INTRODUCATION:

MC DONALD’S:
The McDonalds’ concept was introduced in San Bernardino,California by Dick and MacDonald of Manchester,
New Hampshire. It was modified and expanded by their business partner, Ray Kroc, of Oak Park, Illinois, who
later bought out the business interests of the McDonald's brothers in the concept and went on to found
McDonald's Corporation.
The business began in 1940, with a restaurant opened by brothers Richard and Maurice McDonald in San
Bernardino, California. Their introduction of the "Speedee Service System" in 1948 established the principles of
the modern fast-food restaurant. In 1954, Ray Kroc, a seller of Multimixer milkshake machines, learned that
brothers Richard and Maurice (Dick and Mac) McDonald were using eight of his high-tech Multimixers in their
San Bernardino, California, restaurant. His curiosity was piqued, and he went to San Bernardino to take a look
at the McDonalds' restaurant.

KFC:
KFC, known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville,
Kentucky.

In the midst of the depression, Harland Sanders who was born just outside Henryville( Indiana),
opens his first restaurant in the small front room of a gas station in Corbin, Kentucky.
Sanders serves as station operator, chief cook and cashier and names the dining area "Sanders
Court & Café."

In 1936, Kentucky Governor Ruby Laffoon makes Harland Sanders an honorary Kentucky Colonel in
recognition of his contributions to the state's cuisine.
The Sanders Court & Café adds a motel and expands the restaurant to 142 seats.

In 1952,the Colonel began actively franchising his chicken business by traveling from town to town
and cooking batches of chicken for restaurant owners and employees and awarded Pete Harman of
Salt Lake City with the first KFC franchise.

In 1957 Kentucky Fried Chicken first sold in buckets.

OBJECTIVES:
MCDONALD’S:
• To serve good food in a friendly and fun environment
• To be a socially responsible company
• To provide good returns to its shareholders
• To provide its customers with food of a high standard,quick service and value for money.

KFC:
• To have the biggest market share, and provide good service for customers. Also
sell good food that help the aims and objectives of kfc are not only to sell chicken
to make money and make a profit, they are to expand as a business whether
that's to be a world wide business or just to open up a phew more restaurants
around the country to provide a better service/faster service/better customer
service to beat competitors/rivals such as mc donalds , burger king.

CHAPTER:
SUB CHAPTER 1:
A brief history of McDonald's
PHOTO: The first McDonald's was built in 1940 by the McDonald brothers (Dick and Mac).
1954
 Ray Kroc became the first franchisee appointed by Mac and Dick McDonald in San Bernardino, California.
1955
 Ray Kroc opened his first restaurant in Des Plaines, Illinois (near Chicago), and the McDonald's Corporation
was created.
1957
 Quality, Service, Cleanliness and Value (Q.S.C. & V.) became the company motto.
1959
 The 100th McDonald's opened in Chicago.
PHOTO: The McDonald brothers (Dick right and Mac center)
discussing plans with an executive.
1961
 Ray Kroc bought all rights to the McDonald's concept from the
McDonald's brothers for $2.7 million. Hamburger University opened in
Elk Grove, near Chicago.

