MGM221 PRESENTATION Cover page needed to be edited  Someone please think of a good  Cover page! I am not too good at this ...
ABOUT THIS ARTICLE & ABOUT MCDONALD’S
McDonald’s company background <ul><li>franchise company  </li></ul><ul><li>founder Ray Kroc  </li></ul><ul><li>>30,000 loc...
Julia  <ul><li>Please add ur company info here </li></ul><ul><li>You  need at least 4 slides </li></ul>
julia <ul><li>Please add ur information here </li></ul>
<ul><li>Popular  food: French Fries, Big Mac, Chicken McNuggets </li></ul><ul><li>competitors: fast food stores --> Burger...
McDonald's owners eye  Starbucks with McCafe drinks
<ul><li>McDonald’s offers McCafe espressos and cappucinos at 14,000 US locations </li></ul><ul><li>McCafe’s coffee drinks ...
McDonald’s strategy to gain market share from Starbucks <ul><li>Next annual sales: $1 billon </li></ul><ul><li>Continue im...
<ul><li>improved furniture and free Internet service </li></ul><ul><li>Attract people to come and sit in McDonald’s as the...
Jenny will explain what’s this commercial..
McCafe and the Investors -Christine and Judy
<ul><li>Hefty return on sales </li></ul><ul><ul><li>Expecting additional $1 billion to annual sales  </li></ul></ul><ul><u...
What can investors expect? <ul><li>Higher revenues </li></ul><ul><li>Strong market advantage in new coffee market </li></u...
McCafe – The Store
What is a McCafe store?   <ul><li>Starbuck’s-like coffee shop  </li></ul>
Different kind of drinks McCafe offers Frappes  Iced latte Iced mocha smoothie Bottled water tea Macchiato  Flat white esp...
<ul><li>Spring 2001: first McCafe opening  in US </li></ul><ul><li>> Test run in downtown Chicago   </li></ul>
How will investors be affected? <ul><li>New source of growth >New restaurants reaching point of diminished returns  </li><...
McCafe and the economy   <ul><li>New Bailout Plan   </li></ul>
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Mc Donalds Owners Eye Starbucks With

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Mc Donalds Owners Eye Starbucks With

  1. 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. 2. ABOUT THIS ARTICLE & ABOUT MCDONALD’S
  3. 3. McDonald’s company background <ul><li>franchise company </li></ul><ul><li>founder Ray Kroc </li></ul><ul><li>>30,000 local restaurants </li></ul><ul><li>serves 52 million people in over 100 countries </li></ul><ul><li>>70% restaurants owned & operated by local people </li></ul>
  4. 4. Julia <ul><li>Please add ur company info here </li></ul><ul><li>You need at least 4 slides </li></ul>
  5. 5. julia <ul><li>Please add ur information here </li></ul>
  6. 6. <ul><li>Popular food: French Fries, Big Mac, Chicken McNuggets </li></ul><ul><li>competitors: fast food stores --> Burger King (food), Starbucks (Beverages) </li></ul><ul><li>customers: mainly families with children --> more young adult customers </li></ul><ul><li>will add other beverages next year </li></ul>
  7. 7. McDonald's owners eye Starbucks with McCafe drinks
  8. 8. <ul><li>McDonald’s offers McCafe espressos and cappucinos at 14,000 US locations </li></ul><ul><li>McCafe’s coffee drinks cost less than StarBucks, from $2.39 for a small to $3.29 for a large </li></ul><ul><li>McDonald’s first gained revenue from offering coffe in the breakfast menu </li></ul><ul><li>“ Beverages have higher margin than food” </li></ul><ul><li>Offers Lower price “affordable luxury” </li></ul>
  9. 9. McDonald’s strategy to gain market share from Starbucks <ul><li>Next annual sales: $1 billon </li></ul><ul><li>Continue improve their coffee bean quality to compete with StarBucks </li></ul><ul><li>Advantage by offering food and coffee while StarBucks only has muffins and coffee </li></ul><ul><li>Draw attention to price sensitive customers </li></ul><ul><li>US economy downturns </li></ul>
  10. 10. <ul><li>improved furniture and free Internet service </li></ul><ul><li>Attract people to come and sit in McDonald’s as they do in Starbucks </li></ul>
  11. 11. Jenny will explain what’s this commercial..
  12. 12. McCafe and the Investors -Christine and Judy
  13. 13. <ul><li>Hefty return on sales </li></ul><ul><ul><li>Expecting additional $1 billion to annual sales </li></ul></ul><ul><ul><li>Expect more money retained within the company or give out dividends </li></ul></ul><ul><ul><li>Increase operating expenses </li></ul></ul>
  14. 14. What can investors expect? <ul><li>Higher revenues </li></ul><ul><li>Strong market advantage in new coffee market </li></ul><ul><li>Higher share prices </li></ul><ul><li>Increase in sales </li></ul><ul><li>Greater return on investments > McDonald’s raised dividends 33% </li></ul><ul><li>Continuous growth with second beverage wave </li></ul>
  15. 15. McCafe – The Store
  16. 16. What is a McCafe store? <ul><li>Starbuck’s-like coffee shop </li></ul>
  17. 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. 18. <ul><li>Spring 2001: first McCafe opening in US </li></ul><ul><li>> Test run in downtown Chicago </li></ul>
  19. 19. How will investors be affected? <ul><li>New source of growth >New restaurants reaching point of diminished returns </li></ul><ul><li>Commercial (?) </li></ul><ul><li>Increase in revenues </li></ul>
  20. 20. McCafe and the economy <ul><li>New Bailout Plan </li></ul>

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