McDonalds Corporation

Presented By:
Ardis Shannon
Adam Krupa
Jigar Patel
David Seid
Samuel George
 McDonalds Mission
Be the best quick service restaurant
experience. By providing quality, service,
cleanliness and value that make every
customer in every restaurant smile.
 3 World wide strategies
Best employer
Operational Excellence
Continue to grow and be profitable
 History
1940 First McDonalds 1965 McDonalds go
1952 Attempts at public
franchising 1968 Introduction of
1954 Milk Shake Big Mac and shift to
Machine Network Television
1955 prototype opens 1970 1600 restaurants
in Des Plaines, IL 1980 6000 McDonalds
1956 14 McDonalds Restaurants
1961 McDonald 1990 record sales
brothers sell rights
 History Continued
1994 Kuwait City, Kuwait
2002 Forty seven years after
30,000 locations
2000 new restaurants
World Wide Web
McDonalds a recognized Brand
Name
 Recent
Acquisitions/Divestitures
Boston Market
Chipolte Mexican Grill
Donatos Pizza chain
McCafe
 Training
Surpasses even the U.S. Army
Provides career opportunities
Service Enhancement Process
Consistent through CD-ROMs
 ReHIREment
Program established for mature workers
Ease of transition of older workers returning
to the workforce.
Flexible scheduling so as not to jeopardize
their Social Security benefits.
More than 40,000 older workers serve
McDonalds customers on any given day
 McJobs
Assistance to employees with mental and
physical disabilities.
More than 9,000 workers went through the
program.
Given formal graduation ceremony
 Management
Development Programs
Crew Development
Restaurant Management
Mid-Management
Executive Development
 Hamburger University
Management Training
Center
Worldwide Education
Program
Technology
200 per class
65,000 managers
graduated to date
 Women and Minorities
Soars above stereotype of average fast-food
joint
Compose more than 50 percent of
McDonalds current workforce
Featured as the The Best Companies for
Minorities
 Product Lines

Hamburgers
Chicken Sandwiches
French Fries
Beverages
Breakfast Items
Desserts
 Technology
McDonalds in Sweden
Worlds First Snowmobile Drive-Thru

McDonalds & ExxonMobil???

Speedpass invades McDonalds
 Industry Trends
What is happening with fast food?
People are more educated

McDonalds Responds
Americas First McCafe
In Downtown Chicago
 Financial Agenda
System Wide Sales

McDonalds Corporation Revenues

Cash Flow

Financial Ratios

Stock Performance
System Wide Sales
In The Year 2000
$40.181 Billion
Company
Affiliated
operated
13%
Resturants
26%

Franchised
61%
 McDonalds Corporation
Sales By Segment

Other
9%
Latin America
7%

U.S.
37%
Asia/Pacific
14%

Europe
33%
 Income
(in millions)
Net Net Earnings /
Revenues Income Share

$14,24 $1.49
$1.44
3
$1,947 $1,977
$13,25 $1.14
9
$1,550

$12,42
1

'98 '99 '00 '98 '99 '00 '98 '99 '00

 Cash Flow Statement
In (millions)
2000 1999

Net Income $1,977.3 $1,947.9

Net Cash Provided By Operating Activities $2,751.5 3,008.9
Net Cash Provided By Investing Activities (2,212.6) (2,261.8)
Net Cash Provided By Financing Activities (536.7) (626.8)

Cash and equivalents increase(decrease) $2.2 $120.3

Cash and equivalents at beginning of year $419.5 $299.2
Cash and Equivalents at end of year $421.7 $419.5
Analysis
Financial Ratios
McDonald Industry
P/E Ratio 21.42 25.49

Price to Sales 2.36 1.97

Price to Book 3.52 3.95

Quick Ratio 0.76 0.63

Inventory Turnover 109.28 32.44

Total Debt to Equity 0.89 0.64
Net Profit Margin 11.01 7.62
Return on Assets 7.54 8.67
Return on Investment 8.30 10.54
Return on Equity 17.62 17.65
Revenue/Employee 40,852 77,289
 Stock Performance
Mkt Cap 52-wk Range Last Trade
35.877B 24.75 - 31.00 Mar. 8 27.91
Making A Difference

We have an obligation to
give back to the
communities that give us so
much."
- Founder Ray Kroc, 1955
 Social Commitments
9-11 Relief Effort
Environmental Concerns
Educational Involvement
Quality & Safety Procedures
Ronald McDonald House
Charities (RHMC)
Stay Tuned
 Terence Haynes
Senior Vice President,
U.S. Controller

Native of South Africa

Education: Bachelor of Commerce

University of Witwatersand in Johannesburg

Prior Position: Chief Financial Officer in the U.K.