1963
 One billion hamburgers sold
 The 500th restaurant opened.  The 500th student graduates from Hamburger University.
 Ronald McDonald made his debut.
 McDonald's net income exceeded $1 million.
1964
 Filet-o-Fish sandwich introduced.
1965
 McDonald's Corporation went public. Per earning ratio varies from 10 to 22 during year; stock price range,
15 - 33.5.
1966
 McDonald's listed on the New York stock exchange on the 7th May.
1967
 The first restaurants outside of the USA opened in Canada and Puerto Rico.
1968
 The Big Mac was introduced.
 The 1,000th restaurant opened in Des Plaines, Illinois.
1970
 McDonald's restaurant in every US state.
 Ray Cesca (Director of Global Purchasing of the McDonald's Corporation) has admitted that when
McDonald's opened stores in Costa Rica in 1970, they were using beef from cattle raised on ex-rainforest land,
deforested in the 1950's and 1960's.
 New countries - Virgin Islands, Costa Rica.
PHOTO: The first Japanese McDonald's in Tokyo.
1971
 The Egg McMuffin sandwich was test marketed in the US as
McDonald's first breakfast menu item.
 McDonald's Japanese President, Den Fujita, stated "the reason
Japanese people are so short and have yellow skins is because
they have eaten nothing but fish and rice for two thousand years";
"if we eat McDonald's hamburgers and potatoes for a thousand
years we will become taller, our skin become white and our hair
blonde".
 New countries - Japan, Holland, Australia, Germany, Panama, Guam.
1972
 Assets exceeded $500 million and sales surpassed $1 billion.
 A new McDonald's restaurant opening every day.
 New countries - France, El Salvador.
 The 2,000th restaurant opened in Des Plaines, Illinois.
 The Quarter Pounder was introduced.
 Ray Kroc made a $250,000 donation to the controversial 1972 presidential campaign of Richard Nixon, a
donation which was perhaps a subject of investigation during the Watergate corruption scandal. Passages in the
'Behind The Arches' book (written with McDonald's backing and assistance) state that the donation came around
the very time that McDonald's franchisees were lobbying to prevent an increase in the minimum wage, and to
get legislation (dubbed 'The McDonald's Bill') passed to be able to pay a sub- minimum wage to some young
workers.
1973
 McDonald's Golden Arches Restaurants Limited founded in UK as a joint venture partnership between the
McDonald's Corporation and two businessmen; one British, one American.
 New country - Sweden.
 Egg McMuffin introduced.
1974
 The 3,000th McDonald's restaurant was opened in Woolwich (south east London) in October, the first in the
UK. The company admitted that NOBODY went in and later decided to target children with TV ads.
 The UK Head Office was sited in Hampstead, North London.
 Up to 1974, McDonald's employees in Puerto Rico were unionised, but the company was sold to a new
franchisee. A dispute followed, closing all the stores and McDonald's pulled out of Puerto Rico. They reopened
in 1980 with non-union labour.
 New countries - England, Netherlands, Antilles, Guatemala.
 The first Ronald McDonald House opened in Philadelphia.
 At a San Francisco Labor Board hearing, McDonald's workers testified that lie-detectors had been used to
ask about union sympathies, following which the company was
threatened with legal action.
PHOTO: McDonald's buildings have undergone dramatic changes
from the first one opened by Kroc in 1955 (top) which is now
preserved as a museum, to this ultra modern restaurant opened in
1983 in New Orleans (bottom).
1975
 The company's first Drive-Thru opened in Sierra Vista, Arizona.
 New countries - Hong Kong, Bahamas, Nicaragua.
 Fred Turner becomes Chairman, Ray Kroc Senior Chairman, and
Ed Schmitt becomes President.
 Broadcast advertising appeared in UK cinemas.
1976
 McDonald's first UK TV advertisement was broadcast.
 4,000th store opened in Canada.
 New countries - Switzerland, New Zealand.
 Largest restaurant opens - with 334 seats.
1977
 New countries - Ireland, Austria.
 Breakfast menu introduced, nationally in America.
1978
 The 5,000th restaurant opened in Kanagawa, Japan and it made US $1 million in its first year.
 Sundaes introduced in USA.
 In one store in Chicago (USA), a majority of McDonald's workers joined a union. The company then took
legal action to stop recognition for the union unless they could get a majority in the 8 stores run by the
franchisee.
 New country - Belgium.
1979
 A 7 month strike in Dublin (Ireland) lead to recognition of the ITGWU union. In 1985, two union activists
won a victory at a labour court after claiming victimisation and unfair dismissal.
 New countries - Brazil and Singapore.
1980
 The 6,000th restaurant opened in Munich.
 After workers in a store in Detroit (USA) joined a union, the company organised a visit by a top baseball
star, staff disco, and 'McBingo' prior to elections for union representation.
 First floating restaurant on a steamer in Missouri.
 1,000th international restaurant opened.
1981
 New countries - Spain, Denmark and Malaysia.
1982
 Geoffrey Guiliano, a main Ronald McDonald actor, quit and publicly apologised, stating "I brainwashed
youngsters into doing wrong. I want to say sorry to children everywhere for selling out to concerns who make
millions by murdering animals".
 7,000th restaurant opened in Washington DC.
 McDonald's were responsible for food poisoning outbreak caused by E. Coli bacteria, which affected 47
people in Oregon and Michigan, USA.
 Egon Ronay calls McDonald's burgers 'uninspiring'.
 Breakfast was introduced to the British menu.
PHOTO: The $40 million 'Hamburger University'.
1983
 The McDonald's Corporation became sole owners of McDonald's
in the UK. The Company is named McDonald's Hamburgers Limited.
 Five consignments of Brazilian beef are secretly imported for
McDonald's UK stores.
 The 100th UK restaurant opened in Market Street, Manchester.
 New country - Norway.
 Introduction of Chicken McNuggets in USA.
 New Hamburger University campus opens in Oak Brook, Illinois. Set in 80 wooded acres. Training is
provided for every level of McDonald's management worldwide. A lodge with 154 rooms in also on the same
site.
 In Arkansas (USA), the UFCW union, which was interested in recruiting McDonald's workers, was involved
in a union dispute at a chicken processing plant supplying McDonald's. The union launched a boycott of
McDonald's 'McNuggets' and picketed many of its stores. Stan Stein (McDonald's Head of Personnel and
Labour Relations) spent up to '80%' of a whole year fighting the union's campaign.
1984
 Founder Ray Kroc dies.
 James Huberty shoots 22 people dead at a McDonald's in San Diego (USA).
 50 billionth hamburger sold.
 Ronald McDonald Children's Charities is founded in his memory to raise funds in support of child welfare.
 A McDonald's pamphlet which is distributed to health professionals in the UK states:
"There is a considerable amount of evidence to suggest that many of the diseases which are more
common in the western, affluent world - diseases such as obesity, diabetes, high blood pressure, heart
disease, stroke, and some forms of cancer - are related to diet. The typical western diet is relatively low
in dietary fibre (roughage) and high in fat, salt and sugar."
 McDonald's now serves 17 million customers a day - equivalent to serving lunch to the entire population of
Australia and New Zealand. If McDonald's lined up all the hamburgers sold since 1955, they would:-
• Circle the equator 103.75 times;
• Reach to the moon and back 5 times.
PHOTO: Ray Kroc demonstrating his fetish for cleanliness.
1985
 London Greenpeace (a radical group of civil rights and
environmental campaigners, independent of Greenpeace International)
launches a campaign intended to expose the reality behind the
advertising mask of the fast food chains, including McDonald's.
 Sergio Quintana, the sales director of Coop Montecillos (the sole supplier of beef to McDonald's stores in
Costa Rica since 1970), stated on camera that his company's beef was being supplied to McDonald's in the
USA.
1986
 Drive-Thru restaurants opened in UK at Fallowfield, Dudley, Neasden and Coventry.
 Four workers in Madrid who had called for union elections were sacked by McDonald's. The company was
forced to reinstate the workers after the labour court ruled that the dismissals were illegal.
 The 200th UK restaurant opened in lpswich.
PICTURE: Cover of the "What's wrong with McDonald's?" factsheet produced by
London Greenpeace.
 McDonald's became the first UK restaurant group to introduce nutritional information,
throughout the country, for the benefit of customers.
 London Greenpeace published a 6-sided factsheet entitled "What's Wrong With
McDonald's? - Everything They Don't Want You To Know".
 The first UK franchisee-operated restaurant opened in Hayes, Middlesex.
 The first World Day of Action Against McDonald's was held on 16th October (UN 'World Food Day').
1987
 The Attorneys General of Texas, California and New York threatened to sue McDonald's under the
consumer protection laws over an advertising campaign claiming that McDonald's food is nutritious. The
Attorneys General concluded that the campaign was deceptive because "McDonald's food is, as a whole, not
nutritious."
 McDonald's is serving 20 million people a day in nearly 10,000 restaurants in 47 countries.
 The UK Midlands regional training centre opened in Sutton Coldfield.
 McDonald's started legal proceedings against the Transnationals Information Centre (an independent
research and action group based in London) over a booklet they produced called "Working for Big Mac" which
was highly critical of the company's employment practices. The TIC backed down lacking resources to fight the
case to trial, discontinued publication and distribution of the booklet (which was pulped), and the organisation
itself went bust.
1988
 McDonald's sponsored the Child of Achievement Awards.
 CFCs ceased to be used for most of McDonald's styrofoam packaging.
 300th UK restaurant opened in Dagenham, Essex.
PHOTO:An ad in a German newspaper which aims to counter criticism
that McDonald's is changing German restaurant traditions for the worse.
1989
 Italian designer Valentino attempts in a Rome court to stop McDonald's
