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  • 1. McDonaldsFrom Wikipedia, the free encyclopedia McDonalds Type Public Traded as NYSE: MCD Dow Jones Industrial Average Component Industry Restaurants Founded May 15, 1940 in San Bernardino, California; McDonalds Corporation, April 15, 1955 in Des Plaines, Illinois Founder(s) Richard and Maurice McDonald McDonalds restaurant concept; Ray Kroc, McDonalds Corporation founder. Headquarters Oak Brook, Illinois, U.S. Number of 32,000+ worldwide[1] locations Area served Worldwide
  • 2. Key people James A. Skinner (Chairman & CEO) Products Fast food (hamburgers • chicken •french fries • soft drinks •coffee • milkshakes • salads •desserts • breakfast) Revenue US$ 24.075 billion (2010)[2] Operating US$ 7.473 billion (2010)[2] income Net income US$ 4.949 billion (2010)[2] Total assets US$ 31.975 billion (2010)[2] Total equity US$ 14.634 billion (2010)[2] Employees 400,000 (January 2010)[2] Website McDonalds.com This box: view · talk · editMcDonalds Corporation (NYSE: MCD) is the worlds largest chain of hamburger fast food restaurants, serving around 64 millioncustomers daily.[3]Headquartered in the United States, the corporation was founded by businessman Ray Kroc in 1955 after hepurchased the rights to a small hamburger chain operated by the eponymous Richard and Maurice McDonald.[4]A McDonalds restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporations revenues comefrom the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonalds revenuesgrew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion. [5]McDonalds primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, shakes and desserts. Inresponse to changing consumer tastes, the company has expanded its menu to include salads, wraps and fruit.[6] Contents
  • 3. [hide]1 History2 Corporate overview o 2.1 Facts and figures o 2.2 Types of restaurants o 2.3 Playgrounds o 2.4 Redesign o 2.5 Business model o 2.6 Shareholder dividends3 Controversies o 3.1 Arguments in defense o 3.2 Environmental record4 Legal cases5 Products6 Headquarters7 Advertising o 7.1 Childrens advertising o 7.2 Sports awards and honors8 Global operations9 See also o 9.1 Competitors10 References11 Further reading12 External linksHistory
  • 4. McDonalds Logo used from 1968 to 2003. It still exists at some restaurants."Speedee", the former mascot of McDonalds before his replacement by Ronald McDonald.Concept version of Ronald McDonald.Main article: History of McDonaldsThe business began in 1940, with a restaurant opened by brothers Richard and Maurice McDonald in San Bernardino, California.Their introduction of the "Speedee Service System" in 1948 furthered the principles of the modern fast-food restaurant thatthe White Castle hamburger chain had already put into practice more than two decades earlier. The original mascot of McDonaldswas a man with a chefs hat on top of a hamburger shaped head whose name was "Speedee." Speedee was eventually replacedwith Ronald McDonald by 1967 when the company first filed a U.S. trademark on a clown shaped man having puffed out costumelegs.McDonalds first filed for a U.S. trademark on the name McDonalds on May 4, 1961, with the description "Drive-In RestaurantServices," which continues to be renewed through the end of December 2009. In the same year, on September 13, 1961, thecompany filed a logo trademark on an overlapping, double arched "M" symbol. The overlapping double arched "M" symbol logo wastemporarily disfavored by September 6, 1962, when a trademark was filed for a single arch, shaped over many of the earlyMcDonalds restaurants in the early years. The famous double arched "M" symbol in use today did not appear until November 18,1968, when the company filed a U.S. trademark.The first McDonalds restaurants opened in the United States, Canada, Costa Rica, Panama, Japan, the Netherlands, Germany,Australia, France, El Salvador and Sweden, in order of openings.The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois, on April15, 1955,[7] the ninth McDonalds restaurant overall. Kroc later purchased the McDonald brothers equity in the company and led its
