case 18 mcdonalds
Post on 03-Apr-2018
230 Views
Preview:
TRANSCRIPT
-
7/28/2019 Case 18 McDonalds
1/15
McDonalds 2007
Forest David: Francis Marion University
A. Case Abstract
McDonalds Corporation (www.mcdonalds.com) is a comprehensive business policy
and strategic management case that includes the companys fiscal year-endDecember 2006 financial statements, competitor information and more. The case
time setting is the year 2007. Sufficient internal and external data are provided to
enable students to evaluate current strategies and recommend a three-yearstrategic plan for the company. Headquartered in Oak Brook in the U.S. state of
Illinois, McDonalds common stock is traded on the New York Stock Exchangeunder the ticker symbol MCD.
McDonalds sells various fast food items and soft drinks including, burgers, chicken,salads, fries, and ice cream. McDonalds is led by CEO Jim Skinner whose basic paywas over US$10 million in 2006. The firms major competitors are Wendys, Burger
King, and Hardees.
B. Vision Statement (proposed)
Our vision is to maintain our stand as the number one fast food restaurant in theworld.
C. Mission Statement (proposed)It is our mission to be the worlds best quick service restaurant (2). Being the best
means providing outstanding quality, service, cleanliness and value, so that we
make every customer (1) in every restaurant smile (5, 6). To achieve our missionwe must be the best employer (9) for our people in each community (8) around
the world (3), deliver excellence to our customers in each of our restaurants and
achieve profitable growth by expanding the brand McDonalds through innovationand technology (4).
1. Customer
2. Products or services3. Markets
4. Technology5. Concern for survival, profitability, growth
6. Philosophy7. Self-concept
8. Concern for public image9. Concern for employees
Copyright 2009 Pearson Education Limited
http://www.mcdonalds.com/http://www.mcdonalds.com/ -
7/28/2019 Case 18 McDonalds
2/15
D. External Audit
Opportunities
1. Rising population in China
2. Chinese consider drive-thrus a novelty where car ownership is growing
rapidly3. Burger Kings market share among quick service sandwich chains dropped
10.95 percent in 2006
4. Developing a Healthy Lifestyle program to attract health consciousconsumers
5. Hispanic population has recently increased 14 percent in the U.S.6. Krispy Kreme Doughnuts possibility of going bankrupt
7. 6 percent increase in social shopping areas (i.e. malls, plazas)
Threats
1. Increased expansion of traditional rivals2. Yum Brands are the leading quick service chains in China
3. McDonalds Europe sales dropped 1.9 percent4. Burger Kings sales growth is an estimated 18.2 percent compared to
McDonalds 11.2 percent5. Yum Brands variety of food and wide range of prices for selections
6. Wendys Frescata product line increased sales by 3.2 percent7. According to National Restaurant Association (NRA) average menu price
increased by 3.2 percent8. Growing public awareness of fast food being unhealthy
CPM Competitive Profile Matrix
Wendys McDonalds Burger King
Critical SuccessFactors Weight Rating
Weighted Score Rating
Weighted Score Rating
WeightScore
Market Share 0.15 2 0.30 4 0.60 2 0.30
Advertising 0.13 2 0.28 3 0.39 3 0.39
Global Expansion 0.12 1 0.12 4 0.48 2 0.24
Product Variety 0.10 4 0.40 3 0.30 3 0.30
Product Quality 0.08 1 0.08 3 0.24 2 0.16
Company Image 0.07 2 0.14 3 0.21 2 0.14
Price Competition 0.04 3 0.12 3 0.12 3 0.12
Management Experience 0.06 2 0.12 3 0.18 2 0.12
Customer Service 0.07 3 0.21 2 0.14 2 0.14
Philanthropy 0.05 2 0.10 4 0.20 1 0.05
Customer Loyalty 0.08 2 0.16 3 0.24 2 0.16
Financial Position 0.05 3 0.15 3 0.15 2 0.10
Total 1.00 2.16 3.25 2.22
