McDonald‘s Corporation

1. Introduction 2. History 3.Description of Business 4. Stock 5. Criticism 6. Conclusion

McDonald‘s Corporation 1.Introduction 2.History 3.Description of Business 4.Stock 5. Criticism 6. Conclusion

McDonald‘s Corporation 1.Introduction 2.History 3.Description of Business 4.Stock 5.Criticism 6.Conclusion 1. Introduction The world‘s biggest fast-food company.

McDonald‘s Corporation 2. History: The Start : Maurice (Mac) and Richard (Dick) McDonald open a little drive-in-restaurant in San Bernardino, California - new concept: speedy service, low prices, big volume, limited menue -re-engineered their kitchen and established assembly-line procedures for mass production 1. Introduction 2. History The Start Ray Kroc Expansion Today 3. Description of Business 4.Stock 5. Criticism 6. Conclusion -their concept captured the spirit of post-war America; mid 1950s annual revenues of $350, : a cover article in America Restaurant Magazine prompted 300 inquiries a month

McDonald‘s Corporation 2. History: Ray Kroc : Neil Fox becomes first franchisee; design of a new red-and-white-tiled building with “Golden Arches“ : Ray Kroc, a milkshake machine salesman visits Mc Donald‘s for the first time and recognizes: “This will go anyplace. Anyplace!“ -He purchases the exclusive right to sell franchises for McDonald‘s restaurants and becomes the founder of Mc Donald‘s System, Inc : prototype McDonald‘s restaurant openes in Des Plaines, Illinois -1960: 400 millionth hamburger was sold Ray Kroc -1961: Kroc buyed out the Mc Donald‘s brothers for $2.7m in cash; profit $77.000, long term debt $5.7m 1. Introduction 2. History The Start Ray Kroc Expansion Today 3. Description of Business 4.Stock 5. Criticism 6. Conclusion

McDonald‘s Corporation 2. History: Expansion -1961: hamburger university openes: “If you ‘ve got time to lean, you ‘ve got time to clean!“ -1963: Ronald McDonalds first TV appearance -1965: McDonald‘s becomes a public company -1967: international expansion starts in Canada, since 1971 overseas in Japan, Germany, Australia, France, England -1977: Fred Turner, who started as a grill man, becomes chairman -1975: establishment of the first drive-thru operation -1968: franchisee Jim Delligatti designs the “BigMac“ 1. Introduction 2. History The Start Ray Kroc Expansion Today 3. Description of Business 4.Stock 5. Criticism 6. Conclusion -1979: introduction of the “Happy Meal“

McDonald‘s Corporation 2. History: Today - “Way over 100 billion hamburgers served!“ - 395,000 employees -current CEO and chairman: Jack Greenberg 1. Introduction 2. History The Start Ray Kroc Expansion Today 3. Description of Business 4.Stock 5. Criticism 6. Conclusion - in 121 countries around the world - in 2001 McDonald‘s Germany celebrated its 30th anniversary - over 30,093 restaurants

McDonald‘s Corporation 1. Introduction 2. History 3. Description of Business Operations Principles Franchise Campaigns Suppliers Market Power Financial New Concepts 4.Stock 5. Criticism 6. Conclusion 3. Description of Business: Operations - food service industry - quick service restaurants - Company-operated restaurants - selling franchises - real estate business: franchisees lease their restaurants from McDonald‘s

McDonald‘s Corporation 1. Introduction 2. History 3. Description of Business Operations Principles Franchise Campaigns Suppliers Market Power Financial New Concepts 4.Stock 5. Criticism 6. Conclusion 3. Description of Business: Principles - McDonald‘s offers the same great taste worldwide and creates new products that refer to the local taste - McDonald‘s brothers formula: limited menu, quality food, an assembly-line production system, fast friendly service - McDonald‘s operating principle today: Q uality S ervice C leanliness & V alue “Don‘t worry about making money. Love what you‘re doing and always put the customer first - and sucess will be yours!“ Ray Kroc

McDonald‘s Corporation 1. Introduction 2. History 3. Description of Business Operations Principles Franchise Campaigns Suppliers Market Power Financial New Concepts 4.Stock 5. Criticism 6. Conclusion 3. Description of Business: Franchise -Franchise: vertical distribution-network, cooperation between a producer and an independent entrepreneur, rights and duties of both sides are adjusted in a contract -McDonald‘s supports its franchisees - franchisees may create new products (BigMac, Filet-o- Fish) : 17,395 franchise restaurants created sales of $24,8 billion : 288 franchisees in Germany operated 744 restaurants - 600,000 Euro fee, percentage fee of sales