  • 5. worldwide expansion, and the company became listed on the public stock markets in 1965.[8] Kroc was also noted for aggressivebusiness practices, compelling the McDonald brothers to leave the fast food industry. The McDonald brothers and Kroc feuded overcontrol of the business, as documented in both Krocs autobiography and in the McDonald brothers autobiography. The site of theMcDonald brothers original restaurant is now a monument.[9]With the expansion of McDonalds into many international markets, the company has become a symbol of globalization and thespread of the American way of life. Its prominence has also made it a frequent topic of public debates about obesity, corporateethics and consumer responsibility.Corporate overviewFacts and figuresMcDonalds boasts its service to "99 billion customers".McDonalds restaurants are found in 119 countries[10] and territories around the world and serve 58 million customers eachday.[3]McDonalds operates over 31,000 restaurants worldwide, employing more than 1.5 million people. [10] The company alsooperates other restaurant brands, such as Piles Café.Focusing on its core brand, McDonalds began divesting itself of other chains it had acquired during the 1990s. The company owneda majority stake inChipotle Mexican Grill until October 2006, when McDonalds fully divested from Chipotle through a stockexchange.[11][12] Until December 2003, it also ownedDonatos Pizza. On August 27, 2007, McDonalds sold Boston Market to SunCapital Partners.[13]Types of restaurantsMost standalone McDonalds restaurants offer both counter service and drive-through service, with indoor and sometimes outdoorseating. Drive-Thru, Auto-Mac, Pay and Drive, or "McDrive" as it is known in many countries, often has separate stations for placing,
  • 6. paying for, and picking up orders, though the latter two steps are frequently combined; it was first introduced in Arizona in 1975,following the lead of other fast-food chains. The first such restaurant in Britain opened at Fallowfield, Manchester in 1986.[14]In some countries, "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density cityneighborhoods often omitdrive-through service. There are also a few locations, located mostly in downtown districts, that offer Walk-Thru service in place of Drive-Thru.To accommodate the current trend for high quality coffee and the popularity of coffee shops in general, McDonaldsintroduced McCafé, a café-style accompaniment to McDonalds restaurants in the style of Starbucks. McCafé is a concept createdby McDonalds Australia, starting with Melbourne in 1993. Today, most McDonalds in Australia have McCafés located within theexisting McDonalds restaurant. In Tasmania, there are McCafés in every store, with the rest of the states quickly following suit. Afterupgrading to the new McCafé look and feel, some Australian stores have noticed up to a 60% increase in sales. As of the end of2003 there were over 600 McCafés worldwide.Some locations are connected to gas stations/convenience stores,[15] while others called McExpress have limited seating and/ormenu or may be located in a shopping mall. Other McDonalds are located in Wal-Mart stores. McStop is a location targeted attruckers and travelers which may have services found at truck stops.[16]Since 1997, the only Kosher McDonalds in the world that is not in Israel, is located in the "Abasto de Buenos Aires", Argentina.[17][18]PlaygroundsMcDonalds in Panorama City, California designed for family-friendly imageSome McDonalds in suburban areas and certain cities feature large indoor or outdoor playgrounds. The first PlayPlace with thefamiliar crawl-tube design with ball pits and slides was introduced in 1987 in the USA, with many more being constructed soon after.Some PlayPlace playgrounds have been renovated into "R Gym" areas.Redesign
  • 7. McDonalds in Darlington, UK. This is an example of the new look of McDonalds in Europe.In 2006, McDonalds introduced its "Forever Young" brand by redesigning all of their restaurants, the first major redesign since the1970s.[19][20]The McDonalds restaurant inBanburys Bridge Street in 2010. It is still in white paint outside and blue/grey/brown inside as itwas since 2002.The design includes the traditional McDonalds yellow and red colors, but the red is muted to terra cotta, the yellow was turnedgolden for a more "sunny" look, and olive and sage green were also added. To warm up their look, the restaurants have less plasticand more brick and wood, with modern hanging lights to produce a softer glow. Contemporary art or framed photographs hang onthe walls.
