Your SlideShare is downloading. ×
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Mc Donalds Power Point Final
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Mc Donalds Power Point Final

13,082

Published on

As a group project, we analyzed McDonald\'s from a financial perspective. We all learned a great deal about a top brand. I created the slideshow incorporating numerous graphics and ensured a …

As a group project, we analyzed McDonald\'s from a financial perspective. We all learned a great deal about a top brand. I created the slideshow incorporating numerous graphics and ensured a consistent look throughout. Enjoy!

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
13,082
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
304
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Mark Cohen, Elaine Hirt, Kyle Larkin, Zachary Rogers & JaanaValimaki
  • 2. Presentation Topics
    History & Company Description
    Product Offerings
    Industry Attributes
    Profitability
    Cash & Growth
    Capital Structure
    Asset Structure
    Competitors—Burger King & Wendy’s
    Stock Summary
  • 3. History of the Corporation
    1940: Dick and Mac McDonald opened McDonald’s
    Bar-B-Que in San Bernardino, California
  • 4. Key Milestones
    1948: “Speedee Service System” Key item: 15 cent hamburger
    1954: Salesman Ray Kroc Goes West
    1955: The McDonald’s Corporation opened the first McDonald’s
    1961: Ray Kroc bought all rights to McDonald’s for $2.7 million
  • 5. Key Milestones—1963
    • One Billion Hamburgers Sold
    • 6. The 500th Restaurant Opened
    • 7. The 500th Student Graduates from Hamburger University
    • 8. McDonald's Net Income Exceeded $1 Million
    • 9. Ronald McDonald's First TV Commercial
  • What Is McDonald’s?
    Headquarters Oak Brook, Illinois
    Traded in NYSE: MCD
    Auditing done by Ernst & Young LLP
    CEO: Jim Skinner
    McDonald’s is the leading global foodservice retailer with nearly 32,000 local restaurants in more than 100 countries.
    McDonald's successful “Plan to Win”
    Large scale efficiency and local flair
    Serving 58 million customers daily worldwide
    Revenues in 2008 at record $23.5 billion
    Returned $5.8 billion to shareholders in 2008
  • 10. Traditional Products
  • 11. Non-Traditional Products
  • 12. Fast Food Industry Attributes
    Quick Service, Convenience, Inexpensive
    Industry Worldwide Sales: Over $100 Billion
  • 13. McDonald’s Attributes
  • McDonald’s Profitability
    Net Income Increased to a Record of
    $4.3 Billion in 2008
    Net Income Increased in the last 6 Years (Except for 2007)
    • Latam Transaction
    • 24. Impairment Charges of $1.7 Billion
    • 25. Otherwise, 2007 Net Income $4.1 Billion
    Worldwide Operating Income
    • 60% Overseas Operating Income
  • More Cash, Less Assets
    • Sold 1,600 Restaurants in Latin America & Caribbean
    • 26. Focused Resources on Markets to Cash In the Biggest Opportunities
    • 27. Over 71% of Total Assets are Land & Equipment Net Accumulated Depreciation & Amortization
    • 28. Greatly Improved Operations Streamlined Production
  • Assets Making Money
    • For Every Dollar of Assets, 20.8 Cents is Produced
    • 29. McDonald’s is Very Cash Rich—Ready Access to Capital
    • 30. Can Easily Pay Its Debts Plus Debts of Competitors
    • 31. Highest Credit Ratio in Restaurant Industry
  • Smarter Strategies = Growth
    • Leveraged Dramatic Growth in Net Income
    • 32. Decrease Non-Operating Income Expense
    • 33. Investment Sale Loss
    • 34. Income Tax Deferment Saving $140.6 Million
    • 35. Improved Impairment from $1,670.3 Million to $6.0 Million
    • 36. Accounts Receivable Dropped Bringing In $122.6 Million in Cash
    • 37. More Cash Spent on Property & Equipment
    • 38. Gained More Cash on Sale of Businesses & Property
  • 2010 Short Term Growth Plans
    Open 1,000 New Stores
    Remodel 2,300 Stores
    Continue Growth Targets
    • 3-5% Sales Growth
    • 39. 6-7% Operating Income Growth
    • 40. Increase Capital Expenditures to $2.4 Billion for Strategic Brand Investments
    McDonald’s Financial Press Release 11/12/2009
  • 41. Company Financing
    Equal Use of Debt & Equity
    Long-Term Debt of Bank Loans & Bonds
    $2 billion Unused Credit Line
  • 42. Company Financing
    Slowly Increasing its Use of Debt
    Increasing its Risk
  • 43. Company Financing – Risk
    Liquidity
    • Current Ratio of 1.39
    Ability to Cover Debt Payments
    • Times Interest Earned of 14.5
    Overall - Moderate Risk
  • 44. Company Financing – Profitability
    Financial Leverage – Increasing ROE
  • 45. Asset Structure – Capital Intensity
    Relatively Easy Market Entry: +/- $900K per Store
    Difficult to Match Size
    • 995 New Stores in 2008
    • 46. Net Fixed Assets of $20 Billion
  • Asset Structure - Breakdown
    Very Little Asset Structure Change
    Investing Activities Show Growth
    • Capital Expenditures of $2.3 Billion
    • 47. Depreciation of $1.2 Billion
  • Asset Structure - ROA
    Profit Margin
    • Product Differentiation
    • 48. Efficiency
    Asset Turnover
    • Cost Leadership
    • 49. Effectiveness
  • Asset Structure - Risk
    Significant Operating Leverage
    • 3-Year Trend
    Revenue ↑ 12.6 %
    Net Income ↑ 21.7%
  • 50. Asset Structure - Unrecorded
    Advertising Expense of +/- $800 Million
    Significant Local Franchisee Expense
  • 51. Number 1 Asset—Brand Name
    Coca-Cola ($68,734 million)
    IBM ($60,211 million)
    Microsoft ($56,647 million)
    GE ($47,777 million)
    Nokia ($34,864 million)
    McDonald's ($32,275 million)
    Google ($31,980 million)
    Toyota ($31,330 million)
    Intel ($30,636 million)
    Disney ($28,447 million)
    BusinessWeek’s 2009 Report: 100 Best Global Brand Values as of 09/21/2009
  • 52. Competitors—Burgers to Burgers
    • Burger King Holdings
    • 53. Wendy’s International
  • Number of Locations
  • 54. McDonald’s Relative to Major Stock Indices
  • 55. Stock Summary
    Stock Price Grew Consistently Past 3 Years
    • From $24.83 in 2003 to $61.59 today
    • 56. Stock Advisors—Buy!
  • Questions???

×