sales revenue; but it is still significant since 100% of those profits would come



References: New York Times. (2012). How Mcdonalds came back bigger than ever. Retrieved from http://www.nytimes.com/2012/05/06/magazine/how-mcdonalds-came-back-bigger-than-ever.html?src=un&feedurl=http%3A%2F%2Fjson8.nytimes.com%2Fpages%2Fmagazine%2Findex.jsonp

You May Also Find These Documents Helpful

  • Powerful Essays

    McDonalds has been a leading fast-food chain in the restaurant industry since 1955. Not only have they created some of America’s favorite pastime foods, but also they’ve been a leading force in creating global change with innovative additions such as drive-thru restaurants, college credits from their Hamburger University to chicken McNuggets and more!…

    • 1715 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Founded in 1976, Costco grew from its roots in Seattle, Washington in 1983 to a worldwide corporation expanding over 9 countries and gaining over 71 million members as of 2013 and a retention rate of over 90 percent. With this sort of power, Costco recognizes its leadership in an industry where imitation is causing sameness, something that originally set us apart from our competitors. We believe that the following should be our focus to enhance our business in order to separate ourselves…

    • 5738 Words
    • 23 Pages
    Powerful Essays
  • Best Essays

    The banking industry has undergone major upheaval in recent years, largely due to the lingering recessionary environment and increased regulatory environment. Many banks have failed in the face of such tough environmental conditions. These conditions emphasize the importance of gaining an accurate picture of a bank’s financial health through detailed financial analysis.…

    • 2454 Words
    • 10 Pages
    Best Essays
  • Satisfactory Essays

    Cohen's calculation considered the book values to calculate the proportion of equity for calculating the value of WACC which should only be done if the target or market values are not available. In order to determine a more realistic cost of equity, it is recommended to use the market value. The current market share price of Nike as of 2001 is $42.09 and there are 271.5 total shares outstanding.…

    • 2023 Words
    • 9 Pages
    Satisfactory Essays
  • Better Essays

    Mcdonalds and Starbucks

    • 1763 Words
    • 8 Pages

    McDonalds is a longtime leader in the fast food business. Since its opening in 1954 it has seen tremendous growth to about 30,000 plus restaurants and credit of serving about 43 million people in 100 different countries every day. The success and strategies of the company are celebrated often in the world media. The company had to focus on their core values and develop strategies that help rebrand itself in the market. Continuous attention on the customer needs and their values is main strategy for resurgence as top fast food retailer. They spend huge money on advertising to promote their brand. Their advertising budget for year 2011 was almost in the vicinity of one billion dollars. McDonalds has been working on improving and maintaining its brand value since it has seen its profits decline especially from 1997 to 2002.…

    • 1763 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    Mcdonalds Financial Analysis

    • 7522 Words
    • 31 Pages

    McDonald’s is part of the restaurant scene and more precisely of the fast food industry. It initiated operations in 1940 and now it is a “food service retailer with more than 32,000 local restaurants serving more than 64 million people in 117 countries each…

    • 7522 Words
    • 31 Pages
    Powerful Essays
  • Powerful Essays

    Mcdonalds

    • 1076 Words
    • 5 Pages

    McDonald 's is one of, if not the most widely recognized names in the food industry. This is quite the accomplishment for the once small family owned burger establishment founded back in 1948. McDonalds is not only a giant in the food industry, but has also grown to be one of the largest real estate holding companies in the world. McDonalds owns a considerable number of the properties that the McDonald’s stores reside on, leasing them out to the franchisees. McDonalds has expanded its operations to over 30,000 establishments located all over the world in over 118 countries. Being the largest restaurant in the world’s, has not come without its fair share of significant accomplishments and setbacks. The company has for various different reasons had to close some of its foreign operations in countries such as Bolivia, Jamaica, and other countries where sales were not doing satisfactory. Overall, none of these seems to have any substantial effect on the colossal giant (McDonald’s Abroad, 2009).…

    • 1076 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    We all know of McDonald’s a being one of the biggest, popular, and best food chain restaurant around the world. The fast food chain was started in 1955 by Ray Kroch in California. The restaurant took pride in providing hot French fries, delicious hamburgers, and their speedy drive-thru service. The fast food chain started with one small restaurant and got restaurants all over the US and other countries. McDonald’s main mission is to keep serving a budget and healthier friendly menu. The restaurant chain has over 30,000, and that is in a least 100 overseas locations. McDonald’s as a fast food chains earns more than a billions…

