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BUSN 5200_Financial Analysis of the McDonalds Company

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Financial Analysis of the McDonalds Company
Stock ticker symbol, exchange where traded- The ticker symbol for McDonald's is MCD
and it is traded on the New York Stock Exchange.
Address of company headquarters- McDonald's Corporation 2111 McDonald's Dr Oak
Brook, IL 60523.

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PART 1, COMPANY OVERVIEW:
Brief description of the company (one paragraph, briefly summarizing the company’s
business)
McDonald's, also known as "Mickey D's," is the world's largest hamburger fast food chain. It
franchises (the majority of units and profitability) and operates McDonald’s restaurants globally.
These restaurants serve many different products (hamburgers, french fries, wraps, coffee, soft
drinks, etc.) at different price points in 119 countries.
Restaurants are operated by either the Company or by franchisees with the goal of assuring
consistency and high quality at every unit.
McDonald's competes in the intensely competitive quick service restaurant (QSR) / fast food
industry against many players big and small, with hamburgers and without, with value and
without, etc.
Company history (origin, major developments, etc.)
McDonald's was founded in 1940, with a restaurant opened by brothers Richard and Maurice
McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in
1948 advanced the principles of the modern fast-food restaurant developed by WhiteCastle two
decades earlier. McDonald's first filed for a U.S. trademark on the name "McDonald's" in 1961,
with the description "Drive-In Restaurant Services", which continues to be renewed through the
end of December 2009.
The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc,
in Des Plaines, Illinois, in 1955, the ninth McDonald's restaurant overall. Kroc later purchased
the McDonald brothers' equity in the company and led its worldwide expansion. McDonald's
went public in 1965.
The Company continued to operate public and grow by adding units in new regions. The growth

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included acquiring additional concepts and brands and resulted in McDonald's "losing its way."
Focusing on its core brand, McDonald's began divesting itself of other chains it had acquired
during the 1990s. The Company owned Donatos Pizza until 2003 and a majority stake in
Chipotle Mexican Grill until October 2006, when McDonald's sold its stake in Chipotle to the
public. It also sold its stake in Boston Market in 2007.
The renewed focus on its core business along with the sale of these businesses and created a
decade of significant wealth creation (multiple appreciation in the stock) leading until today.
Organization (describe how the company is structured): McDonald's is a Delaware
corporation with headquarters in Oakbrook, Illinois. It is essentially a restaurant operator,
franchisee (licensor and marketer of its brand), and owner of real estate throughout the world. It
has subsidiaries domestically and internationally.
Main products and services (describe what the company sells; how it makes money):
McDonald’s offers a substantially uniform menu, with variations to suit local consumer
preferences and tastes. It tests new products on an ongoing basis. McDonald’s menu includes
hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several
chicken sandwiches, Chicken McNuggets, Snack Wraps, french fries, salads, oatmeal, shakes,
McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafé beverages and
other beverages. In addition, the restaurants sell a variety of other products during limited-time
promotions. It makes money by selling these products at its Company-owned and operated units,
charging fees (royalties) to franchisees, and charging a rent spread on its real estate.
Geographic area of operations (describe where the company sells its products): McDonald's
sells its products in the U.S. and internationally in 119 countries throughout the world.
Recent developments (list recent major news stories, if any): McDonald's announced its
Global Comparable Sales Decreased 0.6% In April on May 8. It announced its Q113 Results on
April 19. McDonald's named Steve Easterbrook Global Chief Brand Officer on April 12.

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