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McDonald's SWOT Analysis 2018

The document presents a SWOT analysis of McDonald's Corporation for 2018, highlighting its extensive global presence with 37,241 restaurants across 120 countries and significant revenue and profit figures. Key strengths include a large restaurant network and brand recognition, while weaknesses and threats encompass competition from rivals and challenges in delivery expansion. Opportunities for growth are also identified, particularly in the evolving fast-food market.

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MCDONALD’S CORPORATION SWOT ANALYSIS 2018
SLIDE | 2 ABOUT MCDONALD’S Name McDonald’s Corporation Logo Industries served Restaurants (McDonald’s, McCafé, McExpress, McStop) Geographic areas served Worldwide (37,241 restaurants in 120 countries) Headquarters Oak Brook, Illinois, United States Current CEO Stephen J. Easterbrook Revenue (US$) 22.820 billion (2017) 7.3% 24.622 billion (2016) Profit (US$) 5.192 billion (2017) 10.8% 4.687 billion (2016) Employees 235,000 (2018) Main Competitors Burger King Worldwide, Inc., Darden Restaurants, Inc., Doctor's Associates, Inc. (Subway), Domino’s, Inc., Dunkin' Brands Group, Inc., Yum! Brands, Inc. (KFC), Starbucks Corporation, Wendy’s Company and many other restaurant chains.
McDonald’s Corporation business overview from the company’s financial report: “The Company operates and franchises McDonald’s restaurants, which serve a locally-relevant menu of quality food and drinks sold at various affordable price points in more than 100 countries. Types of franchises: • conventional franchise • developmental license • affiliate SLIDE | 3 BUSINESS DESCRIPTION (1/3) “ ”
SLIDE | 4 BUSINESS DESCRIPTION (2/3) “ ” • The Company views itself primarily as a franchisor, with the vast majority of McDonald’s restaurants (approximately 90%) 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.
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) “ ”
SLIDE | 6 STRENGTHS 1. The second-largest restaurant network serving customers in over 120 countries S W O T In total, McDonald’s and its franchisees operate 37,241 restaurants in 120 countries. Largest quick service restaurant (QSR) chains by number of locations in 2018 Rank Brand name Locations 1. Subway 43,772 2. McDonald’s 37,241 3. Starbucks 27,339 4. KFC 21,487 5. Burger King 16,767
The sheer size of the company’s restaurant network is a strength that provides many advantages over competitors, including: SLIDE | 7 STRENGTHS S W O T • Economies of scale; • Huge gains from implementing best practices; • Market power over suppliers and competitors; • Wide audience reach.
1. The reputation of a cheap place to eat at • McDonald’s positions itself as a cheap place to eat at with US$1, US$2 and US$3 menu. • Nonetheless, most meals cost much more. • Image of being a cheap place to eat at, doesn’t help in promoting premium McCafé restaurants. SLIDE | 8 WEAKNESSES S W O T
1. Further expansion of home delivery in the U.S. and other major international markets • According to Gallup’s research, U.S. home delivery market for QSR restaurants was US$26 billion in 2016. • The company estimates that the home delivery for QSR will grow on average by 36.5% annually to US$38 billion by 2020. • Delivery has generated sales of nearly $1 billion for McDonald’s in 2016 alone. • Currently, the company expanded the delivery service to over 3,500 locations in the U.S. and in total to over 7,800 restaurants across 47 countries. SLIDE | 9 OPPORTUNITIES S W O T
1. Intensifying competition SLIDE | 10 THREATS McDonald’s Key Rivals S W O T
SLIDE | 11 THREATS In the U.S., fast-food industry is expected to grow only by 2-3% on average over the next few years. 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.
