Mcdonalds

McDonald’s Corporation Presented By: Ardis Shannon Adam Krupa Jigar Patel David Seid Samuel George

McDonald’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 strategies  Best

employer  Operational Excellence  Continue to grow and be profitable

History  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 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

Recent Acquisitions/Divestitures  Boston

Market  Chipolte Mexican Grill  Donato’s Pizza chain  McCafe’

Training  Surpasses

even the U.S. Army  Provides career opportunities  Service Enhancement Process  Consistent through CD-ROMs

ReHIREment  Program

established for mature workers  Ease 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

McJobs  Assistance

to employees with mental and physical disabilities.  More than 9,000 workers went through the program.  Given formal graduation ceremony

Management Development Programs  Crew

Development  Restaurant Management  Mid-Management  Executive Development

Hamburger University  Management

Training

Center  Worldwide Education Program  Technology  200 per class  65,000 managers graduated to date

Women 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 Lines  Hamburgers  Chicken

Sandwiches  French Fries  Beverages  Breakfast Items  Desserts

Technology  McDonald’s

in Sweden – World’s First Snowmobile Drive-Thru

 McDonald’s

& ExxonMobil??? – Speedpass invades McDonald’s

Industry Trends  What

is happening with fast food?

– People are more educated

 McDonald’s

Responds

– America’s First McCafe  In Downtown Chicago mtmccafe2interior300

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• • • • •

Financial Agenda System Wide Sales McDonald’s Corporation Revenues Cash Flow Financial Ratios Stock Performance

System Wide Sales In The Year 2000 $40.181 Billion Affiliated 13%

Franchised 61%

Company operated Resturants 26%

McDonald’s Corporation Sales By Segment Latin America 7%

Other 9%

U.S. 37% Asia/Pacific 14%

Europe 33%

Income (in millions) Net Revenues

Net Income

Earnings / Share

$14,24 3

$1.44

$13,25 9

$1,947

$1,977

'99

'00

$1.49

$1.14

$1,550

$12,42 1

'98

'99

'00

'98

'98

'99

'00

Cash Flow Statement In (millions)

Net Income Net Cash Provided By Operating Activities Net Cash Provided By Investing Activities Net Cash Provided By Financing Activities Cash and equivalents increase(decrease) Cash and equivalents at beginning of year Cash and Equivalents at end of year

2000

1999

$1,977.3 $2,751.5 (2,212.6) (536.7)

$1,947.9 3,008.9 (2,261.8) (626.8)

$2.2 $419.5 $421.7

$120.3 $299.2 $419.5

Analysis

Financial Ratios

McDonald

Industry

21.42

25.49

Price to Sales

2.36

1.97

Price to Book

3.52

3.95

Quick Ratio

0.76

0.63

109.28

32.44

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

17.62

17.65

40,852

77,289

P/E Ratio

Inventory Turnover Total Debt to Equity

Return on Equity Revenue/Employee

Stock Performance Mkt Cap 35.877B

52-wk Range 24.75 - 31.00

Last Trade Mar. 8 27.91

Making A Difference We have an obligation to give back to the communities that give us so much." - Founder Ray Kroc, 1955

Social Commitments  “9-11”

Relief Effort  Environmental Concerns  Educational Involvement  Quality & Safety Procedures  Ronald McDonald House Charities (RHMC)

Stay Tuned …………

Terence Haynes Senior Vice President, U.S. Controller

Native of South Africa Education: Bachelor of Commerce University of Witwatersand in Johannesburg Prior Position: Chief Financial Officer in the U.K.