  • 8. One of four McDonalds restaurants located onOxford Street, London, Europes busiest shopping street.Business modelMcDonalds Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants.Approximately 15% of McDonalds restaurants are owned and operated by McDonalds Corporation directly. The remainder areoperated by others through a variety of franchise agreements and joint ventures. The McDonalds Corporations business model isslightly different from that of most other fast-food chains. In addition to ordinary franchise fees and marketing fees, which arecalculated as a percentage of sales, McDonalds may also collect rent, which may also be calculated on the basis of sales. As acondition of many franchise agreements, which vary by contract, age, country, and location, the Corporation may own or lease theproperties on which McDonalds franchises are located. In most, if not all cases, the franchisee does not own the location of itsrestaurants.The UK business model is different, in that fewer than 30% of restaurants are franchised, with the majority under the ownership ofthe company. McDonalds trains its franchisees and others at Hamburger University in Oak Brook, Illinois.In other countries, McDonalds restaurants are operated by joint ventures of McDonalds Corporation and other, local entities orgovernments.As a matter of policy, McDonalds does not make direct sales of food or materials to franchisees, instead organizing the supply offood and materials to restaurants through approved third party logistics operators.According to Fast Food Nation by Eric Schlosser (2001), nearly one in eight workers in the U.S. have at some time been employedby McDonalds. (According to a news piece on Fox News this figure is one in ten.) The book also states that McDonalds is thelargest private operator of playgrounds in the U.S., as well as the single largest purchaser of beef, pork, potatoes, and apples. Theselection of meats McDonalds uses varies with the culture of the host country.
  • 9. Shareholder dividendsMcDonalds has increased shareholder dividends for 25 consecutive years, [21] making it one of the S&P 500 DividendAristocrats.[22][23]ControversiesAs a prominent example of the rapid globalization of the American fast food industry, McDonalds is often the target of criticism forits menu, its expansion, and its business practices.The McLibel Trial, also known as McDonalds Restaurants v Morris & Steel, is an example of this criticism. In 1990, activists from asmall group known asLondon Greenpeace (no connection to the international group Greenpeace) distributed leaflets entitled Whatswrong with McDonalds?, criticizing its environmental, health, and labor record. The corporation wrote to the group demanding theydesist and apologize, and, when two of the activists refused to back down, sued them for libel in one of the longest cases in Britishcivil law. A documentary film of the McLibel Trial has been shown in several countries.Despite the objections of McDonalds, the term "McJob" was added to Merriam-Websters Collegiate Dictionary in 2003.[24] The termwas defined as "a low-paying job that requires little skill and provides little opportunity for advancement". [25] In an open letter toMerriam-Webster, Jim Cantalupo, former CEO of McDonalds, denounced the definition as a "slap in the face" to all restaurantemployees, and stated that "a more appropriate definition of a McJob might be teaches responsibility." Merriam-Websterresponded that "we stand by the accuracy and appropriateness of our definition."[26]In 1999, French anti-globalisation activist José Bové vandalized a half-built McDonalds to protest against the introduction of fastfood in the region.[27]In 2001, Eric Schlossers book Fast Food Nation included criticism of the business practices of McDonalds. Among the critiqueswere allegations that McDonalds (along with other companies within the fast food industry) uses its political influence to increase itsprofits at the expense of peoples health and the social conditions of its workers. The book also brought into question McDonaldsadvertisement techniques in which it targets children. While the book did mention other fast-food chains, it focused primarily onMcDonalds.McDonalds is the worlds largest distributor of toys, which it includes with kids meals.[28] It has been alleged that the use of populartoys encourages children to eat more McDonalds food, thereby contributing to many childrens health problems, including a rise inobesity.[29]In 2002, vegetarian groups, largely Hindu and Buddhist, successfully sued McDonalds for misrepresenting their French fries asvegetarian, when they contained beef broth.[30]
