Workings of Mc Donalds

With over 32,000 locations in over 110 countries, McDonalds (NYSE: MCD) is the domains largest fast food restaurant chain. McDonalds operates its stimulate restaurants and franchises its brand to topical anesthetic businesspeople (about 70% of the worlds McDonalds restaurants are franchised).[1] The company experienced a dramatic turnaround in 2003, driven by a two-pronged strategy. In the U.S., McDonalds focused on increasing gross r stillue at existing locations by renovating stores, expanding menu options and extending store hours. Internationally, McDonalds grow aggressively, opting to franchise rather than operate its new locations, providing new income with smaller overhead. Both strategies contribute paid dividends - despite its size, sales have grown by a third since 2003[2]. Domestically, McDonalds continues to perform puff up despite a pullback in consumer spending and is even benefiting as consumers trade down from more expensive have options. At the same time, international doings are whimsical profit growth. A growing global middle class, especially in emerging markets like China, India, and Latin America, represents a capacious opportunity for McDonalds. Business Overview McDonalds makes money by operating its own restaurants and franchising to third parties.

As of late 2009, 25,975 (80%) of its 32,278 restaurants around the world were franchises objet dart only 6,303 (20%) were company-operated.[3] Franchises provide the initial capital required to stimulate the restaurant and maintain it through reinvestment, whereas direct restaurant operation is more capital-intensive relative to franchising and results in lower restaurant margins as a percent of revenues. Over time, McDonalds has been shifting its restaurant portfolio toward franchises. McDonalds generates revenue from sales by its company-operated restaurants as come up as fees from its franchise restaurants. Revenues from conventional franchised restaurants include rent and royalties base on a percent of sales along... If you want to pass a full essay, order it on our website: Orderessay

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