McDonald's Corporation is the world's largest chain of fast food restaurants. The presentation summarizes McDonald's history from 1940 to present day, outlining key events and strategies. It discusses McDonald's mission, worldwide strategies, extensive training programs, social commitments, and financial performance. McDonald's has grown to over 30,000 locations globally and remains committed to operational excellence, growth, and being the best employer and community partner.

1. McDonald’s CorporationMcDonald’s Corporation
Presented By:Presented By:
Ardis ShannonArdis Shannon
Adam KrupaAdam Krupa
Jigar PatelJigar Patel
David SeidDavid Seid
Samuel GeorgeSamuel George

2. McDonald’s MissionMcDonald’s Mission
Be the best quick service restaurant
experience. By providing quality, service,
cleanliness and value that make every
customer in every restaurant smile.

3. 3 World wide strategies3 World wide strategies
 Best employer
 Operational Excellence
 Continue to grow and be profitable

4. HistoryHistory
 1940 First McDonald’s
 1952 Attempts at
franchising
 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 of
Big Mac and shift to
Network Television
• 1970 1600 restaurants
• 1980 6000
McDonald’s
Restaurants
• 1990 record sales

5. History ContinuedHistory Continued
 1994 Kuwait City, Kuwait
 2002 Forty seven years after
– 30,000 locations
– 2000 new restaurants
– World Wide Web
– McDonald’s a recognized Brand
Name

6. RecentRecent
Acquisitions/DivestituresAcquisitions/Divestitures
Boston Market
Chipolte Mexican Grill
Donato’s Pizza chain
McCafe’

7. TrainingTraining
Surpasses even the U.S. Army
Provides career opportunities
Service Enhancement Process
Consistent through CD-ROMs

8. ReHIREmentReHIREment
Program established for mature workers
Ease of transition of older workers returning
to the workforce.
Flexible scheduling so as not to jeopardize
their Social Security benefits.
More than 40,000 older workers serve
McDonald’s customers on any given day

9. McJobsMcJobs
Assistance to employees with mental and
physical disabilities.
More than 9,000 workers went through the
program.
Given formal graduation ceremony

10. ManagementManagement
Development ProgramsDevelopment Programs
Crew Development
Restaurant Management
Mid-Management
Executive Development

11. Hamburger UniversityHamburger University
 Management Training
Center
 Worldwide Education
Program
 Technology
 200 per class
 65,000 managers
graduated to date

12. Women and MinoritiesWomen and Minorities
Soars above stereotype of average fast-food
joint
Compose more than 50 percent of
McDonald’s current workforce
Featured as the “The Best Companies for
Minorities”

13. Product LinesProduct Lines
Hamburgers
Chicken Sandwiches
French Fries
Beverages
Breakfast Items
Desserts

14. TechnologyTechnology
McDonald’s in Sweden
– World’s First Snowmobile Drive-Thru
McDonald’s & ExxonMobil???
– Speedpass invades McDonald’s

15. Industry TrendsIndustry Trends
What is happening with fast food?
– People are more educated
McDonald’s Responds
– America’s First McCafe
 In Downtown Chicago

16. Financial AgendaFinancial Agenda
• System Wide Sales
• McDonald’s Corporation Revenues
• Cash Flow
• Financial Ratios
• Stock Performance

17. System Wide SalesSystem Wide Sales
In The Year 2000In The Year 2000
$40.181 Billion$40.181 Billion
Company
operated
Resturants
26%
Franchised
61%
Affiliated
13%

18. McDonald’s CorporationMcDonald’s Corporation
Sales By SegmentSales By Segment
U.S.
37%
Europe
33%
Asia/Pacific
14%
Latin America
7%
Other
9%

19. IncomeIncome
(in millions)(in millions)
Net
Revenues
Net
Income
Earnings /
Share
$12,42
1
$14,24
3
$13,25
9
'98 '99 '00
$1,550
$1,947 $1,977
'98 '99 '00
$1.14
$1.44
$1.49
'98 '99 '00

20. Cash Flow StatementCash Flow Statement
In (millions)In (millions)
2000 1999
Net Income
Net Cash Provided By Operating Activities
Net Cash Provided By Investing Activities
Net Cash Provided By Financing Activities
$1,977.3
$2,751.5
(2,212.6)
(536.7)
$1,947.9
3,008.9
(2,261.8)
(626.8)
Cash and equivalents increase(decrease)
Cash and equivalents at beginning of year
Cash and Equivalents at end of year
$2.2
$419.5
$421.7
$120.3
$299.2
$419.5

21. Financial RatiosFinancial RatiosAnalysis McDonald Industry
P/E Ratio 21.42 25.49
Price to Sales 2.36 1.97
Price to Book 3.52 3.95
Quick Ratio 0.76 0.63
Inventory Turnover 109.28 32.44
Total Debt to Equity 0.89 0.64
Net Profit Margin 11.01 7.62
Return on Assets 7.54 8.67
Return on Investment 8.30 10.54
Return on Equity 17.62 17.65
Revenue/Employee 40,852 77,289

22. Stock PerformanceStock Performance
Mkt Cap 52-wk Range Last Trade
35.877B 24.75 - 31.00 Mar. 8 27.91

23. Making A DifferenceMaking A Difference
We have an obligation toWe have an obligation to
give back to thegive back to the
communities that give us socommunities that give us so
much."much."
- Founder Ray Kroc, 1955- Founder Ray Kroc, 1955

24. Social CommitmentsSocial Commitments
“9-11” Relief Effort
Environmental Concerns
Educational Involvement
Quality & Safety Procedures
Ronald McDonald House
Charities (RHMC)

25. Stay Tuned …………Stay Tuned …………

26. Terence HaynesTerence Haynes
Senior Vice President,Senior Vice President,
U.S. ControllerU.S. Controller
Native of South AfricaNative of South Africa
Education: Bachelor of CommerceEducation: Bachelor of Commerce
University of Witwatersand in JohannesburgUniversity of Witwatersand in Johannesburg
Prior Position: Chief Financial Officer in the U.K.Prior Position: Chief Financial Officer in the U.K.