Mcdonalds Essay

2754 Words Jan 20th, 2013 12 Pages
Financial Analysis of the McDonald’s Company

Stock ticker symbol, exchange where traded NYSE: MCD

Address of company headquarters
McDonalds Corporation
One McDonald’s Plaza
Oak Brook, IL 60523

Company phone number: 630.623.3000

Company Overview
The McDonald’s Corporation is a global company that conducts business in 117 countries. McDonald’s operates 32,737 restaurants and 26,338 franchises in the highly competitive fast food industry. Since 1940, McDonald’s has built a loyal customer base by continually dedicating themselves to customer service and providing high quality fast food for its customers. Presently, McDonald’s could boast of over 60 million customers and the company serves average of 64 million customers
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In all countries that McDonald’s operates, the company has been able to achieve global comparable sales of increased of 5.0% and 4.9% in guest counts. Since 2007, McDonald’s financial performance has risen steadily. The company recorded $2.4 billion in the net income in 2007. In 2008, McDonald’s net income increased to $4.3 billion, and the net income was $4.5 in 2009. McDonald’s recorded high success in 2010 the company recorded $4.9 billion in the net income and the comparable sale growth of 5.0% with earning per share rises by 11%. Typically, McDonald’s recorded “92 Consecutive months of global comparable sales increases through December 2010” (McDonald’s Corporation Annual Report 2010, P 2).
Financial Analysis of McDonald Corporation
The company’s financial analysis is revealed by using various financial instruments to evaluate the financial strength and weakness of a company. While a company financial analysis enhances an understanding of the financial stability of a company, it also enhances an investment decision of a company. Based on a company financial analysis, an investor could decide whether a company is liquid or solvent. To evaluate McDonald’s financial analysis, this paper focuses on the company balance sheet, income statement and cash flow statement. The paper uses the company’s financial data over the past few years to evaluate the company’s vulnerability to current

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