Mcdonalds project.doc

8/14/2019 Mcdonalds project.doc

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One world, One

Burger

- McDonalds

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#!

NO*"A!TI'$LA!#

"AGE

NO*

* INT!OD$'TION -./

0* 'HA"TE!

'OM"AN% "!O+ILE

1.2

3* 'HA"TE! 0

ANALI%#I# ON M'DONALD# A# A #MALL

#'ALE 'O!"O!ATION IN THE BEGINNING

/.04

4*

'HA"TE! 3

ANALI%#I# ON M'DONALD#

'O!"O!ATION AT INTE!NATIONAL

LEEL*

05.31

5*

'HA"TE! 4

ANALI%#I# ON M'DONALD# ON "!OD$TIIT%

) 6$ALIT%*

3.35

7*

'HA"TE! 5


ADE!TI#EMENT AND "$BILE !ELATION#*

37.4

-*

'HA"TE! 7

ANALI%#I# ON AL$ATION O+ TA( O+

M'DONALD# 'O!"O!ATION*

40.4-

2*

'HA"TE! -

ANALI%#I# ON M'DONALD# IM"O!T.

E("O!T*

42.5

5


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INT!OD$'TION

Although the realm of accounting and finance hasoften been viewed as dull bean counting, in todays modern and

competitive business environment, the finance department should

be at the heart of any company, encompassing a variety of

functions that go beyond its traditional financial reporting role

!hile it is still a priority for accountants to ensure a companys

financial statutory accounts meet legal re"uirements, dynamic

companies such as #c$onalds have shifted the focus of their

accounting and finance function to additionally include the

evaluation of past performance and appraisal of future

opportunities, helping to ensure the

%ompany ma&imises its strategic capabilities

#c$onalds 'estaurants () *imited, a wholly owned

subsidiary of the (+ parent company, opened its first ()

restaurant in !oolwich in .4 /here are now ,200 restaurants

operating in the () which, despite representing only 41 of the

total number of #c$onalds restaurants worldwide, contribute

.1 of global profits, maing the () a very important financial

maret for #c$onalds shareholders


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#c$onalds understands the value of an integrated

accounting and finance function, e&tending from the restaurant

floor up to the board of directors ach individual #c$onalds

restaurant is structured as an independent business, with

restaurant management responsible for its financial performance,

supported by the centralised Accounting 6inance department

DE"A!TMENT #T!$'T$!E ) +$N'TION

#c$onalds 6inance $epartment has two ey areas of

responsibility7 financial reporting and management accounting

Although each of these functions has different priorities, woring

together ensures the best financial position for the company now

and for the future

.


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HOW DOE# M'DONALD# MAKE A

"!O+IT8

#c$onalds has two sources of profit7

8 +ales made by company-owned restaurants

8 'ental and royalty income from franchised restaurants

!E#TA$!ANT #ALE#

#c$onalds retains all of the profit earned by company-owned

restaurants An e&ample 9rofit *oss +tatement for a restaurant

is shown left and highlights how food and labour constitute a

restaurants largest costs :n addition to variable costs, which

increase or decrease depending on the level of sales, #c$onalds

also incurs costs that are largely fi&ed, for e&ample utilities and

advertising, which need to be paid for even before the restaurant

maes any sales :ncreasing sales and controlling costs are

fundamental to ensuring the profit of each restaurant is either

maintained or increased

;


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'HA"TE!9.

'OM"AN% "!O+ILE

#c$onalds is a leader in convenient foods and

beverages, with revenues of about aving about billon customers to be served all over the world

#c$onaldss success is the result of superior products,

high standards of performance, distinctive competitive strategies

and the high integrity of our people #c$onalds is continuing to

e&pand and introduce new alternative beverages in the maret

Appro&imately ;51 of #c$onalds restaurant businesses world-

wide are owned and operated by franchisees All franchisees are

independent, full-time operators #c$onalds was named

ntrepreneurs ?umber-one franchise for .

@ur mission is to be the worlds premier consumer9roducts %ompany focused on convenient foods and beverages


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!e see to produce healthy financial rewards to investors as we

provide opportunities for growth and enrichment to our

employees, our business partners and the communities in which

we operate And in everything we do, we strive for honesty,

fairness and integrity you could now Boin our team Creater

variety and "uality choices surprise and delight customers with

the food and beverage they desire

#c$onalds corp is currently one of the most successful

consumer products company in the world with annual revenues

e&ceeding


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customersE and by providing a fair return to their investors while

maintaining the highest standards of integrity

HI#TO!% O+ McDONALD#*

The McDonald's History - 1954 to 1955Raymond Albert Kroc 1902-194! A "alesman

Ray Kroc mortgaged his home and invested

his entire life savings to become theexclusive distributor of a five-spindled milkshake maker called the Multimixer. Hearingabout the McDonald's hamburger stand inalifornia running eight Multimixers at a time!he packed up his car and headed "est. #t$as %&(. He $as ) years old.

