so shall we go to
TRANSCRIPT
-
8/6/2019 So Shall we go to
1/27
Presented by,
Devu V
-
8/6/2019 So Shall we go to
2/27
Richard & Maurice MacDonald
1940-moved to San Bernardino 1948- Speedee Service System
-Assembly line operation
Concept introduced in San
Bernardino, California.
1937-airdrome restaurant.
-
8/6/2019 So Shall we go to
3/27
Franchise History 1953- began franchising: with
Niel Fox in Arizona, Phoenix
Why change it?? Its great as it
is- Neil Fox
-
8/6/2019 So Shall we go to
4/27
Ray Kroc
Franchiser took only 1.9 percent of
the gross sales of which Kroc get1.4% & brothers get 0.5%.
First restaurant opened in Des
Plaines, Illinois near Chicago on
April 15,1955
-
8/6/2019 So Shall we go to
5/27
Grinding It Out: The Making of McDonalds
-Ray Kroc
1961: The McDonald brothers
agree to sell Kroc business rights to
their operation for $2.7
1961: Hamburger University opens
in the basement of the Elk Grove
Village, Illinois, McDonald'srestaurant. . Bachelor of
Hamburgology degrees
Grinding it out:autobiography of
Ray Kroc
-
8/6/2019 So Shall we go to
6/27
McDonalds Museum
Route 66 signs - the original shield and the California state
highway design - as displayed in
the McDonald's museum
The original restaurant has been
replaced with a museum dedicated
to both McDonald's and Route 66.
-
8/6/2019 So Shall we go to
7/27
TheGolden Arches
Gaudy red and white tile
Golden Arches- George Dexter
First McDonald's franchised
restaurant with Golden Arches in
Phoenix
-
8/6/2019 So Shall we go to
8/27
Logo
Created by Jim Schindler in 1962
1968- McDonalds name wasadded to the logo
The famous Golden Arches in
McDonalds logo represent style,
significance and a strong corporate
identity
-
8/6/2019 So Shall we go to
9/27
TheGolden Arches theory
In the book The Lexus and the
Olive Tree, Thomas L. Friedman
proposed The Golden Arches Theory
of Conflict Prevention
Two countries having McDonald
will not be interested in fighting
wars anymore
-
8/6/2019 So Shall we go to
10/27
Ronald McDonald Clown character used as a mascot Created by Willard Scott
-
8/6/2019 So Shall we go to
11/27
-
8/6/2019 So Shall we go to
12/27
McDonald's CorporationIndustry Restaurants
Founded May 15, 1940 in San Bernardino, California;McDonald's Corporation, April 15, 1955 in Des Plaines, Illinois
Founder(s) Richard and Maurice McDonald McDonald's restaurant concept;Ray Kroc, McDonald's Corporation founder.
Headquarters Oak Brook, Illinois, U.S.
Numberof
loc
atio
ns 32,000 restaurants in 117 countriesArea served Worldwide
Key people James A. Skinner(Chairman & CEO)
Products Fast food(hamburgers chicken french fries soft drinks coffee milkshakes salads desserts breakfast)
Revenue US$ 24.075 billion (2010)Operating income US$ 7.473 billion (2010)
Net income US$ 4.949 billion (2010)
Total assets US$ 31.975 billion (2010)
Total equity US$ 14.634 billion (2010)
Employees 400,000 (2010)
-
8/6/2019 So Shall we go to
13/27
Balance SheetCurrency in As of: Dec 31,2007 Dec 31,2008 Dec 31,2009 Dec 31,2010
Millions ofUS dollars USD USD USD USD
Assets
Cash and Equivalents 1,981.30 2,063.40 1,796.00 2,387.00
Trading Asset Securities -- -- 1.4 0.5
TOTAL CASH AND SHORT TERM INVESTMENTS 1,981.30 2,063.40 1,797.40 2,387.50Accounts Receivable 1,053.80 931.2 1,060.40 1,179.10
TOTAL RECEIVABLES 1,053.80 931.2 1,060.40 1,179.10
Inventory 125.3 111.5 106.2 109.9
Prepaid Expenses 350.7 287.6 303.2 378.9
Deferred Tax Assets, Current 70.8 80.1 126.3 195.2
Other Current Assets -- 43.8 22.8 117.9
TOTAL CURRENT ASSETS 3,581.90 3,517.60 3,416.30 4,368.50
Gross Property Plant and Equipment 32,203.70 31,152.40 33,440.50 34,482.40
Accumulated Depreciation -11,219.00 -10,897.90 -11,909.00 -12,421.80
NET PROPERTY PLANT AND EQUIPMENT 20,984.70 20,254.50 21,531.50 22,060.60