opening near the Piazza di Spagna, complaining of "noise and disgusting
odours".
 McDonald's is listed on the Frankfurt, Munich, Paris and Tokyo stock
exchanges.
 The Bournemouth Advertiser (UK) is threatened with a libel action by
McDonald's over an article which discussed the captive-bolt method of slaughter
for cattle. The newspaper backed down and published an apology.
 Michael Quinlan is appointed Chairman and Chief Executive Officer.
 The UK company's name was changed to McDonald's Restaurants Limited.
 McDonald's send undercover private investigators to infiltrate London
Greenpeace over a period of 20 months.
 McDonald's charity for child welfare fundraising, Ronald McDonald Children's Charities, was registered.
 McDonald's Child of Achievement Awards were presented by UK Prime Minister Mrs Margaret Thatcher.
 The UK Manchester regional training centre was opened.
 McDonald's stores in Philadelphia (USA) were independently surveyed and accused of having racist
differential wage rates between the inner-city stores (mostly black workers) and the suburbs (mostly white
workers).
1990
 September - libel writs were served on five supporters of London Greenpeace, three of whom feel unable to
fight the case. The McLibel Support Campaign is set up to generate solidarity and financial backing for the
McLibel Defendants.
 McDonald's opened in Pushkin Square and Gorky Street, Moscow.
 McDonald's opened at a UK airport at North Terminal, Gatwick.
 The first Ronald McDonald House opened at Guy's Hospital, London.
 McDonald's Child of Achievement Awards attended by HRH The Princess of Wales.
1991
 McDonald's were responsible for a serious food poisoning outbreak in Preston (UK), when several
customers were hospitalised as a result of eating undercooked burgers contaminated by potentially deadly E.Coli
0157H bacteria.
 The 150th Ronald McDonald House opened in Paris.
 McDonald's opened in Beijing, China.
 The 400th UK restaurant (and first in Northern Ireland) is opened in Belfast.
 McDonald's opens in Hampstead (North London) despite strong
opposition from local residents.
PHOTO: A 1950's newspaper advert.
1992
 Mark Hopkins, a McDonald's worker in Manchester (UK), was
fatally electrocuted on touching a 'fat filtering unit' in the 'wash-up'
area of the store.
 The manager of a Newcastle store (UK) was jailed for 6 months for
inducing a crew member to phone through a hoax bomb threat to
nearby Burger King in order to boost sales at McDonald's.
 McDonald's Child of Achievement Awards attended by UK Prime
Minister John Major.
 McDonald's opened in a railway station at Liverpool Street,
London.
 A UK Health & Safety Executive report made 23 recommendations
for improvements in the safety of employees. One of its conclusions
was "The application of McDonald's hustle policy [ie. getting staff to work at speed] in many restaurants was, in
effect, putting the service of the customer before the safety of employees."
 Visitors to Salisbury Cathedral (UK) are offered two burgers for the price of one if they buy a
commemorative parchment scroll. The idea is dropped when the bishop gets back from holiday.
 First restaurant in a European hospital opened at Guy's Hospital, London.
1993
 The first McDonald's at sea opened aboard the Silja Europa, the world's largest ferry sailing between
Stockholm and Helsinki.
 The Paris planning authorities refuse permission for a McDonald's under the Eiffel Tower.
 The second Ronald McDonald House opened at Alder Hey Children's Hospital, Liverpool.
 500th UK restaurant opened in Notting Hill Gate, London.
 First UK operated restaurant on a ship opened on the Stena Sealink ferry "Fantasia" sailing between Dover
and Calais.
 McDonald's sponsored athletics in the UK through the McDonald's Young Athletes' League and the
International invitational meeting the McDonald's Games.
1994
 McLibel Trial starts on 28th June.
 Restaurants opened in Bahrain, Bulgaria, Egypt, Kuwait, Latvia, Oman, New Caledonia, Trinidad and
United Arab Emirates, bringing the total to over 15,000 in 79 countries on 6 continents.
 McDonald's celebrated twenty years of operating in the UK.
 McDonald's environmental image was revealed to be a sham, and customers being conned when it was
discovered that rubbish which customers were asked to put into separated recycling bins throughout New
Zealand stores was sent to the tip.
 McDonald's achieved the highest ever grade under the Royal Society for the Prevention of Accidents
(RoSPA)Quality Safety Audit scheme.
 McDonald's was voted the 'Most Parent Friendly' restaurant in the UK for the second successive year by the
Tommy's Parent Friendly Campaign, supported by the Daily Telegraph.
 Workers in an Ontario store (Canada) joined a union, but the company managed to avoid recognition by
ensuring victory in Labour Board sponsored elections.
 The McLibel Defendants issue a countersuit for libel against McDonald's over the company's accusation in a
leaflet that they are telling lies.
 Five McDonald's managers are arrested in Lyon, France for trying to rig union elections.
 On 1st October, McDonald's UK executives held a celebration along with a jazz band and clown at their
Woolwich store to mark 20 years since this first store opened in the UK. Twenty five London Greenpeace and
McLibel supporters gathered with a banner reading "20 Years of McGarbage" and handed out 4000 "What's
Wrong With McDonald's?" leaflets to passers-by.
 In October, there is an demonstration at McDonald's European headquarters in London where sackfuls of the
company's litter picked up off the streets are returned. 500 people attend the National March Against
McDonald's through central London to protest against the company's exploitation of people, animals and the
environment.
 The company threatens legal action against a topless restaurant in Australia
called "McTits".
PHOTO:An ad in a German newspaper which aims to counter criticism that
McDonald's is changing German restaurant traditions for the worse.
1995
 McLibel Trial becomes the longest libel trial in British history on Day 102 in
March.
 On 15th April, there were international protests to mark the 40th anniversary of
the opening of the world's first store of the McDonald's Corporation, and to celebrate
10 years of co-ordinated international resistance to McDonald's.
 On the first anniversary of the McLibel Trial (28th June), it becomes known that
McDonald's had initiated secret settlement negotiations and had twice flown
members of their US Board of Directors to London to meet with the McLibel
Defendants in an attempt to bring the case to an end.
 12th October, the third anniversary of the death of Mark Hopkins, was a Day of
Solidarity With McDonald's Workers in the UK.
 On 16th October, the 11th annual Worldwide Day of Action Against McDonald's, there were protests in at
least 20 countries. In the UK, at least 250 of the company's 600 stores were leafletted.
 On 11th December (Day 199 of the trial), the McLibel Trial becomes the longest civil case in English
history.
 Following widespread opposition by local residents, McDonald's were refused permission to open an outlet
at their European headquarters in north London.
1996
 February 16th 10am, the McSpotlight website was launched.
 In March, the public's intense concern over the links between the cattle disease BSE and its human
equivalent CJD forced McDonald's UK to ban British beef. The company did not sell any beef products for a
week while supposedly waiting for beef supplies to arrive from other EU countries.
 The "Vegetable Deluxe" was launched in the UK.
 McDonald's opened stores in India.
 McDonald's and Disney announced a deal giving McDonald's exclusive rights to use characters from Disney
films in its promotions around the world for 10 years. Commentators called it the biggest global marketing
alliance yet devised.
 McDonald's opened a store in Belarus, its 100th country.
 The movie star Robin Williams turned down a million-pound offer to advertise McDonald's.
 McDonald's threatened the owner of a UK sandwich bar called "McMunchies" with legal action for breach
of trademark. A retired Scottish school-teacher called Ronald McDonald, and the chief of the McDonald clan in
Scotland were both outraged at this further attempt by McDonald's to claim global dominion over the prefix
"Mc" and the name "McDonald" which has been an Irish and Scottish family name for centuries.
 The Supreme Court of Denmark ruled against McDonald's claim that a sausage stand called "McAllan's"
was in breach of its trademark.
 Following widespread opposition by local residents in Winchmore Hill (north London) which put a lot of
pressure on the local MP (Michael Portillo, the Defence Secretary), McDonald's were refused permission to
convert the local Conservative Association HQ into a Drive-Thru.
 McDonald's sued for breach of trademark a Jamaican fast-food company (called the McDonald's
Corporation Limited) which had been operating in Jamaica since the early 1970's. The Jamaican company
succeeded in getting information from the McLibel Trial taken from the Internet ruled admissible in the case,
and in getting an order barring McDonald's from opening stores in the country until the courtcase was
completed.
 McDonald's succeeded in its trademark battle in South Africa, when an appeal court prohibited competitors
from using its name and the golden arches symbol.
 McDonald's began spending $200 million on a promotional blitz in the USA & Canada to lure adults to visit
their outlets. This included the launch of the new adult burger, the "Arch Deluxe" in May. Despite this blitz, US
sales continued to fall.
 The parents of a child, who died from E.Coli 0157 food poisoning after eating McDonald's burgers in Spain
and England, began legal proceedings for compensation in the USA. Meanwhile, three children who suffered
E.Coli 0157 food poisoning in England also from McDonald's burgers were granted legal aid to sue McDonald's
and their supplier McKey's.
 McDonald's opened the world's first fast-food ski-through in the Lindvallen resort (Sweden).
 The McLibel Trial became the longest trial of any kind in English legal history in November. The evidence
was completed in July, and the closing speeches in December, but the Judge reserved his Judgment until the
following year.