Dic# and Mac McDonald's Resta$rant! "an %ernardino!&aliornia

Ray Kroc had never seen so many peopleserved so *uickly $hen he pulled up to takea look. +ei,ing the day! he pitched the idea

of opening up several restaurants to thebrothers Dick and Mac McDonald! convincedthat he could sell eight of his Multimixers toeach and every one. "ho could $e get toopen them for us Dick McDonald said.

"ell! Kroc ans$ered! $hat about me


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(here it all be)an! Des *laines! +llinois

Ray Kroc opened the Des /laines restaurantin %&. 0irst day's revenues-1233.%)4 5olonger a functioning restaurant! the Des/laines building is no$ a museum containingMcDonald's memorabilia and artifacts!

including the Multimixer4

The McDonald's History - 195, to 19,

Ray Kroc At (or#

#f you've got time to lean! you've got time to clean!Ray Kroc preached to his troops. Heeding his o$n$ords! here the hairman of the 6oard cleans theparking lot of the first McDonald's franchise in Des/laines! #llinois.

Ronald McDonald! +n Any .an)$a)e He Means /$n/

7he smile kno$n around the $orld! #n his first 78appearance in %&32 the happy clo$n $as portrayed bynone other than "illard +cott.

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red T$rner And Ray Kroc! Architects A Dream

Here Ray Kroc 9right: and 0red 7urner study the design$hich $ould replace the red and $hite tile buildings thathad become landmarks throughout the ;.+. alledKroc's first grill man extraordinaire! 7urner is today+enior hairman of the 6oard.

The McDonald's History - 19,5 to 193

McDonald's &omes To (all "treet

#n %&3 McDonald's $ent public $ith the company's first

offering on the stock exchange. < hundred shares ofstock costing 1)!)= dollars that day $ould havemultiplied into >(!23= shares today! $orthapproximately 12.2 million on December 2%! )==3. #n%&? McDonald's $as added to the 2=-company Do$@ones #ndustrial


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million!es:auran: e;de ded>ca:ed :o ser?>ng our

cus:o;ers

540million#nac@ Wran 011-

24,500!es:auran:s around :e world oer eC:ended or 04.our

ser?>ce

billionMore cus:o;ers were ser?ed >n 011- :an >n 0117

5'oun:r>es c>n one o McDonalds ;os: successul

ons e?er

Our :>e.>n w>: Drea;Wor@s #r>e@ :e T>rd

'HA"TE!9.0 5


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ANALI%#I# ON M'DONALD# A#

A #MALL #'ALE'O!"O!ATION IN THE

BEGINNING*

#c$onalds is one of the leading restaurant chains in the world,

touching the lives of people everyday /he long Bourney of the

burger brand started in 40, when two brothers, $ic and #ac

#c$onald opened the first #c$onalds restaurant in +an

=ernardino, %alifornia :nitially, they owned a hotdog stand, but

after establishing the restaurant they served around 25 items,which were mostly barbe"ued :t became a popular and profitable

teen hangout :n 4;, the brothers closed and reopened the

restaurant to sell only hamburgers, milshaes and 6rench fries

As per the information of the #c$onalds history, the

maBor revenue came from hamburgers, which were sold at a

nominal price of 5 cents /he restaurant gradually became

famous and the #c$onald brothers begin franchising their

restaurant in the year 53 /he first franchise was taen by ?eil

6o& and under itE the second #c $onalds restaurant was opened

in 6resno, %alifornia :t was the first to introduce the Colden


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Arch design /he third and fourth restaurants were opened in

+aginaw, #ichigan and $owney, %alifornia, respectively

/he business began in 40, with a restaurantopened

by siblings $ic and #ac #c$onald in +an =ernardino,

%alifornia /heir introduction of the F+peedee +ervice +ystemF in

4; established the principles of the modern fast-food

restaurant /he original mascot of #c$onalds was a man with a

chefs hat on top of a hamburger shaped head whose name was

F+peedeeF +peedee was eventually replaced with 'onald

#c$onald in 3

/he present corporation dates its founding to the openingof a franchisedrestaurant by 'ay )roc, in $es 9laines, :llinoison

April 5, 55 , the ninth #c$onalds restaurant overall )roc

later purchased the #c$onald brothers e"uity in the company

and led its worldwide e&pansion and the company became listed

on the public stoc marets in 5 )roc was also noted for

aggressive business practices, compelling the #c$onalds

brothers to leave the fast food industry /he #c$onalds brothers

and )roc feuded over control of the business, as documented in

both )rocs autobiography and in the #c$onald brothers

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http://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonaldhttp://en.wikipedia.org/wiki/San_Bernardino,_Californiahttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Fast_food#Overviewhttp://en.wikipedia.org/wiki/Fast_food#Overviewhttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonaldhttp://en.wikipedia.org/wiki/San_Bernardino,_Californiahttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Fast_food#Overviewhttp://en.wikipedia.org/wiki/Fast_food#Overviewhttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchising


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autobiography /he site of the #c$onald brothers original

restaurant is now a monument

!ith the e&pansion of #c$onalds into many internationalmarets, the company has become a symbol of globaliDationand

the spread of the American way of life :ts prominence has also

made it a fre"uent topic of public debates about obesity,

corporate ethicsand consumerresponsibility

#%$@?A*$+ :ndia 9vt *td G#:9*H, the wholly-owned

subsidiary of the (+-based fast-food giant, #c$onalds

%orporation, is liely to put on hold its earlier declared e&pansion

plan of opening ;0 restaurants in :ndia by 2003

;
http://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/American_wayhttp://en.wikipedia.org/wiki/Obesityhttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Moral_responsibilityhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/American_wayhttp://en.wikipedia.org/wiki/Obesityhttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Moral_responsibility


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#c$onalds has 32 restaurants in :ndia of which . are in ?orth ast

:ndia and 53 in !est +outh :ndia

-/ res:auran:s >n Nor: ) Eas: Ind>a9 w>:

33 >n Del>

00 >n $::ar "radesI ?oida G5H,

ChaDiabad G4H, #athura GH G>ighway and $rive /hruH, )anpur

G2H, #eerut G2H, *ucnow G4H, Agra GH, Allahabad GH, Jaranasi G2H

>n Har=ana- 6aridabad G3H, #anesar GH G>ighway and $rive -

/hruH, Curgaon G5H, )arnal GH G>ighway and $rive - /hruH,

9anipat GH

- >n "unFa- %handigarh G2H, *udhiana G2H, $oraha GH G>ighway

and $rive - /hruH, Kalandhar GH, 9atarsi GH G>ighway and $rive -

/hruH 3 >n !aFas:an .Kaipur G3H

>n $::arancal- $ehradun GH

>n Wes: BengalI )olata GH

>n H>;acal "rades- Kabli GH

53 !es:auran:s >n Wes: ) #ou: Ind>a7

30 >n Maaras:raI #umbai G23H, 9une G;H, ?asiGH

- >n GuFara:I Ahmedabad G4H, Jadodara G2H, +urat GH

- >n Karna:a@aI =angaloreG.H

4 >n Andra "radesI >yderabad G4H, 3 >n Mad=a "radesI:ndore G3H


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'HA"TE!9.3

//7 /he first #c$onalds restaurant opened on @ct 3, at =asant *o,Jasant Jihar, ?ew $elhi :t was also the first #c$onalds

restaurant in the world not serving beef on its menu

//- /he first $rive - /hru restaurant at ?oida G(9H

/he first disabled friendly store at ?oida G(9H

/// /he first #all location restaurant at Ansal 9laDa G?ew $elhiH

0111 /he first highway restaurant at #athura G(9H

011 /he first thematic restaurant at %onnaught 9lace G?ew $elhiH

0110 /he first restaurant in a food court at 3%s, *aBpat ?agar G?ew

$elhiH

/he first restaurant at the $elhi #etro +tation at :nter +tate =us/erminus

/he first annual fundraiser in association with @'=:+ and $r+hroffs %harity ye >ospitalG$elhiH

0113 /he first $essert )ios - 6aridabad G>aryanaH

0113.

14

:ndigenous products lie #cAloo /ii, #cJeggie and 9iDDa#c9uff e&ported to #iddle ast countries

0114 #c$onalds $elivery +ervice G#c$elivery/# H introduced in ?ew$elhi

0117 #c$elivery on =icycles flagged off at %handni %how G$elhiH-another first initiative by #c$onalds :ndia

00th #c$onalds 'estaurant in :ndia

0 Lear Anniversary

011- /he first 'estaurant opened in the astern 'egion at 9ar +treet,)olata G!est =engalH

/he first 'estaurant opened at AirportG$omestic Airport, ?ew$elhiH

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'O!"O!ATION AT

INTE!NATIONAL LEEL*#c$onalds :nternational through its wholly owned subsidiary#c$onalds :ndia entered into two KJs, one with %onnaught

9laDa 'estaurants 9vt *td in the ?orthern astern region andanother with >ard %astle 'estaurants 9vt *td in the !estern

