McDonald’s Anonymous Author

Overview History Franchising Operations Real Estate Size Growth & Reach Corporate Vision & Strategies

History 1948McDonald’s Brothers 1955Ray Kroc Restaurants; $1.2M sales Restaurants; 400M burgers 19671st International Store in Canada 1967-Today Lots of Growth

Franchising Long-term success v. short-term gain Exclusive to owner operators; easy entry Sales are King Success of franchisee drives success for all –Supplies-all direct, quality at low price –Marketing-over $600M since 1999 –Operations...

Operations Quality, Service, Cleanliness, Value Strict Compliance Magic of the system –better consistency, lower costs Refine-don’t alter –Product Development –System Development

Real Estate World’s largest owner of retail real estate Lease Income Key to owner/operator strategy –Allows under-capitalized independents in Key to financial strategy –Food Sales generate 3/4 of Corp Revenue –Leasing generates 2/3 of Corp Income

Size 20% share of $100B US Fast Food Industry 28,707 Restaurants in 121 countries 2000 Sales $19.5B –More than BK, Wendy’s, Taco Bell Combined 2000 Net Income $1.9B –5x all of Tricon, 8x BK, 12x Wendy’s Largest US beef purchaser; over 600M lbs Purchases 7.5% of US potato crop

Growth Franchising Saturation Issues in US Diversification –Aroma Café (UK) –Boston Market –Chipotle Mexican Grill –Donato’s Pizza

Reach Restaurants: –USA12,80411,368 –Europe5,4602,597 –Asia/Pacific6,2602,735 –Latin Am1, –Can, MidE, Afr1,6651,015 –Other Brands1,0080 –TOTAL28,70718,299

Vision Be the world’s best quick-service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile

Strategies Be the best employer for our people in each country around the world Deliver operational excellence to our customers in each of our restaurants Achieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald’s system through innovation and technology

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