1. By: Faith Crockett

2. Table Of Contents  Company Background  Executive Summary  Revenue, Expenses, Contribution Margin  Product Cost  Product Development Issues  Recommendation  References

3. Company Background Past  Founded in 1954  Ray Kroc discovered a small burger restaurant in California  In 1949, McDonalds replaces potato chips with their world famous French Fries  In 1965, has first public stock offering at $22.50 per share  In 2005, McDonalds celebrates 50 th anniversary Present  The world’s leading food service retailer  33,000 restaurants serving nearly 68 million people  Servicing more than 119 countries every day  In 2012, Forbes gave them #7 World’s Most Powerful Brand

4. Executive Summary: Dividends and Stock Price Actual Dividend Amount Dividend Adjusted for Split Record DatePayable Date 5.0.77 Mar 1,2013Mar 15, 2013 4.0.77 Dec 3, 2012Dec 17, 2012 3.0.70 Sep 4, 2012Sep 18, 2012 2.0.70 Jun 4, 2012Jun 15, 2012 1.0.70 Mar 1, 2012Mar 15, 2012 STOCK PRICE McDonald's Corporation NYSE: MCD - Apr 5 4:00pm ET $101.42 +0.79 ‎ (0.79% ‎ )

5. Executive Summary/ History McDonalds Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. Its restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. As of December 31, 2012, the company operated 34,480 restaurants in 119 countries, of which 27,882 were franchised or licensed, including 19,869 franchised to conventional franchisees, 4,350 licensed to developmental licensees, and 3,663 licensed to foreign affiliates; and 6,598 were operated by the company. McDonalds Corporation was founded in 1940 and is based in Oak Brook, Illinois.

6. Facts about the Fries Golden on the outside, soft and fluffy on the inside. Made with quality potatoes and cooked in our Canola oil blend for zero grams of trans fat per serving. Now that's an epic bite.

7. Revenue & Expenses 2012 Total Revenue (In Billions) 27,567,000 Cost of Revenue 16,750,700 Gross Profit 10,816,300 Research Development- Selling General and Administrative2,203,700 Non Recurring8,000 Operating Income or Loss 8,604,600 Total Other Income/Expenses Net(9,000) Earnings Before Interest And Taxes8,595,600 Interest Expense516,600 Income Before Tax8,079,000 Income Tax Expense2,614,200 Net Income From Continuing Ops5,464,800 Net Income 5,464,800 Net Income Applicable To Common Shares5,464,800

8. Ratios Gross Margin %: 39.24 COGS Margin%: 60.76 Profit Margin %: 20.07 Operating Margin %: 31.21 Payout Ratio: 53.5 Current Ratio: 1.446 Contribution Margin 7,519.3 CMR: 41%

9. How much do the fries actually cost?  Variable Cost Per Unit: Direct Materials, Direct Labor, Manufacturing Overhead. $0.15

10. Product Development Issues? The only issue that McDonald's suffered was that there were claims that their fries had beef in them, which affected Vegetarians. The claim was actually proven true, and became an issue for some people. However, since 1990 McDonalds has cooked their fries in vegetable oil, and since 2008 they switched to zero-trans- fat cooking oil. McDonald's French fries remain eternally popular with our fast-food nation. The restaurant chain serves approximately 9 million pounds of fries a day

11. Recommendation McDonalds makes millions every year off of a lot of products; French fries definitely being one of the reasons. French fries come with every meal, and even have a space on the dollar menu. The restaurant chain serves approximately 9 million pounds of fries a day, which makes it very profitable. They are delicious and is one reason McDonalds is so successful today. French fries come in all sizes and also dollar amounts, and are good with any kind of meal. Everyone loves French fries, so I recommend you keep this product and you are selling it at the right price! If they get rid of the fries, their sales would plummet for sure.

12. References  http://www.aboutmcdonalds.com/mcd/i nvestors.html http://www.aboutmcdonalds.com/mcd/i nvestors.html  http://finance.yahoo.com/q?s=MCD http://finance.yahoo.com/q?s=MCD  http://images.search.yahoo.com/images http://images.search.yahoo.com/images  http://finance.yahoo.com/quotes/MCD,r atios http://finance.yahoo.com/quotes/MCD,r atios