I Would Like To Start By Saying That In 1937... Essay - 1,688 words

I would like to start by saying that in 1937 the McDonald brothers opened a first drive in hamburger place in San Bernandino. The place became rather popular among the teenage boys who would drive around on the cars and flirt with the girls. The service was slow. In the fall of 1948, the McDonalds closed for remodeling and when it opened, it already possessed the assembly line and would appeal to children by giving away items and special promotions. In 1954, Mr. Ray Kroc was the first McDonalds franchisee in San Bernandino, California.


The next year Ray Kroc would open the first McDonalds restaurant in Chicago IL and thus created the McDonalds corporation. Ray Kroc was the one to develop the QSC&V (quality, service, cleanliness and value) concept to become the corporate motto. By the start of 1960, McDonalds had over 100 restaurants in Chicago alone. In 1961, Ray Kroc becomes the sole owner of McDonalds company by buying all the rights from the McDonalds brothers for just less than $3 million. The same year he opens the McDonalds Hamburger University in Elk Grove, in the Chicago outskirts. By 1963, McDonalds sold over 1 billion hamburgers, had 500 McDonalds restaurants open and have celebrated the graduation of 500 students from the McDonalds university. The same year McDonalds would create the clown Ronald McDonald. The same year the McDonalds net income reached $1,000,000. In 1964, McDonalds created the Fishmac or the so called Filet-o-fish and went public.


EPS was from 10 to 22, while the McDonalds stock price ranged from 16 to 33 dollars per share. In 1966 McDonalds became a part of the NYSE. In 1967, McDonalds would enter Canada and Puerto rico and also introduced the Big Mac. The state of Illinois boasts having over 1000 McDonalds restaurants. By 1970, McDonalds was in every US state as well as in Costa Rica and the British Virgin Islands. In 1971, McDonalds would enter Japan, Holland, Australia, German, Panama, Guam while the 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".


By 1972, McDonalds sales were over $1 billion and has a new McDonalds restaurant open each day. The same year McDonalds enters france and El Salvador. The state of Illinois boasts having 2000 McDonalds restaurants. McDonalds created the quarter pounder. The same year McDonalds would grant Richard Nixon $250,000 while hinting that it is very undesirable for the minimum wage to raise. Furthermore, McDonalds lobbied the legislation to allow McDonalds to pay less than the minimum wage to young workers. In 1973, McDonalds would open a company in the UK as well as enter Sweden with its new product Egg McMuffin.


The same year McDonalds decided to target children, not adults with its commercials. McDonalds enters Netherlands, Antilles, Guatemala. The company starts to use lie detectors when hiring its employees to know exactly what they think about unions. In 1975, McDonalds opens the first drive-thru as well as entered hong kong, Bahamas, Nicaragua. In 1976, McDonalds has already over 4000 McDonalds restaurants in Canada as well as entered Switzerland, and New Zealand. This year McDonalds creates the largest restaurant that hosts 334 seats.


Then, McDonalds would enter Ireland and Austria and would open its 5000th restaurant in Japan. In 1978, McDonalds created Sundae and entered Belgium, Brazil, and Singapore. In 1980, McDonalds opened its 6000th restaurant in Germany and entered Spain, Denmark and Malaysia. In 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". The same year McDonalds was responsible for the e.coli poisoning outbreak.


In 1983 McDonalds secretly imports beef to UK from Brazil, something that officially McDonalds said it would never do. The same year McDonalds created chicken McNuggets and entered Norway. In 1985, McDonalds sold over 50 billion Hamburgers and serves over 18 million customers a day. If one was to line up all the McDonalds hamburgers sold since the compnays creation, the line would circle the earth 104 times and would reach to the moon and back 6 times. In 1987, McDonalds has presence in 48 countries and serves 20 million people a day in over 10,000 McDonalds restraurants. In 1995, McDonalds opened in Bahrain, Bulgaria, Egypt, Kuwait, Latvia, Oman, New Caledonia, Trinidad, India, and United Arab Emirates, bringing the total to over 15,000 in 79 countries on 6 continents.


Now lets refer to the McDonalds financial ratios for the years 2003 and 2002. Ratios and Date Dec 31, 2003 Dec 31, 2002 Profit Margin=Net Income/Net sales 0,085843 0,057998 ROA= Net Income/Average Assets 0,061283 0,03931 ROE=Net Income/Average Stockholders equity 0,139025 0,092515 Inventory turnover=COGS/average inventory 63,91316 62,72701 Fixed asset turnover= Net Sales /Average fixed Assets 0,771979 0,733705 Total asset turnover= Net Sales /Average Assets 0,713889 0,677784 Current ratio=Cu ...................................................................................................................................................................................................................................................................................................................................................................

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Essay Tags: mcdonalds, current assets, asset, restaurant, shareholders equity

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