2. McDonald’s MissionMcDonald’s Mission
Be the best quick service restaurant
experience. By providing quality, service,
cleanliness and value that make every
customer in every restaurant smile.
3. 3 World wide strategies3 World wide strategies
Best employer
Operational Excellence
Continue to grow and be profitable
4. HistoryHistory
1940 First McDonald’s
1952 Attempts at
franchising
1954 Milk Shake
Machine
1955 prototype opens
in Des Plaines, IL
1956 14 McDonald’s
1961 McDonald
brothers sell rights
• 1965 McDonald’s go
public
• 1968 Introduction of
Big Mac and shift to
Network Television
• 1970 1600 restaurants
• 1980 6000
McDonald’s
Restaurants
• 1990 record sales
5. History ContinuedHistory Continued
1994 Kuwait City, Kuwait
2002 Forty seven years after
– 30,000 locations
– 2000 new restaurants
– World Wide Web
– McDonald’s a recognized Brand
Name
8. ReHIREmentReHIREment
Program established for mature workers
Ease of transition of older workers returning
to the workforce.
Flexible scheduling so as not to jeopardize
their Social Security benefits.
More than 40,000 older workers serve
McDonald’s customers on any given day
9. McJobsMcJobs
Assistance to employees with mental and
physical disabilities.
More than 9,000 workers went through the
program.
Given formal graduation ceremony
12. Women and MinoritiesWomen and Minorities
Soars above stereotype of average fast-food
joint
Compose more than 50 percent of
McDonald’s current workforce
Featured as the “The Best Companies for
Minorities”
15. Industry TrendsIndustry Trends
What is happening with fast food?
– People are more educated
McDonald’s Responds
– America’s First McCafe
In Downtown Chicago
17. System Wide SalesSystem Wide Sales
In The Year 2000In The Year 2000
$40.181 Billion$40.181 Billion
Company
operated
Resturants
26%
Franchised
61%
Affiliated
13%
20. Cash Flow StatementCash Flow Statement
In (millions)In (millions)
2000 1999
Net Income
Net Cash Provided By Operating Activities
Net Cash Provided By Investing Activities
Net Cash Provided By Financing Activities
$1,977.3
$2,751.5
(2,212.6)
(536.7)
$1,947.9
3,008.9
(2,261.8)
(626.8)
Cash and equivalents increase(decrease)
Cash and equivalents at beginning of year
Cash and Equivalents at end of year
$2.2
$419.5
$421.7
$120.3
$299.2
$419.5
21. Financial RatiosFinancial RatiosAnalysis McDonald Industry
P/E Ratio 21.42 25.49
Price to Sales 2.36 1.97
Price to Book 3.52 3.95
Quick Ratio 0.76 0.63
Inventory Turnover 109.28 32.44
Total Debt to Equity 0.89 0.64
Net Profit Margin 11.01 7.62
Return on Assets 7.54 8.67
Return on Investment 8.30 10.54
Return on Equity 17.62 17.65
Revenue/Employee 40,852 77,289
23. Making A DifferenceMaking A Difference
We have an obligation toWe have an obligation to
give back to thegive back to the
communities that give us socommunities that give us so
much."much."
- Founder Ray Kroc, 1955- Founder Ray Kroc, 1955
24. Social CommitmentsSocial Commitments
“9-11” Relief Effort
Environmental Concerns
Educational Involvement
Quality & Safety Procedures
Ronald McDonald House
Charities (RHMC)
26. Terence HaynesTerence Haynes
Senior Vice President,Senior Vice President,
U.S. ControllerU.S. Controller
Native of South AfricaNative of South Africa
Education: Bachelor of CommerceEducation: Bachelor of Commerce
University of Witwatersand in JohannesburgUniversity of Witwatersand in Johannesburg
Prior Position: Chief Financial Officer in the U.K.Prior Position: Chief Financial Officer in the U.K.