mcdonalds project.doc
TRANSCRIPT
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One world, One
Burger
- McDonalds
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#!
NO*"A!TI'$LA!#
"AGE
NO*
* INT!OD$'TION -./
0* 'HA"TE!
'OM"AN% "!O+ILE
1.2
3* 'HA"TE! 0
ANALI%#I# ON M'DONALD# A# A #MALL
#'ALE 'O!"O!ATION IN THE BEGINNING
/.04
4*
'HA"TE! 3
ANALI%#I# ON M'DONALD#
'O!"O!ATION AT INTE!NATIONAL
LEEL*
05.31
5*
'HA"TE! 4
ANALI%#I# ON M'DONALD# ON "!OD$TIIT%
) 6$ALIT%*
3.35
7*
'HA"TE! 5
ANALI%#I# ON M'DONALD#
ADE!TI#EMENT AND "$BILE !ELATION#*
37.4
-*
'HA"TE! 7
ANALI%#I# ON AL$ATION O+ TA( O+
M'DONALD# 'O!"O!ATION*
40.4-
2*
'HA"TE! -
ANALI%#I# ON M'DONALD# IM"O!T.
E("O!T*
42.5
5
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INT!OD$'TION
Although the realm of accounting and finance hasoften been viewed as dull bean counting, in todays modern and
competitive business environment, the finance department should
be at the heart of any company, encompassing a variety of
functions that go beyond its traditional financial reporting role
!hile it is still a priority for accountants to ensure a companys
financial statutory accounts meet legal re"uirements, dynamic
companies such as #c$onalds have shifted the focus of their
accounting and finance function to additionally include the
evaluation of past performance and appraisal of future
opportunities, helping to ensure the
%ompany ma&imises its strategic capabilities
#c$onalds 'estaurants () *imited, a wholly owned
subsidiary of the (+ parent company, opened its first ()
restaurant in !oolwich in .4 /here are now ,200 restaurants
operating in the () which, despite representing only 41 of the
total number of #c$onalds restaurants worldwide, contribute
.1 of global profits, maing the () a very important financial
maret for #c$onalds shareholders
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#c$onalds understands the value of an integrated
accounting and finance function, e&tending from the restaurant
floor up to the board of directors ach individual #c$onalds
restaurant is structured as an independent business, with
restaurant management responsible for its financial performance,
supported by the centralised Accounting 6inance department
DE"A!TMENT #T!$'T$!E ) +$N'TION
#c$onalds 6inance $epartment has two ey areas of
responsibility7 financial reporting and management accounting
Although each of these functions has different priorities, woring
together ensures the best financial position for the company now
and for the future
.
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HOW DOE# M'DONALD# MAKE A
"!O+IT8
#c$onalds has two sources of profit7
8 +ales made by company-owned restaurants
8 'ental and royalty income from franchised restaurants
!E#TA$!ANT #ALE#
#c$onalds retains all of the profit earned by company-owned
restaurants An e&le 9rofit *oss +tatement for a restaurant
is shown left and highlights how food and labour constitute a
restaurants largest costs :n addition to variable costs, which
increase or decrease depending on the level of sales, #c$onalds
also incurs costs that are largely fi&ed, for e&le utilities and
advertising, which need to be paid for even before the restaurant
maes any sales :ncreasing sales and controlling costs are
fundamental to ensuring the profit of each restaurant is either
maintained or increased
;
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'HA"TE!9.
'OM"AN% "!O+ILE
#c$onalds is a leader in convenient foods and
beverages, with revenues of about aving about billon customers to be served all over the world
#c$onaldss success is the result of superior products,
high standards of performance, distinctive competitive strategies
and the high integrity of our people #c$onalds is continuing to
e&pand and introduce new alternative beverages in the maret
Appro&imately ;51 of #c$onalds restaurant businesses world-
wide are owned and operated by franchisees All franchisees are
independent, full-time operators #c$onalds was named
ntrepreneurs ?umber-one franchise for .
@ur mission is to be the worlds premier consumer9roducts %ompany focused on convenient foods and beverages
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!e see to produce healthy financial rewards to investors as we
provide opportunities for growth and enrichment to our
employees, our business partners and the communities in which
we operate And in everything we do, we strive for honesty,
fairness and integrity you could now Boin our team Creater
variety and "uality choices surprise and delight customers with
the food and beverage they desire
#c$onalds corp is currently one of the most successful
consumer products company in the world with annual revenues
e&ceeding
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customersE and by providing a fair return to their investors while
maintaining the highest standards of integrity
HI#TO!% O+ McDONALD#*
The McDonald's History - 1954 to 1955Raymond Albert Kroc 1902-194! A "alesman
Ray Kroc mortgaged his home and invested
his entire life savings to become theexclusive distributor of a five-spindled milkshake maker called the Multimixer. Hearingabout the McDonald's hamburger stand inalifornia running eight Multimixers at a time!he packed up his car and headed "est. #t$as %&(. He $as ) years old.
