Excerpts From McDonald's Corporation's
CASE 1: MCDONALD'S CORPORATIONExcerpts from McDonald's Corporation's 2009 financial statements are attached. Also,excerpts from Wendy’s International, YUM and Burger King financial statements areattached for peer comparison. [Burker King completed its IPO in May 2006]. Otherpossible comparable companies [comps] for McDonald's are Applebee's International[casual dining], Brinker International [casual dining including Chili's and Macaroni Grill],Outback Steakhouse, Papa John's International, Darden Restaurants [Red Lobster], RubyTuesday, CKE Restaurants [Hardee's], Cheesecake Factory, CBRL [Cracker Barrel andJack in the Box] and Starbucks.McDonald's has a Debt Rating of A [S&P] and A3 [Moody's] and a CP rating of A-1/P-2.McDonald’sMcDonald's develops, operates, franchises and services a worldwide system ofrestaurants which prepare, assemble, package and sell a limited menu of value-pricedfoods. These restaurants are operated by the Company or by franchisees who areindependent third parties.The Company's franchising program is designed to assure consistency and quality. TheCompany is selective in granting franchises and is not in the practice of franchising toinvestor groups or passive investors. Franchisees supply capital--initially, by purchasingequipment, signs, seating and decor, and over the long term, by reinvesting in thebusiness. The Company shares the investment by owning or leasing the land andbuilding. Franchisees contribute to the Company's revenues through payment of rentand service fees or royalties based upon a percent of sales, with specified minimumpayments. This percentage is generally 8 - 10% of sales. The conventional franchisearrangement typically lasts 20 years and franchising practices are generally consistentthroughout the world.Training begins at the restaurant with one-on-one instruction and videotapes. Aspiringrestaurant managers progress through a development program of classes inmanagement and operations, as well as learning computer skills. Managers are eligibleto attend the advanced operations and management class at one of the six HamburgerUniversity (H.U.) campuses in the U.S., Germany, England, Japan, Brazil or Australia. Thecurriculum at H.U. concentrates on skills and practices essential to driving the Company'sstrategies of delivering customer satisfaction and increasing market share.The Company's global brand is well-known. Marketing and promotional activities aredesigned to nurture this brand image and differentiate the Company from competitorsby focusing on value, taste and customer satisfaction.Barry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected1
ProductsMcDonald's restaurants offer a substantially uniform menu consisting of hamburgers andcheeseburgers, including the Big Mac and Quarter Pounder with Cheese, the Filet-O-Fish,several chicken sandwiches, french fries, Chicken McNuggets, salads, milk shakes, McFlurries,sundaes and cones, pies, cookies and soft drinks and other beverages. The Company testsnew products on an ongoing basis.The Company, its franchisees and affiliates purchase food products and packaging fromnumerous independent suppliers. Quality specifications for food products are established andstrictly enforced. Alternative sources of these items are generally available. Quality assurancelabs work to ensure that the Company's high standards are consistently met. The qualityassurance process involves ongoing testing and on-site inspections of suppliers' facilities.Independently owned and operated distribution centers distribute products and supplies tomost McDonald's restaurants. The restaurants then prepare, assemble and package theseproducts using specially designed production techniques and equipment to obtain uniformstandards of quality.CompetitionMcDonald's restaurants compete with international, national, regional, and local retailers offood products. The Company competes on the basis of price, convenience and service andby offering quality food products. The Company's competition in the broadest perspectiveincludes restaurants, quick-service eating establishments, pizza parlors, coffee shops, streetvendors, convenience food stores, delicatessens, and supermarkets. In the U.S., there areapproximately 600,000 restaurants that generated about 400 billion in annual sales in 2009.McDonald’s restaurant business accounts for 