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Mc Donalds Owners Eye Starbucks With

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Transcript

  • 1. MGM221 PRESENTATION Cover page needed to be edited Someone please think of a good Cover page! I am not too good at this ^^
  • 2. ABOUT THIS ARTICLE & ABOUT MCDONALD’S
  • 3. McDonald’s company background
    • franchise company
    • founder Ray Kroc
    • >30,000 local restaurants
    • serves 52 million people in over 100 countries
    • >70% restaurants owned & operated by local people
  • 4. Julia
    • Please add ur company info here
    • You need at least 4 slides
  • 5. julia
    • Please add ur information here
  • 6.
    • Popular food: French Fries, Big Mac, Chicken McNuggets
    • competitors: fast food stores --> Burger King (food), Starbucks (Beverages)
    • customers: mainly families with children --> more young adult customers
    • will add other beverages next year
  • 7. McDonald's owners eye Starbucks with McCafe drinks
  • 8.
    • McDonald’s offers McCafe espressos and cappucinos at 14,000 US locations
    • McCafe’s coffee drinks cost less than StarBucks, from $2.39 for a small to $3.29 for a large
    • McDonald’s first gained revenue from offering coffe in the breakfast menu
    • “ Beverages have higher margin than food”
    • Offers Lower price “affordable luxury”
  • 9. McDonald’s strategy to gain market share from Starbucks
    • Next annual sales: $1 billon
    • Continue improve their coffee bean quality to compete with StarBucks
    • Advantage by offering food and coffee while StarBucks only has muffins and coffee
    • Draw attention to price sensitive customers
    • US economy downturns
  • 10.
    • improved furniture and free Internet service
    • Attract people to come and sit in McDonald’s as they do in Starbucks
  • 11. Jenny will explain what’s this commercial..
  • 12. McCafe and the Investors -Christine and Judy
  • 13.
    • Hefty return on sales
      • Expecting additional $1 billion to annual sales
      • Expect more money retained within the company or give out dividends
      • Increase operating expenses
  • 14. What can investors expect?
    • Higher revenues
    • Strong market advantage in new coffee market
    • Higher share prices
    • Increase in sales
    • Greater return on investments > McDonald’s raised dividends 33%
    • Continuous growth with second beverage wave
  • 15. McCafe – The Store
  • 16. What is a McCafe store?
    • Starbuck’s-like coffee shop
  • 17. Different kind of drinks McCafe offers Frappes Iced latte Iced mocha smoothie Bottled water tea Macchiato Flat white espresso cappuccino Long black Iced coffee vienna Hot chocolate
  • 18.
    • Spring 2001: first McCafe opening in US
    • > Test run in downtown Chicago
  • 19. How will investors be affected?
    • New source of growth >New restaurants reaching point of diminished returns
    • Commercial (?)
    • Increase in revenues
  • 20. McCafe and the economy
    • New Bailout Plan