McDonald`s Corporation McDonald`s Corporation

Presented By: Presented By:

Ardis Shannon Ardis Shannon
Adam Krupa Adam Krupa
Jigar Patel Jigar Patel
David Seid David Seid
Samuel George Samuel George
.Donald's ission .Donald's ission
Be the best quick service restaurant
experience. By providing quality, service,
cleanliness and value that make every
customer in every restaurant smile.
World wide strategies World wide strategies
Best employer
Operational Excellence
Continue to grow and be proIitable
istory istory
1940 First McDonald`s
1952 Attempts at
Iranchising
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 oI
Big Mac and shiIt to
Network Television
1970 1600 restaurants
1980 6000 McDonald`s
Restaurants
1990 record sales
istory Continued istory Continued
1994 Kuwait City, Kuwait
2002 Forty seven years aIter
30,000 locations
2000 new restaurants
World Wide Web
McDonald`s a recognized Brand
Name
#e.ent #e.ent
A.6uisitions/Divestitures A.6uisitions/Divestitures
Boston Market
Chipolte Mexican Grill
Donato`s Pizza chain
McCaIe`
%raining %raining
Surpasses even the U.S. Army
Provides career opportunities
Service Enhancement Process
Consistent through CD-ROMs
#e#ment #e#ment
Program established Ior mature workers
Ease oI transition oI older workers returning
to the workIorce.
Flexible scheduling so as not to jeopardize
their Social Security beneIits.
More than 40,000 older workers serve
McDonald`s customers on any given day
.Jobs .Jobs
Assistance to employees with mental and
physical disabilities.
More than 9,000 workers went through the
program.
Given Iormal graduation ceremony
anagement anagement
Development Programs Development Programs
Crew Development
Restaurant Management
Mid-Management
Executive Development
amburger University amburger University
Management Training
Center
Worldwide Education
Program
Technology
200 per class
65,000 managers
graduated to date
Women and inorities Women and inorities
Soars above stereotype oI average Iast-Iood
joint
Compose more than 50 percent oI
McDonald`s current workIorce
Featured as the 'The Best Companies Ior
Minorities
Produ.t Lines Produ.t Lines
amburgers
Chicken Sandwiches
French Fries
Beverages
BreakIast Items
Desserts
%e.hnology %e.hnology
McDonald`s in Sweden
World`s First Snowmobile Drive-Thru
McDonald`s & ExxonMobil???
Speedpass invades McDonald`s
ndustry %rends ndustry %rends
What is happening with Iast Iood?
People are more educated
McDonald`s Responds
America`s First McCaIe
In Downtown Chicago
inan.ial Agenda inan.ial Agenda
System Wide Sales
McDonald`s Corporation Revenues
Cash Flow
Financial Ratios
Stock PerIormance
System Wide Sales System Wide Sales
n %he Year 2000 n %he Year 2000
$40.181 Billion $40.181 Billion
Company
operated
Resturants
26%
Franchised
61%
AffiIiated
13%
.Donald's Corporation .Donald's Corporation
Sales By Segment Sales By Segment
&$
37%
Europe
33%
Asia/Pacific
14%
Latin America
7%
Other
9%
n.ome n.ome
(in millions) (in millions)
et
Revenues
et
Income
Earnings /
$hare
$12,42
1
$14,24
3
$13,25
9
'98 '99 '00
$1,550
$1,947
$1,977
'98 '99 '00
$114
$144
$149
'98 '99 '00
Cash low Statement Cash low Statement
n (millions) n (millions)
2000 1999
Net n.ome
Net Cash Provided By Operating A.tivities
Net Cash Provided By nvesting A.tivities
Net Cash Provided By inan.ing A.tivities
$1,9773
$2,7515
(2,2126)
(5367)
$1,9479
3,0089
(2,2618)
(6268)
Cash and equivaIents increase(decrease)
Cash and equivaIents at beginning of year
Cash and EquivaIents at end of year
$22
$4195
$4217
$1203
$2992
$4195
inan.ial #atios inan.ial #atios
3,88
cDonaId Industry
P/ #atio 2142 25.49
Pri.e to Sales 2.36 197
Price to Book 352 395
Quick Ratio 076 063
Inventory Turnover 10928 3244
TotaI Debt to Equity 089 064
et Profit argin 1101 762
Return on Assets 754 867
Return on Investment 830 1054
Return on Equity 1762 1765
Revenue/EmpIoyee 40,852 77,289
Sto. Performan.e Sto. Performan.e
t Cap 52-w #ange Last %rade
5.877B 24.75 - 1.00 ar. 8 27.91
aing A Differen.e aing A Differen.e
We have an obligation to We have an obligation to
give ba. to the give ba. to the
.ommunities that give us so .ommunities that give us so
mu.h." mu.h."
- - ounder #ay Kro. 1955 ounder #ay Kro. 1955
So.ial Commitments So.ial Commitments
'9-11 RelieI EIIort
Environmental Concerns
Educational Involvement
Quality & SaIety Procedures
Ronald McDonald ouse
Charities (RMC)
Stay %uned .... Stay %uned ....
Terence Haynes Terence Haynes
$enior Vice President, $enior Vice President,
&$ ControIIer &$ ControIIer
Native of South Afri.a Native of South Afri.a
du.ation: Ba.helor of Commer.e du.ation: Ba.helor of Commer.e
University of Witwatersand in Johannesburg University of Witwatersand in Johannesburg
Prior Position: Chief inan.ial Offi.er in the U.K. Prior Position: Chief inan.ial Offi.er in the U.K.