2.4% of those restaurants and 7.3% of the sales.The average American consumes about 150 restaurant meals per year.PROPERTIESThe Company identifies and develops sites that offer convenience to customers and providefor long-term sales and profit potential. To assess potential, the Company analyzes traffic andwalking patterns, census data, school enrollments and other relevant data. The Company'sexperience and access to advanced technology aids in evaluating this information. Thecompany continues to be one of the world's leading purchaser of commercial satellitephotography. McDonald's generally owns or secures long-term land and building leases forrestaurant sites, which ensures long-term tenure and helps control related costs. Restaurantprofitability for both the Company and franchisees is important; therefore, ongoing efforts aremade to control average development costs through construction and design efficiencies,standardization and by leveraging the Company's global sourcing system. The firm is theworld's largest owner of retail property, owning more than 30,000 outlets worldwide.Data for McDonald's:Systemwide restaurants by typeOperated by franchiseesOperated by the CompanyNumber of countries at year end26,2096,257114Total systemwide sales [including company operated restaurants] totaled 70 billion in 2009.Barry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected2
SuppliersThe Company and its affiliates and subsidiaries do not supply, food, paper, or relateditems to any McDonald's restaurants. The Company relies upon independent suppliersthat are required to meet and maintain the Company's standards and specifications.U.S. ProductionMcDonald’s PurchasesMcDonald’s ShareBeef27 billion pounds1 billion pound4%Food ProductPotatoesApples49 billion pounds 11 billion pounds1 billion pounds50 million pounds2%.5%Financial Services Provided to McDonald'sMcDonald's uses a full range of banking products, including:1.2.3.4.5.6.7.8.9.10.11.Term Loan for equipment finance and Real Estate LoansCash Management, including Disbursements and CollectionsCorporate FinanceImport FinancingLeasing FinancingTrade ServicesForeign ExchangeInterest Rate and Equity DerivativesFranchisee FinancingSupplier FinancingAdvisory ServicesBarry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected3
DISCUSSION QUESTIONS [review solution notes at the end of the McDonald’s case1]:A. Describe the business[es] of McDonald’s.A2. Who are McDonald’s peers?A3. Are McDonald’s peers in similar businesses?A4. List the key differences between McDonald’s and its peersB. What do you believe is the nature of each of the following accounts and does thebalance of each at yearend 2009 seem reasonable for McDonald's business2? [Note;calculate the days outstanding of each of the four; and make a comment about thereasonableness of the amounts from your calculations, and compare the amounts topeers. Note: YUM does not list accounts payable and accruals separately butaggregates the amounts].1.2.3.4.Accounts receivable. [calculated as receivables/revenue * 360]Inventories. [calculated as inventory/cost of sales * 360]Accounts payable. [calculated as paybles/cost of sales * 360]Other accrued liabilities. [calculated as accruals/operating expenses *360]C. What do you believe is the nature of McDonald’s property and does the balance atyearend 2009 seem reasonable for McDonald's business?See solution notes on pages 23 - 25For this question, consider what you believe to be the size of the average balance of each account indays, the impact of each account on the firm's liquidity and what opportunity exists to increase ordecrease each account.12Barry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected4
D. Check the computation of each of the following amounts:Trading AssetsSpontaneousFinancingOperatingWorking CapitalWorking CapitalCurrent Ratio[accounts receivable inventories prepaids][accounts payable allaccrued liabilities,excluding notespayable and cmltdand dividendspayables]Working CapitalRequirement[trading assetsless spontaneous financing][current assets less currentliabilities][current ange166.1 [dr]2,970.62506.1464.5 [cr]-1,350.3-1,051.9298.4 [cr]427.6979.7-552.11.141.39E.Does McDonald's have a large amount of trading assets?F.How is the Company's investment in trading assets financed?G. From the Company's perspective, is its way of financing trading assets favorable?H. Do you consider McDonald's spontaneous financing to be permanent?I.During 2009 & 2008, McDonald's operating working capital was negative, while theworking capital was positive amounts. Discuss the implications to an analyst.Barry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected5