    • 1119 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Mcdonalds

    • 1856 Words
    • 8 Pages

    Fast Food Companies, such as McDonald’s, are becoming more unethical with their business practices. It is logical for businesses to make profit there should be some accountability as to the morality of such practices. Our research question states is McDonalds holding up to business ethics?…

    • 1856 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    McDonald's

    • 602 Words
    • 3 Pages

    1. Is it ethical to sell a product that is, at best, only mildly effective? Discuss.…

    • 602 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Mcdonalds

    • 1422 Words
    • 6 Pages

    The second largest cause of death in our country is obesity because you know what they say, “Everything is bigger in America.” Just about anyone can drive a mile from his or her house to find some sort of fast food restaurant and there’s a good chance that the first one you would see is a McDonalds. Being located at every exit as well as many in your hometown makes in very hard to get away from McDonalds. This is because McDonalds controls almost 50 percent of the fast food market. This is a considerably large amount when you think about all the fast food restaurants out there. McDonalds top sellers are greasy, fattening food packed with high calories and fat that is harmful to your body. As a restaurant that serves millions each day there needs to be a change in the food they are serving. There’s a reason that obesity is one of the largest killers because it is just too easy to drive thru a McDonalds and get a cheeseburger that’s loaded with saturated fat and 600+ calories. McDonalds should make their food healthier because McDonalds is a large contributor to the obesity rate in our country.…

    • 1422 Words
    • 6 Pages
    Satisfactory Essays
  • Powerful Essays

    Mcdonalds

    • 2157 Words
    • 9 Pages

    References: 1. K.Ahaus, F.Diepman: “Balanced scorecard & INK management tool”, Kluwer 2005 2. CEDEFOP(2004): “Innovative practices in e-learning” 3. A.M.Husson, B.Merison, J.Schreurs, E.Morin, H.Van Heysbroeck: “European self-evaluation tool for e-learning: an ongoing focus on quality and customer’s needs” in Proceedings of the 11th Int. Conf. On technology supported Learning& Training: Online EDUCA Berlin Nov29-Dec 2, 2006. page 466-469; ISBN 3-9810562-3-X 4. N.K.Parker: “Quality delimna in online education”, in Anderson, Terry & Fathi Elloumi(eds) Theory and Practice of online learning. Athabasca University, Canada. 5. J.Schreurs, R.Moreau: “Presta Coach Performance Management and a balanced scorecard system PRESTA”, Proceedings of ECEC’2005 conference Toulouse April 11-13; ISBN: 90-77381-16-3; pages 49-56. 6. J. Schreurs, R.Moreau: “The EFQM self-assessment model in e-learning quality management.” In Proceedings of Conference EDEN2006 Wenen 15-17 June 2006. Pages 233-238; ISBN 963 06 0063 3 7. S.Ten Have: “Key managements model”. Financial Times Prentice Hall 2003. 8. www.efqm.org Authors Prof. Jeanne Schreurs Universiteit Hasselt Campus Diepenbeek, Agoralaan-Gebouw D, 3590 Diepenbeek jeanne.schreurs@uhasselt.be Rachel Moreau Universiteit Hasselt Campus Diepenbeek, Agoralaan-Gebouw D, 3590 Diepenbeek rachel.moreau@uhasselt.be…

    • 2157 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Mcdonalds

    • 377 Words
    • 2 Pages

    This case is brief and focused as it is presented by the text/authors. However, there is much more to it than meets the quick first reading. For this case analysis, use the information in the text to define the part of McDonalds’ business you will examine. Use the company’s Internet site to supplement your understanding of the issues presented in the case – which still exist today.…

    • 377 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Mcdonalds

    • 893 Words
    • 4 Pages

    The change in the fast food industry is the increase in the fast-casual segment that includes restaurants like Boston Market, Panera Bread, and Atlanta Bread Company. These chains offer deli sandwiches with more comfortable surroundings, but faster than traditional restaurants, and slower than fast food restaurant.…

    • 893 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    I.T.C. Limited (ITC). The Group's principal activities are to manufacture cigarettes and tobaccos. The Group operates through five business segments: Cigarettes, Hotels, Paperboards, Paper and Packing, Agri Business and Others. The Group is into Lifestyle retailing business, garments, greeting, gift and stationery, packaged foods and export of Indian agri-commodities. The Group provides a range of branded packaged and convenience food for its customers with its operations all over India. The brand names are India Kings, Wills, Gold Flake, Checkers, Hi-Val, Wills Sport, Expressions.…

    • 3298 Words
    • 14 Pages
    Powerful Essays