McDonald‘s Corporation
McDonald‘s Corporation
McDonald‘s Corporation
1. Introduction
2. History
3. Description
of Business
4. Stock
5. Criticism
6. Conclusion
McDonald‘s Corporation
1. Introduction
2. History
3. Description
of Business
4. Stock
5. Criticism
6. Conclusion
McDonald‘s Corporation
1. Introduction
2. History
1. Introduction
3. Description
of Business
4. Stock
5. Criticism
6. Conclusion
The world‘s
biggest fast-food
company.
McDonald‘s Corporation
1. Introduction
2. History
The Start
Ray Kroc
Expansion
Today
3. Description
of Business
4. Stock
5. Criticism
6. Conclusion
2. History: The Start
- 1948: Maurice (Mac) and Richard (Dick)
McDonald open a little drive-in-restaurant in
San Bernardino, California
- new concept: speedy service, low prices,
big volume, limited menue
- re-engineered their kitchen and established
assembly-line procedures for mass production
- their concept captured the spirit of post-war
America; mid 1950s annual revenues of
$350,000
- 1952: a cover article in America Restaurant
Magazine prompted 300 inquiries a month
McDonald‘s Corporation
1. Introduction
2. History: Ray Kroc
2. History
The Start
Ray Kroc
Expansion
Today
- 1953: Neil Fox becomes first franchisee;
design of a new red-and-white-tiled building
with “Golden Arches“
- 1954: Ray Kroc, a milkshake machine
salesman visits Mc Donald‘s for the first time and
recognizes: “This will go anyplace. Anyplace!“
3. Description
of Business
4. Stock
5. Criticism
6. Conclusion
Ray Kroc
- He purchases the exclusive right to sell franchises
for McDonald‘s restaurants and becomes the
founder of Mc Donald‘s System, Inc.
- 1955: prototype McDonald‘s restaurant openes
in Des Plaines, Illinois
- 1960: 400 millionth hamburger was sold
- 1961: Kroc buyed out the Mc Donald‘s brothers
for $2.7m in cash;
profit $77.000, long term debt $5.7m
McDonald‘s Corporation
1. Introduction
2. History
The Start
Ray Kroc
Expansion
Today
2. History: Expansion
- 1961: hamburger university openes: “If you ‘ve got
time to lean, you ‘ve got time to clean!“
- 1963: Ronald McDonalds first TV appearance
3. Description
of Business
- 1965: McDonald‘s becomes a public company
4. Stock
- 1968: franchisee Jim Delligatti designs the “BigMac“
5. Criticism
6. Conclusion
- 1967: international expansion starts in Canada,
since 1971 overseas in Japan, Germany,
Australia, France, England
- 1977: Fred Turner, who started as a grill man,
becomes chairman
- 1975: establishment of the first drive-thru operation
- 1979: introduction of the “Happy Meal“
McDonald‘s Corporation
1. Introduction
2. History
The Start
Ray Kroc
Expansion
Today
2. History: Today
- current CEO and chairman: Jack Greenberg
- “Way over 100 billion hamburgers served!“
3. Description
of Business
4. Stock
- 395,000 employees
5. Criticism
6. Conclusion
- in 121 countries around the world
- over 30,093 restaurants
- in 2001 McDonald‘s Germany
celebrated its 30th anniversary
McDonald‘s Corporation
1. Introduction
2. History
3. Description
of Business
Operations
Principles
Franchise
Campaigns
Suppliers
3. Description of Business: Operations
- food service industry
- quick service restaurants
Market Power
Financial
New Concepts
4. Stock
5. Criticism
- Company-operated restaurants
- selling franchises
6. Conclusion
- real estate business: franchisees lease their
restaurants from McDonald‘s
McDonald‘s Corporation
1. Introduction
2. History
3. Description
of Business
Operations
Principles
Franchise
Campaigns
Suppliers
Market Power
Financial
New Concepts
4. Stock
5. Criticism
6. Conclusion
3. Description of Business: Principles
- McDonald‘s offers the same great taste
worldwide and creates new products that refer
to the local taste
- McDonald‘s brothers formula: limited menu, quality
food, an assembly-line production system, fast
friendly service
- McDonald‘s operating principle today:
Quality
Service
Cleanliness &
Value
“Don‘t worry about making money. Love what you‘re doing and
always put the customer first - and sucess will be yours!“ Ray Kroc
McDonald‘s Corporation
1. Introduction
2. History
3. Description
of Business
Operations
Principles
Franchise
Campaigns
Suppliers
3. Description of Business: Franchise
- Franchise: vertical distribution-network, cooperation
between a producer and an independent entrepreneur,
rights and duties of both sides are adjusted in a
contract
Market Power
Financial
New Concepts
4. Stock
5. Criticism
6. Conclusion
- McDonald‘s supports its franchisees
- franchisees may create new products (BigMac, Filet-oFish)
- 600,000 Euro fee, percentage fee of sales
- 2001: 17,395 franchise restaurants created sales of
$24,8 billion
- 2001: 288 franchisees in Germany operated 744
restaurants
McDonald‘s Corporation
1. Introduction
2. History
3. Description
of Business
Operations
Principles
Franchise
Campaigns
Suppliers
3. Description of Business: Campaigns
- McDonald‘s is famous for it‘s very funny advertising
campaigns
- Ronald Mc Donald is it‘s own Comic character
Market Power
Financial
New Concepts
4. Stock
- campaigns with local stars
- sponsoring of global events
5. Criticism
6. Conclusion
- one toy in every “Happy Meal“
McDonald‘s Corporation
1. Introduction
2. History
3. Description
of Business
Operations
Principles
Franchise
Campaigns
Suppliers
3. Description of Business: Suppliers
- McDonald‘s revolutionized industrial food production
- developt the production of deep frozen fries and meat
together with their suppliers
Market Power
Financial
New Concepts
- strong quality-controls
- suppliers have to follow the McDonald‘s Principles
4. Stock
5. Criticism
6. Conclusion
- purchases goods from national
companys with strong brands
McDonald‘s Corporation
1. Introduction
2. History
3. Description
of Business
Operations
Principles
Franchise
Campaigns
Suppliers
Market Power
Financial
3. Description of Business: Market Power
- McDonald's is Coca-Cola's largest customer in the
world
- McDonald's uses about 7% of the potatoes grown in the
United States for its French fries.
