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Rich FLOERSCH. Executive Vice President and Chief Human Resources Officer. The History of McDonald’s. RONALD MCDONALD. HOUSE CHARITIES. 1970s Standardized Business . U.S. Focus Common Operating Platform and Menu Leverage Franchisee Ideas Creation of Ronald McDonald House.
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RichFLOERSCH Executive Vice President and Chief Human Resources Officer
The History of McDonald’s RONALD MCDONALD HOUSE CHARITIES 1970s Standardized Business • U.S. Focus • Common Operating Platform and Menu • Leverage Franchisee Ideas • Creation of Ronald McDonald House • Late 1950s -1960s - The Beginning • Ray Kroc buys McDonald’s business • Franchising Opportunities Abound & HU Introduced • IPO 1965 - 13 Stock Splits Since 1966 1970 1955 1960
The History of McDonald’s 2002 & 2003 Sweeping Organizational Changes 1990s Business Environment Changed; McDonald’s Stalled • Took Our Eyes Off Our Fries • Opened Too Many Restaurants • Distracted By Other Brands (Chipotle, Boston Market, etc.) • Cover of BusinessWeek • “Hamburger Hell” • Staff Reductions • Stock Price Drops to $12.38 (high $47) • CEO Change • Call to Action Plan to Win • 1980s & 1990s Explosive Growth • International Expansion/118 markets • Darling of Wall Street 1980 1990 2000
McDonald’s Today • 2003-2010 McDonald’s Revitalization • 29 consecutive quarters of positive comp sales • Stock price reaches all-time high of $76 • CEO tragedies • 2009 Chief Executive Magazine CEO of the Year • Food and beverage focus 2010 2003
32,000 Restaurants 14,000 U.S. Restaurants 117 Countries 80% Franchised
Revitalization Recipe • Plan to Win and Alignment • Customer Focus and Brand Contemporization • Family-Based and High Performance Culture • Innovation and Execution • Talent Management and Leadership Development