18 Jul

Must-know: A company overview of McDonald’s



McDonald’s (MCD) is a fast food, limited service restaurant with more than 35,000 restaurants in over 100 countries. It employs more than four million people. McDonald’s serves 70 million customers per day, which is greater than the population of France. According to IBISWorld, in 2014, McDonald’s had the largest share in the fast food restaurant industry of 17% in the U.S. The closest competitor, Yum! Brands (or YUM), had a market share of 11%.

Must-know: A company overview of McDonald’s

Food services

McDonald’s offers a uniform menu that includes fries, the Big Mac, chicken sandwiches, chicken nuggets, hamburgers, the quarter pounder with cheese, salads, wraps, desserts, soft drinks, and other beverages. However, to ensure that it connects with the international markets, McDonald’s offers locally relevant food menus as well. For example, it serves gazpacho in Spain, the black and white burger in China, and the Veg Pizza McPuff in India. In the U.S., McDonald’s main competitors are Burger King (BKW) and Wendy’s (WEN).

Company values

Companies in the restaurant industry, which investors can access through the exchange-traded funds (or ETFs) like the PowerShares Dynamic Leisure and Entertainment (PEJ) and the PowerShares Dynamic Food & Beverage (PBJ), use various strategies to differentiate themselves from the competition. McDonald’s delivers an experience to its customer through its trademark “quality, service, cleanliness, and values (or QSC&V).” To deliver this experience it uses what it calls a “Plan to Win” strategy supported by its three-legged stool approach. Plan to Win is a strategic initiative that focuses on customer experience through the five Ps–People, Product, Place, Price, and Promotion. Three legs being the owners or operators, suppliers, and company employees. Without these three legs, the stool won’t stand firm.

Latest articles

Yesterday, Apple (AAPL) launched a newly upgraded range of its iPad Air and iPad mini devices ahead of its March 25 special event.

19 Mar

Nike Gears Up to Deliver Its Q3 2019 Results

WRITTEN BY Sharon Bailey

Nike (NKE) is scheduled to report its earnings results for the third quarter of fiscal 2019 after the market closes on March 21.

On March 18, Chesapeake Energy’s (CHK) implied volatility was 51.9%, which is ~14.7% less than its 15-day average.

19 Mar

Sprint’s Revenue and Earnings Growth

WRITTEN BY Andrew Smith

Sprint (S) reported an adjusted EPS of $0.06 in the first nine months of fiscal 2018—compared to $0.08 during the same period in fiscal 2017.

19 Mar

Oil Bulls: US Oil Exports Tend to Fall More

WRITTEN BY Robert Scott

On March 18, Brent crude oil May futures settled ~$8.2 higher than the WTI crude oil May futures. On March 11, the spread was ~$9.5.

Out of the 34 analysts covering Broadcom (AVGO), 25 analysts rated the stock a “buy,” while nine analysts rated the stock a “hold."