Dic# and Mac McDonald's Resta$rant! "an %ernardino!&aliornia
Ray Kroc had never seen so many peopleserved so *uickly $hen he pulled up to takea look. +ei,ing the day! he pitched the idea
of opening up several restaurants to thebrothers Dick and Mac McDonald! convincedthat he could sell eight of his Multimixers toeach and every one. "ho could $e get toopen them for us Dick McDonald said.
"ell! Kroc ans$ered! $hat about me
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(here it all be)an! Des *laines! +llinois
Ray Kroc opened the Des /laines restaurantin %&. 0irst day's revenues-1233.%)4 5olonger a functioning restaurant! the Des/laines building is no$ a museum containingMcDonald's memorabilia and artifacts!
including the Multimixer4
The McDonald's History - 195, to 19,
Ray Kroc At (or#
#f you've got time to lean! you've got time to clean!Ray Kroc preached to his troops. Heeding his o$n$ords! here the hairman of the 6oard cleans theparking lot of the first McDonald's franchise in Des/laines! #llinois.
Ronald McDonald! +n Any .an)$a)e He Means /$n/
7he smile kno$n around the $orld! #n his first 78appearance in %&32 the happy clo$n $as portrayed bynone other than "illard +cott.
2
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red T$rner And Ray Kroc! Architects A Dream
Here Ray Kroc 9right: and 0red 7urner study the design$hich $ould replace the red and $hite tile buildings thathad become landmarks throughout the ;.+. alledKroc's first grill man extraordinaire! 7urner is today+enior hairman of the 6oard.
The McDonald's History - 19,5 to 193
McDonald's &omes To (all "treet
#n %&3 McDonald's $ent public $ith the company's first
offering on the stock exchange. < hundred shares ofstock costing 1)!)= dollars that day $ould havemultiplied into >(!23= shares today! $orthapproximately 12.2 million on December 2%! )==3. #n%&? McDonald's $as added to the 2=-company Do$@ones #ndustrial
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million!es:auran: e;de ded>ca:ed :o ser?>ng our
cus:o;ers
540million#nac@ Wran 011-
24,500!es:auran:s around :e world oer eC:ended or 04.our
ser?>ce
billionMore cus:o;ers were ser?ed >n 011- :an >n 0117
5'oun:r>es c>n one o McDonalds ;os: successul
ons e?er
Our :>e.>n w>: Drea;Wor@s #r>e@ :e T>rd
'HA"TE!9.0 5
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ANALI%#I# ON M'DONALD# A#
A #MALL #'ALE'O!"O!ATION IN THE
BEGINNING*
#c$onalds is one of the leading restaurant chains in the world,
touching the lives of people everyday /he long Bourney of the
burger brand started in 40, when two brothers, $ic and #ac
#c$onald opened the first #c$onalds restaurant in +an
=ernardino, %alifornia :nitially, they owned a hotdog stand, but
after establishing the restaurant they served around 25 items,which were mostly barbe"ued :t became a popular and profitable
teen hangout :n 4;, the brothers closed and reopened the
restaurant to sell only hamburgers, milshaes and 6rench fries
As per the information of the #c$onalds history, the
maBor revenue came from hamburgers, which were sold at a
nominal price of 5 cents /he restaurant gradually became
famous and the #c$onald brothers begin franchising their
restaurant in the year 53 /he first franchise was taen by ?eil
6o& and under itE the second #c $onalds restaurant was opened
in 6resno, %alifornia :t was the first to introduce the Colden
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Arch design /he third and fourth restaurants were opened in
+aginaw, #ichigan and $owney, %alifornia, respectively
/he business began in 40, with a restaurantopened
by siblings $ic and #ac #c$onald in +an =ernardino,
%alifornia /heir introduction of the F+peedee +ervice +ystemF in
4; established the principles of the modern fast-food
restaurant /he original mascot of #c$onalds was a man with a
chefs hat on top of a hamburger shaped head whose name was
F+peedeeF +peedee was eventually replaced with 'onald
#c$onald in 3
/he present corporation dates its founding to the openingof a franchisedrestaurant by 'ay )roc, in $es 9laines, :llinoison
April 5, 55 , the ninth #c$onalds restaurant overall )roc
later purchased the #c$onald brothers e"uity in the company
and led its worldwide e&pansion and the company became listed
on the public stoc marets in 5 )roc was also noted for
aggressive business practices, compelling the #c$onalds
brothers to leave the fast food industry /he #c$onalds brothers
and )roc feuded over control of the business, as documented in
both )rocs autobiography and in the #c$onald brothers
.