Copyright 2009 Pearson Education Limited
-
7/28/2019 Case 18 McDonalds
3/15
-
7/28/2019 Case 18 McDonalds
4/15
E. Internal Audit
Strengths
1. Globally recognized brand name2. Largest U.S. restaurant chain in international markets with approximately
17,000 stores in 120 countries3. Consumption of food away from home accounted for 48.5 percent of total
expenditures on food4. Total assets of US$29 billion in 2006
5. McDonalds serves nearly 54 million customers daily6. McDonalds beat Starbucks, Burger King and Dunkin Doughnuts in a coffee
taste test according to the Consumer Report7. In 2006 McDonalds return nearly US$5 billion to shareholders through
shares acquired and dividends paid8. McDonalds sells fast food in Disneys theme parks around the world as well
as Ocean Park in Hong Kong9. In 2006, revenue and operating income reached a record high of US$21.6
billion and US$4.4 billion respectively10. McDonalds increased the companys dividends by 50 percent, raising the
annual US$0.67 per share to US$1.00 per share totaling about US$1.2billion
Weaknesses
1. Lack of menu development2. Publics perception of quality, service, and cleanliness at McDonalds units
suffered over the past years
3. McDonalds ranked last out of 25 fast-food chains in a recent study of drive-thru order accuracy
4. McDonalds 5-year average sales are 8.14 compared to 8.89 for the industry
5. Operations loss in Islands of Jamaica, Barbados, Bermuda6. Long-term debt remains over US$8 billion7. Low personnel productivity
8. Yum Brands return-on-assets of 13.56 compared to McDonalds 9.749. Website not user friendly
Financial Ratio Analysis (December 2007)
Growth Rates % McDonalds Industry SP-500
Sales (Qtr vs year ago qtr) 5.70 7.50 8.30
Net Income (YTD vs YTD) -32.10 -9.10 16.00
Net Income (Qtr vs year ago qtr) 69.40 42.50 6.60
Sales (5-Year Annual Avg.) 8.14 8.89 13.34Net Income (5-Year AnnualAvg.)
18.67 13.16 20.14
Dividends (5-Year Annual Avg.) 44.27 26.63 10.00
Price Ratios McDonalds Industry SP-500
Current P/E Ratio 28.6 24.8 21.9
P/E Ratio 5-Year High NA 30.4 25.9
P/E Ratio 5-Year Low NA 13.0 7.4
Price/Sales Ratio 2.89 2.10 2.38
Copyright 2009 Pearson Education Limited
-
7/28/2019 Case 18 McDonalds
5/15
Price/Book Value NA 3.02 3.39
Price/Cash Flow Ratio NA 5.40 10.60
Profit Margins McDonalds Industry SP-500
Gross Margin 34.7 31.0 33.8
Pre-Tax Margin 15.7 12.1 17.5
Net Profit Margin 10.3 8.1 12.4
5Yr Gross Margin (5-Year Avg.) 32.4 30.5 33.55Yr PreTax Margin (5-Year Avg.) 17.1 12.3 16.8
5Yr Net Profit Margin (5-YearAvg.)
11.7 8.5 11.7
Financial Condition McDonalds Industry SP-500
Debt/Equity Ratio NA 0.69 1.19
Current Ratio NA 0.4 0.9
Quick Ratio NA 0.4 0.7
Interest Coverage 7.6 13.9 43.3
Leverage Ratio NA 1.7 4.0
Book Value/Share NA 3.58 16.25
Adapted from www.moneycentral.msn.com
Date Avg. P/E Price/Sales Price/Book Net Profit Margin(%)
12/07 26.50 3.13 NA 10.2
12/06 16.10 2.66 3.45 13.7
12/05 15.70 2.17 2.81 13.0
12/04 15.60 2.20 2.87 12.2
12/03 17.10 1.85 2.62 8.8
Date Book Value/Share
Debt/Equity ROE(%)
ROA(%)
InterestCoverage
12/07 NA 0.00 NA NA 9.5
12/06 $12.84 0.55 18.5 9.9 11.012/05 $11.99 0.67 17.1 8.6 11.1
12/04 $11.18 0.65 16.0 8.2 9.7
12/03 $9.50 0.81 12.6 5.8 7.2
Adapted from www.moneycentral.msn.com
Net Worth Analysis (December 2006 in millions)
1. Stockholders Equity + Goodwill = 15,458 + 2,200 $17,658
2. Net income x 5 = $3,544 x 5= $ 17,720
3. Share price = $57/EPS 2.00 =$28.5 x Net Income $3,544= $101,004
4. Number of Shares Outstanding x Share Price = 1,180 x $57 = $ 67,260Method Average $50,910
Copyright 2009 Pearson Education Limited
http://www.moneycentral.msn.com/http://www.cnbc.com/http://www.moneycentral.msn.com/http://www.cnbc.com/ -