Goodwill 2,301.30 2,237.40 2,425.20 2,586.10
Long-Term Investments 1,156.40 1,304.90 1,280.00 1,407.40
Deferred Tax Assets, Long Term 502.8 417.4 541.2 590.4
Other Long-Term Assets 864.6 729.7 1,030.70 962.2
TOTAL ASSETS 29,391.70 28,461.50 30,224.90 31,975.20
-
8/6/2019 So Shall we go to
14/27
Currency in As of: Dec 31,2007 Dec 31,2008 Dec 31,2009 Dec 31,2010
Millio
nsof
US do
llars USD
USD
USD
USD
LIABILITIES & EQUITY
Accounts Payable 624.1 620.4 636 943.9
Accrued Expenses 1,883.30 1,863.60 2,126.70 1,852.80
Short-Term Borrowings 1,126.60 -- -- --
Current Portion of Long-Term Debt/Capital Lease 864.5 31.8 18.1 8.3
Current Income Taxes Payable -- -- 202.4 111.3
Other Current Liabilities, Total -- 22.1 5.5 8.4
TOTAL CURRENT LIABILITIES 4,498.50 2,537.90 2,988.70 2,924.70Long-Term Debt 7,310.00 10,189.50 10,563.70 11,497.30
Pension & Other Post-Retirement Benefits 544.7 -- -- --
Deferred Tax Liability Non-Current 960.9 944.9 1,278.90 1,332.40
Other Non-Current Liabilities 797.8 1,406.60 1,359.70 1,586.60
TOTAL LIABILITIES 14,111.90 15,078.90 16,191.00 17,341.00
Common Stock 16.6 16.6 16.6 16.6
Additional Paid in Capital 4,226.70 4,600.20 4,853.90 5,196.40
Retained Earnings 26,461.50 28,953.90 31,270.80 33,811.70
Treasury Stock -16,762.40 -20,289.40 -22,854.80 -25,143.40
Comprehensive Income and Other 1,337.40 101.3 747.4 752.9
TOTAL COMMON EQUITY 15,279.80 13,382.60 14,033.90 14,634.20
TOTAL EQUITY 15,279.80 13,382.60 14,033.90 14,634.20
TOTAL LIABILITIES AND EQUITY 29,391.70 28,461.50 30,224.90 31,975.20
-
8/6/2019 So Shall we go to
15/27
Key People
Honorary Chairman-Fred Turner
Vice Chairman and CEO-
James Skinner
President & Chief Operating Officer-
Don Thompson
-
8/6/2019 So Shall we go to
16/27
How will you become a
McDonaldsFranchisee?? Business experience
Initial down payment:
40% of the total cost- new restaurant
25% of the total cost- existing restaurant
To complete the training provided by the corporation so the entrepreneurs will
know how to handle their own businesses-Hamburger University
Ongoing Fees to McDonald's
Service fee- 4.0% of monthly sales
Rent- usually owns the property and also acts as the landlord
-
8/6/2019 So Shall we go to
17/27
Operations
A fryer where one person made frenchfries
A soda fountain and milkshake machinefor desserts and beverages
A counter where customers placed andreceived their orders
A very large grill where one person could
cook lots of burgers simultaneously
A dressing station where people added
the same condiments to every burger
-
8/6/2019 So Shall we go to
18/27
Speedee Service System When you visit one of them and go inside,
you almost always place your order and collect your food at a counter
When you drive through, you place your
order at a speaker or a window, and someone hands it to you through a window
The food arrives individually
wrapped and in a bag or on a tray
You can eat most of the food without using a knife or fork
The food is relatively inexpensive
-
8/6/2019 So Shall we go to
19/27
-
8/6/2019 So Shall we go to
20/27
-
8/6/2019 So Shall we go to
21/27
Amit Jatia, JV Partner, McDonalds India (West & South), JimSkinner, Vice Chairman and CEO, McDonalds Intl., Late-Jim
Cantalupo, Chairman and CEO, McDonalds Intl., Vikram Bakshi, JV
Partner, McDonalds India (North & East), Madhurima Bakshi,
Director- Corporate Communications, McDonalds India (North & East)
-
8/6/2019 So Shall we go to
22/27
McDonalds Menu
extra value mealsHappy meals
Happy price menu
Spicy delights
Beverages
Breakfast menu
Core menu Desserts
-
8/6/2019 So Shall we go to
23/27
-
8/6/2019 So Shall we go to
24/27
-
8/6/2019 So Shall we go to
25/27
-
8/6/2019 So Shall we go to
26/27
SoShallwegoto
McDonalds???
-
8/6/2019 So Shall we go to
27/27