http://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonaldhttp://en.wikipedia.org/wiki/San_Bernardino,_Californiahttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Fast_food#Overviewhttp://en.wikipedia.org/wiki/Fast_food#Overviewhttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonaldhttp://en.wikipedia.org/wiki/San_Bernardino,_Californiahttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Fast_food#Overviewhttp://en.wikipedia.org/wiki/Fast_food#Overviewhttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchising -
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autobiography /he site of the #c$onald brothers original
restaurant is now a monument
!ith the e&pansion of #c$onalds into many internationalmarets, the company has become a symbol of globaliDationand
the spread of the American way of life :ts prominence has also
made it a fre"uent topic of public debates about obesity,
corporate ethicsand consumerresponsibility
#%$@?A*$+ :ndia 9vt *td G#:9*H, the wholly-owned
subsidiary of the (+-based fast-food giant, #c$onalds
%orporation, is liely to put on hold its earlier declared e&pansion
plan of opening ;0 restaurants in :ndia by 2003
;
http://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/American_wayhttp://en.wikipedia.org/wiki/Obesityhttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Moral_responsibilityhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/American_wayhttp://en.wikipedia.org/wiki/Obesityhttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Moral_responsibility -
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#c$onalds has 32 restaurants in :ndia of which . are in ?orth ast
:ndia and 53 in !est +outh :ndia
-/ res:auran:s >n Nor: ) Eas: Ind>a9 w>:
33 >n Del>
00 >n $::ar "radesI ?oida G5H,
ChaDiabad G4H, #athura GH G>ighway and $rive /hruH, )anpur
G2H, #eerut G2H, *ucnow G4H, Agra GH, Allahabad GH, Jaranasi G2H
>n Har=ana- 6aridabad G3H, #anesar GH G>ighway and $rive -
/hruH, Curgaon G5H, )arnal GH G>ighway and $rive - /hruH,
9anipat GH
- >n "unFa- %handigarh G2H, *udhiana G2H, $oraha GH G>ighway
and $rive - /hruH, Kalandhar GH, 9atarsi GH G>ighway and $rive -
/hruH 3 >n !aFas:an .Kaipur G3H
>n $::arancal- $ehradun GH
>n Wes: BengalI )olata GH
>n H>;acal "rades- Kabli GH
53 !es:auran:s >n Wes: ) #ou: Ind>a7
30 >n Maaras:raI #umbai G23H, 9une G;H, ?asiGH
- >n GuFara:I Ahmedabad G4H, Jadodara G2H, +urat GH
- >n Karna:a@aI =angaloreG.H
4 >n Andra "radesI >yderabad G4H, 3 >n Mad=a "radesI:ndore G3H
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'HA"TE!9.3
//7 /he first #c$onalds restaurant opened on @ct 3, at =asant *o,Jasant Jihar, ?ew $elhi :t was also the first #c$onalds
restaurant in the world not serving beef on its menu
//- /he first $rive - /hru restaurant at ?oida G(9H
/he first disabled friendly store at ?oida G(9H
/// /he first #all location restaurant at Ansal 9laDa G?ew $elhiH
0111 /he first highway restaurant at #athura G(9H
011 /he first thematic restaurant at %onnaught 9lace G?ew $elhiH
0110 /he first restaurant in a food court at 3%s, *aBpat ?agar G?ew
$elhiH
/he first restaurant at the $elhi #etro +tation at :nter +tate =us/erminus
/he first annual fundraiser in association with @'=:+ and $r+hroffs %harity ye >ospitalG$elhiH
0113 /he first $essert )ios - 6aridabad G>aryanaH
0113.
