Mcd Case Study

Financial Analysis of the McDonald’s Corporation

MCD: NYSE

One McDonalds Plaza

Oak Brook, IL 60523

(630) 623-3000

John Smith

PART 1, COMPANY OVERVIEW:

A. Company Description

McDonalds Corporation is a fast-food restaurant franchise that was founded in the United States and now operates internationally. The company’s restaurants are primarily held be private owners under a franchise system. McDonalds Corporation currently has over 33,000 restaurants (80% franchised, and 20% company operated) in over 119 countries. The corporate headquarters are located in Oak Brook, Illinois. The Company prides itself on the principles of quality, service, cleanliness, and value. The Company makes its money through the sale of food at its restaurants and from franchise fees to each of the independent owners.

B. Company History

The Company was founded in 1955, when Ray Croc propositioned Dick and Mac McDonald to expand their milk shake restaurant in San Bernardino, CA. Ray Croc sold milk shake makers and was astonished at the speed at which customers were served at the McDonald’s milk shake restaurant. Ray Croc wanted the ability to sell more milk shake makers, but instead joined the McDonalds brothers in establishing additional restaurants. In 1960, Ray Croc purchased the exclusive rights to the McDonalds name.

C. Organizational Structure

McDonalds Corporation operates in a franchise structure. The majority of the company’s restaurants, 80%, are franchised to independent owners or companies that operate their own restaurants under the McDonalds name. McDonalds Corporation establishes the supply network of independent suppliers that supply goods to the company owned and franchised restaurants. McDonalds Corporate is divided into departments and regions:

D. Products and Services

McDonalds Corporation operates fast-food restaurants that focus on a limited menu of various hamburgers, chicken sandwiches, soft drinks,...