+outhern region

#c$onalds restaurants are found in countries and

territories around the world and serve nearly 4. million

customers each day #c$onalds operates over 3,000

restaurants worldwide, employing more than 5 million people

/he company also operates other restaurantbrands, such as 9iles

%afM, and has a minority stae in 9ret a #anger /he company

owned a maBority stae in %hipotle #e&ican Crill until

completing its divestment in @ctober 200 (ntil $ecember

2003, it also owned $onatos 9iDDa @n August 2., 200.,

#c$onalds sold =oston #aretto +un %apital 9artners

2
http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Pret_a_Mangerhttp://en.wikipedia.org/wiki/Chipotle_Mexican_Grillhttp://en.wikipedia.org/wiki/Divestmenthttp://en.wikipedia.org/wiki/Donatos_Pizzahttp://en.wikipedia.org/wiki/Boston_Markethttp://en.wikipedia.org/wiki/Sun_Capital_Partnershttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Pret_a_Mangerhttp://en.wikipedia.org/wiki/Chipotle_Mexican_Grillhttp://en.wikipedia.org/wiki/Divestmenthttp://en.wikipedia.org/wiki/Donatos_Pizzahttp://en.wikipedia.org/wiki/Boston_Markethttp://en.wikipedia.org/wiki/Sun_Capital_Partners


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#ost standalone #c$onalds restaurants offer both

counter service and drive-through service, with indoor and

sometimes outdoor seating $rive-/hru, Auto-#ac, 9ay and

$rive, or #c$rive as it is nown in many countries, often has

separate stations for placing, paying for, and picing up orders,

though the latter two steps are fre"uently combinedE it was first

introduced in AriDona in .5, following the lead of other fast-

food chains :n some countries F#c$riveF locations near

highways offer no counter service or seating :n contrast,

locations in high-density city neighborhoods often omit drive-

throughservice /here are also a few locations, located mostly in

downtown districts, that offer !al-/hru service in place of

$rive-/hru specially themed restaurants also e&ist, such as theF+olid Cold #c$onalds,F a 50s roc-and-roll themed

restaurant :n Jictoria, =ritish %olumbia, there is also a

#c$onalds with a 24 carat G001H gold chandelierand similar

light fi&tures

ach #c$onalds restaurant is operated by a franchisee,

an affiliate, or the corporation itself /he corporations revenues

come from the rent, royalties and fees paid by the franchisees, as

well as sales in company-operated restaurants #c$onalds

revenues grew 2.1 over the three years ending in 200. to


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6ull year 200; highlights included7

Clobal comparable sales increase of 1, including

(+ 401, urope ;51, and AsiaN9acific, #iddle ast and

Africa 01

Crowth in #c$onalds combined operating margin of 320

basis points to 2.41, after adBusting for the impact of the

200. *atin America transaction

@perating income increases in the (+ ;1, urope 231

G.1 in constant currenciesH and AsiaN9acific, #iddle ast

and Africa 331 G2;1 in constant currenciesH

arnings per share from continuing operations of


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%ompanys underlying leases and escalations Gon properties that

are leasedH #c$onalds franchisees are granted the right to

operate a restaurant using the #c$onalds +ystem and, in most

cases, the use of a restaurant facility, generally for a period of 20

years 6ranchisees pay related occupancy costs including

property ta&es, insurance and maintenance :n addition, in certain

marets outside the (+, franchisees pay a refundable, non

interest-bearing security deposit 6oreign

affiliates and developmental licensees pay a royalty to the

%ompany based upon a percent of sales, as well as initial fees

/he results of operations of restaurant businesses purchased and

sold in transactions with franchisees, affiliates and others were

not material to the consolidated financial statements for periodsprior to purchase and sale

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McDonalds Ind>a 'ul:urall= #ens>:>?e

#c$onalds worldwide is well nown for the high degree of

respect for the local customs and culture #c$onalds has

developed a menu especially for :ndia with vegetarian selections

to suit :ndian tastes and preferences )eeping in line with this,

McDonalds does no: oer an= ee or :e;s >n Ind>a :n

the last decade it has introduced some vegetarian and non-

vegetarian products with local flavours that have appealed to the

:ndian palate /here have been continuous efforts to enhance

variety in the menu by developing more such products

#c$onalds has also re-engineered its operations repeatedly in its

years in :ndia to address the special re"uirements of a

vegetarian menu Jegetable products are 001 vegetarian, ie

/hey are prepared separately, using dedicated e"uipment

and utensils

@nly pure vegetarian oil is used as a cooing medium %heese and sauces are completely vegetarian and egg less

+eparation of vegetarian and non-vegetarian food products

is maintained throughout the various stages of procurement,

cooing and serving

'HA"TE!9.4 25


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ANALI%#I# ON M'DONALD# ON

"!OD$TIIT% ) 6$ALIT%*

/he site of the first #c$onalds to be franchised by 'ay

)roc is now a museumin $es 9laines, :llinois /he building is a

reproduction of the original, which was the ninth #c$onalds

restaurant

/o accommodate the current trend for high "uality

coffee and the popularity of coffee shops in general, #c$onalds

introduced #c%afMs /he #c%afM concept is a cafM-style

accompaniment to #c$onalds restaurants #c%afM is a conceptof #c$onalds Australia, starting with #elbourne in 3