14
:ndigenous products lie #cAloo /ii, #cJeggie and 9iDDa#c9uff e&ported to #iddle ast countries
0114 #c$onalds $elivery +ervice G#c$elivery/# H introduced in ?ew$elhi
0117 #c$elivery on =icycles flagged off at %handni %how G$elhiH-another first initiative by #c$onalds :ndia
00th #c$onalds 'estaurant in :ndia
0 Lear Anniversary
011- /he first 'estaurant opened in the astern 'egion at 9ar +treet,)olata G!est =engalH
/he first 'estaurant opened at AirportG$omestic Airport, ?ew$elhiH
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ANALI%#I# ON M'DONALD#
'O!"O!ATION AT
INTE!NATIONAL LEEL*#c$onalds :nternational through its wholly owned subsidiary#c$onalds :ndia entered into two KJs, one with %onnaught
9laDa 'estaurants 9vt *td in the ?orthern astern region andanother with >ard %astle 'estaurants 9vt *td in the !estern
+outhern region
#c$onalds restaurants are found in countries and
territories around the world and serve nearly 4. million
customers each day #c$onalds operates over 3,000
restaurants worldwide, employing more than 5 million people
/he company also operates other restaurantbrands, such as 9iles
%afM, and has a minority stae in 9ret a #anger /he company
owned a maBority stae in %hipotle #e&ican Crill until
completing its divestment in @ctober 200 (ntil $ecember
2003, it also owned $onatos 9iDDa @n August 2., 200.,
#c$onalds sold =oston #aretto +un %apital 9artners
2
http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Pret_a_Mangerhttp://en.wikipedia.org/wiki/Chipotle_Mexican_Grillhttp://en.wikipedia.org/wiki/Divestmenthttp://en.wikipedia.org/wiki/Donatos_Pizzahttp://en.wikipedia.org/wiki/Boston_Markethttp://en.wikipedia.org/wiki/Sun_Capital_Partnershttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Pret_a_Mangerhttp://en.wikipedia.org/wiki/Chipotle_Mexican_Grillhttp://en.wikipedia.org/wiki/Divestmenthttp://en.wikipedia.org/wiki/Donatos_Pizzahttp://en.wikipedia.org/wiki/Boston_Markethttp://en.wikipedia.org/wiki/Sun_Capital_Partners -
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#ost standalone #c$onalds restaurants offer both
counter service and drive-through service, with indoor and
sometimes outdoor seating $rive-/hru, Auto-#ac, 9ay and
$rive, or #c$rive as it is nown in many countries, often has
separate stations for placing, paying for, and picing up orders,
though the latter two steps are fre"uently combinedE it was first
introduced in AriDona in .5, following the lead of other fast-
food chains :n some countries F#c$riveF locations near
highways offer no counter service or seating :n contrast,
locations in high-density city neighborhoods often omit drive-
throughservice /here are also a few locations, located mostly in
downtown districts, that offer !al-/hru service in place of
$rive-/hru specially themed restaurants also e&ist, such as theF+olid Cold #c$onalds,F a 50s roc-and-roll themed
restaurant :n Jictoria, =ritish %olumbia, there is also a
#c$onalds with a 24 carat G001H gold chandelierand similar
light fi&tures
ach #c$onalds restaurant is operated by a franchisee,
an affiliate, or the corporation itself /he corporations revenues
come from the rent, royalties and fees paid by the franchisees, as
well as sales in company-operated restaurants #c$onalds
revenues grew 2.1 over the three years ending in 200. to
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6ull year 200; highlights included7
Clobal comparable sales increase of 1, including
(+ 401, urope ;51, and AsiaN9acific, #iddle ast and
Africa 01
Crowth in #c$onalds combined operating margin of 320
basis points to 2.41, after adBusting for the impact of the
200. *atin America transaction
@perating income increases in the (+ ;1, urope 231
G.1 in constant currenciesH and AsiaN9acific, #iddle ast
and Africa 331 G2;1 in constant currenciesH
arnings per share from continuing operations of
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%ompanys underlying leases and escalations Gon properties that
are leasedH #c$onalds franchisees are granted the right to
operate a restaurant using the #c$onalds +ystem and, in most
cases, the use of a restaurant facility, generally for a period of 20
years 6ranchisees pay related occupancy costs including
property ta&es, insurance and maintenance :n addition, in certain
marets outside the (+, franchisees pay a refundable, non
interest-bearing security deposit 6oreign
affiliates and developmental licensees pay a royalty to the
%ompany based upon a percent of sales, as well as initial fees
/he results of operations of restaurant businesses purchased and
sold in transactions with franchisees, affiliates and others were
not material to the consolidated financial statements for periodsprior to purchase and sale
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McDonalds Ind>a 'ul:urall= #ens>:>?e
#c$onalds worldwide is well nown for the high degree of
respect for the local customs and culture #c$onalds has
developed a menu especially for :ndia with vegetarian selections
to suit :ndian tastes and preferences )eeping in line with this,
