Mcdonald Analysis

Satisfactory Essays
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
Key External

You May Also Find These Documents Helpful

  • Best Essays

    McDonalds analysis

    • 3357 Words
    • 10 Pages

    Introduction McDonalds is the world’s largest chain of hamburger restaurants, currently it serves around 68 million customers per day in 119 countries. One of the countries that it has moved to more recently is China; it opened its first restaurant in Shenzhen in 1990. This report will explore the various aspects associated with the move of McDonalds to China, including; the culture difference, the growth strategy, the marketing strategy and the competition it has faced. McDonalds is an American…

    • 3357 Words
    • 10 Pages
    Best Essays
  • Better Essays

    Mcdonalds Analysis

    • 1100 Words
    • 5 Pages

    Illinois; in the interim he has held numerous leadership positions, including Director of Field Operations, Market Manager, Regional Vice President and U.S. Senior Vice President and Zone Manager. Being named CEO, Skinner served as Vice Chairman of McDonald 's Corporation, and had management responsibility for Asia-Pacific, Middle East and Africa (APMEA), and Latin America, in addition to overseeing most corporate staff functions. Jim Skinner, the Chairman and Chief Executive Officer who…

    • 1100 Words
    • 5 Pages
    Better Essays
  • Best Essays

    Mcdonald Analysis

    • 1976 Words
    • 8 Pages

    Competitive Advantage Strategy by Michael Porter Theory of McDonalds 2013 _____________ A paper Presented to the Faculty Economy of President University Indonesia _______________ In Partial Fulfillment of the Requirements for the Final Exam of Service Management _______________ By Trecy Emerald 014201000167 International Business 3 Introduction McDonald is, originated in California, USA, 1954, has become one of the most recognized and respected brands in the…

    • 1976 Words
    • 8 Pages
    Best Essays
  • Better Essays

    An Analysis of McDonalds

    • 6935 Words
    • 28 Pages

    An Analysis of McDonald 's Table of Contents Executive Summary 3 I. Background and History of McDonald 's 4 II. Analysis of McDonald 's 5 The industry environmental Markets 5 External Environmental 7 SWOT Analysis 10 Company performance over time– financial outlook – stock analysis 12 Strategy/Five Forces Framework 15 III. Issues involving McDonald 's 20 Advertisement…

    • 6935 Words
    • 28 Pages
    Better Essays
  • Satisfactory Essays

    Analysis of Mcdonald

    • 355 Words
    • 2 Pages

    fast food. However In many countries, main items are adapted according to the customs and tastes of individual countries. For example, most Indian is forbidden eating beef for Hinduism. So McDonald changes their ingredient and recipe. If you visit to McDonald in India, you can have potato patty in burger. McDonald offers good example of standardization. Q2. Do you think government officials in developing countries such as Russia, China and India, welcome McDonald’s? Do customers in these countries…

    • 355 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    McDonalds has more than 31,000 restaurants serving in almost 120 countries. Of the 31,000 restaurants, at least 14,000 are in US. However, now, because the care of McDonalds about favors and cultures in each countries it enters, McDonalds can open more restaurant in new areas such as China or India that the countries which culture influences on people lifestyle deeply. They are very potential markets. The expansion of these areas is big opportunities for McDonalds. China was McDonald‟s first…

    • 742 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Swot Analysis Mcdonalds

    • 783 Words
    • 4 Pages

    Running Head: MARKETING SWOT Analysis Answer 1. The company so selected for the sake of carrying upon SWOT Analysis is McDonalds. The company is found to run its food outlets all around the globe. It basically deals in fast-foods. The customers serve to be the main aspect for the company. It used to collect feedback from the customers on a regular basis. The SWOT Analysis is the tool that is used from the point of developing pertinent knowledge about company’s position in the market. From this…

    • 783 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Mcdonalds Case Analysis

    • 1347 Words
    • 6 Pages

    McDonalds Case Analysis The most important general environmental factors to be considered for the industry and McDonalds include its demographic, sociocultural, global, and physical environment segmentations. The demographic segment is important in terms of this industry because of the consumers that make up the fast-food industry. The demographic segment associated with McDonalds consists of a wide range of consumers with their new and improved menu that offers the success of the new dollar menu…

    • 1347 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Mcdonalds Analysis

    • 446 Words
    • 2 Pages

    Corporate Finance Valuation Project Yes, I would invest in McDonald’s stock, specifically for it’s consistently “high yielding” dividend. According to Morningstar, MCD’s dividends started to show a significant leap in earnings per share in 2008, which I am attributing to their significant increase in net income from 2007’s $2395 million to 2008’s $4313 million. I would want this stock in my portfolio specifically for its growth. I do realize that the stock price continues to fluctuate several…

    • 446 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    SWOT ANALYSIS MCDONALDS

    • 1346 Words
    • 5 Pages

    when I buy a product I would like to know that it has been through careful planning. SWOT Analysis:McDonald 's McDonald 's is the worlds leading fast food restaurant chain,it 's revenue is $5.56 billion (2012) and its profits are $5.46 billion (2012),with over 1,800,00 employees,McDonald 's competitors are Burger King,Subway and many others. I looked…

    • 1346 Words
    • 5 Pages
    Powerful Essays