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Financial Analysis of the McDonalds CompanyMcDonalds Corporation (NYSE: MCD)One McDonald’s Plaza Oak Brook, Illinois 60523(630) 623-3000Cordette McKinneyBUSN 5200 Fall I 2016
PART 1: COMPANY OVERVIEWCompany Description McDonald's is the world’s largest foodservice retailer with more than36,000 local restaurants serving approximately 69 million customers in 119countries daily. The company’s headquarters is located in Oakbrook, Illinois.Of the approximately 36,525 restaurants in over 120 countries approximately30,080 (82%) are franchised and over 6,444 (18%) are operated by theCompany. The corporation primary restaurant sales include burgers, frieschicken, breakfast items, drinks, and desserts. It was not until recent yearsthat the company added salads, sandwich wraps, smoothies, and fruit toaccommodate changing consumer tastes. McDonald’s delivers an experienceto its customer through its trademark “quality, service, cleanliness, andvalues (or QSC&V).”Company HistoryDick and Mac McDonald introduced the original McDonald’s concept inSan Bernardino, California. Ray Kroc, business partner of the McDonald’sbrothers, opened the first McDonald’s in Des Plains, Illinois with the firstGolden Arches. His philosophy was unique. Ray wanted to serve burgers,buns and fries and beverages that tasted the same anywhere in the world. In1961, the first McDonald’s training program was launched. It is now knownand Hamburger University. In 1965, McDonald’s went public with thecompany’s first offering on the stock exchange. This allowed consumers toinvest in the company. The original mascot of McDonald's was a man with achef's hat on top of a hamburger-shaped head whose name was "Speedee".In 1967, Speedee was replaced with the Ronald McDonald character. Also in1967, the first McDonald’s opened outside of the US in Richmond, BritishColumbia. Today, the corporation continues to expand across the UnitedStates of America and abroad. OrganizationMcDonald's Corporation (NYSE: MCD) is the world's largest chain ofhamburger fast food restaurants, serving more than 58 million customersdaily. With over 80% of McDonald's restaurants owned and operated byindependent franchisees, the franchised restaurants are under aconventional franchise arrangement – McDonald’s owns the land andbuilding or secures a long-term lease for the restaurant location and thefranchisee pays for equipment, signs, seating and decor. As many other