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McDonald’s. Kayley Boylan Accounting-4. History Timeline. 1940: Dick and Mac McDonald open McDonald’s Bar-B- Que restaurant on Fourteenth and E streets in San Bernardino, California
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McDonald’s Kayley Boylan Accounting-4
History Timeline • 1940: Dick and Mac McDonald open McDonald’s Bar-B-Que restaurant on Fourteenth and E streets in San Bernardino, California • 1948: McDonald brothers shut down restaurant for 3 months for alterations. Reopens as a self-service drive-in restaurant. Menu is reduced to 9 items: hamburger, cheeseburger, soft drinks, milk, coffee, potato chips, and a slice of pie • 1949: French fries replace chips and the triple thick milkshakes are debuted
1954: Ray Kroc shows interest in McDonald’s • 1955: Kroc opens his first McDonald’s in Des Plaines, Illinois on April 15 • 1958: 100 Million hamburger is sold • 1959: 100th restaurant is opened in Fond Du Lac, Wisconsin • 1962: McDonald’s in Denver, Colorado becomes the first restaurant with inside seating • 1963: 500th restaurant opens in Toledo, Ohio • 1965: McDonald’s celebrates its 10th anniversary with the first public stock offering at $22.50 per share
1966: First television commercial is aired • 1967: McDonald’s goes international • 1968: Big Mac is introduced • 1978: 5,000th restaurant is opened in Kanagawa, Japan • 1980: 25th anniversary • 1981: The first McDonald’s restaurant in Spain, Denmark, and the Philippines opens • 1990: Moscow location opens • 1992: Warsaw, Poland location opens breaking records of opening day sales • 2005: 50th anniversary • 2009: McCafe goes international
Fun Facts • There are more than 33,000 restaurants worldwide • McDonald’s has 1.7 million employees • McDonald’s are in 119 countries • 80% of McDonald’s restaurants are franchised • McDonald’s headquarters is in Oak Brook, Illinois
Service Information • McDonald’s source of income is food sales • McDonald’s is in the business of fast food service • Products include various food, desert, and beverage items
Overall Stock Information • MCD • As of April 2, 2012 the closing price was $98.36 • All time low stock price: $76.01 • All time high stock price: $101.74
Dividend cont……….. • MCD is a dividend powerhouse. They have increased their dividend every year since paying their first one in 1976, and I believe this will continue into the future. The current quarterly rate of $0.61 a share equals an annual dividend of $2.44, and the stock currently yields 3.3%. • http://www.thedividendpig.com/?p=1106
3 Strengths • McDonalds has strong products, it has grown income throughout the recession • There are McDonalds all around the world so it is exposed to different type of people and different currencies • McDonald's has dividend yields that top the 10-year Treasury. The annual dividend payment has gone from 55 cents per share in 2005 to $2.20 this year. • http://www.fool.com/investing/general/2010/08/25/mcdonalds-strengths-weaknesses-opportunities-threa.aspx
3 Weaknesses • There are so many McDonalds around the United States, expansion will have to happen worldwide • The annual dividend is slowing and will eventually level off
3 Opportunities • There are opportunities for new restaurants outside the United States such as China and Asia • New menu products can be created • “Low interest rates provide cheap capital for growth. In addition to dollar-denominated debt, McDonald's recently became the first foreign company to issue yuan-denominated bonds in Hong Kong.” • http://www.fool.com/investing/general/2010/08/25/mcdonalds-strengths-weaknesses-opportunities-threa.aspx
3 Threats • Governments are trying to come up with regulations on fast food • New products are competing with other fast food restaurants and coffee shops • Prices may need to go up and some customers cannot afford to pay • http://www.fool.com/investing/general/2010/08/25/mcdonalds-strengths-weaknesses-opportunities-threa.aspx
Should I buy stock? • I would recommend buying stock in McDonalds because there are always people who are going to eat fast food. Yes, there is a health kick going on in our country right now but people will still be buying things from McDonalds.
Works Cited • http://www.fool.com/investing/general/2010/08/25/mcdonalds-strengths-weaknesses-opportunities-threa.aspx • http://www.thedividendpig.com/?p=1106 • McDonalds.com • http://www.aboutmcdonalds.com/mcd/investors.html