/oday, most #c$onalds in Australia have #c%afMs located

within the e&isting #c$onalds restaurant :n /asmaniathere are

#c%afMs in every store, with the rest of the states "uicly

following suit After upgrading to the new #c%afM loo and feel,

some Australian stores have noticed up to a 01 increase in

sales As of the end of 2003 there were over 00 #c%afMs

worldwide

+ome locations are connected to gas

stationsNconvenience stores, while others called #c$onalds

2
http://en.wikipedia.org/wiki/McDonald's_Museumhttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Caf%C3%A9http://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Tasmaniahttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Convenience_storehttp://en.wikipedia.org/wiki/McDonald's_Museumhttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Caf%C3%A9http://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Tasmaniahttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Convenience_store


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marets, #c$onalds offers salads and vegetarian items, wraps

and other localiDed fare /his local deviation from the standard

menu is a characteristic for which the chain is particularly

nown, and one which is employed either to continue by regional

food taboos Gsuch as the religious prohibition of beef

consumption in :ndiaH or to mae available foods with which the

regional maret is more familiar Gsuch as the sale of #c 'ice in

:ndonesiaH /here have been continuous efforts to enhance

variety in the menu by developing more such products

#c$onalds has also re-engineered its operations

repeatedly in its years in :ndia to address the special

re"uirements of a vegetarian menu Jegetable products are 001

vegetarian, /hey are prepared separately, using dedicatede"uipment and utensils @nly pure vegetarian oil is used as a

cooing medium %heese and sauces are completely vegetarian

and egg less +eparation of vegetarian and non-vegetarian food

products is maintained throughout the various stages of

procurement, cooing and serving

2;
http://en.wikipedia.org/wiki/Saladshttp://en.wikipedia.org/wiki/Vegetarianhttp://en.wikipedia.org/wiki/Wrap_(food)http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Saladshttp://en.wikipedia.org/wiki/Vegetarianhttp://en.wikipedia.org/wiki/Wrap_(food)http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indonesia


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#c$onalds :ndia - A decade of "uality service

6or its unparalleled benchmars established in the O+' sector#c$onalds :ndia has been bestowed with many prestigious

awards /o name a few7

'HA"TE!9.5

Mos: !esler . Te 'onsu;er Wa=, +ood

#er?>ces !e:a>ler o :e %ear 0117 ) 011-, =+ranc>se Ind>a

A;>:= 'orn 011- )

0112

2


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ADE!TI#EMENT AND "$BILE

!ELATION#

@ver the years, #c$onalds has developed /J advertising

campaigns that have become, lie #c$onalds, a part of our lives

and culture #c$onalds commercials have focused not only on

product, but rather on the overall #c$onalds e&perience,

portraying warmth and a real slice of every day life /his

FimageF or FreputationF advertising has become a trademar of

the company and created many memorable television moments

and themes, including7-

#c$onalds is Lour )ind of 9lace G.H

Lou $eserve a =rea /oday G.H

!e $o it All for Lou G.5H

/woallbeefpattiesspecialsaucelettucecheesepiclesonionsonasesa

meseedbun G.5H

Lou, Loure /he @ne G.H

?obody %an $o :t *ie #c$onalds %an G.H

'enewed7 Lou $eserve a =rea /oday G;0 ;H

?obody #aes Lour $ay *ie #c$onalds %an G;H

#c$onalds and Lou G;3H

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:ts a Cood /ime for the Creat /aste of #c$onalds G;4H

Cood /ime, Creat /aste, /hats !hy /his is #y 9lace G;;H

6ood, 6ols and 6un G0H

#c$onalds /oday GH

!hat Lou !ant is !hat Lou Cet G2H

>ave you >ad your =rea /odayP G5H

#y #c$onalds G.H

$id +omebody +ay #c$onalds G.H

!e *ove to +ee Lou +mile G2000H

/heres a little #c$onalds in veryone G200H - %anada @nly

:m lovin it G2003H

#c$onalds has for decades maintained an e&tensive advertising

campaign :n addition to the usual media Gtelevision, radio, and

newspaperH, the company maes significant use of

billboardsGoutdoors, on which large advertisements or notices are

postedH and signage, sponsors sporting events from ranging from

*ittle *eague to the @lympic Cames, and maes coolers of

orange drin with their logo available for local events of all

inds ?onetheless, television has always played a central role in

the companys advertising strategy

EM"LO%EE BENE+IT "LAN#

3
http://en.wikipedia.org/wiki/Little_Leaguehttp://en.wikipedia.org/wiki/Olympic_Gameshttp://en.wikipedia.org/wiki/Orange_drinkhttp://en.wikipedia.org/wiki/Little_Leaguehttp://en.wikipedia.org/wiki/Olympic_Gameshttp://en.wikipedia.org/wiki/Orange_drink