SLIDE | 12 GET THE FULL PRESENTATION BUY MCDONALD’S CORPORATION SWOT 2018
1. McDonald’s Corporation (2018). Form 10-K for the Fiscal Year Ended December 31, 2017. Available at: http://corporate.mcdonalds.com/content/corpmcd/investors-relations/financial-information/sec-filings.html Accessed March 17, 2018 2. Subway (2018). Explore Our World. Available at: http://www.subway.com/en-us/exploreourworld Accessed March 17, 2018 3. Starbucks Corporation (2017). Form 10-K for the Fiscal Year Ended October 1, 2017. Available at: https://s22.q4cdn.com/869488222/files/doc_financials/annual/2017/01/FY17-Starbucks-Form-10-K.pdf Accessed March 17, 2018 4. Yum! Brands (2018). Form 10-K for the Fiscal Year Ended December 31, 2017. Available at: http://www.yum.com/app/uploads/Yum-Brands- Inc-2017-10-K.pdf Accessed March 17, 2018 5. Restaurant Brands International Limited Partnership (2017). Form 10-K for the Fiscal Year Ended December 31, 2017. Available at: http://www.rbi.com/Cache/1001232614.PDF?O=PDF&T=&Y=&D=&FID=1001232614&iid=4591210 Accessed March 17, 2018 6. McDonald’s (2017). McDonald's McDelivery Expands to 4,200 Restaurants in 13 Countries with UberEATS. Available at: http://news.mcdonalds.com/news-releases/news-release-details/mcdonalds-mcdelivery-expands-4200-restaurants-13-countries Accessed March 17, 2018 7. McDonald’s Corporation (2018). McDonald’s history. Available at: http://corporate.mcdonalds.com/mcd/our_company/mcdonalds-history.html Accessed March 17, 2018 8. Forbes (2018). The World’s Most Valuable Brands. Available at: https://www.forbes.com/powerful-brands/list Accessed March 17, 2018 9. Interbrand (2018). Best Global Brands 2017. Available at: http://interbrand.com/best-brands/best-global-brands/2017/ranking/ Accessed March 17, 2018 10.Interbrand (2001). Best Global Brands 2000. Available at: http://interbrand.com/best-brands/best-global-brands/2000/ranking/ Accessed March 17, 2018 11.Interbrand (2006). Best Global Brands 2005. Available at: http://interbrand.com/best-brands/best-global-brands/2005/ranking/ Accessed March 17, 2018 12.Interbrand (2011). Best Global Brands 2010. Available at: http://interbrand.com/best-brands/best-global-brands/2010/ranking/ Accessed March 17, 2018 13.Interbrand (2016). Best Global Brands 2015. Available at: http://interbrand.com/best-brands/best-global-brands/2015/ranking/ Accessed March 17, 2018 SLIDE | 13 SOURCES (1/3)
SLIDE | 14 SOURCES (2/3) 14.QSR (2017). McDonald's Unveils its Plan for the Future. Available at: https://www.qsrmagazine.com/news/mcdonalds-unveils-its-plan-future Accessed March 17, 2018 15.Taylor, K. (2018). McDonald's Dollar Menu is back — here's what's on it. Available at: http://www.businessinsider.com/mcdonalds-new-1-2-3- dollar-menu-2018-1 Accessed March 17, 2018 16.Myers, D. (2016). What Was On McDonald’s Original Menu? Available at: https://www.thedailymeal.com/eat/what-was-mcdonalds-original- menu Accessed March 17, 2018 17.McDonald’s (2018). Full Menu. Available at: https://www.mcdonalds.com/us/en-us/full-menu.html Accessed March 17, 2018 18.QSR (2011). 2011 Drive-Thru Study: Average Service Time. Available at: https://www.qsrmagazine.com/content/2011-drive-thru-study-average- service-time?sort=avg_seconds&dir=asc Accessed March 17, 2018 19.QSR (2012). 