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1. MCDONALD’S CORPORATION
SWOT ANALYSIS 2017

2. SLIDE | 2
ABOUT MCDONALD’S
Name McDonald’s Corporation
Logo
Industries served Restaurants (McDonald’s, McCafé, McExpress, McStop)
Geographic areas served Worldwide (36,525 restaurants in 119 countries)
Headquarters Oak Brook, Illinois, United States
Current CEO Steve Easterbrook
Revenue US$25.413 billion (2015) decreased 7.4% over US$27.441 billion (2014)
Profit US$4.529 billion (2015) decreased 4.8% over US$4.758 billion (2014)
Employees 420,000 (2016)
Main Competitors
Burger King Worldwide, Inc., Darden Restaurants, Inc., Doctor's Associates, Inc., Domino’s, Inc., Yum!
Domino’s, Inc., Yum! Brands, Inc., Starbucks Corporation, Wendy’s Company and many other
many other restaurant chains.

3. McDonald’s Corporation business overview from the company’s financial
report:
“The Company operates and franchises McDonald’s restaurants, which
menu of quality food and drinks sold at various affordable price points
Types of franchises:
• conventional franchise
• developmental license
• affiliate
SLIDE | 3
BUSINESS DESCRIPTION (1/3)
“
”

4. SLIDE | 4
BUSINESS DESCRIPTION (2/3)
“ ”
• The Company views itself primarily as a franchisor, with the vast majority of McDonald’s
restaurants (approximately 82%) owned and operated by independent franchisees.
• Franchising enables an individual to own a restaurant business and maintain control over
personnel, purchasing, marketing and pricing decisions, while also benefiting from the
strength of McDonald’s global brand, operating system and financial resources.

5. McDonald’s restaurants offer a substantially uniform menu, although there are geographic
variations to suit local consumer preferences and tastes. In addition, McDonald’s tests new
products on an ongoing basis.
McDonald’s menu includes:
• Burgers
• Chicken & Sandwiches
• Salads & Wraps
• Snacks & French Fries
• Desserts & Shakes
• Beverages
SLIDE | 5
BUSINESS DESCRIPTION (3/3)
“ ”

6. SLIDE | 6
STRENGTHS
1. Diversified income streams
S W
O T
McDonald’s doesn’t have
to rely on its company-
owned restaurants or
franchisees to generate
the majority of its
revenue.
Figure 1. McDonald’s and its competitors’ revenue breakdown in 2015 (revenue in US$ billions)
Company
Company
sales
% of total
revenue
Revenue
from
franchisees
% of total
revenue
Total
revenue
McDonald’s 16.488 64.9 8.925 35.1 25.413
Yum! Brands 11.145 85 1.960 15 13.105
Burger King 2.169 53.5 1.883 46.5 4.052
Wendy’s 1.438 76.7 0.431 23.3 1.870
Source: The respective companies’ financial reports[1][2][3][4]

7. McDonald’s income is also much more geographically diversified than
its rivals.
SLIDE | 7
STRENGTHS
Company
Income from
the U.S.
% of total
revenue
Rest of the
world
% of total
revenue
Total revenue
McDonald’s 8.559 33.7 16.854 66.3 25.413
Yum! Brands 6.909* 52.7 6.196 47.3 13.105
Burger King 0.982 24.2 3.070 75.8 4.052
Wendy’s 1.749 93.5 0.121 6.5 1.870
Figure 2. McDonald’s and its competitors’ geographic revenue breakdown in 2015 (revenue in US$
billions)
Source: The respective companies’ financial reports[1][2][3][4] (Yum! Brands revenues are for China not
for U.S.)
S W
O T

8. 1. Inconsistent menus in different countries
• While a localized menu is one of the key strengths of McDonalds, it’s also one of the chain’s
weaknesses.
• Due to menu differences between different franchisees and directly-owned restaurants,
people can no longer expect the same level of service or menu in each McDonald’s
restaurant.
• Often, you can’t order the same deli wrap or a McRib sandwich in every restaurant in your
town.
SLIDE | 8
WEAKNESSES
S W
O T

9. 5. Growing middle class in China
SLIDE | 9
IN 2015, MCDONALD’S OPENED MORE THAN 200
RESTAURANTS IN CHINA.
OPPORTUNITIES
S W
O T
McDonald’s still
doesn’t match the
growth of Yum!
Brands or Subway
stores in China.
China’s middle class is
growing significantly
and will account for 70%
of China’s 1 billion
population.

10. 1. Intensifying competition
SLIDE | 10
THREATS
McDonald’s Key
Rivals
S W
O T

11. SLIDE | 11
THREATS
Chick-fil-A and Chipotle are growing on average by 12.7%
and ~20% annually in the U.S.
S W
O T
• Burger King and Wendy’s are constantly introducing new meals to directly compete with McDonald’s
offerings.
• Starbucks is moving away from only selling coffee to becoming a destination for breakfast and lunch.
• U.S. fast food industry grows very slowly, yet some chains expand rapidly, taking market share from
McDonald’s.