PHOTO: Ray Kroc

A Brief History Of KFC:

1939
Colonel Harland D. Sanders perfects
secret blend of 11 herbs and spices in Corbin,
Ky., restaurant.
1952
Pete Harman in Salt Lake City becomes the first Kentucky Fried Chicken franchisee.
1956
Colonel Sanders sells Corbin, Ky., restaurant and goes on the road to enlist new franchisees. The
Colonel signs his first international franchisee in Canada.
1964
KFC sold to a group of investors including John Y. Brown Jr. and Jack Massey for $2 million.
1969
KFC listed on New York Stock Exchange. Colonel Sanders buys first 100 shares.
1971
KFC acquired by Heublein Inc.
1980
Colonel Sanders dies and is buried in Louisville's Cave Hill cemetery.
1982
KFC becomes a subsidiary of R.J.Reynolds Industries when Heublein Inc. is acquired by RJR (now
RJR Nabisco, Inc.).
1986
KFC becomes a subsidiary of PepsiCo, Inc. for $840 million. Grand opening of Colonel Sanders
Technical Center in Louisville, Ky.
1987
KFC opens first Western-style quick service restaurant in China.
1991
A new logo is introduced to emphasize chicken variety -- replacing "Kentucky Fried Chicken" with
"KFC".
1993
KFC adds non-fried chicken to menus in the U.S. and Australia.
1994
KFC officially opens its 9,000th restaurant in the world- in Shanghai, China- and announces a $200
million investment over the next four years for 200 restaurants in 48 Chinese cities.
1995
KFC introduces Colonel's Crispy Strips® and smashes Guinness record with "World's Largest Pot
Pie" in New York City to introduce Chunky Chicken Pot Pie. Opens first restaurant in Moscow.
1996
KFC introduces Tender Roast® chicken pieces and brings back one of the world's most recognized
packages -- the bucket.
1997
KFC introduces Honey BBQ-flavored Tender Roast®, Spicy Buffalo Crispy StripsTM and Chicken
TwisterTM -- chicken and veggies "like a meal all wrapped up and ready to go."
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SUB CHAPTER 2:
MARKETING STRATEGIES OF MCDONALDS:
CHALLENGES IN ENTERING INDIAN MARKET:
➢ REGIOCENTRICISM:Re-engineering the menu-McDonald’s has continually adapted to the
customer’s taste ,value system ,lifestyle ,language and perception .Globally McDonald’s was known
for its hamburgers ,beef and pork burger .Most Indians are barred by religious not to consumer beef
and pork burgers .To survive ,the company had to be responsive to the Indian sensitivities .So
McDonald came up with chicken ,lamb and fish burgers to suite the Indian palate.
➢ THE VEGETARIAN CUSTOMER-Indian has a huge population of vegetarians. To cater to this
customer segment ,the company came up with a completely new line of vegetarian items like Mc Aloo
Tikki. The separation of vegetarian and non-vegetarians sectors is maintained throughout the various
stages.
SEGMENTATION, TARGETING AND POSITIONING:
McDonald’s uses demographic segmentation strategy with age as the parameter. The main target segments are
children ,youth and the young urban family.
CHARTS TO BE DONE”
As shown above, kids reign supreme in FMCG purchase related to food products. So to attract children
McDonalds has Happy Meal with which toys ranging from hot wheels to various Walt Disney characters are
given (the latest in this range is the toys of the movie Madagascar). For this, they have a tie-up with Walt
Disney. At several outlets, it also provides special facilities like ‘Play Place’where children can play arcade
games, air hockey, etc. This strategy is aimed at making McDonald’s a fun place to eat. This also helps
McDonald’s to attract the young urban families wanting to spend some quality time while their children have
fun at the outlet. To target the teenagers, McDonald’s has priced several products aggressively, keeping in mind
the price sensitivity of this target customer. In addition, facilities like Wi-Fi are also provided to attract students
to the outlets like the one at Vile Parle in Mumbai.
“Mc Donald’s mein hai kuch baat”projects McDonald’s as a place for the whole family to enjoy. When
McDonald’s entered in India it was mainly perceived as targeting the urban upper class people. Today it
positions itself as an affordable place to eat without compromising on the quality of food, service and hygiene.
The outlet ambience and mild background music highlight the comfort that McDonald’s promises in slogans
like “You deserve a Break Today” & “Feed your inner child”. This commitment of quality of food and service
in a clean, hygienic and relaxing atmosphere has ensured that McDonald’s maintains a positive relationship with
the customers.
CUSTOMER PERCEPTION AND CUSTOMER EXPECTATION:
Customer perception is a key factor affecting a product’s success. Many potentially revolutionary products have
failed simply because of their inability to build a healthy perception about themselves in the customers’ minds.
McDonalds being an internationally Customer renowned brand brings with it certain expectations the children.

TARGET SEGMENT WHA IS MCDONALD’S FOR ME?

A family with children A treat to children, a fun place to be for the children.

Urban customer on the move Great taste ,quick services without affecting the work
schedule.

Teenager Hangout with friends , but keep it affordable.

Customers expect it to be an ambient, hygienic and a little sophisticated brand that respects their values. The
customer’s expect the brand to enhance their self-image. Customer responses obtained at the Vile Parle,
Mumbai outlet confirmed the fact that they connect strongly with the brand. However, fulfilling some of the
customer expectations like a broader product variety provide McDonald’s a great scope for improvement.
MCDONALDS MARKETING MIX(5 P’S):
After segmenting the market, finding the target segment and positioning itself, each company needs to come up
with an offer. The 5 P’s used by McDonalds are:
1. Product
2. Place
3. Price
4. Promotion
5. People.
PRODUCT: How should the company design, manufacture the product so that it enhances the experience?
Product is the physical product or service offered to the consumer. Product includes certain aspects such as
packaging, guarantee, looks etc. This includes both the tangible and the non-tangible aspects of the product and
service. McDonalds has intentionally kept its product depth and product width limited. McDonalds studied the
behaviour of the Indian customer and provided a totally different menu as compared to its International offering.
It dropped ham, beef and mutton burgers from the menu. India is the only country where McDonalds serve
vegetarian menu. Even the sauces and cheese used in India are 100% vegetarian. McDonalds continuously
innovates its products according to the changing preferences and tastes of its customers. The recent example is
the introduction of the Chicken Maharaja Mac. McDonalds bring with it a globally reputed brand, world class
food quality and excellent customer specific product feature
PLACE: Where should be the product be available and the role of distribution channels?
The place mainly consists of the distribution channels. It is important so that the product
is available to the customer at the right place, at the right time in the right quantity.
Nearly 50% of U.S.A is within a 3 minute drive from a McDonald’s outlet.

There is a certain degree of fun and happiness that a customer feels each time he dines
at McDonalds. There are certain value propositions that McDonalds offer to its customers
based on their needs. McDonalds offers hygienic environment, good ambience and great
service. Now McDonalds have also started giving internet facility at their centres and
they have been playing music through radio instead of the normal music. There are
certain dedicated areas for children where they can play while their parents can have
some quality time together.