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/he %ompanys 9rofit +haring and +avings 9lan for (+-

based employees includes a 40GH feature, a leveraged employee

stoc ownership G+@9H feature, and a discretionary employer

profit sharing match /he 40GH feature allows participants to

mae pre-ta& contributions that are partly matched from shares

released under the +@9 /he 9rofit +haring and +avings 9lan

also provides for a discretionary employer profit sharing match at

the end of the year for those eligible participants who have

contributed to the 40GH feature All contributions and related

earnings can be invested in several investment alternatives as

well as #c$onalds common stoc in accordance with each

participants elections 9articipants contributions to the 40GH

feature and the discretionary employer match are limited to 201

investment in #c$onalds common stoc /he %ompany also

maintains certain supplemental benefit t plans that allow

participants to GiH mae ta&-deferred contributions

and GiiH receive %ompany-provided allocations that cannot bemade under the 9rofit +haring and +avings 9lan because of

:nternal 'evenue +ervice limitations /he investment alternatives

and returns are based on certain maret-rate investment

alternatives under the 9rofit +haring and +avings 9lan /otal

liabilities were


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term liabilities in the %onsolidated balance sheet /he %ompany

has entered into derivative contracts to hedge maret-driven

changes in certain of the liabilities At $ecember 3, 200.,

derivatives with a fair value of


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!EA#ON TO WO!K WITH M'DONALD#

'HA"TE!9.7

+as:.:rac@ 'areer "rogress>on

%oung , Energe:>c ) +leC>le

En?>ron;en:

ECcellen: learn>ng "o:en:>al

D>gn>:= o Laour World class Tra>n>ng #=s:e;s

Gloal EC:s

34


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ANALI%#I# ON AL$ATION O+

TA( O+ M'DONALD#

'O!"O!ATION /he %ompany records a valuation allowance to reduceits deferred ta& assets if it is more liely than not that some

portion or all of the deferred assets will not be realiDed !hile the

%ompany has considered future ta&able income and ongoing

prudent and feasible ta& strategies, including the sale of

appreciated assets, in assessing the need for the valuation

allowance, if these estimates and assumptions change in the

future, the %ompany may be re"uired to adBust its valuation

allowance /his could result in a charge to, or an increase in,

income in the period such determination is made :n addition, the

%ompany operates within multiple ta&ing Burisdictions and is

subBect to audit in these Burisdictions /he %ompany records

accruals for the estimated outcomes of these audits, and the

accruals may change in the future due to new developments in

each matter $uring 200., the %ompany recorded a


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returns /he %ompanys 2005-200 (+ ta& returns are under

audit and the completion is e&pected in late

200; or early 200

$eferred (+ income ta&es have not been recorded for

temporary differences totalling


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=A*A?% +>/ @6 #%$@?A*$+ 200.-0;

PERIOD

ENDING30-Jun-07 31-Mar-07 31-Dec-06 30-Sep-06

Assets

Current Assets

Cash And Cash

Equivalents2,142,100 2,438,400 2,136,400 4,282,700

Short Term

Investments- - - -

Net Receivables784,600 848,000 904,200 812,500

Inventory 1,055,500 143,700 149,000 144,500

Other Current

Assets 379,200 449,300 435,700 596,000

Total Current

Assets4,361,400 3,879,400 3,625,300 5,835,700

Long Term

Investments1,060,100 1,064,400 1,036,200 1,032,300

Property Plant

and Equipment20,106,600 20,975,200 20,845,700 20,526,200

Goodwill 2,198,300 2,254,300 2,209,200 2,156,100

Intangible

Assets- - - -

Accumulated

Amortization- - - -

Other Assets 1,268,500 1,300,200 1,307,400 1,278,900

DeferredLong

TermAssetCharges

- - - -

Total Assets 28,994,900 29,473,500 29,023,800 30,829,2003.


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Liabilities

Current Liabilities

Accounts

Payable2,120,900 2,451,000 2,739,000 4,122,100

Short/Current

LongTermDebt288,200 613,500 17,700 454,200

Other Current

Liabilities1,020,500 - 251,400 -

Total Current

Liabilities3,429,600 3,064,500 3,008,100 4,576,300

LongTermDebt 7,885,500 8,199,900 8,416,500 8,569,400

Other Liabilities 1,652,500 1,471,000 1,074,900 1,154,300

DeferredLong

TermLiability

Charges

941,600 971,100 1,066,000 1,002,900

Minority Interest - - - -

Negative

Goodwill- - - -

Total Liabilities 13,909,200 13,706,500 13,565,500 15,302,900

Stockholders' Equity

Misc Stocks

Options

Warrants

- - - -

Redeemable

PreferredStock- - - -

PreferredStock - - - -

CommonStock 16,600 16,600 16,600 16,600

Retained

Earnings25,881,200 26,592,500 25,845,600 24,585,700

TreasuryStock (14,832,700) (14,371,900) (13,552,200) (11,858,500)

