Financial Overview - Mcdonalds Case Study Essay

Words: 2126

Pages: 9

Open Document

Financial Analysis of the McDonald’s Corporation

MCD, NYSE (New York Stock Exchange)
One McDonald's Plaza, Oak Brook, IL 60523 Map
+1-630-6233000 (Phone)
+1-630-6235700 (Fax)

Abstract
McDonald’s is the most famous and well-known fast-food company in the world. This case study examines McDonald’s from a financial standpoint. This case study will be broken down in three parts. Discussed first will be a full description of McDonald’s corporation, including its background, followed by a financial overview with comments for each financial category reviewed, the a comparison of financial ratio’s between McDonald’s and it rival Burger King derived from their 2009 and 2009 annual reports. Finally a support will be provided based off …show more content…
McDonald’s hopes this campaign will silence critics who have vocally spoken out about how unhealthy the company’s Happy Meal are. This will be continuing part of McDonald’s overall ad campaign which was $963 million in measured media in 2011, up 8.6 percent from 2010 and will likely increase in 2012 (Morrison, 2012).
PART 2, FINANCIAL OVERVIEW: In Dollars in Millions

a. Sales and Income Record:

-------------------- Fiscal Years ---------------------- 2006 2007 2008 2009 2010

Sales 20,895 22,787 23,522 22,745 24,075

Percent change in sales each year 9% 3% -3% 6%

Net Income 3,544 2,395 4,313 4,551 4,946

Percent change in net income each year -32% 80% 6% 9%

GRAPH OF SALES & NET INCOME, FY 2006 2010

COMMENTS: McDonald’s has continued a slight upward trend in net income for the past 5 years. Even though there was a 3 percent decline in sales during 2009, net income has continued to climb at a steady rate. Most noted is after a 32% drop in net income in 2007, McDonald’s came back strong in 2008 posting a 80% gain in net income.

b. Expense

Mcdonald Case Study Essay example

The McDonald’s Study Case HRM 532 July 25th, 2012 Abstract McDonalds declared its first profit lost in the history of its outstanding performance in the fourth quarter of 2002. This led the company to investigate the key components which caused this to happen. Upon review the company realized there was a need to improve its Talent Management to align with the company’s business goals and strategies. This process was needed to achieve long term growth and success…

Words 1965 - Pages 8

Starbucks Final Case Study Essay

Final Case Study and Strategic Plan: Starbucks’ Global Quest BUS 402 Strategic Management & Business Policy Executive Summary Here at Starbucks, we have had a very rewarding year thus far, and have been very successful since the beginning of our journey. As a matter of fact when you mention the name, Starbucks, people quickly think about that wonderful aroma and taste that is associated with the Starbucks’ name. This is truly what we are trying to create, a partnership…

Words 3811 - Pages 16

Essay about Marketing Planning

future and balancing strategic intent and strategic reality Organisational auditing: evaluating and coming to terms with organisational capability; balancing strategic intent and strategic reality; the determinants of capability e.g. managerial, financial, operational, human resource and intangible (brand) capability; approaches to leveraging capability; aspects of competitive advantage External factors: approaches to analysing external factors that influence marketing planning; the identification…

Words 3355 - Pages 14

Importance of the 4 Ps in Marketing Essay

With location adjustment also comes the competitors prices. In order to be competitive you have to provide a product, which is similar to your competitor and hopefully superior at a similar price point. In the case of Coca-cola, the primary competitor is Pepsi. Coca-cola’s promotion strategy adopts various advertising and promotional strategies to create an increased demand in the market by associating with life style and behavior and mainly targeting value…

Words 3806 - Pages 16

Starbucks Financial Statement Analysis Essay

Starbucks Financial Statement Analysis 09/08/2011 [pic] Starbucks Financial Statement Analysis The intent of this paper is to research and analyze the financial statement of Starbucks, a locally originated (yet global) publicly traded, Pacific Northwest Company. Resources used are the 2010 10-K, the DataMonitor company profile, Mint Global, and the NetAdvantage Corporate Social Responsibility reports, as well as several cited online resources. Company Overview Starbucks Corporation…

Words 3264 - Pages 14

Essay about MAN6636 Exam Study Guide

MAN6636 Exam Study Guide Session 1 Case: Go Global or Not? Why do firms need global strategy? The domain for global strategy should be in a blend of home country strategy and altering for uniqueness of each strategy Summary Data clear is faced with competition and is forced to go global or not. Need to know the pros and cons / it’s a commitment to go internationally and they may of not been ready for it . Company Dataclear is a Telecom and Finance Company. (CEO) Grey, (VP) David Lester. Revenue…

Words 4795 - Pages 20

Sports Direct Financial Situation Analysis and Their New Project Investment in Morocco Essay

INTRODUCTION: 3 PART I: COMPANY ANALYSIS 5 1- Introduction of the company 5 1.1 History: 5 1.2. The industry: 5 1.3. Sports Direct today: 6 2. Analysis on the financing structure of the company 6 2.1. Sports Direct financial statements: 7 2.2. JJB Sports financial statements: 9 2.3. Ratios of Sports Direct and JJB Sports 12 3. The weighted average cost of capital 15 3.1. Cost of equity: 15 3.2. Cost of debt: 15 3.3. WACC: 16 PART II: PROJECT INVESTMENT ANALYSIS 17…

Words 5359 - Pages 22

Organisational behaviour Essay example

and economics oriented case studies Videos Television news, current affairs and business programmes will also provide useful additional and up to date material on business and the economy often with special features on particular business environment subjects. Many programmes are archived and can be viewed on demand. Unit 2: Managing Financial Resources and Decisions (H/601/0548) Textbooks Dyson J R – Accounting for Non-Accounting Students (Financial Times/Prentice Hall, 2007)…

Words 5803 - Pages 24

LAST ONE GLOBAL TRADE YAS Essay

relevant global trade distribution processes over the next few years for Subway and Nissan. Module Code: Student Name: Student Number: Word Count: 2,702 Date: Table of Content Introduction 3 Subway Global Distribution & Operation 5 Overview of Nissan’s Global Trade 9 Conclusion 12 References 13 Introduction The 21st century is experiencing an intensified pace of changes in the macro-field due to the rapid advancements of technology, the decrease in barriers for communication…

Words 3105 - Pages 13

Workplace Stress Essay

state, workplace stress has the potential to bleed into the lives of the employee and the day to day interactions with the customers we are obligated to serve. The purpose of this study is to examine the relationship between workplace stress and the affect it has on the employee absenteeism. Introduction Problem Overview With the recent economic crisis in MI, the employees at Department of Human Services have found keeping up with the demands of the job and managing caseloads of over 600 clients…

Words 3461 - Pages 14