McDonalds does no: oer an= ee or :e;s >n Ind>a :n
the last decade it has introduced some vegetarian and non-
vegetarian products with local flavours that have appealed to the
:ndian palate /here have been continuous efforts to enhance
variety in the menu by developing more such products
#c$onalds has also re-engineered its operations repeatedly in its
years in :ndia to address the special re"uirements of a
vegetarian menu Jegetable products are 001 vegetarian, ie
/hey are prepared separately, using dedicated e"uipment
and utensils
@nly pure vegetarian oil is used as a cooing medium %heese and sauces are completely vegetarian and egg less
+eparation of vegetarian and non-vegetarian food products
is maintained throughout the various stages of procurement,
cooing and serving
'HA"TE!9.4 25
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ANALI%#I# ON M'DONALD# ON
"!OD$TIIT% ) 6$ALIT%*
/he site of the first #c$onalds to be franchised by 'ay
)roc is now a museumin $es 9laines, :llinois /he building is a
reproduction of the original, which was the ninth #c$onalds
restaurant
/o accommodate the current trend for high "uality
coffee and the popularity of coffee shops in general, #c$onalds
introduced #c%afMs /he #c%afM concept is a cafM-style
accompaniment to #c$onalds restaurants #c%afM is a conceptof #c$onalds Australia, starting with #elbourne in 3
/oday, most #c$onalds in Australia have #c%afMs located
within the e&isting #c$onalds restaurant :n /asmaniathere are
#c%afMs in every store, with the rest of the states "uicly
following suit After upgrading to the new #c%afM loo and feel,
some Australian stores have noticed up to a 01 increase in
sales As of the end of 2003 there were over 00 #c%afMs
worldwide
+ome locations are connected to gas
stationsNconvenience stores, while others called #c$onalds
2
http://en.wikipedia.org/wiki/McDonald's_Museumhttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Caf%C3%A9http://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Tasmaniahttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Convenience_storehttp://en.wikipedia.org/wiki/McDonald's_Museumhttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Caf%C3%A9http://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Tasmaniahttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Convenience_store -
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marets, #c$onalds offers salads and vegetarian items, wraps
and other localiDed fare /his local deviation from the standard
menu is a characteristic for which the chain is particularly
nown, and one which is employed either to continue by regional
food taboos Gsuch as the religious prohibition of beef
consumption in :ndiaH or to mae available foods with which the
regional maret is more familiar Gsuch as the sale of #c 'ice in
:ndonesiaH /here have been continuous efforts to enhance
variety in the menu by developing more such products
#c$onalds has also re-engineered its operations
repeatedly in its years in :ndia to address the special
re"uirements of a vegetarian menu Jegetable products are 001
vegetarian, /hey are prepared separately, using dedicatede"uipment and utensils @nly pure vegetarian oil is used as a
cooing medium %heese and sauces are completely vegetarian
and egg less +eparation of vegetarian and non-vegetarian food
products is maintained throughout the various stages of
procurement, cooing and serving
2;
http://en.wikipedia.org/wiki/Saladshttp://en.wikipedia.org/wiki/Vegetarianhttp://en.wikipedia.org/wiki/Wrap_(food)http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Saladshttp://en.wikipedia.org/wiki/Vegetarianhttp://en.wikipedia.org/wiki/Wrap_(food)http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indonesia -
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#c$onalds :ndia - A decade of "uality service
6or its unparalleled benchmars established in the O+' sector#c$onalds :ndia has been bestowed with many prestigious
awards /o name a few7
'HA"TE!9.5
Mos: !esler . Te 'onsu;er Wa=, +ood
#er?>ces !e:a>ler o :e %ear 0117 ) 011-, =+ranc>se Ind>a
A;>:= 'orn 011- )
0112
2
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ANALI%#I# ON M'DONALD#
ADE!TI#EMENT AND "$BILE
!ELATION#
@ver the years, #c$onalds has developed /J advertising
campaigns that have become, lie #c$onalds, a part of our lives
and culture #c$onalds commercials have focused not only on
product, but rather on the overall #c$onalds e&perience,
portraying warmth and a real slice of every day life /his
FimageF or FreputationF advertising has become a trademar of
the company and created many memorable television moments
and themes, including7-
#c$onalds is Lour )ind of 9lace G.H
Lou $eserve a =rea /oday G.H
!e $o it All for Lou G.5H
/woallbeefpattiesspecialsaucelettucecheesepiclesonionsonasesa
meseedbun G.5H
Lou, Loure /he @ne G.H
?obody %an $o :t *ie #c$onalds %an G.H
'enewed7 Lou $eserve a =rea /oday G;0 ;H
?obody #aes Lour $ay *ie #c$onalds %an G;H
#c$onalds and Lou G;3H
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:ts a Cood /ime for the Creat /aste of #c$onalds G;4H
