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McDonald's: One World, One Burger

This investment summary provides an overview of McDonald's, including industry analysis, company performance, and financial outlook. With a focus on geographic growth and cost management, McDonald's is poised for continued success in the global fast food market.

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McDonald's: One World, One Burger

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  1. “One world, One Burger” McDonald’s Presented: October 13, 2011 Layla LiangGina huangthanh lenan liang

  2. Investment Summary Industry Overview Company Overview Comparable Analysis DCF Analysis Recommendation AGENDA

  3. Purchase 200 shares in March 2009 @ price $52.44 Investment Summary (MCD)

  4. Unrealized capital gain of 70.31% Current Price $89.31 Investment Summary (MCD)

  5. MCD Growth VS GDP Growth

  6. Industry Overview -Characteristics

  7. Industry Overview -Concentration The top four players are expected to have a low market share of under 35% in 2010.

  8. Industry Overview -Key external drivers

  9. Industry Overview -Costs Structure

  10. Profitability MCD VS Industry

  11. Margin MCD VS Industry

  12. Products: Hamburgers; Chicken sandwiches; Salads; Soft drinks and Desserts. 32,737 restaurants in 117 countries 26,338(80.72%) were franchisee and affiliate operated stores - Initial investment fees - Royalties 6,339 (19.28%) company operated stores Company Overview

  13. Five-Step DuPont Analysis Five-Step DuPont Analysis

  14. Five-Step DuPont Analysis

  15. Geographic Growth

  16. Geographic Growth Drivers

  17. US: • Store remodel (new POS system) • Menu redesign under recession • Europe: • Dominance • APMEA: • Food and labor inflation (WSJ) • Not as much presence as Yum Brands Qualitative outlook

  18. COGS up 4-4.5% in US and Europe SGA expenses down 2% Interest expense up 8-10% (net issuances of $787 MM debt) CapEx $2.5 Bn, half invested in opening new restaurants and half in reinvesting in existing restaurants 10-Q Outlook for full year 2011

  19. Valuation

  20. Recommendation

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