PRICE: What should be the pricing strategy?

LOW QUALITY HIGH

LOW ECONOM PANETRA

Y TION

PRICE

HIGH SKIMMIN PREMIUM

G

PRICING STRATEGIES
MATRIX
 Pricing includes the list price, the discount functions available, the financing options
available etc. It should also take into the consideration the probable reaction from the
competitor to the pricing strategy. This is the most important part of the marketing mix
as this is the only part which generates revenue. All the other Expenses incurred. The
price must take into consideration the appropriate demand-supply equation.

McDonald’s came up with a very catchy punch line “Aap ke zamane mein ,baap ke
zamane ke daam”. This was to attract the middle and lower class consumers and the
effect can clearly be seen in the consumer base McDonalds has now. McDonalds has
certain value pricing and bundling strategies such as happy meal, combo meal, family
meal etc to increase overall sales volumes

PROMOTION: What is the suitable strategy and channels for promotion of the product?

Adveritising

Marketing
Sales communication
promotion Personal mix
selling

Direct marketing
Public relation

The Various promotion channels being used by McDonald’s to effectively communicate

the product information are given above. A clear understanding of the customer value
helps decide whether the cost of promotion is worth spending. There are three main
objectives of

advertising for McDonald’s are to make people aware of an item, feel positive about it
and remember it. The right message has to be communicated to the right audience
through t he right media. McDonald’s does its promotion through television, hoardings
and bus shelters. They use print ads and the television programmes are also an
important marketing medium for promotion. Some of the most famous marketing
campaigns of McDonald’s are“You Deserve a break today, so get up and get away- To
McDonald’s”• “Aap ke zamane mein ,baap ke zamane ke daam”.•“Food, Folks, and
Fun”•“I’m loving it”.

PEOPLE: How to converge the benefits of internal and external marketing?

McDonald’s understands the value of both its employees and its customers. It
understands the fact that a happy employee can serve well and result in a happy
customer. McDonald continuously does Internal Marketing. This is important as it must
precede external marketing. This includes hiring, training and motivating able
employees. This way they serve customers well and the final result is a happy customer.

The level of importance has changed to be in the following order (the more important
people are at the top):

1. Customers

2 .Front line employees

3. Middle level managers

4. Front line managers

The punch line “I’m loving it” is an attempt to show that the employees are loving their
work at McDonalds and will love to serve the customers.

THE MCDONALD’S EXPERIENCE:

Marketing in a services industry is becoming an increasingly complex challenge. The

paradigms of service marketing demand a passionate understanding of customer
expectations and perceptions, and linking them to product design & delivery as well as
operational planning. This is where McDonald’s has excelled due to its ability to
successfully integrate the customer’s perspective in its products and operations in a
comprehensive manner. The revamped menu in India is an example of McDonald’s
strategy of integrating the customer’s perspective in its products. And, the operational
integration is evident from McDonald’s emphasis on its suppliers as its customers as well
as its treatment of its consumers as co-producers of services. The ultimate aim of Service
Marketing is not just to become a Service Leader but to create a Service Brand. The
Service Delivery Process is the key to achieving this aim of Service Marketing.

S
SUPPLEMENTARY PROCESS

SVC DELIVERY PROCESS

CORE PRODUCT

During the Service Delivery Process, each moment of interaction between the firm and
the customer, called Moments of Truth”, helps understand the opportunities that a firm
has to win or lose the customer. For example, these “moments of truth” are created for
McDonald’s every time the guard at the McDonald’s outlet meets the customer, every
time an attendant takes down the order from the customer waiting in the queue, every
time the cashier interacts with the customer, every time the attendant helps the
customer guided the customer towards the table, every time the attendant cleans the
table, etc.

MOMENT OF TRUTH:

CUSTOMER

SERVICES PROVIDER SERVICES DRLIEVERY

POINTS

Managing these “moments of truth” is a great challenge in Service Marketing especially

due to customer’s involvement as a co-producer of services (e.g. McDonald’s self-service
concept wherein the customer not only collects the order but also cleans the table after
consuming the food). However, McDonald's has been able to create a great experience
for its customers by understanding the nature of the entire Service Delivery Process and
the various stages in the process that are exposed to the customers. Transparency in the
processes at its outlet has helped McDonald’s bring the back office in its outlet at the
front so that the customer is able to know the operations and provide feedback on
service design improvements. Internal Customer Focus is equally important as External
Customer Orientation in order to win these “moments of truth”. McDonald’s focus on its
People and their service delivery methods therefore plays a very important role in
creating a successful Service Brand. The quality and the consistency of the service
delivered by McDonald’s have been greatly enhanced by the combination of the factors
mentioned above. This has helped McDonald’s become Service Leader and a successful
Service Brand. This is evident from the fact that very few of its customers opt for take-
home parcels or home deliveries while most of them prefer to eat at the outlet and enjoy
the McDonald’s experience.

MCDONALDIZING THE SUPPLIERS:

McDonald’s has changed the nature of not only the food service industry but also the
food processing industry as well. McDonald’s realized that the battle between fast food
chains would increasingly be one of efficiency of supply, lower cost production and
greater desire to innovate. It pioneered with innovative and sophisticated food
distribution and packaging systems when the traditional food processors were unwilling
or unable to supply food items that McDonald’s demanded. They achieved amazing
consistency by devoting more attention than anyone else to field service and training at
store level. Production was concentrated in huge plants devoted exclusively to
McDonald’s. McDonald’s also started with tiny suppliers and grew with them displaying
great loyalty.

Nowhere is the supplier loyalty more evident than in development of new, improved
products. Some of McDonald’s classic food items like Filet-o-Fish, French Fries, Chicken
Nuggets etc. are results of supplier innovation. Interestingly, it took KFC more than three
years before in finally introduced its own version of chicken nuggets. Thus supplier
technological expertise had given McDonald’s a product which was not a mere marketing
innovation but a technical one. McDonald’s attempted to squeeze labour out of the stores
by moving more preparation back into the processing plant, creating the opportunity to
develop unique products based on suppliers’ processing skills. For the first time,
McDonald’s suppliers became the focal point of new product development. This
converted the fast-food industry’s most fragmented distributed system into more
efficient one which helped McDonald’s reduce its inventory and manage costs effectively.

IMPORTANCE OF PRODUCT LIFE CYCLE IN MC DONALDS:

The requirements of customers change over time and thus the product offering has to
be changed accordingly. What is the fashion today may be out of market within few
weeks. Thus continuous innovation is required.

To counter these changes McDonalds has continuously introduced new products and has
phased out the old ones which were at the decline stage of their PLC. The introduction is
timed such that the new product does not cannibalize the product already in the maturity
or growth stage. Thus the secret lies in getting profits with different products in the
different stages of the PLC.

COMPETITOR ANALYSIS:

McDonald’s has been a leading fast-foods outlet in Vile Parle. But the outlet understudy
has other competitors eating away into its market share. In addition to its traditional
rivals—KFC, Dominos, Pizza Hut—the firm encounters new challenges. Jumbo King
competes using a back-to-basics approach of quickly serving up burgers for time-pressed
consumers. On the higher end, the KFC has become potent competitor in the quick
service field, taking away customers from McDonald’s. Perhaps in the new environment,
fast, convenient service is no longer enough to distinguish the firm. At this time, a new
critical success factor may be emerging: the need to create a rich, satisfying experience
for consumers. This brings us to service and experience based competition which
McDonald’s can use for competitive advantage against Jumbo King. Keeping in mind the
demographics of the area, McDonald’s has Wi-Fi enabled the outlet to cater to the
student community .It is for this overall “Food, Fun & Folks” experience that customers
pay a premium over the other competitors.