7/28/2019 Case 18 McDonalds
6/15
Internal Factor Evaluation (IFE) Matrix
Key Internal Factors Weight Rating WeightedScore
Strengths1. Globally recognized brand name 0.08 4 0.32
2. Largest U.S. restaurant chain ininternational markets with approx.
17,000 stores in 120 countries 0.15 4 0.60
3. Consumption of food away from home
accounted for 48.5 percent of totalexpenditures on food 0.06 4 0.24
4. Total assets of US$29 billion in 2006 0.10 4 0.40
5. McDonalds serves nearly 54 millioncustomers daily 0.02 4 0.08
6. McDonalds beat Starbucks, Burger King
and Dunkin Doughnuts in a coffee tastetest according to the Consumer Report 0.04 4 0.16
7. In 2006 McDonalds return nearly US$5
billion to shareholders through sharesacquired and dividends paid 0.05 4 0.20
8. McDonalds sells fast food in Disneys
theme parks around the world as wellas Ocean Park in Hong Kong 0.02 4 0.08
9. In 2006, revenue and operating income
reached a record high of US$21.6 billionand US$4.4 billion respectively 0.12 4 0.48
10.McDonalds increased the companys
dividends by 50 percent, raising theannual US$0.67 per share to US$1.00
per share totaling about US$1.2 billion 0.04 4 0.16
Weaknesses
1. Lack of menu development 0.03 2 0.06
2. Publics perception of quality, service,and cleanliness at McDonalds units
suffered over the past years 0.08 2 0.16
3. McDonalds ranked last out of 25 fast-food chains in a recent study of drive-
thru order accuracy 0.08 2 0.16
4. McDonalds 5-year average sales are8.14 compared to 8.89 for the industry 0.02 2 0.04
5. Operations loss in Islands of Jamaica,
Barbados, Bermuda 0.01 1 0.01
6. Long-term debt remains over $8 billion 0.02 2 0.04
7. Low personnel productivity 0.01 1 0.01
8. Yum Brands return-on-assets of 13.56compared to McDonalds 9.74 0.05 2 0.10
9. Website not user friendly 0.02 1 0.02
TOTAL 1.00 3.32
Copyright 2009 Pearson Education Limited
-
7/28/2019 Case 18 McDonalds
7/15
F. SWOT Strategies
Strengths Weaknesses
1. Globally recognizedbrand name
2. Largest U.S. restaurantchain in international
markets withapproximately 17,000
stores in 120 countries3. Consumption of food
away from homeaccounted for 48.5
percent of totalexpenditures on food
4. Total assets of US$29
billion in 20065. McDonalds serves
nearly 54 millioncustomers daily
6. McDonalds beat
Starbucks, Burger Kingand Dunkin Doughnuts
in a coffee taste testaccording to the
Consumer Report7. In 2006 McDonalds
return nearly US$5billion to shareholders
through sharesacquired and dividends
paid8. McDonalds sells fast
food in Disneys themeparks around the world
as well as Ocean Parkin Hong Kong
9. In 2006, revenue andoperating income
reached a record highof US$21.6 billion and
US$4.4 billion
respectively
10. McDonaldsincreased thecompanys dividends
by 50 percent, raising
the annual US$0.67per share to US$1.00
per share totalingabout US$1.2 billion
1. Lack of menudevelopment
2. Publics perception ofquality, service, and
cleanliness atMcDonalds units
suffered over the pastyears
3. McDonalds ranked lastout of 25 fast-food
chains in a recentstudy of drive- thru
order accuracy
4. McDonalds 5-yearaverage sales are 8.14
compared to 8.89 forthe industry
5. Operations loss in
Islands of Jamaica,Barbados, Bermuda
6. Long-term debtremains over US$8
billion7. Low personnel
productivity8. Yum Brands return-on-
assets of 13.56compared to
McDonalds 9.749. Website not user
friendly
Copyright 2009 Pearson Education Limited
-
7/28/2019 Case 18 McDonalds
8/15
Opportunities S-O Strategies W-O Strategies
1. Rising population in
China2. Chinese consider drive-
thrus a novelty wherecar ownership is
growing rapidly3. Burger Kings market
share among quick
service sandwich
chains dropped 10.95percent in 2006