Capital Surplus 3,957,000 3,731,300 3,445,000 3,228,200

Other

Stockholder

Equity

63,600 (201,500) (296,700) (445,700)

Total

StockholderEquity

15,085,700 15,767,000 15,458,300 15,526,300

Net Tangible

Assets$12,887,400

$13,512,700$13,249,100 $13,370,2003;


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'HA"TE!9.-

3


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IM"O!T. E("O!T

/he business is managed as distinct geographic segments

+ignificant reportable segments include the (nited +tates G(+H,

urope, and AsiaN9acific, #iddle ast and Africa GA9#AH :n

addition, throughout this report we present Q@ther %ountries

%orporateR that includes operations in %anada and *atinAmerica, as well as %orporate activities and certain investments

/he (+, urope and A9#A segments account for 351, 31

and 1 of total revenues, respectively 6rance, Cermany and

the (nited )ingdom G()H, collectively, account for

appro&imately 01 of uropes revenuesE and Australia, %hina

and Kapan a 501-owned affiliate accounted for under the e"uity

methodH, collectively, account for over 501 of A9#As

revenues /hese si& marets along with the (+ and %anada are

referred to as QmaBor maretsR throughout this report and

comprise over .01 of total revenues /he %ompany continues to

focus its management and financial resources on the #c$onalds

restaurant business as we believe the opportunities for long-term

growth remain signifi cant Accordingly, during the third "uarter

200., the %ompany sold its investment in =oston #aret :n

200, the %ompany disposed of its investment in %hipotle

40


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#e&ican Crill G%hipotleH via public stoc offerings and a ta&-free

e&change for #c$onalds common stoc As a result of the

disposals during

200. and 200, both =oston #arets and %hipotles results of

operations and transaction gains have been reflected as

discontinued operations for all periods presented :n analyDing

business trends, management considers a variety of performance

and financial measures including comparable sales growth,

+ystem wide sales growth, restaurant margins and returns

8 %onstant currency results e&clude the effects of foreign

currency translation and are calculated by translating current year

results at prior year average e&change rates #anagementreviews and analyDes business results in constant currencies and

bases certain compensation plans on these results because we

believe they better represent the underlying business trends

8 %omparable sales are a ey performance indicator used within

the retail industry and are indicative of acceptance of the

%ompanys initiatives as well as local economic and consumer

trends :ncreases or decreases in comparable sales represent the

percent change in constant currency sales from the same period

in the prior year for all restaurants in operation at least thirteen

months, including those temporarily closed +ome of the reasons4


41/56

restaurants may be temporarily closed include road construction,

reimaging or remodelling, rebuilding, and natural disasters

#c$onalds reports on a calendar basis and therefore the

comparability of the same month, "uarter and year with the

corresponding period of the prior year will be impacted by the

mi& of days

/he number of weedays, weeend days and timing of

holidays in a given timeframe can have a positive or negative

impact on comparable sales /he %ompany refers to this impact

as the calendar shiftNtrading day adBustment /his impact varies

geographically due to consumer spending patterns and has the

greatest impact on monthly comparable sales /ypically, the

annual impact is minimal, with the e&ception of leap years8 +ystem wide sales include sales at all restaurants, whether

operated by the %ompany, by franchisees or by affiliates !hile

sales by franchisees and affiliates are not recorded as revenues by

the %ompany, management believes the information is important

in understanding the %ompanys financial performance because it

is the basis on which the %ompany calculates and records

franchised and affiliated revenues and is indicative of the

financial health of our franchisee base

MTHD.8

42


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This ro:ect is reared 7ith the hel o

theoretical #no7led)e as 7ell as ractical

#no7led)e ; a cr$mb o ad


43/56

BOOK#9.

='A?$ 9'A%/:%+

MAINE#9.

=(+:?++ !@'*$

00 /@9 ='A?$+

/> JA*(A=* ='A?$+ @6 :?$:A

WEB #ITE#9.

wwwmcdonaldsindiacom

wwwmcdonaldscom

44
http://www.mcdonaldsindia.com/http://www.mcdonalds.com/http://www.mcdonaldsindia.com/http://www.mcdonalds.com/


44/56

'ON'L$#ION

TODAY, MCDONALDS HAS

GROWN TO 25,000 RESTAURANTS IN

ABOUT 120 COUNTRIES SERVING 50

MILLION CUSTOMERS DAILY.

BECOMING THE LARGEST FAST FOOD

CHAIN IN ALL OVER THE WORLD

45


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BYE BYE SEE U AT McDonaldS

4


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EQUIPMENTS

6'L #A+/'

C':**'

4.


