McDonald’s Corp麦当劳.MCD NYSE.pptVIP

McDonald’s Corp. (MCD) - NYSE Patrick O’Donnell Matthew Rasinski Thursday, April 11, 2013 Agenda Introduction Company Overview Current Events Industry Overview Stock Performance Financial Analysis Valuation Recommendation Introduction McDonald’s was founded in 1940 by Richard and Maurice McDonald in San Bernardino, California It is the largest chain of hamburger fast fast food restaurants, serving 68 million customers daily in 119 countries Ray Kroc purchased a franchise in 1955 and shorty after purchased the entire chain from the McDonald brothers Headquarters – Oak Brook, Illinois, U.S. Company Overview McDonalds operates over 34,000 restaurants worldwide Employ over 1.7 million people Notable for their 25 year consecutive dividend increase to shareholders – SP 500 Dividend Aristocrats More recently spun-off Chipotle Mexican Grill, Donatos Pizza, and Boston Market among others Sector: Services, Industry: Restaurants Global Operations Wikimedia Commons Current Events Management has shifted gears by catering to young adults rather then the family friendly market segment No more play pens, baby seats, etc. Super Size Me Legislation – restriction by Congress currently being debated pertaining to calorie intake Drink size, burger, and fry reductions and reconfigurations McDonalds are recently combating this negative press by including a healthy option Fruit smoothies, yogurt, salad, whole vegetables and fruits New York Ban on Super-Sized Drinks Declining Soft Drink Sales The overall trend for soft drinks is steadily declining This is bad news for fast food restaurants considering drink sales are the most profitable segment on the menu Labor Strikes New York labor strikes on fast food chains are causing serious problems High probability that minimum wages will rise in New York and across the nation CNN Money Equity Snapshot Stock Price: $101.42 Beta: .34 5 Year PEG Ratio: 1.87 TTM P/E: 17.58 Forward P/E: 17.57 Div. Yield: 3% Industry Overview McDonalds is f