4. Developing a HealthyLifestyle program to
attract healthconscious consumers
5. Hispanic population hasrecently increased 14
percent in the U.S.6. Krispy Kreme
Doughnuts possibilityof going bankrupt
7. 6 percent increase insocial shopping areas
(i.e. malls, plazas)
1. Expand into Chinese
market (Increaseadvertising and
restaurant locations)Market Development
(S1, S2, O1)2. Acquire Krispy Kreme
Corporation
Horizontal Integration
(S6, O6)
1. Menu Development
(Healthy Lifestyle &Hispanic foods lines)
Product Development(W1, O4)
Threats S-T Strategies W-T Strategies
1. Increased expansion oftraditional rivals
2. Yum Brands are theleading quick service
chains in China
3. McDonalds Europesales dropped 1.9percent
4. Burger Kings salesgrowth is an estimated
18.2 percent comparedto McDonalds 11.2
percent5. Yum Brands variety of
food and wide range ofprices for selections
6. Wendys Frescataproduct line increased
sales by 3.2 percent7. According to National
Restaurant Association(NRA) average menu
price increased by 3.2percent
8. Growing public
awareness of fast foodbeing unhealthy
1. Increase the number ofrestaurants located in
theme parks Disney &Ocean Park) Foreword
Integration (S8, T1)
2. Increase advertising ofcoffee line in keymarkets (China, North
America) MarketPenetration (S6, T3,
T4,)
1. Develop the menu tokeep up with
competition (Asian &Latin American items)
Product Development
(W1,T1)2. Redesign the website
to make it more user
friendly and tocompete better with
competition, ProductDevelopment (W9, T1)
3. Increase salespromotions and
advertisingexpenditures in key
markets, MarketPenetration (W1, W3,
T1,T3, T4)
Copyright 2009 Pearson Education Limited
-
7/28/2019 Case 18 McDonalds
9/15
G. SPACE Matrix
6
5
4
3
2
1
-6 -5 -4 -3 -2 -1 1 2 3 4 5 6
-1
-2
-3
-4
-5
-6
Competitive
IS
ES
CA
FSConservative Aggressive
Defensive
Return on Assets (ROA) 4 Rate of Inflation
Leverage 3 Technological Changes
Net Income 6 Price Elasticity of Demand
Income/Employee 6 Competitive Pressure
Inventory Turnover 5 Barriers to Entry into Market
4.8 Environmental Stability (ES) AverageFinancial Strength (FS) Average
Environmental Stability (ES)Financial Strength (FS)
Market Share -1 Growth Potential
Product Quality -3 Financial Stability
Customer Loyalty -2 Ease of Entry into MarketTechnological know-how -2 Resource Utilization
Control over Suppliers and Distributors -1 Profit Potential
-1.8Competitive Advantage (CA) Average Industry Strength (IS) Average
Competitive Advantage (CA) Industry Strength (IS)
x-axis: -1.8 + 5.0 = 3.2y-axis: 4.8 + -2.8 = 2.0
Copyright 2009 Pearson Education Limited
-
7/28/2019 Case 18 McDonalds
10/15
H. Grand Strategy Matrix
Rapid Market Growth
Quadrant II Quadrant I
Strong
Competitive
Position
Slow Market Growth
Weak
Competitive
Position
Quadrant III Quadrant IV
Copyright 2009 Pearson Education Limited
-
7/28/2019 Case 18 McDonalds
11/15
I. The Internal-External (IE) Matrix
The IFE Total Weighted Score
Strong Average Weak
3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
High I II III
3.0 to 3.99
Medium IV V VI
The EFE
TotalWeightedScore
2.0 to 2.99
McDonalds
Low VII VIII IX
1.0 to 1.99
Grow and Build
Division % Revenue
Europe 36
US 35
Asia Pacific/Middle East 14
Latin America 7
Canada 5Corporate & Other 3
Copyright 2009 Pearson Education Limited
-
7/28/2019 Case 18 McDonalds
12/15
J. QSPM
Key Internal FactorsOpen 200
New Storesin China
Acquire
Krispy Kreme
Strengths Weight AS TAS AS TAS
1. Globally recognized brand name0.08
4 0.32 2 0.16
2. Largest U.S. restaurant chain in
international markets withapproximately 17,000 stores in 120
countries 0.15
4 0.60 2 0.30
3. Consumption of food away fromhome accounted for 48.5 percent of
