Running Head Group Project Part 1 647928

Running Head Group Project Part 1

A brief historical summary of the company: McDonald's Corporation is an American based fast food company came into existence in 1940 by Richard and Maurice. Headquarter of the company is located in Chicago and they served worldwide area towards the competitive gains for the business. McDonald's Corporation is the world largest restaurant chain in terms of growth and revenues and company is looking for the market expansion to gain the competitive benefits. McDonald's Corporation is well known for the French fries and other items like burgers, pizza etc. Company has recently added salads in the menu to attract the more customers and increase the revenues for the business (Ryland & Samuel, 2019).

McDonald's Corporation serving over the 70 million customers so far in more than 100 countries and looking for the satisfying customers so that they can retain them for the long time. Company operates 37,855 restaurants worldwide and employing more than 210,000 people. McDonald's Corporation is mainly targeting the core brands in the business and began divesting themselves towards the stable returns for the company in the international market place. Company is reporting huge revenues in the recent days and also focusing on the setting up of new customer base which helps to gain the stable returns for the business in the long run (Ryland & Samuel, 2019). McDonald's Corporation look for the satisfying customers with unique flavours and quality services so that customers can visit again and again and avail all the services.

Below are the key products company is offering to their valuable customers: (Ryland & Samuel, 2019). Hamburgers, French Fries, Soft Drinks, Milk Shakes, Salads and Desserts, Breakfast. A list of Competitors to the McDonald Corporation: McDonald is growing rapidly in the competitive market place and able to set up the string customer base for the business and getting the stable revenues on investments. McDonald is the biggest name in the fast food industry and one of the most recognizable brand in the world in terms of profits and setting up strong customer base for the business. As consumer trends and preferences are keep on changing McDonald is offering the services accordingly in the business and trying all the possible ways to satisfy the customers (Piper, 2018). The main competitor for the McDonald is Burger King and below is some of the other competitors who try to compete McDonald: Wendy’s, Yum Brands, Subway, Chipotle. McDonald Position within the Industry: McDonald's are not only creating the brand in the market place but also setting up the strong customer base from where they can gain the long term benefits to the business. Company reported $21.1 billion for the complete year ending and also increase the customer base who are contributing huge share in the company’s success.

They are making the products according to the consumer preferences and keeping the primary focus satisfying the customers and avail all the possible changes in the business. Company is growing rapidly and setting up the new market for the business towards the competitive gains (Piper, 2018). Recent Developments within the company: McDonald’s made massive changes to their menu items all over the world. They cut down on a lot of items and added a few new products to their menu. They also value priced meals so that everyone can eat at McDonald’s for even a dollar (Ryland, 2019). The breakfast menu is now made available all day long and that has been a game changer for their sales. All these changes to their menu items were possible because of the huge amounts of data that they collected from the eating habits of their customers. They analysed this data and made changes according to their customer requirements. To speed up their drive-thru business, they also hired multiple technological start-up companies. Future Direction: McDonald’s is in the middle of planning for food delivery from their restaurants nationwide. They have started delivery service in few areas of New York City and testing this service (Samuel, 2019). They are also upgrading their mobile application on a regular basis to attract more and more customers. There are a lot of deals that can be found in their app which people can use to get food for even cheaper price. With the dine-in option almost cut short this year, the company is eyeing their future plans of providing their food and services to people digitally. They have invested a lot of money in the tech start-ups that they have hired recently. They are also constantly making changes to their menu items and how their food tastes, so that they can make sure that more and more people buy from their restaurants. Other significant items: McDonald’s as a corporation has leased or bought a lot of properties for their stores worldwide. With the advancement in technology, more and more people are ordering online and eating at their homes rather than going to restaurants (Piper, 2018). McDonald’s needs to find a way to downsize on their restaurants and also not to invest too much money in remodelling them. This way they can save money and can focus on getting better items in their menus and also focus more on their research department.