12. 1. McDonalds (2016). Annual Reports. 2015 Annual Report. Available at: http://www.aboutmcdonalds.com/mcd/investors/financial-information/sec-filings.html Accessed January
8, 2017
2. Yum! Brands (2016). Annual Reports. 2015 Annual Report. Available at: http://www.yum.com/investors/secfilings.asp Accessed January 8, 2017
3. Burger King (2016). Annual Reports. 2015 Annual Report. Available at: http://investor.rbi.com/en/investor-information/sec-filings.aspx Accessed January 8, 2017
4. The Wendy’s Company (2016). SEC Fillings. Annual Fillings. Available at: http://ir.wendys.com/phoenix.zhtml?c=67548&p=irol-secAccessed January 8, 2017
5. Interbrand (2016). Best Global Brands 2015. Rankings. Available at: http://interbrand.com/best-brands/best-global-brands/2015/ranking/ Accessed January 8, 2017
6. Forbes (2016). The World’s Most Valuable Brands. Available at: http://www.forbes.com/powerful-brands/list/ Accessed January 8, 2017
7. McDonald’s (2016). What makes McDonald’s. Available at: http://www.mcdonalds.co.uk/ukhome/whatmakesmcdonalds/questions/food/menu/why-is-the-mcdonalds-menu-
different-in-different-countries.html Accessed January 8, 2017
8. The Moscow Times (2015). For First Time Ever, McDonald's Closes a Restaurant in Russia. Available at: http://www.themoscowtimes.com/business/article/for-first-time-ever-
mcdonalds-closes-a-restaurant-in-russia/519066.html Accessed January 8, 2017
9. Patton, L. (2014). Have We Reached Peak Burger? Available at: http://www.businessweek.com/articles/2014-09-04/fast-food-chains-growth-in-u-dot-s-dot-may-have-
peaked#p1 Accessed January 8, 2017
10. QSR Magazine (2014). The Drive-Thru Performance Study: Average Service Time. Available at: http://www.qsrmagazine.com/content/drive-thru-performance-study-average-
service-time Accessed January 8, 2017
11. Bloomberg (2014). McDonald’s Costly Burgers Send Diners to Fancier Rivals. Available at: http://www.bloomberg.com/news/2014-10-20/mcdonald-s-costly-burgers-send-
diners-to-fancier-rivals.html Accessed January 8, 2017
12. Motley Fool (2014). Once Cheap, Always Cheap: Why McDonald's Can't Raise Its Prices. Available at: http://www.fool.com/investing/general/2014/10/19/once-cheap-always-
cheap-why-mcdonalds-cant-raise-i.aspxAccessed January 8, 2017
SLIDE | 12
SOURCES (1/2)

13. SLIDE | 13
SOURCES (2/2)
13. Motley Fool (2014). 5 Reasons McDonald's Is Falling Apart Before Our Eyes. Available at: http://www.fool.com/investing/general/2014/09/13/5-reasons-mcdonalds-is-falling-
apart-before-our-ey.aspx Accessed January 8, 2017
14. ConsumerReports.org (2014). Best and worst fast-food restaurants in America. Available at: http://www.consumerreports.org/cro/magazine/2014/08/best-and-worst-fast-food-
restaurants-in-america/index.htm Accessed January 8, 2017
15. Wikipedia (2015). McCafé. Available at: http://en.wikipedia.org/wiki/McCaf%C3%A9 Accessed January 8, 2017
16. Statista (2015). Food delivery industry in the U.S. - Statistics & Facts. Statistics and facts on the food delivery industry in the U.S. Available at:
http://www.statista.com/topics/1986/food-delivery-industry-in-the-us/ Accessed January 8, 2017
17. The Guardian (2014). McDonald's will let customers build their own burgers for the first time. Available at: http://www.theguardian.com/business/2014/dec/08/mcdonalds-build-
own-burgers-customers Accessed January 8, 2017
18. Marketline (2014). Company Profile. McDonald’s Corporation. Accessed January 8, 2017
19. Basu, E. (2014). Is McDonald's on the Right Track to Turn Around Its U.S. Sales? Available at: http://www.fool.com/investing/general/2014/10/22/is-mcdonalds-on-the-right-
track-to-turn-around-its.aspxAccessed January 8, 2017
20. Linshi, J. (2014). How Chick-fil-A Totally Crushed KFC, Popeyes. Available at: http://time.com/2993472/chick-fil-a-mcdonalds-kfc-growth/ Accessed January 8, 2017

14. SLIDE | 14
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