  • 10. A PETA activist dressed as a chicken confronts the manager of the Times Square McDonalds over the companys animalwelfare standards.People for the Ethical Treatment of Animals (PETA), continues to pressure McDonalds to change its animal welfare standards, inparticular the method their suppliers use of slaughtering chickens.[31] Most processors in the United States shackle fully consciousbirds upside down and run them through an electrically charged water tub before slitting their throats.[32] PETA argues that using gasto kill the birds (a method called "controlled atmosphere killing: or CAK) is less cruel.[33] Both CAK and "controlled atmospherestunning" (CAS) are commonly used in Europe.[34]Morgan Spurlocks 2004 documentary film Super Size Me said that McDonalds food was contributing to the epidemic of obesity insociety, and that the company was failing to provide nutritional information about its food for its customers. Six weeks after the filmpremiered, McDonalds announced that it was eliminating the super size option, and was creating the adult happy meal.The soya that is fed to McDonald’s chickens is supplied by agricultural giant Cargill and comes directly fromBrazil. Greenpeace alleges that not only is soya destroying the Amazon rain forest in Brazil, but soya farmers are guilty offurther crimes including slavery and the invasion of indigenous peoples’ lands. The allegation is that McDonalds, as a client ofCargills, is complicit in these activities.[35]Arguments in defenseIn response to public pressure, McDonalds has sought to include more healthy choices in its menu and has introduced a newslogan to its recruitment posters: "Not bad for a McJob".[36] (The word McJob, first attested in the mid-1980s[37] and later popularizedby Canadian novelist Douglas Coupland in his bookGeneration X, has become a buzz word for low-paid, unskilled work with fewprospects or benefits and little security.) McDonalds disputes the idea[which?]. In 2007, the company launched an advertisingcampaign with the slogan "Would you like a career with that?" on Irish television, outlining that their jobs have many prospects.In an effort to respond to growing consumer awareness of food provenance, the fast-food chain changed its supplier of both coffeebeans and milk. UK chief executive Steve Easterbrook said: "British consumers are increasingly interested in the quality, sourcing
  • 11. and ethics of the food and drink they buy".[citation needed]In a bid to tap into the ethical consumer market,[38] McDonalds switched tousing coffee beans taken from stocks that are certified by the Rainforest Alliance, aconservation group that has been dubbed"Fairtrade lite." [39] Additionally, the company started using organic milk supplies for its hot drinks and milkshakes. According to areport published by Farmers Weekly in 2007, the quantity of milk used by McDonalds could have accounted for as much as 5% ofthe UKs organic milk output.[40]McDonalds announced on May 22, 2008 that, in the U.S. and Canada, it would switch to using cooking oil that contains no transfats for its french fries, and canola-based oil with corn and soy oils, for its baked items, pies and cookies, by years end. [41][42]With regard to acquiring chickens from suppliers who use CAK or CAS methods of slaughter, McDonalds says that they need to seemore research "to help determine whether any CAS system in current use is optimal from an animal welfare perspective." [43]Environmental recordIn April 2008, McDonalds announced that 11 of its Sheffield, England restaurants have been using a biomass trial that had cut itswaste and carbon footprint by half in the area. In this trial, waste from the restaurants were collected by Veolia EnvironmentalServices and used to produce energy at a power plant. McDonalds plans to expand this project, although the lack of biomass powerplants in the U.S. will prevent this plan from becoming a national standard anytime soon. [44] In addition, in Europe, McDonalds hasbeen recycling vegetable grease by converting it to fuel for their diesel trucks.[45]Furthermore, McDonalds has been using a corn-based bioplastic to produce containers for some of their products. Althoughindustries who use this product claim a carbon savings of 30% to 80%, aGuardian study shows otherwise. The results show that thistype of plastic does not break down in landfills as efficiently as other conventional plastics. The extra energy it takes to recycle thisplastic results in a higher output of greenhouse gases. Also, the plastics can contaminate waste streams, causing other recycledplastics to become unsaleable.