Mcdonalds

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Category: Business and Industry

Date Submitted: 02/28/2011 03:26 PM

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McDonalds Strengths

1. Highly successful and recognized advertising

2. 5 P’s

3. Longest in Business

a. Began in 1948 whereas Yum! Began in 1952 and Burger King in 1953

4. Large Global Network

b. 31,000+ stores in 118 countries and continuously growing

c. Although Yum! has more stores, they have multiple stores offering different products allowing them to have multiple stores in the same location and only found in 110 countries

5. History of producing new and innovative ideas

d. Compared to Burger King (Yum! doesn’t have similar menu items)

i. Fries: Mcdonalds – 1949; BK – 1953

ii. Inside Seating: McDonalds – 1962 First Fast Food Service to offer this

iii. Breakfast: McDonalds – 1975; BK – 1979

iv. Kid’s Meals: McDonalds – 1979; BK 1989?

v. Salads: McDonalds – 1987; BK – 1990

vi. Snack wrap: McDonalds – 2006; BK – 2008

vii. Value Menu: McDonalds – 1998; BK – 2002

6. Social Responsibility

e. Has raised over $170 million since 2002 for RMHC

f. Franchises partner with local Chapters for promotional and fundraising events.

g. McDonald’s employees are dedicated volunteers.

h. Owner/operators participate in local and global RMHC boards.

i. RMHC Donation Boxes hosted in restaurants are the largest source of ongoing RMHC Global fundraising.

j. In-restaurant sales of USA Today are all donated to RMHC. 

k. McDonald's conducts an annual fundraiser in November called McHappy Day.  Since 2002, it has raised $170 million for RMHC and children's charities around the world.

7. Larger Growth Rates Compared to Competitors

l. MCD:

viii. EPS Avg. Increase = 1.52x

ix. Net Income = 1.45x

x. Stk Price = 76$

m. Yum!

xi. EPS Avg. Increase = 1.1x

xii. Net Income = 1.35x

xiii. Stk Price = 51.31

8. Large Customer Base

n. MCD serves...