McDonald‘s Corporation 1. Introduction 2. History 3. Description of Business Operations Principles Franchise Campaigns Suppliers Market Power Financial New Concepts 4.Stock 5. Criticism 6. Conclusion 3. Description of Business: Campaigns -McDonald‘s is famous for it‘s very funny advertising campaigns -Ronald Mc Donald is it‘s own Comic character - campaigns with local stars - one toy in every “Happy Meal“ - sponsoring of global events

McDonald‘s Corporation 1. Introduction 2. History 3. Description of Business Operations Principles Franchise Campaigns Suppliers Market Power Financial New Concepts 4.Stock 5. Criticism 6. Conclusion 3. Description of Business: Suppliers -McDonald‘s revolutionized industrial food production -strong quality-controls -suppliers have to follow the McDonald‘s Principles -purchases goods from national companys with strong brands -developt the production of deep frozen fries and meat together with their suppliers

McDonald‘s Corporation 1. Introduction 2. History 3. Description of Business Operations Principles Franchise Campaigns Suppliers Market Power Financial New Concepts 4.Stock 5. Criticism 6. Conclusion 3. Description of Business: Market Power -McDonald's is Coca-Cola's largest customer in the world -McDonald's uses about 7% of the potatoes grown in the United States for its French fries. - The Big Mac Index: - measures purchasing power, comparison of exchange rates and relative prices - indicator for an over- or undervalued US-Dollar - since 1986 “The Economist“ magazine tracked the price of Big Mac around the globe -8% of the American adult population visits McDonald‘s on an average day

McDonald‘s Corporation 1. Introduction 2. History 3. Description of Business Operations Principles Franchise Campaigns Suppliers Market Power Financial New Concepts 4.Stock 5. Criticism 6. Conclusion 3. Description of Business: Financial Total revenues: $14.87 billion -company operated restaurants: $ billion -franchised restaurants: $3.829 billion Operating costs and expenses:$ billion Net Income:$1.637 billion 2001

McDonald‘s Corporation 1. Introduction 2. History 3. Description of Business Operations Principles Franchise Campaigns Suppliers Market Power Financial New Concepts 4.Stock 5. Criticism 6. Conclusion 3. Description of Business: New Concepts -the company reaches the limits of growth -reported ist 6th straight quarterly earnings decline (BSE crisis) - management searches new concepts for future growth - possibly they will start non-food retailing in their restaurants - McDonald‘s Japan offers high-speed Internet in its 4000 restaurants

McDonald‘s Corporation 1.Introduction 2.History 3.Description of Business 4.Stock The Past Development Outlook 5.Crticism 6.Conclusion 4. Stock: The Past : Going Public of McDonald‘s for $22,50 each share on the OTC-market -1966: McDonald‘s gets listed on the New York Stock Exchange (stock symbol: MCD) - McDonald‘s is the only company in the S+P 500 to have reported 100 consecutive quarters of year-to- year combined increases in revenues, income, and earnings per share : MCD is the first service industry company to become a member of the Dow Jones Industrial Average

McDonald‘s Corporation 1.Introduction 2.History 3.Description of Business 4.Stock The Past Development Outlook 5.Crticism 6.Conclusion 4. Stock: Development - An investment of $2,250 to purchase 100 shares of McDonald's Stock in 1965 would have grown to be 74,360 shares worth more than $2.1 million on June 14, The McDonald‘s Stock has been splitted 13 times since its initial public offering, the first one in 1965, the last one in MCD has got 1,027,000 shareholders -Market capitalization: $37,9 billion -dividend was paid on common stock for 26 consecutive years

McDonald‘s Corporation 1.Introduction 2.History 3.Description of Business 4.Stock The Past Development Outlook 5.Crticism 6.Conclusion 4. Stock: Outlook -the last 52 weeks it was traded in a range between $25 - $31 -analysts assume it will develop like the rest of the market -ratings: 8 buy, 9 hold, 2 sell -median target price: $ 32

McDonald‘s Corporation 1.Introduction 2.History 3.Description of Business 4.Stock 5.Criticism 6.Conclusion 5. Criticism - McDonald‘s food is not healthy: high in fat, sugar, animal products and salt -Some lawyers want McDonald‘s to pay damages for the consequences of their food. 40% of the American population is overweight - McDonald‘s offers only low payed part-time jobs - McDonald‘s destroys the environment by using one- way packages

McDonald‘s Corporation 1.Introduction 2.History 3.Description of Business 4.Stock 5.Criticism 6.Conclusion 1.Introduction 2. History 3. Description of Business 4. Stock 5. Criticism 6. Conclusion Mc Donald‘s still offers excellent products and has a brilliant marketing concept. Mc Donald‘s will grow again, but not as fast as it did in the past. 6. Conclusion

McDonald‘s Corporation