total expenditures on food 0.06
1 0.06 3 0.18
4. Total assets of US$29 billion in 20060.10
3 0.30 4 0.40
5. McDonalds serves nearly 54 million
customers daily 0.02 --- --- --- ---6. McDonalds beat Starbucks, Burger
King and Dunkin Doughnuts in acoffee taste test according to the
Consumer Report 0.04
2 0.08 4 0.16
7. In 2006 McDonalds return nearly
US$5 billion to shareholders throughshares acquired and dividends paid 0.05 --- --- --- ---
8. McDonalds sells fast food in Disneys
theme parks around the world aswell as Ocean Park in Hong Kong 0.02 --- --- --- ---
9. In 2006, revenue and operating
income reached a record high ofUS$21.6 billion and US$4.4 billion
respectively 0.12
4 0.48 3 0.36
10.McDonalds increased the companysdividends by 50 percent, raising the
annual US$0.67 per share to $1.00per share totaling about US$1.2 bn 0.04
--- --- --- ---
Weaknesses
1. Lack of menu development 0.03 1 0.03 4 0.12
2. Publics perception of quality,
service, and cleanliness atMcDonalds units suffered over the
past years 0.08
--- --- --- ---
3. McDonalds ranked last out of 25
fast-food chains in a recent study of
drive-thru order accuracy 0.08
--- --- --- ---
4. McDonalds 5-year average sales are8.14 compared to 8.89 for the
industry 0.02
--- --- --- ---
5. Operations loss in Islands ofJamaica, Barbados, Bermuda 0.01 --- --- --- ---
Copyright 2009 Pearson Education Limited
-
7/28/2019 Case 18 McDonalds
13/15
6. Long-term debt remains over US$8
billion 0.02
--- --- --- ---
7. Low personnel productivity 0.01 --- --- --- ---
8. Yum Brands return-on-assets of13.56 compared to McDonalds 9.74 0.05 --- --- --- ---
9. Website not user friendly 0.02 --- --- --- ---
SUBTOTAL 1.00 1.84 1.68
Key External FactorsOpen 200
New Stores
in China
Acquire
Krispy
Kreme
Opportunities Weight AS TAS AS TAS
1. Rise in population in China 0.05 4 0.20 1 0.05
2. Chinese consider drive-thrus anovelty where car ownership is
growing rapidly 0.05
4 0.20 1 0.05
3. Burger Kings market share amongquick service sandwich chains
dropped 10.95 percent in 2006 0.08
--- --- --- ---
4. Developing a Healthy Lifestyleprogram to attract health conscious
consumers 0.15
--- --- --- ---
5. Hispanic population has recentlyincreased 14 percent in the U.S. 0.05 --- --- --- ---
6. Krispy Kreme Doughnuts possibility
of going bankrupt 0.02 1 0.02 4 0.08
7. 6 percent increase in social shoppingareas (i.e. malls, plazas) 0.05 --- --- --- ---
Threats
1. Increased expansion of traditional
rivals 0.15
4 0.60 2 0.30
2. Yum Brands are the leading quick
service chains in China 0.05 4 0.20 1 0.05
3. McDonalds Europe sales dropped 1.9
percent 0.02
--- --- --- ---
4. Burger Kings sales growth is an
estimated 18.2 percent compared to
McDonalds 11.2 percent 0.05
3 0.15 2 0.10
5. Yum Brands variety of food and wide
range of prices for selections 0.04 --- --- --- ---
6. Wendys Frescata product line
increased sales by 3.2 percent 0.04 --- --- --- ---
7. According to National RestaurantAssociation (NRA) average menu
price increased by 3.2 percent 0.05
--- --- --- ---
8. Growing public awareness of fast
food being extremely unhealthy 0.15 --- --- --- ---
SUBTOTAL 1.00 1.37 0.63
SUM TOTAL ATTRACTIVENESSSCORE
3.21 2.31
Copyright 2009 Pearson Education Limited
-
7/28/2019 Case 18 McDonalds
14/15
K. Recommendations
The QSPM strategies assessed whether opening 200 new stores in China was morefeasible than acquiring Krispy Kreme. The QSPM distinctly recommended the
former option as the most advantageous, but, considering the low cost of Krispy
Kreme, it is recommended McDonalds undertake both strategies. Each store in
China is expected to cost US$10 million with the expectation franchisees will befound.