Cood /ime, Creat /aste, /hats !hy /his is #y 9lace G;;H
6ood, 6ols and 6un G0H
#c$onalds /oday GH
!hat Lou !ant is !hat Lou Cet G2H
>ave you >ad your =rea /odayP G5H
#y #c$onalds G.H
$id +omebody +ay #c$onalds G.H
!e *ove to +ee Lou +mile G2000H
/heres a little #c$onalds in veryone G200H - %anada @nly
:m lovin it G2003H
#c$onalds has for decades maintained an e&tensive advertising
campaign :n addition to the usual media Gtelevision, radio, and
newspaperH, the company maes significant use of
billboardsGoutdoors, on which large advertisements or notices are
postedH and signage, sponsors sporting events from ranging from
*ittle *eague to the @lympic Cames, and maes coolers of
orange drin with their logo available for local events of all
inds ?onetheless, television has always played a central role in
the companys advertising strategy
EM"LO%EE BENE+IT "LAN#
3
http://en.wikipedia.org/wiki/Little_Leaguehttp://en.wikipedia.org/wiki/Olympic_Gameshttp://en.wikipedia.org/wiki/Orange_drinkhttp://en.wikipedia.org/wiki/Little_Leaguehttp://en.wikipedia.org/wiki/Olympic_Gameshttp://en.wikipedia.org/wiki/Orange_drink -
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/he %ompanys 9rofit +haring and +avings 9lan for (+-
based employees includes a 40GH feature, a leveraged employee
stoc ownership G+@9H feature, and a discretionary employer
profit sharing match /he 40GH feature allows participants to
mae pre-ta& contributions that are partly matched from shares
released under the +@9 /he 9rofit +haring and +avings 9lan
also provides for a discretionary employer profit sharing match at
the end of the year for those eligible participants who have
contributed to the 40GH feature All contributions and related
earnings can be invested in several investment alternatives as
well as #c$onalds common stoc in accordance with each
participants elections 9articipants contributions to the 40GH
feature and the discretionary employer match are limited to 201
investment in #c$onalds common stoc /he %ompany also
maintains certain supplemental benefit t plans that allow
participants to GiH mae ta&-deferred contributions
and GiiH receive %ompany-provided allocations that cannot bemade under the 9rofit +haring and +avings 9lan because of
:nternal 'evenue +ervice limitations /he investment alternatives
and returns are based on certain maret-rate investment
alternatives under the 9rofit +haring and +avings 9lan /otal
liabilities were
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term liabilities in the %onsolidated balance sheet /he %ompany
has entered into derivative contracts to hedge maret-driven
changes in certain of the liabilities At $ecember 3, 200.,
derivatives with a fair value of
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!EA#ON TO WO!K WITH M'DONALD#
'HA"TE!9.7
+as:.:rac@ 'areer "rogress>on
%oung , Energe:>c ) +leC>le
En?>ron;en:
ECcellen: learn>ng "o:en:>al
D>gn>:= o Laour World class Tra>n>ng #=s:e;s
Gloal EC:s
34
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ANALI%#I# ON AL$ATION O+
TA( O+ M'DONALD#
'O!"O!ATION /he %ompany records a valuation allowance to reduceits deferred ta& assets if it is more liely than not that some
portion or all of the deferred assets will not be realiDed !hile the
%ompany has considered future ta&able income and ongoing
prudent and feasible ta& strategies, including the sale of
appreciated assets, in assessing the need for the valuation
allowance, if these estimates and assumptions change in the
future, the %ompany may be re"uired to adBust its valuation
allowance /his could result in a charge to, or an increase in,
income in the period such determination is made :n addition, the
%ompany operates within multiple ta&ing Burisdictions and is
subBect to audit in these Burisdictions /he %ompany records
accruals for the estimated outcomes of these audits, and the
accruals may change in the future due to new developments in
each matter $uring 200., the %ompany recorded a
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returns /he %ompanys 2005-200 (+ ta& returns are under
audit and the completion is e&pected in late
200; or early 200
$eferred (+ income ta&es have not been recorded for
temporary differences totalling
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=A*A?% +>/ @6 #%$@?A*$+ 200.-0;
PERIOD
ENDING30-Jun-07 31-Mar-07 31-Dec-06 30-Sep-06
Assets
Current Assets
Cash And Cash
Equivalents2,142,100 2,438,400 2,136,400 4,282,700
Short Term
Investments- - - -
Net Receivables784,600 848,000 904,200 812,500
Inventory 1,055,500 143,700 149,000 144,500
Other Current
Assets 379,200 449,300 435,700 596,000
Total Current
Assets4,361,400 3,879,400 3,625,300 5,835,700
Long Term
Investments1,060,100 1,064,400 1,036,200 1,032,300
Property Plant
and Equipment20,106,600 20,975,200 20,845,700 20,526,200
Goodwill 2,198,300 2,254,300 2,209,200 2,156,100
Intangible
Assets- - - -
Accumulated
Amortization- - - -
Other Assets 1,268,500 1,300,200 1,307,400 1,278,900
DeferredLong
TermAssetCharges
- - - -
Total Assets 28,994,900 29,473,500 29,023,800 30,829,2003.
