The McDonald’s Corporation is one of the world’s leading restaurant chains, with more than 34,000 locations and operations in 119 countries. The company is headquartered in Oak Brook, Illinois, USA.
McDonald’s began in 1940 as a barbecue restaurant owned by brothers Richard and Maurice McDonald in San Bernardino, California.
It wasn’t until 1948 that the brothers changed the business into a hamburger stand and adopted the production line principle – “Speedee Service System”.
In 1954 Multi-Mixer salesman Ray Kroc visited McDonald’s and was fascinated by the operation. He offered to help the brothers expand operations to other parts of the country.
In 1965 the company celebrated its 10th anniversary and had over 700 McDonald’s restaurants in the US. That same year the corporation went public – at $22.50 per share.
Two years later (in 1967) the company went international – opening restaurants in Canada and Puerto Rico.
McDonald restaurants are operated by the corporation itself, a franchisee, or an affiliate. Over 57% are conventional franchisees, nearly 24% are licensed to foreign affiliates or developmental licensees, and 19% are company-operated.
The restaurants sell burgers, french fries, breakfast items, milkshakes, deserts, salads, wraps, fruit, and smoothies.
According to McDonald’s, the company’s goal is to “become customers’ favorite place and way to eat and drink by serving core favorites such as our World Famous Fries, Big Mac, Quarter Pounder and Chicken McNuggets.”
The McDonald’s Corporation – Company Overview
Chairman: Andrew J. McKenna- President and CEO: Don Thompson
- Industry: Restaurants
- Type: Public
- Listed on the New York Stock Exchange “NYSE”
- Stock symbol: MCD
- S&P 500 Component
- Total operating revenues: $36.188 billion USD (2014)
- Net income (loss): ($1.365 billion USD) (2014)
- Headquarters: Oak Brook, Illinois, USA
- Employees: 1.8 million (approximately)
- Founded: 1940 (McDonald’s Corporation was formed in 1955)
- Website: http://www.aboutmcdonalds.com/
- Over 35,000 locations
The McDonald’s Corporation – Financial Results
| Key figures (in millions of USD except for share data) | 2013 | 2012 |
| Sales by Company-operated restaurants | $18,874.2 | $18,602.5 |
| Revenues from franchised restaurants | $9,231.5 | $8,964.5 |
| Total revenues | $28,105.7 | $27,567.0 |
| Operating income | $8,764.3 | $8,604.6 |
| Net income | $5,585.9 | $5,464.8 |
| Total assets | $36,626.3 | $35,386.5 |
| Total shareholders’ equity | $16,009.7 | $15,293.6 |
| Cash and equivalents at end of year | $2,798.7 | $2,336.1 |
| Earnings per share – basic (in USD) | $5.59 | $5.41 |
| Earnings per share – diluted (in USD) | $5.55 | $5.36 |
Source: “McDonalds SEC Filing – Form 10-K”
McDonald’s President and Chief Executive Officer Don Thompson, commented on the results:
“Around the world, consumers want a satisfying meal at an affordable price from a brand they trust. At McDonald’s, delivering a consistent customer-focused restaurant experience continues to be our top priority. While 2013 was a challenging year, we begin 2014 with a renewed focus on the global growth priorities that are most impactful to our customers. We are uniting consumer insights with innovation and consistent execution to optimize our menu, modernize the customer experience and broaden accessibility to Brand McDonald’s.”
The McDonald’s Corporation – Live Stock Market Data
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