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Financial Statement Analysis Professional Challenge: McDonald’s - Essay Example
Author : jamisonmills
Finance & Accounting
Pages 11 (2761 words)
This paper presents brief Profile of McDonald’s Company that consists of its history. The paper demonstrates Operations and Products / Services of McDonald’s, gives detailed information about Financial Statement and Common Size Statement Analysis of the Company…
This paper is a review of McDonald’s as the most successful fast food restaurant chain in the world. The firm is the market leader in a $63 billion industry. The company has been in business for 56 years. The firm has the most sales and most stores in the industry. In 2010 the company achieved total sales of $24 billion. There are over 33,000 McDonald’s stores around the world of which nearly 80% are independently owned franchises. McDonald’s biggest competitor and the second largest fast food burger chain in the world is Burger King. The financial performance of Burger King and Sonic were used to compare McDonald’s financial performance during fiscal years 2010, 2009, and 2008. McDonald’s revenues grew by 5.8% in 2010 in comparison with the previous year. McDonald’s 2010 sales were 43 times larger than Sonic and 9.63 times larger than Burger King. One of the reasons McDonald’s generated such a large amount of sales is because the company receives 64 million customers on a daily basis. The net income of McDonald’s in 2010 was $4.94 billion. During the past two years the net income of McDonald’s has increased by 14.61%. The net incomes of Burger King and Sonic in 2010 were much lower than McDonald’s at $186.8 million and $21.2 million respectively. The ratio analysis performed on McDonald’s and the two competitors illustrated that McDonald’s is a superior company that had much better financial results than the competition. ...
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