[46]The U.S. Environmental Protection Agency has recognized McDonalds continuous effort to reduce solid waste by designing moreefficient packaging and by promoting the use of recycled-content materials.[47] McDonalds reports that they are committed towardsenvironmental leadership by effectively managing electric energy, by conserving natural resources through recycling and reusingmaterials, and by addressing water management issues within the restaurant. [48]In an effort to reduce energy usage by 25% in its restaurants, McDonalds opened a prototype restaurant in Chicago in 2009 withthe intention of using the model in its other restaurants throughout the world. Building on past efforts, specifically a restaurant itopened in Sweden in 2000 that was the first to intentionally incorporate green ideas, McDonalds designed the Chicago site to saveenergy by incorporating old and new ideas such as managing storm water, using skylights for more natural lighting and installingsome partitions and tabletops made from recycled goods.[49]When McDonald’s received criticism for its environmental policies in the 1970s, it began to make substantial progress towardssource reductions efforts.[50] For instance, an ―average meal‖ in the 1970s—a Big Mac, fries, and a drink—required 46 grams ofpackaging; today, it requires only 25 grams, allowing a 46% reduction.[51] In addition, McDonald’s eliminated the need forintermediate containers for cola by having a delivery system that pumps syrup directly from the delivery truck into storage
  • 12. containers, saving two million pounds of packaging annually.[52] Overall, weight reductions in packaging and products, as well as theincreased usage of bulk packaging ultimately decreased packaging by 24 million pounds annually. [53]Legal casesMain article: McDonalds legal casesMcDonalds has been involved in a number of lawsuits and other legal cases, most of which involved trademark disputes. Thecompany has threatened many food businesses with legal action unless they drop the Mc or Mac from their trading name. In onenoteworthy case, McDonalds sued a Scottish café owner called McDonald, even though the business in question dated back over acentury (Sheriff Court Glasgow and Strathkelvin, November 21, 1952). On September 8, 2009, McDonalds Malaysian operationslost a lawsuit to prevent another restaurant calling itself McCurry. McDonalds lost in an appeal to Malaysias highest court, theFederal Court.[54]It has also filed numerous defamation suits. For example, in the McLibel case, McDonalds sued two activists for distributingpamphlets attacking its environmental, labor and health records. After the longest trial in UK legal history, the judge found that someclaims in the pamphlet were untrue and therefore libellous. The company, however, had asserted that all claims in the pamphletwere untrue, essentially obliging the judge to publicly rule on each one. Embarrassingly for the company, several of the specificallegations were upheld.[55]McDonalds has defended itself in several cases involving workers rights. In 2001 the company was fined £12,400 by Britishmagistrates for illegally employing and over-working child labor in one of its London restaurants. This is thought to be one of thelargest fines imposed on a company for breaking laws relating to child working conditions (R v 2002 EWCA Crim 1094). In April2007 in Perth, Western Australia, McDonalds pleaded guilty to five charges relating to the employment of children under 15 in oneof its outlets and was fined AU$8,000.[56]Possibly the most infamous legal case involving McDonalds was the 1994 decision in The McDonalds Coffee Case where StellaLiebeck suffered third-degree burns after spilling a fresh cup of McDonalds coffee on herself.In a McDonalds American Idol figurine promotion, the figurine that represents "New Wave Nigel" wears something that closelyresembles Devo’s Energy Dome, which was featured on the bands album cover, Freedom of Choice. In addition to the figurinesimage, it also plays a tune that appears to be an altered version of Devos song "Doctor Detroit." Devo copyrighted and trademarkedthe Energy Dome and is taking legal action against McDonalds.[57]Products
