McDonald’s Company Analysis

By: Esperanza Valtierra

CEO Information

Don Thompson

Don Thompson has been the CEO of McDonald’s Corporation for 3 years (2012-2015) but has been working with the McDonald’s Company for 25 years.

Don Thompson earned a bachelor of science degree in electrical engineering from Purdue University and received a doctor of science from Excelsior College in Albany, New York in July 2008.

Salary:$1,225,000 (when he worked there)

AccomplishmentsCompany:

● Mcdonald’s was named 5th most valuable global brand in 2014

by BrandZ.

● Mcdonald’s was named as #11 of the World’s Most Admired

Companies by Fortune in 2012.

● Mcdonald’s was ranked #1 in Food Services by Fortune 2012.

Competitors in Fast Food● Taco Bell: Sells tacos and other products (slushes, cinnamon twists)

● Starbucks: higher quality coffee and different products (pastries)

● Jack in the box: More options on food and drinks (tacos, meals, soda machine with more customized options)

● Wendy’s: higher quality ingredients and options (Real lemonade, french fries are different quality)

Financial AnalysisEPS(S): $0.84

GPM(%): 37.30%

ROE(%): 12.54%

Debt/Equity Ratio: 1.253

4 P’s Product:

Fast food (hamburgers, chicken nuggets, french fries)

Price:

Low price but good quality

Place:

All around the United States and world

Promotion:

Commercials, Radio, Magazines, Billboards, Packaging

Target Market● fast food buyers● everyone but mainly target children with the

playscapes and toys included in the Happy Meals

SWOT Analysis

● Successful advertisement and brand name

● Area where kids can play● Good training for management● competitive pricing (good food for a low

price)● Variety of food options (salads, burgers,

etc.)

● Unhealthy food choices/Negative publicity

● An old company so it must keep creating new advertisements to keep them in business

● Employees keep quitting

● New companies with more options● Customers are becoming more health

conscious● Lawsuits against Mcdonald’s (racial

discrimination, coffee too hot, unhealthy food choices, glass in chicken sandwich, etc.)

● Internationalization (known all around the world)

● Advertisement strategies (Super bowl commercial)

● Can add healthier food (Salads, wraps)

Taco Bell V.S. McDonald’sWhen Taco Bell first came out with its breakfast menu it immediately took the advantage of McDonald’s and threw them under the bus by claiming them to be “old fashion” and even comparing the company to a dystopian society whose dictator resembles the McDonald’s mascot Ronald McDonald. Since then McDonald’s and Taco Bell have begun the war of breakfast menus.

https://www.youtube.com/watch?v=kuap4wIGSLg

1970’s Hamburglar

2015 Hamburglar

https://www.youtube.com/watch?v=AU1iq9rqYJ0

https://www.youtube.com/watch?v=XbBP5KxrNNg

https://www.youtube.com/watch?v=ihrZ3YnKGTM

Ronald McDonald

Captain Crook

Professor

Grimace

Mayor McCheese

Big Mac

Hamburglar