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Liabilities
Current Liabilities
Accounts
Payable2,120,900 2,451,000 2,739,000 4,122,100
Short/Current
LongTermDebt288,200 613,500 17,700 454,200
Other Current
Liabilities1,020,500 - 251,400 -
Total Current
Liabilities3,429,600 3,064,500 3,008,100 4,576,300
LongTermDebt 7,885,500 8,199,900 8,416,500 8,569,400
Other Liabilities 1,652,500 1,471,000 1,074,900 1,154,300
DeferredLong
TermLiability
Charges
941,600 971,100 1,066,000 1,002,900
Minority Interest - - - -
Negative
Goodwill- - - -
Total Liabilities 13,909,200 13,706,500 13,565,500 15,302,900
Stockholders' Equity
Misc Stocks
Options
Warrants
- - - -
Redeemable
PreferredStock- - - -
PreferredStock - - - -
CommonStock 16,600 16,600 16,600 16,600
Retained
Earnings25,881,200 26,592,500 25,845,600 24,585,700
TreasuryStock (14,832,700) (14,371,900) (13,552,200) (11,858,500)
Capital Surplus 3,957,000 3,731,300 3,445,000 3,228,200
Other
Stockholder
Equity
63,600 (201,500) (296,700) (445,700)
Total
StockholderEquity
15,085,700 15,767,000 15,458,300 15,526,300
Net Tangible
Assets$12,887,400
$13,512,700$13,249,100 $13,370,2003;
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'HA"TE!9.-
3
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ANALI%#I# ON M'DONALD#
IM"O!T. E("O!T
/he business is managed as distinct geographic segments
+ignificant reportable segments include the (nited +tates G(+H,
urope, and AsiaN9acific, #iddle ast and Africa GA9#AH :n
addition, throughout this report we present Q@ther %ountries
%orporateR that includes operations in %anada and *atinAmerica, as well as %orporate activities and certain investments
/he (+, urope and A9#A segments account for 351, 31
and 1 of total revenues, respectively 6rance, Cermany and
the (nited )ingdom G()H, collectively, account for
appro&imately 01 of uropes revenuesE and Australia, %hina
and Kapan a 501-owned affiliate accounted for under the e"uity
methodH, collectively, account for over 501 of A9#As
revenues /hese si& marets along with the (+ and %anada are
referred to as QmaBor maretsR throughout this report and
comprise over .01 of total revenues /he %ompany continues to
focus its management and financial resources on the #c$onalds
restaurant business as we believe the opportunities for long-term
growth remain signifi cant Accordingly, during the third "uarter
200., the %ompany sold its investment in =oston #aret :n
200, the %ompany disposed of its investment in %hipotle
40
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#e&ican Crill G%hipotleH via public stoc offerings and a ta&-free
e&change for #c$onalds common stoc As a result of the
disposals during
200. and 200, both =oston #arets and %hipotles results of
operations and transaction gains have been reflected as
discontinued operations for all periods presented :n analyDing
business trends, management considers a variety of performance
and financial measures including comparable sales growth,
+ystem wide sales growth, restaurant margins and returns
8 %onstant currency results e&clude the effects of foreign
currency translation and are calculated by translating current year
results at prior year average e&change rates #anagementreviews and analyDes business results in constant currencies and
bases certain compensation plans on these results because we
believe they better represent the underlying business trends
8 %omparable sales are a ey performance indicator used within
the retail industry and are indicative of acceptance of the
%ompanys initiatives as well as local economic and consumer
trends :ncreases or decreases in comparable sales represent the
percent change in constant currency sales from the same period
in the prior year for all restaurants in operation at least thirteen
months, including those temporarily closed +ome of the reasons4
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restaurants may be temporarily closed include road construction,
reimaging or remodelling, rebuilding, and natural disasters
#c$onalds reports on a calendar basis and therefore the
comparability of the same month, "uarter and year with the
corresponding period of the prior year will be impacted by the
mi& of days
/he number of weedays, weeend days and timing of
holidays in a given timeframe can have a positive or negative
impact on comparable sales /he %ompany refers to this impact
as the calendar shiftNtrading day adBustment /his impact varies
geographically due to consumer spending patterns and has the
greatest impact on monthly comparable sales /ypically, the
annual impact is minimal, with the e&ception of leap years8 +ystem wide sales include sales at all restaurants, whether
operated by the %ompany, by franchisees or by affiliates !hile
sales by franchisees and affiliates are not recorded as revenues by
the %ompany, management believes the information is important
in understanding the %ompanys financial performance because it
is the basis on which the %ompany calculates and records
franchised and affiliated revenues and is indicative of the
financial health of our franchisee base
MTHD.8
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This ro:ect is reared 7ith the hel o
theoretical #no7led)e as 7ell as ractical
#no7led)e ; a cr$mb o ad
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BOOK#9.
='A?$ 9'A%/:%+
MAINE#9.
=(+:?++ !@'*$
00 /@9 ='A?$+
/> JA*(A=* ='A?$+ @6 :?$:A
WEB #ITE#9.
wwwmcdonaldsindiacom
wwwmcdonaldscom
44
http://www.mcdonaldsindia.com/http://www.mcdonalds.com/http://www.mcdonaldsindia.com/http://www.mcdonalds.com/ -
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'ON'L$#ION
TODAY, MCDONALDS HAS
GROWN TO 25,000 RESTAURANTS IN
ABOUT 120 COUNTRIES SERVING 50
MILLION CUSTOMERS DAILY.
BECOMING THE LARGEST FAST FOOD
CHAIN IN ALL OVER THE WORLD
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BYE BYE SEE U AT McDonaldS
4
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EQUIPMENTS
6'L #A+/'
C':**'
4.
