so shall we go to

8/6/2019 So Shall we go to

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Presented by,

Devu V


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Richard & Maurice MacDonald

1940-moved to San Bernardino 1948- Speedee Service System

-Assembly line operation

Concept introduced in San

Bernardino, California.

1937-airdrome restaurant.


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Franchise History 1953- began franchising: with

Niel Fox in Arizona, Phoenix

Why change it?? Its great as it

is- Neil Fox


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Ray Kroc

Franchiser took only 1.9 percent of

the gross sales of which Kroc get1.4% & brothers get 0.5%.

First restaurant opened in Des

Plaines, Illinois near Chicago on

April 15,1955


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Grinding It Out: The Making of McDonalds

-Ray Kroc

1961: The McDonald brothers

agree to sell Kroc business rights to

their operation for $2.7

1961: Hamburger University opens

in the basement of the Elk Grove

Village, Illinois, McDonald'srestaurant. . Bachelor of

Hamburgology degrees

Grinding it out:autobiography of

Ray Kroc


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McDonalds Museum

Route 66 signs - the original shield and the California state

highway design - as displayed in

the McDonald's museum

The original restaurant has been

replaced with a museum dedicated

to both McDonald's and Route 66.


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TheGolden Arches

Gaudy red and white tile

Golden Arches- George Dexter

First McDonald's franchised

restaurant with Golden Arches in

Phoenix


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Logo

Created by Jim Schindler in 1962

1968- McDonalds name wasadded to the logo

The famous Golden Arches in

McDonalds logo represent style,

significance and a strong corporate

identity


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TheGolden Arches theory

In the book The Lexus and the

Olive Tree, Thomas L. Friedman

proposed The Golden Arches Theory

of Conflict Prevention

Two countries having McDonald

will not be interested in fighting

wars anymore


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Ronald McDonald Clown character used as a mascot Created by Willard Scott


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McDonald's CorporationIndustry Restaurants

Founded May 15, 1940 in San Bernardino, California;McDonald's Corporation, April 15, 1955 in Des Plaines, Illinois

Founder(s) Richard and Maurice McDonald McDonald's restaurant concept;Ray Kroc, McDonald's Corporation founder.

Headquarters Oak Brook, Illinois, U.S.

Numberof

loc

atio

ns 32,000 restaurants in 117 countriesArea served Worldwide

Key people James A. Skinner(Chairman & CEO)

Products Fast food(hamburgers chicken french fries soft drinks coffee milkshakes salads desserts breakfast)

Revenue US$ 24.075 billion (2010)Operating income US$ 7.473 billion (2010)

Net income US$ 4.949 billion (2010)

Total assets US$ 31.975 billion (2010)

Total equity US$ 14.634 billion (2010)

Employees 400,000 (2010)


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Balance SheetCurrency in As of: Dec 31,2007 Dec 31,2008 Dec 31,2009 Dec 31,2010

Millions ofUS dollars USD USD USD USD

Assets

Cash and Equivalents 1,981.30 2,063.40 1,796.00 2,387.00

Trading Asset Securities -- -- 1.4 0.5

TOTAL CASH AND SHORT TERM INVESTMENTS 1,981.30 2,063.40 1,797.40 2,387.50Accounts Receivable 1,053.80 931.2 1,060.40 1,179.10

TOTAL RECEIVABLES 1,053.80 931.2 1,060.40 1,179.10

Inventory 125.3 111.5 106.2 109.9

Prepaid Expenses 350.7 287.6 303.2 378.9

Deferred Tax Assets, Current 70.8 80.1 126.3 195.2

Other Current Assets -- 43.8 22.8 117.9

TOTAL CURRENT ASSETS 3,581.90 3,517.60 3,416.30 4,368.50

Gross Property Plant and Equipment 32,203.70 31,152.40 33,440.50 34,482.40

Accumulated Depreciation -11,219.00 -10,897.90 -11,909.00 -12,421.80

NET PROPERTY PLANT AND EQUIPMENT 20,984.70 20,254.50 21,531.50 22,060.60

Goodwill 2,301.30 2,237.40 2,425.20 2,586.10

Long-Term Investments 1,156.40 1,304.90 1,280.00 1,407.40

Deferred Tax Assets, Long Term 502.8 417.4 541.2 590.4

Other Long-Term Assets 864.6 729.7 1,030.70 962.2

TOTAL ASSETS 29,391.70 28,461.50 30,224.90 31,975.20


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Currency in As of: Dec 31,2007 Dec 31,2008 Dec 31,2009 Dec 31,2010

