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McDonald’s: Business Details, Marketing Strategies And Analysis

Company information:

Company name     McDonald’s
Sector                      Restaurants (Fast food restaurant)
Founded                 15.05.1940
Founders                Richard and Maurice McDonalds, Ray Kroc
IPO date                 Tuesday, 05.07.1966
Location                  Oak Brook, Illinois, US
Website                   www.aboutmcdonalds.com, corporate.mcdonalds.com/mcd.html, www.mcdonalds.com/us/en-us.html

Fundamentals and financials:

Market cup                         $129.5 billion
Revenue                              $24.18 billion
Employees                          375000
Revenue/employee           $64480
Net income                         $5.079 billion
Shares outstanding           810 million
Annual earnings/share     $6.17
P/E ratio                               25.91
Company management: Stephen Easterbrook (Director, President, Chief Executive Officer), Andrew J. McKenna (Chairman)

McDonald’s Corp.

If there’s ever a single fast food chain everyone might know about, it has to be McDonald’s.
Founded in 1940 by Maurice and Richard McDonald, it was initially conceived to be a BBQ joint.
Eight years later, however, the business changed its course and transitioned over to hamburgers as the main selling item. The company enjoyed moderate success, and it eventually became a corporation in 1955

Currently, McDonald’s operates and franchises fast food restaurants under its brand. There are both owned and franchised restaurants, latter ones account for 85% of all restaurants. This fast food chain not only offers hamburgers, it has expanded its menu to include other types of fast foods: french fries, fish, smoothies, coffee, desserts, wraps and even salads; this singular menu gets adapted to suit the needs of local markets.

More information about the brand and its general history below.

Financial Data

The company reported total revenues of $24.622 billion in 2016, which is a 3% decrease in comparison with the performance shown in 2015. Total operating costs reached $16.877 billion, which is also an 8% decrease when compared to 2015. Even though the company has hit a downturn, the business still managed to report a net income figure of 4.686 billion.

Relevant financial news and data can be found in this list of materials.

Marketing

McDonald’s is a well-known brand, both domestically and internationally.
“I’m lovin’ it!” is a memorable slogan, no doubt about that, but there must be something beneath the surface that drives the company’s marketing efforts. Everything done by McDonald’s marketing department is aimed at customer retention, showcase of quality, value, and taste. Of course, there’s no way not to mention Ronald McDonald, the company mascot who was first unveiled in 1965.

Consider exploring these materials to gain marketing insight.

Structure & Operations

The corporation operates roughly 36,899 locations over the world (5,669 of which are company owned, others being franchised).
Over 69 million customers are being serviced daily.
US is the largest segment, with Germany, France, UK, Canada, Australia being leading international ones.
More below.

Analysis

Even though the corporation is in a secure financial situation, competitors are not making it easy. Principal domestic competition – Burger King and Wendy’s. This constant tug of war with competitors forces McDonald’s to adapt and evolve in order to stay relevant.
There are also plenty of risks involved that need to be taken into account: the ever-changing customer preferences, global economic conditions, food safety, supply problems, system failures and so on.

The fact that the company has so many franchised locations is also a risk since franchised locations manage independently and the revenues that get generated by those are primarily subject to the competence of franchisees. The list is pretty much endless.

Thanksgiving Thank You

A lot of controversial topics have sprung, and the company needs to address those claims.

Explore countless SWOT analyses to gain insight into how this business managed to stay relevant for all those years.

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