2012 QSR Drive-Thru Study: Average Service Time. Available at: https://www.qsrmagazine.com/content/2012-qsr-drive-thru- study-average-service-time Accessed March 17, 2018 20.QSR (2014). The Drive-Thru Performance Study: Average Service Time. Available at: https://www.qsrmagazine.com/content/drive-thru- performance-study-average-service-time Accessed March 17, 2018 21.QSR (2017). Speed of Service. Available at: https://www.qsrmagazine.com/content/drive-thru-2017-speed-service Accessed March 17, 2018 22.Consumer Reports (2017). Fast-food restaurant ratings. Available at: http://www.consumerreports.org/products/fast-food-restaurant/ratings- overview/ Accessed March 17, 2018 23.Calderone, J. (2017). More Chain Restaurants Move to Limit Antibiotics in Meat Production. Available at: https://www.consumerreports.org/overuse-of-antibiotics/more-fast-food-chains-have-no-antibiotic-meat-on-the-menu/ Accessed March 17, 2018 24.The New York Times (1993). Company News. McDonalds’s Is Trying Out Home Delivery in Virginia. Available at: http://www.nytimes.com/1993/11/24/business/company-news-mcdonald-s-is-trying-out-home-delivery-in-virginia.html Accessed March 17, 2018 25.Peterson, H. (2016). McDonald's will now deliver food to your door — but there's a catch. Available at: http://www.businessinsider.com/mcdonalds-launches-delivery-test-2016-12 Accessed March 17, 2018
SLIDE | 15 SOURCES (3/3) 26.Alsin, A. (2017). McDonald's: Burgers, Fries And Stock Buybacks. Available at: https://www.forbes.com/sites/aalsin/2017/04/27/mcdonalds- burgers-fries-and-stock-buybacks/#48b1fc434626 Accessed March 17, 2018 27.Gallup (2017). Can McDonald's Win in $100 Billion Food Delivery Market? Available at: http://www.gallup.com/businessjournal/210026/mcdonald-win-100-billion-food-delivery-market.aspx Accessed March 17, 2018 28.McDonald’s (2018). McDonald’s Systemwide Restaurants. Available at: http://corporate.mcdonalds.com/content/dam/gwscorp/investor- relations-content/supplemental-information/Store%20Counts%20by%20Country%202017.pdf Accessed March 17, 2018 29.Business Insider (2017). McDonalds joins the mobile order-ahead craze. Available at: http://www.businessinsider.com/mcdonalds-joins-the- mobile-order-ahead-craze-2017-3 Accessed March 17, 2018 30.Pascual, K. (2017). Did Anyone Notice McDonald’s Ditching Artificial Ingredients in Its Ice Cream Treats? Available at: http://www.techtimes.com/articles/207687/20170519/did-anyone-notice-mcdonald-s-ditching-artificial-ingredients-in-its-ice-cream-treats.htm Accessed March 17, 2018 31.Restaurant Business (2018). The Future 50. Available at: http://www.restaurantbusinessonline.com/special-reports/future-fifty Accessed March 17, 2018 32.Iskyan, K. (2017). These industries will explode along with China's middle class. Available at: http://www.businessinsider.com/industries-will- explode-with-chinese-middle-class-2017-6 Accessed March 17, 2018 33.McDonald’s (2018). McDonald's Announces Growth Plan for China Following Completion of Strategic Partnership with CITIC and Carlyle. Available at: http://news.mcdonalds.com/news-releases/news-release-details/mcdonalds-announces-growth-plan-china-following-completion-0 Accessed March 17, 2018 34.IBIS World (2017). Fast Food Restaurants in the US: Market Research Report. Available at: https://www.ibisworld.com/industry-trends/market- research-reports/accommodation-food-services/fast-food-restaurants.html Accessed March 17, 2018 35.Statista (2018). Revenue growth of the quick service restaurant (QSR) industry in the United States from 2003 to 2020. Available at: https://www.statista.com/statistics/512723/quick-service-restaurants-us-revenue-growth/ Accessed March 17, 2018 36.Black Box Intelligence (2017). Restaurant Industry Snapshot. Available at: http://tdn2k.com/snapshot Accessed March 17, 2018