Competition also reduces product lifecycle; inducing firms to revise their products
portfolios and to revisit their product market to understand changing needs, expectations
and perception of different market segments. The new Mc Breakfast would be introduced
between 6 to 11 am as a pilot project. This would open up a whole new revenue stream
for McDonald’s by tapping into the student and working population by providing a
healthy and wholesome breakfast. This shows how demographic shift can affect the
demand for products and services. McDonald’s has anticipated these changes to
maintain its competitive edge.

SWOT ANALYSIS:

STRENGTH WEAKNESS OPPORTUNITY THREAT

1.Strong 1.Low depth and 1. Expand into tier 1. Changing customer lifestyle
brand width of product. 2 and tier 3 cities. and taste.

2. customer 2. Entry into 2. Increased competition from

intimacy breakfast category. local fast food outlets like
3.Product Jumbo king.
innovation

4. Supplier
Integration.

THE ROAD AHEAD:

➢ Entry to Tier 2 and Tier 3 cities –The main target customer for McDonald’s is the
new urban Indian family. With the customer demographics constantly changing
and tectonic social and cultural shifts being observed in Tier 2 and Tier 3 cities
due to globalization, the company is now expanding to Tier 2 cities like Pune and
Jaipur.
➢ Rolling out McBreakfast across all outlets – In India, the company has recently
launched its entry into the breakfast food category. This is now launched on a
pilot basis on select stores. In Mumbai, it available at the Vile Parle outlet. The
company views this category as a key growth driver in future.

EXHIBITS:

1.MCDONALD’S INDIAN MENU

VEGETARIA NON
N VEGETARIAN
Mc Veggie Chicken maharaja
mac

Mc Aloo Tikki McChicken Burger

Paneer salsa Shahi chicken mc

wrap curry

Cripy Chinese Wrap chicken

Mexican

Mc curry pan Fillet-o-Fish

Pizza mc puff

SUB CHAPTER 2:
MARKETING STRATEGIES OF KFC:
MARKETING MIX:

The marketing mix is generally accepted as the use and specification of

the 'four Ps' describing the strategic position of a product in the
marketplace.
‡ 1.Product

‡ 2.Price

‡ 3. Place

‡ 4.Promotion

PRODUCT: PRICE:
Product variation
Product differentiation Cost recovery pricing
Product innovation
Penetration Pricing

Price skimming

Marketing

Mix

PLACE: PROMOTION:

Distribution channel Individual communication

Direct sale Mass communication
Indirect sales
Brand management

PRODUCT: Anything that can be offered to a market to satisfy a

want or need. KFC's specialty is fried chicken served in various
forms. KFC's primary product is pressure-fried pieces of chicken
made with the original recipe. The other chicken offering, extra
crispy, is made using a garlic marinade and double dipping
The chicken in flour before deep frying in a standard industrial
kitchen type machine.
PRICE: Price is the any amount of money that customers have to
pay while purchasing the product. More broadly, price is the sum of
all the values that consumers exchange for benefits of having or
using the product or services.
.
ECONOMIC FACTOR:
 • Income: Income is an important key factor for KFC. This factor decides
which class is to be targeted. In the early rise of KFC they focused on the
upper class but slowly are introducing economy meals that attract the
lower to middle classes.
• Consumption behaviour: Its estimates the behaviour of people their liking
and disliking towards the pricing of the product.
DEMOGRAPIC FACTOR: ‡
• Age: Generally there is no age limit focus by the KFC. The target and focus
is on each and every individual in a society. KFC finds its largest
demographic in the young of any society.
• Gender: Both male and females are focused by KFC, gender does not play
any role here.

Household Size: This plays a vital role in the demographic factor of the KFC.
Generally they target whole families rather than single persons. This being
the reason for their Family Meals which are basically bundled items served at
a nominally cheaper rate

GEOGRAPIC LOCATION PREFERENCE:

• Urban
• Semi urban

BEHAVIOUR SEGMENTATION:

• Taste conscious
• Quality conscious
• Class
• Combination of product and quality.

PRICING STRATEGY:

MARKETING SKIMMING: KFC globally enters the market using market skimming. Their
products are priced high and target the middle to upper class people. Gradually they
trickle down the prices focusing on the middle to lower class people to penetrate both
sides of the market.

COMPETITION:

We can compare the price of their products with McDonald, Dominoes and Pizza Hut. If
the competitor provides the same product at a lower price then the organization usually
lowers the price of its product too. In the case of KFC, Fried Chicken is its main selling
point and controls a monopoly over the Indian fast food market (only with fried chicken).
It prices its burgers, French fries and soft beverages with relation to its competitors.

COST BASED:

KFC price their product keeping different points in view. They adopt the cost base price
strategy. Pricing of the product includes the govt. tax and excise duty and then comes
the final stage of determine the price of their product. The products are bit high priced
according the market segment and it is also comparable to the standard of their product.
In the cost based method we include the variable and fixed cost.
PLACE:
TARGET AREAS:

“Free home Delivery” strategy -They provide free home delivery to offices & homes
(select countries).

“Accessibility”- Resulting in several outlets to cater to the needs of people in & around
the city.

“Hectic lifestyle”-Due to the hectic lifestyle of office going individuals the fast food
concept saves times of preparing food and gives the customer a full meal quickly.

“Economically convenient”-The pricing appeals to the many classes of a society.

TARGET MARKET:

1. Location:
± Hectic lifestyle of individuals giving them more time at work and less stress
about waiting for food.
± Commercialization of urban and sub - urban markets leading to more mid-
sector people that find high-end eating joints very to expensive.
± Mid-sector people are always looking for change which KFC provides in their
range of fast food.
± Quality conscious people in urban areas are more conscious about the quality of
food than rural areas.
± Urban areas are more populated therefore they help with attracting higher
revenues.

2. Placement of outlets: Due to KFC placing itself close to schools, colleges,

cinemas and markets which are mostly populated by the young and those
who are in a hurry, KFC enjoys a large number of footfalls every day. In
addition, they also have outlets close to non-vegetarians (mostly Muslim
populated areas).

STRATEGY:

Given the competitive nature of fast food joints, KFC uses the Push Strategy to help them
create

±Awareness

±Be different

±Sound attractive

CHANNALS:

KFC believes in first level channels in the order given below:

± Manufacturers

± Retailers

± Consumers.
CHANNELS PROCESS:

KFC works on the flow of good operation techniques i.e. Good Operating Manager leads
to Good Team Selection Good Services  Good Targets  Good Revenues through the
following internal strategies:

• ‡ Training
• Incentives based targets
• Recognition for good work
• Performance based bonus
• Employee benefits to keep them motivated
• Promotion

PROMOTION:
Promotion is the method used to inform and educate the chosen target audience about
the organization and its products. Using all the resources of promotion:

‡Advertising

‡Sales Promotion

‡ Public Relations

‡ Events and Experiences

‡ Coupons, Discounts and Bundled packages

‡An organization finds most of its meanings and survival through promotion.