J.Many analysts believe that the current ratio should be at least 2 to 1. McDonald's isless that this. Comment.K. The Company's inventory decreased slightly during 2009. Is this decrease during 2009consistent with your expectations based on a review of the income statement [hint:look at cost of good sold in 2008 and 2009]? [see solution notes on page 10]L. Comment on the 2009 cash provided by operations compared to the:2009 net income2009 Funds Flow from Operations [net income before depreciation & amortization,sometimes also called traditional cash flow or potential cash flow or expected cashflow or long run cash flow]M. Compare the 2009 Funds Flow with the 2009 EBITDA. Reconcile the two amounts.end of discussion questions [review the solution notes at the end of the case]Barry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected6
McDonald’s Consolidated statement of incomeYears ended December 31,IN MILLIONSREVENUESSalesbyC ompany- iliatedrestaurantsTotalrevenuesOPERATINGC OSTSANDEXPENSESCompany- l&a stsandexpensesOperatingincomeInterestexpense- ‐netofcapitalizedinterestof 11.7, 12.3and isionf orincometaxesa hangeIncomefromdiscontinuedoperations(netoftaxesof 34.5)NetincomeBarry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright ,301.72,234.2(61.1 )(222.3)473.2(24.3 )(94.9522.6(77.6 4.81,237.14,551.04,313.22,335.060.1 4,551.04,313.272,395.1
McDonald’s Consolidated balance sheetIN MILLIONS20092008ASSETSCurrent assetsCash and equivalentsAccounts and notes receivableInventories, at cost, not in excess of marketPrepaid expenses and other current assetsTotal current ,152.4(10,897.9)20,254.5 Other assetsInvestments in and advances to affiliatesGoodwill, netMiscellaneousTotal other assetsProperty and equipmentProperty and equipment, at costAccumulated depreciation and amortizationNet property and equipmentTotal assetsLIABILITIES AND SHAREHOLDERS’ EQUITYCurrent liabilitiesNotes payableAccounts payableIncome taxesOther taxesAccrued interestAccrued payroll and other liabilitiesCurrent maturities of long-term debt 30,224.9 Total current liabilitiesLong-term debtOther long-term liabilitiesDeferred income taxesShareholders’ equityTotal liabilities and shareholders’ equityBarry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected 28,461.50 636.0 0,186.01,410.1944.913,382.630,224.9 28,461.58
McDonald’s Consolidated statement of cash flowsIn millionsOperating activitiesNet incomeAdjustments to reconcile to cash provided by operationsCharges and credits:Depreciation and amortizationDeferred income taxesIncome taxes audit benefitImpairment and other charges (credits), netGain on sale of investmentGains on dispositions of discontinued operationsShare-based compensationOtherChanges in working capital items:Accounts receivableInventories, prepaid expenses and other current assetsAccounts payableIncome taxesOther accrued liabilitiesCash provided by operationsInvesting activitiesProperty and equipment expendituresPurchases of restaurant businessesSales of restaurant businesses and propertyLatam transaction, netProceeds on sale of investmentProceeds from disposals of discontinued operations, netOtherCash used for investing activitiesFinancing activitiesNet short-term borrowingsLong-term financing issuancesLong-term financing repaymentsTreasury stock purchasesCommon stock dividendsProceeds from stock option exercisesExcess tax benefit on share-based compensationOtherCash used for financing activitiesEffect of exchange rates on cash andequivalentsCash and equivalents increase (decrease)Cash and equivalents at beginning of yearCash and equivalents at end of yearSupplemental cash flow disclosuresInterest paidIncome taxes paidFYE Dec 31,200920082007 4,551.0 4,313.2 2,395.11,216.2203.01,207.8101.51,214.1(39.1 )(316.4 )1,670.3(61.1 )(94.9 )6.0(160.1 )112.9(347.1 )112.590.5(42.0 )1.0(2.2 )212.12.15,751.016.1(11.0 )(40.1 )195.785.15,917.2(100.2 )(29.6 )(36.7 )71.858.54,876.3(1,952.1 )(145.7 )406.0(2,135.7 )(147.0 )478.8(1,946.6 )(228.8 )364.7647.5144.9(68.6 )142.4(85.3 )229.4(108.4 )(1,655.3 )(50.2 )(1,624.7 )194.1(181.0 )(1,150.1 )(285.4 )1,169.3(664.6 )(2,797.4 )(2,235.5 )332.173.6(13.1 )(4,421.0 )266.73,477.5(2,698.5 )(3,919.3 )(1,823.4 )548.2124.1(89.8 )(4,114.5 )101.32,116.8(1,645.5 )(3,943.0 )(1,765.6 )1,137.6203.8(201.7 )(3,996.3 )57.9(267.4 )2,063.4 1,796.0(95.9 )82.11,981.3 2,063.4123.3(146.8 )2,128.1 1,981.3 468.71,683.5507.81,294.7See Notes to consolidated financial statements.Barry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected9392.71,436.2
