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

  • Better Essays

    Mgt 230 Week 4 Paper

    • 1799 Words
    • 8 Pages

    McDonald's has successfully created a brand/name for itself as the leading fast food retailer in the world. It is somewhat of impossibility for one to not come across a McDonald's with over 30,000 local restaurants in over 100 countries (McDonald's, 2011). Those restaurants are owned either by a franchise owner or a corporation; a percentage of all the earnings from a franchise owner, including a percentage from their annual revenue go to McDonald's.…

    • 1799 Words
    • 8 Pages
    Better Essays
  • 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

    Unit 3 P1 P2 P3

    • 3493 Words
    • 14 Pages

    McDonald's is the world's largest chain of fast food restaurants, serving more than 58 million customers daily. In addition to its signature restaurant chain. McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.…

    • 3493 Words
    • 14 Pages
    Powerful Essays
  • Satisfactory Essays

    McDonalds has undergone several changes since its start in California. The fast food chain has taken over the US and it now focusing on the rest of the world. McDonalds, along with this trend, continues to strive towards customer satisfaction while still enhancing its international market position. The company is doing very well and keeps trying in Africa, China, and the Middle East, which will be a continued source of revenue for many coming years. If McDonalds can overcome all of its challenges, makes use of advantages and has right strategies, it will win the market again and hold fast to first position in fast food industry.…

    • 322 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Mcdonalds

    • 374 Words
    • 2 Pages

    Since most McDonalds have the same menu, it provides an easy economy of scale. McDonalds has more than 32,000 restaurants around the world (Economies of scale). When McDonalds places an order, they don’t go and buy individual items, they receive them from a local wholesaler just like any other independent restaurant (Economies of scale). “McDonald’s is the world’s largest buyer of eggs; therefore they are able to negotiate the very best unit cost per egg during their enormous volume purchase and passing those savings onto their franchise owners” (Economies of scale). Since McDonalds receives the best price, they are able to place a egg sandwich together and sell it to their customers for a competitive price (Economies of scale). Bulk buying for McDonald’s helps in the long run because they save money for purchasing merchandise at lower unit prices instead of purchasing from an independent business which would be higher (Economies of scale).…

    • 374 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Its safe to say when we think of fast food, McDonalds certainly comes to mind. That is because the company has made a name for itself through its infamous golden arch and signature burgers. Still after 70 years, McDonalds is one of the largest fast food chain restaurants in the US and has growing worldwide recognition. They have reserved their title based on their huge customer base and increasing sales. The food giant has experienced increases of up to 80 percent of net profit in a year and 10 percent in revenues in a year. Over the past several years, the launch of the “Dollar Menu”, introduction of McCafe, and primarily, continuation of low cost food are all the ways in which McDonald’s continually gains and maintains their customers.…

    • 886 Words
    • 4 Pages
    Good 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
  • Powerful Essays

    Mcdonalds

    • 5890 Words
    • 24 Pages

    McDonald's, as the world's leading food service retailer, serves some of the world's favorite foods - World Famous French Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin - in its more than 30,000 restaurants in 118 countries, serving 46 million customers each day.…

    • 5890 Words
    • 24 Pages
    Powerful Essays
  • Powerful Essays

    History of Mcdonald

    • 6300 Words
    • 26 Pages

    McDonald’s is a company which has a colorful history and developed the culture associated with the Fast Food Chain today. In 1937, the McDonald’s brother Richard and Maurice opened the first McDonald’s restaurants in America; it was a freestanding business that offered until then an unthought-of concept. The main items they then sold were beef or pork burgers, fries and drinks. Their restaurant were set up differently to the restaurants of those times, with open kitchens the customers could see right through, and counters with many operational cash registers. Under a high degree of customer satisfactory contributed for business expansion, McDonald today has over than 30,000 restaurants over than 100 countries in the world and it has maintained the top position in the Fast Food Industry for the past 50 years.…

    • 6300 Words
    • 26 Pages
    Powerful 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
  • Powerful Essays

    Mcdonald’s

    • 2985 Words
    • 12 Pages

    McDonald’s Corporation is the world’s largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald. McDonald’s primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, milkshakes and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies and fruit. (Wikipedia, 2013)…

    • 2985 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Mcdonalds History

    • 2306 Words
    • 10 Pages

    In the history of business, countless companies have failed, some have luckily succeeded, but only one became the world’s largest and most profitable in the fast food industry. That company is McDonalds. The question though however is how McDonalds separated itself from companies like Wendy’s and Burger King to become the world’s most successful fast food restaurant. How did McDonalds start as one restaurant in 1948 to become today’s largest fast food chain in the world? 1 McDonalds surpassed its competition with innovative thinking in restaurant management and operations, through successful marketing, and simply being able to adapt with the times.…

    • 2306 Words
    • 10 Pages
    Powerful 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
  • 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