History of McDonalds For most of you, McDonald’s is just a place to grab something quick to eat. For me it is an institution that has been around practically my entire life. I grew up with McDonald’s much the same way that you grew up with ESPN, Apple Computers and Facebook. McDonald’s is a way of life for me. They set the standards of the fast food industry and everyone wanted to be like them. Much like Dell or Microsoft today. Coupled with the fact that this was my first job in life, and I started as a crew person, at the bottom of the ladder, and worked my way up to supervising 3 Restaurants doing over 4 million dollars a year. This presentation is very personal for me, and the information that I am going to share with you is life that I lived through. 2 McDonalds How it began! Speedy ! McDonalds Early Spokesman McDonald’s Bar-B-Que Opens 1940 Dick and Mac McDonald Bar-B-Que Restaurant Typical Drive-in Car Hop Service Featuring A Large Menu McDonald’s is Founded 1948 Shut Down To Remodel Reopens as a Self Service Drive-In Menu Reduced to 9 Items Staple is a 15 cent hamburger McDonald’s First Menu 1948 Hamburger Cheeseburger Soft Drinks Milk Coffee Potato Chips A slice of pie World Famous French Fries 1949 French Fries Replaced Potato Chips Triple Thick Shakes Ray Kroc’s Humble Beginnings $ Ray Sold Multi Mixers $ Ray Made A Trip Out West Ray Kroc’s Trip West 1954 He Intended to sell Multi-Mixers He is fascinated by the operation Looking for a nationwide franchise agent This will be Ray’s Future Des Plaines Location Opens 1955 First McDonald’s opens April 15, 1955 Red and White tiled building with the Golden Arches First Day Sales are $366.12 By 1965 There would be 700 more Fred Turner Hired 1956 Hires Fred Turner, future CEO, as a Counter Man Turner future CEO defines their standard of business Their standard is know as “QS&C” 100 Million Sold 1958 $ McDonald’s sells its 100 millionth hamburger. 100th Restaurant 1959 The 100th Restaurant opens in Fond Du Lac, Wisconsin Hamburger University Opens 1961 Our College Degree Program • Our College Degree Program The American Council on Education (ACE) is the nation's unifying body for higher education. They have recognized the investment McDonald’s has made in people and the company’s high-caliber training curriculum. Hamburger University students can earn credit toward a college degree through their course work. The American Council on Education has recommended 100 percent of the restaurant manager and mid-management curriculum for college credit – a total of 46 credits. This means that McDonald's training for Managers is now recognized as collegelevel course work, eligible for credits that can be transferred to colleges and universities (both private and public) and applied toward a 2 or 4-year degree. The average restaurant manager has completed the equivalent of approximately 21 credit hours of college-level work through their McDonald’s training, which is equal to about one semester of college. We continue to work with colleges and universities to leverage our partnership with the American Council on Education. First Indoor Seating 1962 McDonald’s in Denver, Colorado becomes the first restaurant with inside seating. 500th Restaurant 1963 The 500th McDonald’s restaurant opens in Toledo, Ohio. 10th Anniversary 1965 McDonald’s celebrates its 10th anniversary with the first public stock offering at: $22.50 per share. Today’s Price is $74.00 per share. First Television Commercial 1966 Ronald McDonald appears in his first national television commercial. He appeared on his “flying hamburger” in 35 one minute color spots on the NBC and CBS networks He had wide TV exposure through his appearance in 1966 at Macy’s Thanksgiving Parade. He was an INSTANT hit! Willard Scott was the first Ronald McDonald McDonald’s Goes International 1967 The First international McDonald’s restaurants open in Canada and Puerto Rico. Today McDonald’s restaurants are in 118 countries around the world. Big Mac Introduced 1968 The Big Mac, developed by Owner/Operator Jim Delligatti of Pittsburgh, is added to the national menu. Golden Arches Updated 1969 CURRENT ORIGINAL Major Changes Major Remodeling Ronald’s New Friends 1971 McDonald’s Gang Quarter Pounder Debuts 1973 First Ronald McDonald House Opens 1974 Opens in Philadelphia, Pa. There are currently 305 Houses in 52 countries Breakfast at McDonald’s 1975 The Egg McMuffin Santa Barbara, Ca. All American H.S. Basketball Team 1977 All American Earvin “Magic” Johnson The Capital All Stars McDonald’s Capital Classic 5,000th Restaurant 1978 • 5,000th Restaurant opens in Kanagawa, Japan Happy Meals Debuts 1979 Circus Wagon Theme 25th Anniversary 1980 International Growth 1981 • The first McDonald’s restaurants are open in – Denmark Philippines • Spain McDonald’s in 32 Countries 1983 7778 Restaurants 32 Countries Ray Kroc Passes Away 1984 January 14, 1984 His legacy lives on world wide! 30th Anniversary 1985 April 15th 30 Years Fresh Salads Added 1987 Fresh Tossed Salads Our Famous Hamburgers 1988 Fortune Magazine 100 Products America Makes Best Moscow Location Opens 1990 • On January 31, the first McDonald’s restaurant in OSCOW OPENS Warsaw Location Opens 1992 Breaking Records for Opening Day Have You Had Your Break Today? 1995 New Advertising Debuts McDonalds.com Launched 1996 • McDonald’s Corporation Internet site McDonalds.com is inaugurated • www.McDonalds,com http://www.aboutmcdonalds.com/etc/medialib/aboutMcDonalds/investors .Par.6348.File.dat/ltrshare.pdf Big N’ Tasty Introduced 2001 A Busy Year for McDonald’s 2003 Premium Salads Denmark Opens Hydroflurocarbon free McGriddles “I’m lovin’ it Happy Meal turns 25 2004 Visit HappyMeal.com 1979-2004 50th Anniversary 2005 April 15th Snack Wrap Introduced 2006 Snack Wrap Packaging Update 2007 McD’s new packaging features 24 faces from first-ever global casting call. McDonald Fun Facts McDonalds serves an average of 47 million customers daily. McDonalds is on 6 continents McDonalds has sold over 100 billion hamburgers to date McDonalds has 30,000 locations There is a McDonald’s location in The Pentagon, near other cafeterias and seating areas Located in New York City on 160 Broadway, is a very fancy McDonald’s featuring a doorman, marble tables, a private dining room, grand piano, wait staff and live music. Every single McDonald’s in Lebanon offers complimentary valet parking services to their patrons and guests. Global Packaging Redesign 2008 McCafe Goes National 2009 McCafe Real Fruit Smoothies and Frappes 2010 July 13th Strawberry, Banana & Wild Berry Mocha & Caramel Frappes 3 Sizes 2009 Highlights: Comparable Sales Growth 3.8% Earnings Per Share Growth 9% Total Cash Returned to Shareholders 2007–2009 $16.6 Billion 2009 Highlights: Returned $5.1 billion to shareholders Three-year cash return total to $16.6 billion $15 to $17 billion for the years 2007 through 2009 2009 Highlights: 6th consecutive year of positive sales Served 60 million customers per day Up 2 million from 2008 14 million more per day than in 2002 #1 among 30 blue-chip for 3 years 2009 Highlights: 80 Consecutive months of global comparable sales increases through December 2009 http://www.youtube.com/watch?v=KzOSkO8B ZFw