Solutions McDonald’s [Questions K & L & M]Year 2009RevenueCost of Good Sold15,458.50-5,178.00PayrollOccupancyFranchise RevenueFranchise OccupancySGAChargesOtherOperating ProfitNonoperating IncomeEBITInterestEBTTaxNet 8.00106.215,458.50Net 4,551.00EBITDA8,289.30Fund flowCash Flow fromOperations5,880.10Barry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protectedFunds Flow112.95,880.10Funds FlowNet 5,751.0010
WENDY'S INTERNATIONAL, INC.Wendy’s International, Inc. was incorporated in 1969. The Company is primarilyengaged in the business of operating, developing and franchising a system of distinctivequick-service and fast-casual restaurants serving high quality food. At January 3, 2010,there were 6,650 restaurants in operation; 1,529 were operated by the Company and5,121 by the Company’s franchisees. In 2008, the company mergered Arby’s followingthe 2006 spin off its interest in Hortons and Baja Fresh restaurants.Each Wendy’s restaurant offers a relatively standard menu featuring hamburgers andfilet of chicken breast sandwiches, which are prepared to order with the customer’schoice of condiments. The Company does not sell food or supplies to its franchisees.However, the Company has arranged for volume purchases of its products.Barry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected11
Wendy’s/Arby’s Group, Inc. and Subsidiaries Consolidated Balance Sheet (In Thousands)Jan 3,2010ASSETSCurrent assets:Cash and cash equivalentsRestricted cash equivalentsAccounts and notes receivableInventoriesPrepaid expenses and other current assetsDeferred income tax benefitAdvertising funds restricted assetsTotal current assetsRestricted cash equivalentsNotes receivableInvestmentsPropertiesGoodwillOther intangible assetsDeferred costs and other assetsTotal assetsLIABILITIES AND STOCKHOLDERS’ EQUITYCurrent liabilities:Current portion of long-term debtAccounts payableAccrued expenses and other current liabilitiesAdvertising fundsTotal current liabilitiesLong-term debtDeferred incomeDeferred income taxesOther liabilitiesCommitments and contingenciesStockholders’ equity:Total stockholders’ equityTotal liabilities and stockholders’ equityBarry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected Dec 0,7174,975,416 5,538174,413 2,336,3394,975,416 16,859475,243186,4332,383,4454,645,62012
WENDY’S/ARBY’S GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(In Thousands Except Per Share Amounts)January 3,2010Revenues:SalesFranchise revenues Costs and expenses:Cost of salesGeneral and administrativeDepreciation and amortizationGoodwill impairmentImpairment of other long-lived assetsFacilities relocation and corporate restructuringGain on sale of consolidated businessOther operating expense, netInterest expenseInvestment (expense) income, netOther than temporary losses on investmentsOther income (expense), net(Loss) income from continuing operations before income taxesBenefit from income taxesIncome (loss) from continuing operationsIncome from discontinued operations, net of income taxesBarry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected perating profit (loss)Net income (loss)3,198,348382,4873,580,835Year EndedDecember28,2008 1,662,291160,4701,822,761December30,2007 4585,417(40,193 )2631,243,817111,976(413,650 )19,900(126,708 )(3,008 )(3,916 )1,523(20,133 )23,6493,5161,546(67,009 )9,438(112,741 )2,710(581,252 )99,294(481,958 )2,217(61,331 )62,110(9,909 )(4,038 )6,7328,35415,0869955,062 (479,741 )13 16,081
