McDonald’s CorporationMcDonald’s Corporation
Presented By: Presented By: Ardis Shannon Ardis Shannon Adam Krupa Adam Krupa Jigar Patel Jigar Patel David Seid David Seid
Samuel GeorgeSamuel George
McDonald’s MissionMcDonald’s Mission
Be the best quick service restaurant experience. By providing quality, service, cleanliness and value that make every customer in every restaurant smile.
3 World wide strategies3 World wide strategies
Best employer Operational Excellence Continue to grow and be profitable
HistoryHistory 1940 First McDonald’s 1952 Attempts at
franchising 1954 Milk Shake
Machine 1955 prototype opens
in Des Plaines, IL 1956 14 McDonald’s 1961 McDonald
brothers sell rights
• 1965 McDonald’s go public
• 1968 Introduction of Big Mac and shift to Network Television
• 1970 1600 restaurants
• 1980 6000 McDonald’s Restaurants
• 1990 record sales
History ContinuedHistory Continued
1994 Kuwait City, Kuwait 2002 Forty seven years after
– 30,000 locations– 2000 new restaurants – World Wide Web– McDonald’s a recognized Brand
Name
RecentRecentAcquisitions/DivestituresAcquisitions/Divestitures
Boston MarketChipolte Mexican GrillDonato’s Pizza chainMcCafe’
TrainingTraining
Surpasses even the U.S. ArmyProvides career opportunitiesService Enhancement ProcessConsistent through CD-ROMs
ReHIREmentReHIREment
Program established for mature workersEase of transition of older workers returning
to the workforce.Flexible scheduling so as not to jeopardize
their Social Security benefits.More than 40,000 older workers serve
McDonald’s customers on any given day
McJobsMcJobs
Assistance to employees with mental and physical disabilities.
More than 9,000 workers went through the program.
Given formal graduation ceremony
Management Management Development ProgramsDevelopment Programs
Crew DevelopmentRestaurant ManagementMid-ManagementExecutive Development
Hamburger UniversityHamburger University
Management Training Center
Worldwide Education Program
Technology 200 per class 65,000 managers
graduated to date
Women and MinoritiesWomen and Minorities
Soars above stereotype of average fast-food joint
Compose more than 50 percent of McDonald’s current workforce
Featured as the “The Best Companies for Minorities”
Product LinesProduct Lines
HamburgersChicken SandwichesFrench FriesBeveragesBreakfast ItemsDesserts
TechnologyTechnology
McDonald’s in Sweden– World’s First Snowmobile Drive-Thru
McDonald’s & ExxonMobil???– Speedpass invades McDonald’s
Industry TrendsIndustry Trends
What is happening with fast food?– People are more educated
McDonald’s Responds– America’s First McCafe
In Downtown Chicago
Financial AgendaFinancial Agenda
• System Wide Sales
• McDonald’s Corporation Revenues
• Cash Flow
• Financial Ratios
• Stock Performance
System Wide Sales System Wide Sales In The Year 2000In The Year 2000
$40.181 Billion$40.181 BillionCompany operated
Resturants26%
Franchised61%
Affiliated13%
McDonald’s CorporationMcDonald’s Corporation Sales By Segment Sales By Segment
U.S.37%
Europe33%
Asia/Pacific14%
Latin America7%
Other9%
IncomeIncome(in millions)(in millions)
NetRevenues
NetIncome
Earnings / Share
$12,421
$14,243
$13,259
'98 '99 '00
$1,550
$1,947 $1,977
'98 '99 '00
$1.14
$1.44 $1.49
'98 '99 '00
Cash Flow StatementCash Flow StatementIn (millions)In (millions)
2000 1999
Net Income
Net Cash Provided By Operating Activities
Net Cash Provided By Investing Activities
Net Cash Provided By Financing Activities
$1,977.3
$2,751.5
(2,212.6)
(536.7)
$1,947.9
3,008.9
(2,261.8)
(626.8)
Cash and equivalents increase(decrease)
Cash and equivalents at beginning of year
Cash and Equivalents at end of year
$2.2
$419.5
$421.7
$120.3
$299.2
$419.5
Financial RatiosFinancial RatiosAnalysis McDonald Industry
P/E Ratio 21.42 25.49
Price to Sales 2.36 1.97
Price to Book 3.52 3.95
Quick Ratio 0.76 0.63
Inventory Turnover 109.28 32.44
Total Debt to Equity 0.89 0.64
Net Profit Margin 11.01 7.62
Return on Assets 7.54 8.67
Return on Investment 8.30 10.54
Return on Equity 17.62 17.65
Revenue/Employee 40,852 77,289
Stock PerformanceStock Performance Mkt Cap 52-wk Range Last Trade 35.877B 24.75 - 31.00 Mar. 8 27.91
Making A DifferenceMaking A Difference
We have an obligation to We have an obligation to give back to the give back to the communities that give us so communities that give us so much." much." - Founder Ray Kroc, 1955- Founder Ray Kroc, 1955
Social CommitmentsSocial Commitments
“9-11” Relief EffortEnvironmental ConcernsEducational InvolvementQuality & Safety ProceduresRonald McDonald House
Charities (RHMC)
Stay Tuned ………… Stay Tuned …………
Terence HaynesTerence Haynes Senior Vice President, Senior Vice President, U.S. Controller U.S. Controller
Native of South AfricaNative of South Africa
Education: Bachelor of CommerceEducation: Bachelor of Commerce University of Witwatersand in Johannesburg University of Witwatersand in Johannesburg
Prior Position: Chief Financial Officer in the U.K.Prior Position: Chief Financial Officer in the U.K.