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Mc Donald’s. Group 3. Le Thi Thuy Linh Tu Ngoc Hinh Pham Thanh An Nguyen Thi My Hang. Content. Introduction. Common size. Ratios analysis. Conclusion. Recomendation. Introduction. 1. History.
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Mc Donald’s Group 3 Le Thi Thuy Linh Tu Ngoc Hinh Pham Thanh An Nguyen Thi My Hang
Content Introduction Common size Ratios analysis Conclusion Recomendation
Introduction 1. History McDonald’s is the world’s leading fast food restaurant chain with more than 34,000 local restaurants serving approximately 69 million people in 119 countries each day.
Introduction 2. Product of Mc Donald’s • Burger Delicious, freshly made, and oh-so-satisfying. From the Big Mac to our Premium Grilled Chicken Club to our classic Cheeseburger, McDonald’s sandwiches make the meal • Chicken, fish and pork From our ever-popular Chicken McNuggets, our fabulously fresh salads or the classic Filet-O-Fish, both chicken and fish from McDonald’s are delicious choices.
Introduction • Breakfast From wholesome choices like Fruit & Maple Oatmeal and the Egg White Delight McMuffin to the savory Sausage Biscuit to the sweet McGriddles sandwich • Beverages No meal is complete without a drink! From Diet Coke to low-fat milk to fresh-brewed hot coffee • Desserts and Shakes The McFlurry is a soft-serve ice cream dessert, that has pieces of candy or cookies mixed into it
Introduction 3. Mc Donald’s in Viet Nam • In 10/02/2014, McDonald's Corporation opened the first restaurant in Vietnam. • Strategically located at the busy roundabout at intersection of Dien Bien Phu and Nguyen Binh Khiem Streets in District 1. • McDonald's 350-seat restaurant. • With a total floor area more than 1,300 square meters on a property close to 3,000 square meters, the restaurant is designed as a modern dining destination
Introduction 4. Competitors Competition for McDonald’s is mainly due to demand and choices, prices, and nutrition values. Demand and choices play roles in competition because fast food companies have to create a wide variety menu to satisfy all customers. If one restaurant has more variety and innovation on the menu, consumers are more likely to go to that restaurant. We choose the Burger King is the main competitor of McDonald’s that we can compare them together. The reason why we choose it because same as McDonald, Burger King also had a longer history, it appeared in 1954 and now it has about 11 million customers over the world
Introduction 5. Analysis SWOT • S-O Strategies • S-T Strategies • Focus on plan to win to attract customers and expansion in other countries • Expansion in market share by more investments in Asia • More control on franchise dealers to maintain McDonald’s reputation and quality. • Provide new product and keep innovation SWOT • Not use Trans fat in all worldwide McDonald's • Replace the production components cans into an environment – friendly material • Minimize customers losses by provide low cost menu and discounts • W-T Strategies • W-T Strategies
Common size Income Statement (%)
Common size Balance sheet (%)
Common size Cash flow (%)
Ratios analysis Our group focused to analyze 4 ratios to understand all McDonald’s financial situation 01. Activity Ratios 02. Liquidity ratios - Short-term activity ratios - Long-term activity ratios - Current ratio - Quick ratio - Cash from operation ratio - Description of the contents 03. Long-term debt and solvency ratios 04. Profitability ratios - Debt to total capital - Debt to equity - Time interest earned - Financial leverage - Net profit margin - Gross profit margin - ROS - ROA - ROE
Activity ratios Activity ratios
Activity ratios (cont.) • 1. Short-term activity ratios • 1.1 The inventory turnover ratios Because of McDonald’s is the merchandise company so most of inventories of company only focus on finished goods.
Activity ratios (cont.) • 1. Short-term activity ratios • 1.2. Average number of day inventory in stock
Activity ratios (cont.) • 1. Short-term activity ratios • 1.3. The receivable turnover
Activity ratios (cont.) • 1. Short-term activity ratios • 1.4. Average number of day receivable outstanding
Activity ratios (cont.) • 1. Short-term activity ratios • 1.5. Working capital turnover
Activity ratios (cont.) • 1. Short-term activity ratios • 1.6. Payable turnover So: Purchase = Ending inventories + COGS – Begin Inventories
Activity ratios (cont.) • 1. Short-term activity ratios • 1.7. Number of days of payable
Activity ratios (cont.) • 2. Long-term activity ratios • 2.1. Asset turnover According to Income statement of McDonald’s, our group finds out that most of total asset of McDonald’s also come from Net property plant and equipment
Activity ratios (cont.) • 2. Long-term activity ratios • 2.2. Fixed asset turnover
Liquidity ratios Liquidity analysis
Liquidity ratios (cont.) • 1. Current ratio
Liquidity ratios (cont.) • 2. Quick ratio
Liquidity ratios (cont.) • 3. Cash ratio
Liquidity ratios (cont.) • 4. Cash from operation ratio
Long-term debt and solvency ratio Long-term debt and solvency analysis
Long-term debt and solvency ratio (cont.) • 1. Debt to total capital
Long-term debt and solvency ratio (cont.) • 2. Debt to equity
Long-term debt and solvency ratio (cont.) • 3. Time interest earned
Long-term debt and solvency ratio (cont.) • 4. Financial leverage
Profitability ratio Profitability analysis
Profitability ratio (cont.) • 1. Net profit margin
Profitability ratio (cont.) • 2. Gross profit margin