Krispy Kreme Net Worth
1. Stockholders Equity + Goodwill = 79 + 28 $ 107
2. Net income x 5 = $-42 x 5= $ NA
3. Share price = $2.73/EPS -0.94 = NAx Net Income $-42= $ NA
4. Number of Shares Outstanding x Share Price = 65 x $2.73 = $ 177
Method Average $142
L. EPS/EBIT Analysis
US$ Amount Needed: 2,142MStock Price: US$57
Tax Rate: 35%Interest Rate: 7%
# Shares Outstanding: 1,180M
Copyright 2009 Pearson Education Limited
Common Stock Financing Debt Financing
Recession Normal Boom Recession Normal Boom
BIT$2,000,000,000
$4,500,000,000
$7,000,000,000
$2,000,000,000
$2,500,000,000 $3,500,00
nterest 0 0 0 149,940,000 149,940,000 149,940,0BT 2,000,000,000 4,500,000,000 7,000,000,000 1,850,060,000 4,350,060,000 6,850,060
axes 700,000,000 1,575,000,000 2,450,000,000 647,521,000 1,522,521,000 2,397,521
AT 1,300,000,000 2,925,000,000 4,550,000,000 1,202,539,000 2,827,539,000 4,452,539
hares 1,217,578,947 1,217,578,947 1,217,578,947 1,180,000,000 1,180,000,000 1,180,000
PS 1.07 2.40 3.74 1.02 2.40 3.77
70 Percent Stock - 30 Percent Debt 70 Percent Debt - 30 Percent Stock
Recession Normal Boom Recession Normal Boom
BIT
$2,000,000,00
0
$4,500,000,00
0
$7,000,000,00
0
$2,000,000,00
0
$4,500,000,00
0 $7,000,00
nterest 44,982,000 44,982,000 44,982,000 104,958,000 104,958,000 104,958,0
BT 1,955,018,000 4,455,018,000 6,955,018,000 1,895,042,000 4,395,042,000 6,895,042
axes 684,256,300 1,559,256,300 2,434,256,300 663,264,700 1,538,264,700 2,413,264
AT 1,270,761,700 2,895,761,700 4,520,761,700 1,231,777,300 2,856,777,300 4,481,777
hares 1,206,305,263 1,206,305,263 1,206,305,263 1,191,273,684 1,191,273,684 1,191,273
PS 1.05 2.40 3.75 1.03 2.40 3.76
-
7/28/2019 Case 18 McDonalds
15/15
M. Epilogue
On February 8, 2008, McDonalds said sales were up 5.7 percent globally inrestaurants that had been open at least 13 months. That broke down to a 1.9percent increase in same-store sales in the U.S. in January from a flat December,
compared with sales in Europe that were up 8.2 percent. The company also sawincreased traffic in its Asia/Pacific, Middle East and Africa stores, with sales up 7.8
percent. The international numbers exceeded comparable sales growth for thecorresponding period in 2007 when European sales were only up by 5.8 percent
and Asia/Pacific, Middle East and Africa units were up 4.3 percent.
On February 7, 2008, McDonald's Japan, the nation's biggest fast-food chain,
posted a fivefold increase in annual net profit and predicted further growth as itopens new stores and refreshes its menu. McDonald's Holdings Co Ltd (Japan),
nearly half owned by McDonald's Corporation, forecast net profit would rise 28percent in 2008 as it plans to open 130 new stores and put strength into offering
low-cost menu items and promoting coffee. Net profit soared to 7.8 billion yen in2007, up from 1.55 billion the year before. The result was roughly in line with an
average estimate of 7.7 billion yen from analysts.
Among the reasons for McDonalds surge in Japan was the popularity of "Mega
Macs" four meat patties layered between three slices of bun with cheese andlettuce. That and new breakfast menus, along with expanding the number of 24-
hour stores, helped the company ride out its disclosure in November that it mayhave sold salads and other items past their expiration dates at as many as four
Tokyo outlets after employees switched product labels, although December salestook a temporary hit. For 2008, the company forecast net profit to rise to 10
billion yen. Analysts on average are predicting a profit of 9.7 billion yen. It wantsto open a total of 300 new stores by the end of 2010.
In Japan, McDonald's plans to put particular strength into promoting its coffee,which currently sells for 100 yen (US$0.94) a cup a fraction of the cost of a
Starbucks latte echoing the policy of the U.S. McDonald's, which is making apush into the coffee market by opening coffee bars in thousands of stores.
Copyright 2009 Pearson Education Limited
top related