Millio

nsof

US do

llars USD

USD

USD

USD

LIABILITIES & EQUITY

Accounts Payable 624.1 620.4 636 943.9

Accrued Expenses 1,883.30 1,863.60 2,126.70 1,852.80

Short-Term Borrowings 1,126.60 -- -- --

Current Portion of Long-Term Debt/Capital Lease 864.5 31.8 18.1 8.3

Current Income Taxes Payable -- -- 202.4 111.3

Other Current Liabilities, Total -- 22.1 5.5 8.4

TOTAL CURRENT LIABILITIES 4,498.50 2,537.90 2,988.70 2,924.70Long-Term Debt 7,310.00 10,189.50 10,563.70 11,497.30

Pension & Other Post-Retirement Benefits 544.7 -- -- --

Deferred Tax Liability Non-Current 960.9 944.9 1,278.90 1,332.40

Other Non-Current Liabilities 797.8 1,406.60 1,359.70 1,586.60

TOTAL LIABILITIES 14,111.90 15,078.90 16,191.00 17,341.00

Common Stock 16.6 16.6 16.6 16.6

Additional Paid in Capital 4,226.70 4,600.20 4,853.90 5,196.40

Retained Earnings 26,461.50 28,953.90 31,270.80 33,811.70

Treasury Stock -16,762.40 -20,289.40 -22,854.80 -25,143.40

Comprehensive Income and Other 1,337.40 101.3 747.4 752.9

TOTAL COMMON EQUITY 15,279.80 13,382.60 14,033.90 14,634.20

TOTAL EQUITY 15,279.80 13,382.60 14,033.90 14,634.20

TOTAL LIABILITIES AND EQUITY 29,391.70 28,461.50 30,224.90 31,975.20


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Key People

Honorary Chairman-Fred Turner

Vice Chairman and CEO-

James Skinner

President & Chief Operating Officer-

Don Thompson


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How will you become a

McDonaldsFranchisee?? Business experience

Initial down payment:

40% of the total cost- new restaurant

25% of the total cost- existing restaurant

To complete the training provided by the corporation so the entrepreneurs will

know how to handle their own businesses-Hamburger University

Ongoing Fees to McDonald's

Service fee- 4.0% of monthly sales

Rent- usually owns the property and also acts as the landlord


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Operations

A fryer where one person made frenchfries

A soda fountain and milkshake machinefor desserts and beverages

A counter where customers placed andreceived their orders

A very large grill where one person could

cook lots of burgers simultaneously

A dressing station where people added

the same condiments to every burger


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Speedee Service System When you visit one of them and go inside,

you almost always place your order and collect your food at a counter

When you drive through, you place your

order at a speaker or a window, and someone hands it to you through a window

The food arrives individually

wrapped and in a bag or on a tray

You can eat most of the food without using a knife or fork

The food is relatively inexpensive


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Amit Jatia, JV Partner, McDonalds India (West & South), JimSkinner, Vice Chairman and CEO, McDonalds Intl., Late-Jim

Cantalupo, Chairman and CEO, McDonalds Intl., Vikram Bakshi, JV

Partner, McDonalds India (North & East), Madhurima Bakshi,

Director- Corporate Communications, McDonalds India (North & East)


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McDonalds Menu

extra value mealsHappy meals

Happy price menu

Spicy delights

Beverages

Breakfast menu

Core menu Desserts


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SoShallwegoto

McDonalds???


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so shall we go to

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