Financial Analysis Of McDonalds

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Most anyone driving with a young child in their car is familiar with McDonalds. Once that child sees those trademark golden arches out the car window, you will likely be stopping in for a happy meal with a toy inside. But does this mean that the company is a good investment for your hard earned money? That is what we will explore in this paper. We will look into the stock and financial statements of McDonalds and their closest competitors to do a comparison and find out if brand recognition is a good indicator to whether the company is successful and to know if it is a good idea to buy stock in the McDonalds’ company.

McDonalds is a well-known publicly traded company within the restaurant and bar industry. The company was founded by Raymond Albert Kroc on April 15, 1955 and has grown to over thirty three thousand restaurants in one hundred and eighteen countries since the creation (Rosenberg, 2014). McDonalds is part of the customer service sector since they provide services to the public in the form of mainly food and drink and the services they provide are gift cards, free wifi and playplace and parties. On its tenth anniversary, McDonalds had its first public stock offering at $22.50 per share (McDonalds History, 2014). Only two years later in 1967, McDonalds opened its first international restaurants in Canada and Puerto Rico, expanding to Spain, Denmark and the Philippines by 1981. The beloved founded Ray Kroc died in January of 1984 and by 1988, Fortune Magazine names McDonalds hamburgers among the 100 products America makes best.

Ray Kroc met the McDonalds brothers with their small restaurant business in 1954. He noticed how effective their business was and wanted to expand on it. From there he built a multi-million dol...

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...p://geography.about.com/od/lists/qt/mcdonalds.htm

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Gross Profit Margin Ratio. (2013). Retrieved April 6, 2013 from http://www.smallbusiness.wa.gov.au/profit-margin-ratio-s-and-break-even-analysis/#gross-profit-ratio

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