WENDY’S/ARBY’S GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASHFLOWS(In Thousands)January 3,Dec 28,Dec 30,201020082007Cash flows from continuing operating activities:Net income (loss) 5,062 (479,741 ) 16,081Adjustments to net income (loss)Depreciation and amortization190,25188,31566,277Impairment of other long-lived assets82,13219,2037,045Write-off and amortization of deferred financing costs15,8208,8852,038Share-based compensation provision15,2949,1299,990Distributions received from joint venture14,5832,864Non-cash rent expense12,6183,1031,528Accretion of long-term debt10,4002,452179Provision for doubtful accounts8,169670631Operating investment adjustments, net (see below)2,484105,357(33,525 )Deferred income tax benefit, net(40,127 )(105,276 )(10,777 )Equity in earnings in joint venture(8,499 )(1,974 )Income from discontinued operations(1,546 )(2,217 )(995 )Net receipt (recognition) of vendor incentive(791 )(6,459 )(990 )Goodwill impairment460,075Gain on sale of consolidated business(40,193 )Other, net(4,317 )(3,886 )47Changes in operating assets and liabilities:Accounts and notes receivable(6,074 )(4,187 )15,022Inventories1,879(140 )(987 )Prepaid expenses and other current assets3,9878,808(3,123 )Accounts payable, accrued expenses, and other current liabilities(2,527 )(31,376 )(7,444 )Net cash provided by continuing operating activities298,79873,60520,804Cash flows from continuing investing activities:Capital expenditures(101,914 )(106,989 )(72,990 )Investment activities, net38,14151,06651,531Proceeds from dispositions10,8821,3222,734Cost of acquisitions, less cash acquired(2,357 )(9,622 )(4,094 )Increase in cash from merger with Wendy’s199,785Cost of merger with Wendy’s(608 )(18,403 )(17,121 )Other, net237(228 )16Net cash (used in) provided by continuing investing activities(55,619 )116,931(39,924 )Cash flows from continuing financing activities:Proceeds from long-term debt607,50737,75323,060Repayments of notes payable and long-term debt(210,371 )(177,883 )(24,505 )Repurchases of common stock(72,927 )Deferred financing costs(38,399 )Dividends paid(27,976 )(30,538 )(32,117 )Distributions to non-controlling interests(156 )(1,144 )(13,494 )Other, net1,715(1,113 )(3,147 )Net cash provided by (used in) continuing financing activities259,393(172,925 )(50,203 )Net cash provided by (used in) before effect of exchange rate changes oncash502,57217,611(69,323 )Effect of exchange rate changes on cash2,725(4,123 )Net cash provided by (used in) continuing operations505,29713,488(69,323 )Net cash used in operating activities of discontinued operations(3,668 )(1,514 )(713 )Net increase (decrease) in cash and cash equivalents501,62911,974(70,036 )Barry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected14
Burger King is the world’s second largest fast food hamburger restaurant, or FFHR, chain asmeasured by the number of restaurants and system-wide sales. Burger King Corporation wasfounded in 1954 in Miami, Florida, by James McLamore and David Edgerton.In its Florida beginnings 50 years ago, a BURGER KING hamburger cost 18 and anOriginal WHOPPER Sandwich cost 37 . By 1967, when the Company was acquired by theMinneapolis-based Pillsbury, 8,000 employees were working in 274 different restaurantlocations. In 1988, Grand Metropolitan, plc acquired Pillsbury. In 1997, Grand Metropolitanmerged with Guinness to create Diageo, plc. In December 2002, Diageo sold Burger KingCorporation to an equity sponsor group comprised of Texas Pacific Group, Bain Capital, andGoldman Sachs Capital Partners. This marked the first time in more than 35 years thatBurger King Corporation was a privately-held company.BK has 1,187 company-owned restaurants and 9,917 were owned by franchisees. Of theserestaurants, 65% were located in the United States and 35% were located in internationalmarkets. Restaurants feature flame-broiled hamburgers, chicken and other specialtysandwiches, french fries, soft drinks and other reasonably-priced food items. During ourmore than 50 years of operating history, we have developed a scalable and cost-efficientquick service hamburger restaurant model that offers customers fast food at modestprices.We believe that the Burger King and Whopper brands are two of the world’s most widelyrecognized consumer brands.We generate revenues from three sources: sales at our company restaurants; royalties andfranchise fees paid to us by our franchisees; and property income from certain franchiserestaurants that lease or sublease property from us. Approximately 90% of our restaurantsare franchised and we have a higher percentage of franchise restaurants to companyrestaurants than our major competitors in the fast food hamburger category.Barry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected15
BURGER KING HOLDINGS, INC. AND SUBSIDIARIESConsolidated Balance Sheets(In millions, except share data)As of June 30,20102009ASSETSCurrent assets:