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4
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Main MD!na"#$ M%n&
Big Mac
Big N TastyBig N Tasty w/ CheeseQuarter Pounder w/ CheeseDouble Quarter Pounder w/ CheeseCrispy ChickenChicken McGrillFilet!FishDouble CheeseburgerCheeseburger"a#burger
Chicken McNuggets $%&Chicken McNuggets $'&Chicken McNuggets $(&Mc)alad )haker Che* )aladMc)alad )haker Garden )aladMc)alad )haker Grilled Chicken Caeser )alad
Main MD!na"#$ Si#% Di$' M%n&
)#all French FriesMediu# French Fries+arge French Fries)uper )i,e French Fries
Main MD!na"#$ B(%a)*a$+ M%n&
-gg McMu**in)ausage McMu**in)ausage McMu**in w/ -ggBacon. -gg Cheese Biscuit)ausage Biscuit)ausage Biscuit w/ -gg"a#. -gg Cheese Bagel)reak. -gg Cheese Bagel)panish !#elet Bagel)ausage Break*ast Burrito
Big Break*astDelu0e Big Break*ast"otcakes )ausage1pple Danish
50
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MD!na"#$ D%$$%(+ M%n&
Baked 1pplePie)tawberry )undae"ot Fudge )undae"ot Cara#el )undae2anilla 3educed Fat 4ce Crea# Cone!reo McFlurryM M McFlurryButter*inger McFlurryFruit n 5ogurt Par*aitFruit n 5ogurt Par*ait snack si,eMcDonaldland Cookies
Fresh Baked Cookies
MD!na"#$ B%%(a-% M%n&
Thick n Crea#y )hake 2anilla. Chocolate or )trawberryCocaCola. Diet Coke or )priteCo**ee
Tea!range 6uice78 Milk
#c$onalds 6ast food restaurants in :ndia is more popular now, its popularity is growing at fastrate %urrently #c$onalds is having largest networ of restaurants in :ndia in comparison tosimilar fast food chain lie $omino 9iDDa
:f you go at any #c$onalds restaurant, you will find the same menu /he "uality of food itemwill be always be superior #c$onalds is maintaining the same "uality across all the stores in thecountry :t have a single supply source for all the outlets in the country, so the end products is
same throughout all outlets in :ndia
#c$onalds food menu is protected by patents, so it is very difficult to get similar food in "ualityand taste from other restaurants
Menu a: McDonaldsis as follows
G#enu and 9rice indicated is only for rough idea, they change there menu and pricing very veryfre"uently in :ndia because of various weather seasonsH Lou will get actual price details at outlet
only
eg +ood I:e;.
5
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#cJeggie T 9rice is around 's 40-50
#cAloo /ii T 's 20I50
9aneer +alsa !rap T 's 20I50
%rispy %hinese T 's 20I50
Jeg #c%urry 9an T 's 20I50
9iDDa #c9uff I G i forgot the price H
*arge 6ries T 's40- 50 >appy #eal T 's50-0
%ombos T 's30-'s.0
+oft $rin T 's20
Non eg +ood I:e;
%hicen #aharaBa #ac
#c%hicen - 's 50- 55
6ilet-@-6ish
%hicen #cCrill
%hicen #c%urry 9an
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!a:>ngs9
6ues:>onna>re
. M>n>;u;
1.MaC>;u;
5. A?erage
>ow is the ambience at #c $onaldsP UUUUUUUUUUUUUUU
>ow is the "uality at #c $onaldsP UUUUUUUUUUUUUUUUUU
Are stores of #c $onalds at >yderabad are sufficientUUUUUUUU
>ow is the accessibility of #c $onaldsPUUUUUUUUUUUUUUU
>ow is the "uantity given by mc $onaldsPUUUUUUUUUUUUU
>ow are the services provided by mc $onaldsPUUUUUUUUU
:s price worth to the "uantity providedPUUUUUUUUUUUUUUU
#c $onalds offers are attractivePUUUUUUUUUUUUUUUUUUUU
/he items provided by #c$onalds are freshP UUUUUUUUUUUU
:s home delivery goodPUUUUUUUUUUUUUUUUUUUUUUUUUU
6or #anager of #c$onald
!hat is the strength of #c$onaldP
!hich place is best suited for better mareting of #c $onaldsP
!hat are the promotion strategies made for effective mareting of #c $onaldsP
>ow is the price of the food items of #c $onalds are decidedP
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+ervice .. .;
9rice ;0 5
@ffers . ;;
:tems 55 33
>ome delivery 30 20
Da:a >n:eron or ues:>onna>re9
#c $Ambience 5
Ouality .
?o of stores 54
Accessibility 3.
Ouantity 54
+ervice ..
9rice ;0
@ffers .
:tems 55
>ome delivery 30
5
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