At KFC, Promotion is the main tool to bring all chicken lovers attention towards its
delicious one-of-a-kind product, the Fried Chicken.

ADVERTISING:

The logo of the smiling Colonel is probably one of the most recognized faces in the world
and instantly brings the image of fried chicken to one’s mind.

KFC and its new company jingle ,finger lcikin good´ is a frequent announcement on
televisions, billboards, flyers and radio. The concept of showing a normal customer
deeply involved in devouring his piece of chicken usually turns on the drool factory in
everybody’s mouth and makes them rush to the nearest KFC. In India where chicken
lovers are plenty abound these ads featuring normal people connect instantly and create
a rush at their outlets. Using the following methods KFC spreads its message of finger
further licking good.

Using Reminder advertisements KFC stimulates repeat purchases of its products. The
company anthem ³finger linkin good´ is just a wake up call to the consumer to remind
them how good they felt the last time they ate KFC chicken

Sponsorship is another tool to strengthen an organizations image. KFC is currently the

sponsor of the Australian Cricket Team and the colonel logo can be seen on their
uniforms throughout.

SALES PROMOTION:
KFC uses the following tools to further enhances its sales

• Premiums
• Exhibits
• Coupons
• Entertainment

SEGMENTATION TARGETING AND POSITIONING

SEGMENTATION:
GEOGRAPHIC SEGMENTATION:
KFC has outlets internationally and sells its products
according to geographic needs of the customer. In India
KFC focuses how geographically its customers demand
different products. In north India Chicken is the main
selling product, while in the south the Veg. items sell more
than the chicken.

DEMOGRAPIC SEGMENTATION:
In demographic segmentation, the market is divided into
groups based on an age, gender, family size, income,
occupation, religion, race and nationality.
KFC divides the market on demographic basis in this way:
Age is between 6 - 65.
Gender is both males and females.
Family size is 1-2, 3-4, 5+
Income is Rs 10,000 n above.
Family lifestyle is almost all.

PSYCHOGRAPIC SEGMENTATION:
Dividing a market into different groups based on social
class, lifestyle,
Or personality characteristics is called psychographic
segmentation.
KFC divides market on the basis of psychographic
variables like
Social class - Upper and Middle class.
Lifestyle is not specific.
Personality ambitious and authoritarian.

TARGETING:
“The process of evaluating each market segment’s
attractiveness and selecting two or more
segments”.
As the outlets of KFC are in posh area and prices
are too high (overhead expenses-rent, air-
conditioning, employees), so KFC targets upper
and middle classes. Target market depends upon
size and growth rate of population, Company
resources and structural attractiveness of market
segment.
POSITIONING:

KFC uses its attributes to Position its Product (Fried Chicken).

For a product to occupy a clear, distinctive and desirable place
relative to Competing products in the minds of target Consumer . In
KFC feedback is taken from the customer in order to know the
customer demands and then improvements are made in products.
KFC focuses on pure and fresh food in order to create distinct and
clear position in the minds of customers KFC has a strong brand
name and they are leading the market in fried chicken.
SUB CHAPTER 3:
FINANCIAL STATEMENT OF MC DONALD’S:
Currency in Dec 31 Dec 31 Dec 31 Dec 31 4 -Year
As of 2006 2007 2008 2009 Trend
Millions of U.S Dollars Restate Reclassifi
d ed

Revenues 20,895. 22,786. 23,522.4 23,522.

2 6 4

TOTAL REVENUES 20,895. 22,786. 23,522.4 23,522.

2 6 4

Cost of goods sold 13,963. 14,881. 14,883.2 14,883.

2 4 2

GROSS PROFIT 6,932.0 7,905.2 8,639.2 8639.2

Selling General &Admin 2,295.7 2,367.0 2,355.5 2,234.2

Expenses ,Total

OTHER OPERATING 2,295.7 2,367.0 2,355.5 2,234.2

EXPENSES,TOTAL

OPERATING INCOMES 4,636.3 5,538.2 6,283.7 6557.6

Interest Expenses -401.9 -410.1 -522.6 -473.2

Interest and Investment 152.0 124.0 85.0 19.0

Income

NET INTEREST EXPENSES -249.9 -286.1 -437.6 -437.2

Income (loss) on Equity 76.8 115.6 110.7 167.8

Investment

Currency Exchange - -1.0 5.0 32.0

Gains(loss)

Other Non-Operating -28.7 -19.8 -12.4 -26.7

Income(Expense)

EBT,EXCLUDING USUSUAL 4,434.5 5,346.9 5,949.4 6,276.5

ITEMS

Merger & Restructuring -134.2 - - -

Charges

Gain(loss) on sales of - - 160.1 94.9

investment

Gain (loss)on sales of asset -145.9 -1,759.5 54.5 54.5

Other unusual items, Total - -15.3 -6.0 61.1

 Other unusual item - - - 65.2

EBT,INCLUDING UNUSUAL 4,154.4 3,572.1 6,158 6,487.0

ITEMS

Income Tax Expense 1,288.3 1,237.1 1,844.8 1,936.0

Earnings from continuing 2,866.1 2,335.0 4,313.2 4,551.0

operation

EARNINGS FROM 678.1 60.1 - -

DISCOUNTING OPERATIONS

NET INCOME 3,544.2 2,395.1 4,313,2 4,551.0

NET INCOME TO COMMON 3,544.2 2,395.1 4,313.2 4,551.0

INCLUDING EXTRA ITEMS

NET INCOME TO COMMON 2,866.1 2,335.0 4,313.2 4,551.0

EXCLUDING EXTRA ITEMS

ANNUAL BALANCE SHEET OF MC DONALD’S:

Financial data in
U .S. Dollar

Values in Millions
(Except for per share items)

200 2008 2007 2006 2005

9

Period End Date 12/31/2009 12/31/2008 12/31/2007 12/31/2006 12/31/2005

Stmt Source 10-K 10-K 10-K 10-K 10-K

Stmt Source Date 02/26/2010 02/25/2009 02/25/2008 02/25/2008 02/26/2007

Stmt Update Type Updated Updated Updated Restated Reclassified

Assets

1,796.0 2,063.4 1,981.3 2,128.1 4,260.6

Cash and Short Term Investments
 Cash & Equivalents 1,796.0 2,063.4 1,981.3 2,128.1 4,260.6

1,060.4 931.2 1,053.8 806.9 793.9

Total Receivables, Net

Accounts Receivable - Trade, Net 1,060.4 931.2 1,053.8 806.9 793.9

Total Inventory 106.2 111.5 125.3 112.4 144.3

Prepaid Expenses 453.7 411.5 421.5 318.6 640.2

Other Current Assets, Total 0.0 0.0 0.0 1,826.2 380.0

Total Current Assets 3,416.3 3,517.6 3,581.9 5,192.2 6,219.0

Property/Plant/Equipment, Total - Net 21,531.5 20,254.5 20,984.7 19,438.1 19,573.3

