Annual Report Project
1. a) The letter to the shareholders emphasizes the growth of McDonald’s Corporation and their deepening connection with customers on a global scale. In the letter it is stated that Europe now generates about 40% of overall revenue, and that Asia/Pacific, Middle East, and Africa have doubled their income contribution in the past six years. The letter also states that the core drivers of McDonald’s Corporation’s business are “People, Products, Place, Price, and Promotion,” and that they are disciplined around building their brand holistically and enhancing the customer experience.
2. The Management’s Discussion & Analysis (MD&A) main topics are; Description of the business, strategic direction and financial performance, highlights from the year, and finally the outlook for 2012. Information of importance gathered within the MD&A includes McDonald’s affirmation to continue to be customer-focused. The ability to adapt locally to specific countries and cities allows McDonald’s to become “better, not just bigger” (10) giving the company the potential for increased revenue. In 2011 McDonald’s remained focused on maximizing their core business as well as driving down administrative costs. The company took in more in sales than the previous year while spending less, having an operating margin of 31.6%. McDonald’s strives to differentiate from its competitors by sheer growth. $2.7 billion dollars was invested primarily to open new stores and remodel existing stores. All dollar amounts expressed in millions
3. a) Sales by Company-Operated Restaurants @ 18,292.8
b) Food and Paper @ 6,167.2
c) Total Revenue: 12.2% increase from previous year (24,074.6 in 2010 to 27,006 in 2011) Operating Income: 14.1% increase from previous year (7,473.1 in 2010 to 8,529.7 in 2011) Net Income: 11.3% increase from previous year (4,946.3 in 2010 to 5,503.1 in 2011)
4. a) The amount of common stock cash dividends reported in the Consolidated...
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