  • 13. A McDonalds Big Mac combo meal served with French fries and Coca-Cola.Main article: McDonalds productsSee also: McDonalds products (international)McDonalds predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, softdrinks, breakfast items, and desserts. In most markets, McDonalds offers salads and vegetarian items, wraps and other localizedfare. On a seasonal basis, McDonalds offers the McRib sandwich. Some speculate the seasonality of the McRib adds to itsappeal.[58]Portugal is the only country with McDonalds restaurants currently serving soup. This local deviation from the standardmenu is a characteristic for which the chain is particularly known, and one which is employed either to abide by regional food taboos(such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is morefamiliar (such as the sale of McRice in Indonesia).HeadquartersMcDonalds Plaza, located in Oak Brook, Illinois is the headquarters of McDonaldsThe McDonalds headquarters complex, McDonalds Plaza, is located in Oak Brook, Illinois. It sits on the site of the formerheadquarters and stabling area of Paul Butler, the founder of Oak Brook. [59] McDonalds moved into the Oak Brook facility from anoffice within the Chicago Loop in 1971.[60]Advertising
  • 14. Main article: McDonalds advertisingMcDonalds has for decades maintained an extensive advertising campaign. In addition to the usual media (television, radio, andnewspaper), the company makes significant use of billboards and signage, sponsors sporting events ranging from Little League tothe Olympic Games, and makes coolers of orange drink with their logo available for local events of all kinds. Nonetheless, televisionhas always played a central role in the companys advertising strategy.To date, McDonalds has used 23 different slogans in United States advertising[citation needed], as well as a few other slogans for selectcountries and regions. At times, it has run into trouble with its campaigns.Childrens advertisingMain articles: Ronald McDonald and McDonaldlandSports awards and honors See Category:McDonalds High School All-Americans Global operations See also: List of countries with McDonalds franchises Countries with McDonalds stores McDonalds adjacent to rivals Burger Kingin Leeds, West Yorkshire.
  • 15. McDonalds has become emblematic of globalization, sometimes referred to as the "McDonaldization" of society. TheEconomist newspaper uses the "Big Mac Index": the comparison of a Big Macs cost in various world currencies can be usedto informally judge these currenciespurchasing power parity. Norway has the most expensive Big Mac in the world as of July2011, while the country with the least expensive Big Mac is India (albeit for a Maharaja Mac—the next cheapest Big Macis Hong Kong).[61]Thomas Friedman once said that no country with a McDonalds had gone to war with another. [62][Full citation needed] However, the"Golden Arches Theory of Conflict Prevention" is not strictly true. Exceptions are the 1989 United States invasion ofPanama, NATOs bombing of Serbia in 1999, the 2006 Lebanon War, and the 2008 South Ossetia war.Some observers have suggested that the company should be given credit for increasing the standard of service in markets thatit enters. A group of anthropologists in a study entitled Golden Arches East[63] looked at the impact McDonalds had on EastAsia, and Hong Kong in particular. When it opened in Hong Kong in 1975, McDonalds was the first restaurant to consistentlyoffer clean restrooms, driving customers to demand the same of other restaurants and institutions. McDonalds haverecently[when?] taken to partnering up with Sinopec, the second largest oil company in the Peoples Republic of China, as itbegins to take advantage of the countrys growing use of personal vehicles by opening numerous drive-thru restaurants.[64] McDonalds has opened a McDonalds restaurant and McCafé on the underground premises of theFrench fine artsmuseum, the Louvre.[65]McDonalds has started to offer free wireless Internet access in many countries.[66][67][68]See also Chicago portal Illinois portal Companies portal Food portal Book: McDonalds Wikipedia books are collections of articles that can be downloaded or ordered in print. MaDonal, a restaurant knock-off operating in Northern Iraq . Maxime, McDuff & McDo, documentary film about the unionizing of a McDonalds in Montreal, Quebec, Canada. McHappy DayCompetitors
  • 16.  Burger King – Second largest burger chain Wendys - Worlds third largest hamburger fast food chain Jack in the Box - American fast food chain Subway – Largest single-brand restaurant chain Carls Jr. - Fifth largest American fast food chain Five Guys - American fast food chain Whataburger - American fast food chain Krystal - American fast food chain White Castle - American fast food chain Yum! – Largest multi-brand restaurant chain