Kayley Boylan Accounting-4 McDonald’s Kayley Boylan Accounting-4

History Timeline 1940: Dick and Mac McDonald open McDonald’s Bar-B-Que restaurant on Fourteenth and E streets in San Bernardino, California 1948: McDonald brothers shut down restaurant for 3 months for alterations. Reopens as a self-service drive-in restaurant. Menu is reduced to 9 items: hamburger, cheeseburger, soft drinks, milk, coffee, potato chips, and a slice of pie 1949: French fries replace chips and the triple thick milkshakes are debuted

1954: Ray Kroc shows interest in McDonald’s 1955: Kroc opens his first McDonald’s in Des Plaines, Illinois on April 15 1958: 100 Million hamburger is sold 1959: 100th restaurant is opened in Fond Du Lac, Wisconsin 1962: McDonald’s in Denver, Colorado becomes the first restaurant with inside seating 1963: 500th restaurant opens in Toledo, Ohio 1965: McDonald’s celebrates its 10th anniversary with the first public stock offering at $22.50 per share

1966: First television commercial is aired 1967: McDonald’s goes international 1968: Big Mac is introduced 1978: 5,000th restaurant is opened in Kanagawa, Japan 1980: 25th anniversary 1981: The first McDonald’s restaurant in Spain, Denmark, and the Philippines opens 1990: Moscow location opens 1992: Warsaw, Poland location opens breaking records of opening day sales 2005: 50th anniversary 2009: McCafe goes international

Fun Facts There are more than 33,000 restaurants worldwide McDonald’s has 1.7 million employees McDonald’s are in 119 countries 80% of McDonald’s restaurants are franchised McDonald’s headquarters is in Oak Brook, Illinois

Service Information McDonald’s source of income is food sales McDonald’s is in the business of fast food service Products include various food, desert, and beverage items

Overall Stock Information MCD As of April 2, 2012 the closing price was $98.36 All time low stock price: $76.01 All time high stock price: $101.74

Dividends

Dividend cont…

Dividend cont……….. MCD is a dividend powerhouse. They have increased their dividend every year since paying their first one in 1976, and I believe this will continue into the future. The current quarterly rate of $0.61 a share equals an annual dividend of $2.44, and the stock currently yields 3.3%. http://www.thedividendpig.com/?p=1106

3 Strengths McDonalds has strong products, it has grown income throughout the recession There are McDonalds all around the world so it is exposed to different type of people and different currencies McDonald's has dividend yields that top the 10-year Treasury. The annual dividend payment has gone from 55 cents per share in 2005 to $2.20 this year. http://www.fool.com/investing/general/2010/08/25/mcdonalds-strengths-weaknesses-opportunities-threa.aspx

3 Weaknesses There are so many McDonalds around the United States, expansion will have to happen worldwide The annual dividend is slowing and will eventually level off

3 Opportunities There are opportunities for new restaurants outside the United States such as China and Asia New menu products can be created “Low interest rates provide cheap capital for growth. In addition to dollar-denominated debt, McDonald's recently became the first foreign company to issue yuan-denominated bonds in Hong Kong.” http://www.fool.com/investing/general/2010/08/25/mcdonalds-strengths-weaknesses-opportunities-threa.aspx

3 Threats Governments are trying to come up with regulations on fast food New products are competing with other fast food restaurants and coffee shops Prices may need to go up and some customers cannot afford to pay http://www.fool.com/investing/general/2010/08/25/mcdonalds-strengths-weaknesses-opportunities-threa.aspx

Should I buy stock? I would recommend buying stock in McDonalds because there are always people who are going to eat fast food. Yes, there is a health kick going on in our country right now but people will still be buying things from McDonalds.

Works Cited http://www.fool.com/investing/general/2010/08/25/mcdonalds-strengths-weaknesses-opportunities-threa.aspx http://www.thedividendpig.com/?p=1106 McDonalds.com http://www.aboutmcdonalds.com/mcd/investors.html