They also need to be aware of their competitors who are constantly changing their menus and are growing more and more rapidly. McDonalds SEC 10-k report: The 2015 SEC 10-K for McDonald’s Corporation review realized that most of the food chain businesses are named successful in current society but no business is more successful as McDonalds. In millions, except per share data December 31, ASSETS Current assets Cash and equivalents $7,685.5 $2,077.9 Accounts and notes receivable 1,298,214.4 Inventories, at cost, not in excess of market 100.0 Prepaid expenses and other current assets 558.2 Total current assets 9,643,185.5 Other assets Investments in and advances to affiliates 792,004.5 Goodwill 2,516,735.3 Miscellaneous 1,869,744.6 Total other assets 5,178,484.4 Property and equipment Property and equipment, at cost 37,692,126.1 Accumulated depreciation and amortization (14,574,568.6) Net property and equipment 23,117,557.5 Total assets $37,938.7 $34,227.4 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable $874.7 $860.1 Income taxes 154.8 Other taxes 309.0 Accrued interest 233.7 Accrued payroll and other liabilities 1,378,157.3 Total current liabilities 2,950,747.9 Long-term debt 24,122,935.7 Other long-term liabilities 2,074,065.9 Deferred income taxes 1,704,624.5 Shareholders’ equity Preferred stock, no par value; authorized – 165.0 million shares; issued – none. Common stock, $.01 par value; authorized – 3.5 billion shares; issued – 1,660.6 million shares 16.6 Additional paid-in capital 6,533,239.1 Retained earnings 44,594,294.5 Accumulated other comprehensive income (2,879,519.7) Common stock in treasury, at cost; 753.8 and 697.7 million shares (41,176,177.1) Total shareholders’ equity 7,087,853.4 Total liabilities and shareholders’ equity $37,938.7 $34,227.4 In millions Years ended December 31, Net income $4,529.3 $4,757.8 $5,585.9. Other comprehensive income (loss), net of tax Foreign currency translation adjustments: Gain (loss) recognized in accumulated other comprehensive income (AOCI), including net investment hedges (1,347,971.4). Reclassification of (gain) loss to net income 1.0. Foreign currency translation adjustments-net of tax benefit (expense) of $(209.8), $(196.0), and $(5,346,956.4). Cash flow hedges: Gain (loss) recognized in AOCI 22.4. Reclassification of (gain) loss to net income (33.9). Cash flow hedges-net of tax benefit (expense) of $6.2, $(18.2), and $11.5. Defined benefit pension plans: Gain (loss) recognized in AOCI (5.8). Reclassification of (gain) loss to net income 2.9. Defined benefit pension plans-net of tax benefit (expense) of $1.3, $7.7, and $14.9. Total other comprehensive income (loss), net of tax (1,360,947.8). Comprehensive income $3,169.2, $2,810.5, $5,217.1. Annual Report / Letter to Stakeholders: This economic recession has exposed the true essence of the McDonald's system, with everyone working together to help keep our company going at a time when our societies need us the most. We are collaborating with health officials and experts from outside to advise our response. That, combined with the expertise of our experienced leadership team, has been and will remain critical to making the right decision determination and helping our guys along the way. Moving ahead, we understand that the future is going to look very different. To the other side of this situation and take the required steps. For an altered market world, to ensure that we are best set up. A coherent structure is given by our Velocity Growth Strategy, but we would need to guarantee that our go-forward approach still represents the new operational environment. In any case, I am sure that our company is robust, and We established a stable base. McDonald's has had a great deal, Throughout our 65 years, and while this is the most daunting worldwide, In a crisis in the history of our business, we remain assured that we are positioned well for the long term. We are all too mindful of the incredible problems facing several of our societies around the world, and that will not change any time soon. However, our business and franchisors step in to assist when people are in real need. In the middle of these fast-moving and challenging realities around the world, as they need us most, we will continue to turn up in our societies, whatever obstacles they may face. Thanks to our shareholders for keeping their savings. At McDonald's, to our clients for your continuing assistance and fun, and the whole mechanism with all you do every day. To represent the worldwide clients and societies. I'm honored to serve as your CEO, as ever.

Paper For Above instruction

McDonald's Corporation has established itself as a global leader in the fast-food industry since its inception in 1940 by Richard and Maurice McDonald. Headquartered in Chicago, Illinois, McDonald's has expanded its reach to over 100 countries, serving approximately 70 million customers daily through a network of nearly 38,000 restaurants employing over 210,000 people. The company's success is rooted in its ability to adapt to changing consumer preferences, expand its menu offerings, and maintain a competitive edge in a highly saturated market (Ryland & Samuel, 2019).

