McDonald’s Economic Analysis

McDonald’s Economic Analysis

August 11, 2012

Abstract

The well-known McDonald’s Corporation is a global household name. It has been one of the world’s leading fast-food restaurants for many years. In this research paper, we will discuss McDonalds’ roots, history and key products. We will identify McDonald’s market share in the industry and provide information to help determine if this market share is sustainable in this growing global economy. We will discuss McDonald’s marketing strategies, its initiatives for new technology, products and maintenance of a strong brand name. What international influence does McDonald’s have? Can McDonald’s continue to make a sizeable profit? Our research will provide the investor with information to make an informed decision whether or not to invest in the McDonald’s Corporation. Lastly, we will give our recommendation to the investor.

History of the company

Key defining moments

McDonald’s existence began when Ray Kroc, a multi-mixer salesman, received a huge order for 8 multi-mixers from a restaurant in San Bernardino, California. He went out to California to sell the mixers to Rich and Maurice, two brothers, known as Dick and Mac McDonald. The two brothers owned a restaurant that purchased mixers in high quantities. Kroc was fascinated by the small, quaint restaurant. He noticed its cleanliness, uniqueness, and also the fact that it was self-service. Kroc also noticed the menu contained cheese burgers, hamburgers, french fries, drinks and milkshakes. The food was produced in an assembly line and served to its customers in a minute or less. Kroc realized the financial possibilities of franchising McDonald’s and opening hundreds of restaurants around the country. So, he suggested his idea to the brothers. The brothers asked who they could hire to do this job. Kroc replied, “What about me?” They hired Kroc and gave him exclusive