1. McDonald’s Corporation Presented By: Ardis Shannon Adam Krupa Jigar Patel David Seid Samuel George

2. McDonald’s Mission
Be the best quick service restaurant experience. By providing quality, service, cleanliness and value that make every customer in every restaurant smile.

3. 3 World wide strategies Best employer Operational Excellence
Continue to grow and be profitable

4. History 1940 First McDonald’s 1965 McDonald’s go public
1952 Attempts at franchising
1954 Milk Shake Machine
1955 prototype opens in Des Plaines, IL
McDonald’s
1961 McDonald brothers sell rights
1965 McDonald’s go public
1968 Introduction of Big Mac and shift to Network Television
restaurants
McDonald’s Restaurants
1990 record sales

5. History Continued 1994 Kuwait City, Kuwait
2002 Forty seven years after
30,000 locations
2000 new restaurants
World Wide Web
McDonald’s a recognized Brand Name

6. Recent Acquisitions/Divestitures
Boston Market
Chipolte Mexican Grill
Donato’s Pizza chain
McCafe’

7. Training Surpasses even the U.S. Army Provides career opportunities
Service Enhancement Process
Consistent through CD-ROMs

8. 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 McDonald’s customers on any given day

9. McJobs Assistance to employees with mental and physical disabilities.
More than 9,000 workers went through the program.
Given formal graduation ceremony

10. Management Development Programs
Crew Development
Restaurant Management
Mid-Management
Executive Development

11. Hamburger University Management Training Center
Worldwide Education Program
Technology
200 per class
65,000 managers graduated to date

12. Women and Minorities Soars above stereotype of average fast-food joint
Compose more than 50 percent of McDonald’s current workforce
Featured as the “The Best Companies for Minorities”

13. Product Lines Hamburgers Chicken Sandwiches French Fries Beverages
Breakfast Items
Desserts

14. Technology McDonald’s in Sweden World’s First Snowmobile Drive-Thru
McDonald’s & ExxonMobil???
Speedpass invades McDonald’s

15. Industry Trends What is happening with fast food? McDonald’s Responds
People are more educated
McDonald’s Responds
America’s First McCafe
In Downtown Chicago

16. Financial Agenda System Wide Sales McDonald’s Corporation Revenues
Cash Flow
Financial Ratios
Stock Performance

17. System Wide Sales In The Year 2000 $40.181 Billion

18. McDonald’s Corporation Sales By Segment

19. Income (in millions)
Net Revenues
Net Income
Earnings / Share

20. Cash Flow Statement In (millions)
2000
1999
Net Income
Net Cash Provided By Operating Activities
Net Cash Provided By Investing Activities
Net Cash Provided By Financing Activities
$1,977.3
$2,751.5
(2,212.6)
(536.7)
$1,947.9
3,008.9
(2,261.8)
(626.8)
Cash and equivalents increase(decrease)
Cash and equivalents at beginning of year
Cash and Equivalents at end of year
$2.2
$419.5
$421.7
$120.3
$299.2

21. Financial Ratios McDonald Industry Analysis 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

22. Stock Performance
Mkt Cap wk Range Last Trade B Mar
                                                                            

23. Making A Difference
We have an obligation to give back to the communities that give us so much." - Founder Ray Kroc, 1955

24. Social Commitments “9-11” Relief Effort Environmental Concerns
Educational Involvement
Quality & Safety Procedures
Ronald McDonald House Charities (RHMC)

25. Stay Tuned …………
Video Presentation

26. 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.