Historical Background

The origins of McDonald's trace back to the 1940s, initially founded as a barbecue restaurant before pivoting to a hamburger-focused fast-food model. The company pioneered the concept of quick-service restaurants, emphasizing efficiency, affordability, and consistency, which propelled its rapid expansion across the United States and eventually globally. McDonald's capitalized on the post-World War II economic boom, establishing a standardized operational system and franchising model that allowed for rapid growth and brand recognition (Love, 2008).

Product Portfolio and Innovation

McDonald's key products include hamburgers, French fries, soft drinks, milkshakes, salads, desserts, and breakfast items. Recently, the company introduced salads and healthier meal options to cater to the growing health-conscious consumer segment. Innovation has been a cornerstone of McDonald's strategy, with recent menu changes driven by data analysis of customer eating habits. For instance, the implementation of all-day breakfast and value-priced meals aims to boost sales and customer retention (Ryland & Samuel, 2019).

Market Expansion and Competitors

McDonald's operates in a highly competitive landscape, facing challengers such as Burger King, Wendy’s, Subway, Yum Brands, and Chipotle. The company’s broad global presence and brand recognition give it a competitive advantage, enabling it to adapt rapidly to consumer trends. McDonald's focus on product innovation, Local menu customization, and technological integration (such as mobile ordering and delivery) enhances its market position (Piper, 2018).

Recent Strategic Developments

Recent initiatives include menu simplification, digital upgrades via mobile app enhancements, and the expansion of delivery services in regions like New York City. These strategies are driven by extensive data collection and analysis on customer preferences. Furthermore, McDonald's is exploring future growth areas such as digital ordering, delivery, and downsizing physical restaurant footprints to optimize costs amidst a rapidly changing industry landscape (Samuel, 2019).

Financial Performance and Industry Position

The 2015 SEC 10-K report highlights McDonald's strong financial health, with assets totaling nearly $38 billion, revenue reaching over $27 billion, and a net income of approximately $4.5 billion. The company's focus on operational excellence, consistent product quality, and global expansion have contributed to its industry leadership. Despite economic recessions and competitive pressures, McDonald's has maintained profitability and market share, demonstrating resilience and strategic agility (McDonald's Corporation, 2015).

Future Outlook and Challenges

Looking ahead, McDonald's continues to prioritize technological innovation, menu diversification, and operational efficiency. The company's strategic plan includes expanding digital ordering, implementing sustainable sourcing practices, and optimizing restaurant real estate. The ongoing global health crisis and shifting consumer preferences require agility and proactive adaptation, which McDonald's has demonstrated through its recent initiatives. The company aims to sustain its growth trajectory by balancing cost controls with innovative offerings and leveraging data analytics for targeted marketing and menu customization (Samuel, 2019).

Conclusion

In conclusion, McDonald's Corporation remains a dominant force in the fast-food industry due to its strategic focus on innovation, global reach, and customer satisfaction. Its historical evolution from a single restaurant to a global franchise model exemplifies effective business scaling. Future success depends on continued adaptation to digital trends, health-focused menus, and sustainable practices. Overall, McDonald's strategic initiatives position it well to face industry challenges and capitalize on emerging opportunities in the competitive fast-food marketplace.

References

• Love, J. F. (2008). McDonald's: Behind the Arches. Bantam Digital.
• McDonald's Corporation. (2015). 10-K Annual Report. https://www.mcdonalds.com/content/dam/gwscsharedcontent/financials/2015_Annual_Report.pdf
• Piper, D. (2018). Northland Pensioner dumps rubbish outside McDonald’s to Protest Littering. Stuff.co.nz.
• Ryland, T., & Samuel, H. (2019). What was the US GDP then? Measuring the worth of McDonald’s. United States Gross Domestic Product deflator figures follow the Measuring Worth series.
• Samuel, M. (2019). McDonald's plans for digital expansion. Business Insider.
• Love, J. F. (2008). McDonald's: Behind the Arches. Bantam Digital.
• Piper, D. (2018). Northland Pensioner dumps rubbish outside McDonald’s to Protest Littering. Stuff.co.nz.
• Corporate.mcdonalds.com. (2020). Annual Report & Financial Statements. https://corporate.mcdonalds.com/corpmcd/investors/financial-information/annual-report.html
• Love, J. F. (2008). McDonald's: Behind the Arches. Bantam Digital.
• Piper, D. (2018). Northland Pensioner dumps rubbish outside McDonald’s to Protest Littering. Stuff.co.nz.