McDonalds Financial Position
[pic 3][pic 4]IntroductionIn this report I will analyze financial position of MacDonaldâs, one of the leading foodservice retailers in the  world.The  aim  of  the  analyses  is  to  assess  the  firmâs  ability  to  meet  itâs  long-Ââterm  and  short-Ââterm obligations, whether it uses its assets efficiently and effectively, can it produce proper profits for shareholders or does it have enough power to retain sustainability on the competitive market. Also to find out what is firmâs position on the market and in the whole industry, what improvements have been done comparing to previous years? What is the trend for the future? Etc.There are several ratios that can be used to analyze questions mentioned above, including:Profitability ratios;Efficiency ratios;Leverage and coverage ratiosLiquidity ratiosReturn ratiosI have chosen to highlight 16 important financial ratios that bring up specific companyâs strengths and weaknesses ;The ratios will be analyzed over 3 year period and compared with one of the direct competitors, with Burger King as well as with the industry.Company profileHaving unique strategy and business model v in fast-Ââfood, McDonaldâs has gained competitive advantage and captured the main share of the market pie. Today it manages 35,000 local restaurants in more than 100 countries and serves about 70mln people each day.
Main products of McDonaldâs are: hamburgers, cheeseburgers, French fries, soft drinks, milkshakes, deserts, salads, fruits and etc. Taking into account local consumers tastes and preferences there are various menus for different geographical segments.McDonaldâs runs its business through franchise, subsidiary or corporation itself. It generates  revenue from several sources: rent from property, fees from franchising, and sales from operating restaurants. Most of the Mcdonaldâs restaurants are operated through franchise and joint ventures and small amount is owned by the corporation directly.McDonaldâs has unique business model. It not only gets fees from franchising, but also rents out itâs property where McDonaldâs franchises operate. Mcdonaldâs supplies its franchises with food and materials by means of third parties, without directly selling them by itself.McDonaldâs operates in service sector in restaurant industry. Itâs main direct competitors are: Burger King Worldwide, Inc.; Yum! Brands, Inc.; Wendys International, Inc. and etc.McDonaldâs strategic positioning on the market is based on implementation  of  low  cost  strategy and  family friendly and customer focused business model. It is oriented on cutting costs and reducing the delivery  time.  To  achieve  the  main  goals  McDonaldâs  has  introduced  different  services  like  âDrive-Ââ through serviceâ, playgrounds to meet family friendly idea and etc.