Goodwill, Net 2,425.2 2,237.4 2,301.3 2,073.6 1,924.4

Intangibles, Net 0.0 0.0 0.0 0.0 0.0

Long Term Investments 1,212.7 1,222.3 1,156.4 1,035.4 1,035.4

Note Receivable - Long Term 0.0 0.0 0.0 0.0 0.0

Other Long Term Assets, Total 1,639.2 1,229.7 1,367.4 1,235.2 1,236.7

Other Assets, Total 0.0 0.0 0.0 0.0 0.0

Total Assets 30,224.9 28,461.5 29,391.7 28,974.5 29,988.8

Liabilities and Shareholders' Equity

Accounts Payable 636.0 620.4 624.1 668.7 678.0

Payable/Accrued 0.0 0.0 0.0 0.0 0.0

Accrued Expenses 1,854.8 1,633.0 1,635.3 1,459.5 1,316.6

Notes Payable/Short Term Debt 0.0 0.0 1,126.6 0.0 544.0

Current Port. of LT Debt/Capital Leases 18.1 31.8 864.5 17.7 658.5

Other Current Liabilities, Total 479.8 252.7 248.0 805.7 910.6

Total Current Liabilities 2,988.7 2,537.9 4,498.5 2,951.6 4,107.7

10,560.3 10,186.0 7,310.0 8,389.9 8,934.3

Total Long Term Debt
 Long Term Debt 10,560.3 10,186.0 7,310.0 8,389.9 8,934.3

Deferred Income Tax 1,278.9 944.9 960.9 1,076.3 949.2

Minority Interest 0.0 0.0 0.0 0.0 0.0

Other Liabilities, Total 1,363.1 1,410.1 1,342.5 1,098.4 851.5

Total Liabilities 16,191.0 15,078.9 14,111.9 13,516.2 14,842.7

Redeemable Preferred Stock 0.0 0.0 0.0 0.0 0.0

Preferred Stock - Non Redeemable, Net 0.0 0.0 0.0 0.0 0.0

Common Stock 16.6 16.6 16.6 16.6 16.6

Additional Paid-In Capital 4,853.9 4,600.2 4,226.7 3,445.0 2,720.2

Retained Earnings (Accumulated 31,270.8 28,953.9 26,461.5 25,845.6 23,516.0

Deficit)

Treasury Stock - Common -22,854.8 -20,289.4 -16,762.4 -13,552.2 -10,373.6

ESOP Debt Guarantee -134.6 -98.1 -37.7 0.0 0.0

Other Equity, Total 882.0 199.4 1,375.1 -296.7 -733.1

Total Equity 14,033.9 13,382.6 15,279.8 15,458.3 15,146.1

Total Liabilities & Shareholders’ 30,224.9 28,461.5 29,391.7 28,974.5 29,988.8

Equity

Total Common Shares Outstanding 1,076.7 1,115.3 1,165.3 1,203.7 1,263.2

Total Preferred Shares Outstanding 0.0 0.0 0.0 0.0 0.0

10 YEARS SUMMARY OF MC DONALD’S:

 Income Statement - 10 Year Summary (in Millions)
Sales EBIT Depreciation Total Net Income EPS Tax Rate (%)
12/09 22,744.7 6,487.0 1,216.2 4,551.0 4.11 29.84
12/08 23,522.4 6,158.0 1,207.8 4,313.2 3.76 29.96
12/07 22,786.6 3,572.1 1,214.1 2,335.0 1.93 34.63
12/06 20,895.2 4,154.4 1,249.9 2,866.1 2.29 31.01
12/05 19,117.3 3,660.2 1,249.5 2,577.6 2.02 29.58
12/04 18,594.0 3,200.7 1,201.0 2,277.5 1.79 28.84
12/03 17,140.5 2,346.4 1,148.2 1,508.2 1.18 35.72
12/02 15,405.7 1,662.1 1,050.8 992.1 0.77 40.31
12/01 14,870.0 2,329.7 1,086.3 1,636.6 1.25 29.75
12/00 14,243.0 2,882.3 1,010.7 1,977.3 1.46 31.4
Balance Sheet - 10 Year Summary (in Millions)
Current Assets Current Liabilities Long Term Debt Shares Outstanding
12/09 30,224.9 16,191.0 10,560.3 1.1 Bil
12/08 28,461.5 15,078.9 10,186.0 1.1 Bil
12/07 29,391.7 14,111.9 7,310.0 1.2 Bil
12/06 28,974.5 13,516.2 8,389.9 1.2 Bil
12/05 29,988.8 14,842.7 8,934.3 1.3 Bil
12/04 27,837.5 13,636.0 8,357.3 1.3 Bil
12/03 25,838.0 13,856.1 9,342.5 1.3 Bil
12/02 23,970.5 13,689.6 9,703.6 1.3 Bil
12/01 22,534.5 13,046.1 8,555.5 1.3 Bil
12/00 21,683.5 12,479.1 7,843.9 1.3 Bil

SNAPSHOT OF MC DONALD’S CORPORTION:

Quick Quote

Latest price 70.88

Change +0.30

% Change +0.43%

Previous Close 70.58

Day's Low 70.13

Day's High 70.96

 1,064,32
Volume
8

StockScouter Rating 9

ADVANCED CHARTS:INTRADAY 1YEAR 3

YEAR:

COMPANY REPORT:
Industry : Restaurants
Employees : 385,000
Exchange : NYSE
 McDonald’s Corporation franchises and operates McDonald’s restaurants in the food
service industry .These restaurants serve a varied, yet limited, value-priced menu in
more than 100 countries worldwide. All restaurants are operated either by the Company
or by franchisees, including conventional franchisees under franchise arrangements, and
foreign-affiliated markets and developmental licensees under license agreements.
Independently-owned and operated distribution centers , approved by the Company,
distribute products and supplies to most McDonald’s restaurants. In addition, restaurant
personnel are trained in the storage, handling and preparation of products and in the
delivery of customer service. In February 2009, the Company sold its interest in Redbox
Automated Retail, LLC.

Financial Highlights
23.28 Revenue/Share 21.18
Sales
Bil Earnings/Share 4.24
Income 4.66 Bil Book
13.12
Net Profit Value/Share
20.03%
Margin Dividend Rate 2.20
Return on 49.00
34.79% Payout Ratio
Equity %
Debt/Equity
0.74
Ratio

Revenue - Quarterly Results (in

Millions)
FY FY FY
(12/10) (12/09) (12/08)
1st Qtr 5,610.1 5,077.4 5,614.8
2nd
NA 5,647.2 6,075.3
Qtr
3rd Qtr NA 6,046.7 6,267.3
4th Qtr NA 5,973.4 5,565.0
Total 5,610.1 22,744.7 23,522.4
Earnings Per Share - Quarterly
Results
FY FY FY
(12/10) (12/09) (12/08)
1st Qtr $1.01 $0.88 $0.83
2nd
NA $1.00 $1.05
Qtr
3rd Qtr NA $1.16 $1.07
4th Qtr NA $1.13 $0.90
Total $1.01 $4.17 $3.85

Qtr. over Qtr. EPS Growth Rate

FY
FY (12/10) FY (12/09)
(12/08)
1st Qtr -11% -2% ---
 2nd Qtr NA 14% 27%
3rd Qtr NA 16% 2%
4th Qtr NA -3% -16%

Yr. over Yr. EPS Growth Rate

FY (12/10) FY (12/09)

1st Qtr 15% 6%

2nd Qtr NA -5%

3rd Qtr NA 8%

t 4th Qtr NA 26%