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4


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Main MD!na"#$ M%n&

Big Mac

Big N TastyBig N Tasty w/ CheeseQuarter Pounder w/ CheeseDouble Quarter Pounder w/ CheeseCrispy ChickenChicken McGrillFilet!FishDouble CheeseburgerCheeseburger"a#burger

Chicken McNuggets $%&Chicken McNuggets $'&Chicken McNuggets $(&Mc)alad )haker Che* )aladMc)alad )haker Garden )aladMc)alad )haker Grilled Chicken Caeser )alad

Main MD!na"#$ Si#% Di$' M%n&

)#all French FriesMediu# French Fries+arge French Fries)uper )i,e French Fries

Main MD!na"#$ B(%a)*a$+ M%n&

-gg McMu**in)ausage McMu**in)ausage McMu**in w/ -ggBacon. -gg Cheese Biscuit)ausage Biscuit)ausage Biscuit w/ -gg"a#. -gg Cheese Bagel)reak. -gg Cheese Bagel)panish !#elet Bagel)ausage Break*ast Burrito

Big Break*astDelu0e Big Break*ast"otcakes )ausage1pple Danish

50


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MD!na"#$ D%$$%(+ M%n&

Baked 1pplePie)tawberry )undae"ot Fudge )undae"ot Cara#el )undae2anilla 3educed Fat 4ce Crea# Cone!reo McFlurryM M McFlurryButter*inger McFlurryFruit n 5ogurt Par*aitFruit n 5ogurt Par*ait snack si,eMcDonaldland Cookies

Fresh Baked Cookies

MD!na"#$ B%%(a-% M%n&

Thick n Crea#y )hake 2anilla. Chocolate or )trawberryCocaCola. Diet Coke or )priteCo**ee

Tea!range 6uice78 Milk

#c$onalds 6ast food restaurants in :ndia is more popular now, its popularity is growing at fastrate %urrently #c$onalds is having largest networ of restaurants in :ndia in comparison tosimilar fast food chain lie $omino 9iDDa

:f you go at any #c$onalds restaurant, you will find the same menu /he "uality of food itemwill be always be superior #c$onalds is maintaining the same "uality across all the stores in thecountry :t have a single supply source for all the outlets in the country, so the end products is

same throughout all outlets in :ndia

#c$onalds food menu is protected by patents, so it is very difficult to get similar food in "ualityand taste from other restaurants

Menu a: McDonaldsis as follows

G#enu and 9rice indicated is only for rough idea, they change there menu and pricing very veryfre"uently in :ndia because of various weather seasonsH Lou will get actual price details at outlet

only

eg +ood I:e;.

5


51/56

#cJeggie T 9rice is around 's 40-50

#cAloo /ii T 's 20I50

9aneer +alsa !rap T 's 20I50

%rispy %hinese T 's 20I50

Jeg #c%urry 9an T 's 20I50

9iDDa #c9uff I G i forgot the price H

*arge 6ries T 's40- 50 >appy #eal T 's50-0

%ombos T 's30-'s.0

+oft $rin T 's20

Non eg +ood I:e;

%hicen #aharaBa #ac

#c%hicen - 's 50- 55

6ilet-@-6ish

%hicen #cCrill

%hicen #c%urry 9an

52


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!a:>ngs9

6ues:>onna>re

. M>n>;u;

1.MaC>;u;

5. A?erage

>ow is the ambience at #c $onaldsP UUUUUUUUUUUUUUU

>ow is the "uality at #c $onaldsP UUUUUUUUUUUUUUUUUU

Are stores of #c $onalds at >yderabad are sufficientUUUUUUUU

>ow is the accessibility of #c $onaldsPUUUUUUUUUUUUUUU

>ow is the "uantity given by mc $onaldsPUUUUUUUUUUUUU

>ow are the services provided by mc $onaldsPUUUUUUUUU

:s price worth to the "uantity providedPUUUUUUUUUUUUUUU

#c $onalds offers are attractivePUUUUUUUUUUUUUUUUUUUU

/he items provided by #c$onalds are freshP UUUUUUUUUUUU

:s home delivery goodPUUUUUUUUUUUUUUUUUUUUUUUUUU

6or #anager of #c$onald

!hat is the strength of #c$onaldP

!hich place is best suited for better mareting of #c $onaldsP

!hat are the promotion strategies made for effective mareting of #c $onaldsP

>ow is the price of the food items of #c $onalds are decidedP

54


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+ervice .. .;

9rice ;0 5

@ffers . ;;

:tems 55 33

>ome delivery 30 20

Da:a >n:eron or ues:>onna>re9

#c $Ambience 5

Ouality .

?o of stores 54

Accessibility 3.

Ouantity 54

+ervice ..

9rice ;0

@ffers .

:tems 55

>ome delivery 30

5


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