- 8% of the American adult population visits McDonald‘s
on an average day
New Concepts
4. Stock
5. Criticism
6. Conclusion
- The Big Mac Index:
- since 1986 “The Economist“ magazine tracked the
price of Big Mac around the globe
- measures purchasing power, comparison of exchange
rates and relative prices
- indicator for an over- or undervalued US-Dollar
McDonald‘s Corporation
1. Introduction
2. History
3. Description
of Business
Operations
Principles
Franchise
Campaigns
Suppliers
Market Power
Financial
New Concepts
4. Stock
5. Criticism
3. Description of Business: Financial
2001
Total revenues:
$14.87 billion
-company operated restaurants: $11.041 billion
-franchised restaurants:
$3.829 billion
Operating costs and expenses: $12.173 billion
6. Conclusion
Net Income:
$1.637 billion
McDonald‘s Corporation
1. Introduction
2. History
3. Description
of Business
Operations
Principles
Franchise
Campaigns
Suppliers
Market Power
Financial
3. Description of Business: New Concepts
- the company reaches the limits of growth
- reported ist 6th straight quarterly earnings decline
(BSE crisis)
- management searches new concepts for future growth
New Concepts
4. Stock
5. Criticism
- McDonald‘s Japan offers high-speed Internet in its
4000 restaurants
6. Conclusion
- possibly they will start non-food retailing in their
restaurants
McDonald‘s Corporation
1. Introduction
2. History
3. Description
of Business
4. Stock
The Past
Development
Outlook
4. Stock: The Past
- 1965: Going Public of McDonald‘s for $22,50 each
share on the OTC-market
- 1966: McDonald‘s gets listed on the New York
Stock Exchange (stock symbol: MCD)
5. Crticism
6. Conclusion
- 1985: MCD is the first service industry company to
become a member of the Dow Jones
Industrial Average
- McDonald‘s is the only company in the S+P 500 to
have reported 100 consecutive quarters of year-toyear combined increases in revenues, income,
and earnings per share.
McDonald‘s Corporation
1. Introduction
2. History
3. Description
of Business
4. Stock
The Past
4. Stock: Development
- MCD has got 1,027,000 shareholders
- Market capitalization: $37,9 billion
Development
Outlook
- dividend was paid on common stock for
26 consecutive years
5. Crticism
6. Conclusion
- The McDonald‘s Stock has been
splitted 13 times since its initial public
offering, the first one in 1965, the last
one in 1999.
- An investment of $2,250 to purchase
100 shares of McDonald's Stock in
1965 would have grown to be 74,360
shares worth more than $2.1 million
on June 14, 2002.
McDonald‘s Corporation
1. Introduction
2. History
4. Stock: Outlook
3. Description
of Business
4. Stock
The Past
- the last 52 weeks it was traded in a
range between $25 - $31
Development
Outlook
5. Crticism
6. Conclusion
- analysts assume it will develop like
the rest of the market
- ratings: 8 buy, 9 hold, 2 sell
- median target price: $ 32
McDonald‘s Corporation
1. Introduction
2. History
5. Criticism
3. Description
of Business
4. Stock
5. Criticism
6. Conclusion
- McDonald‘s food is not healthy: high in fat, sugar,
animal products and salt
- Some lawyers want McDonald‘s to pay damages for
the consequences of their food. 40% of the
American population is overweight
- McDonald‘s offers only low payed part-time jobs
- McDonald‘s destroys the environment by using oneway packages
McDonald‘s Corporation
1. Introduction
2. History
6. Conclusion
3. Description
of Business
4. Stock
1. Introduction
5. Criticism
2. History
6. Conclusion
3. Description
of Business
4. Stock
5. Criticism
6. Conclusion
Mc Donald‘s still offers excellent products and has a
brilliant marketing concept.
Mc Donald‘s will grow again, but not as fast as it did in the
past.
McDonald‘s Corporation
Mc Donald‘s Corporation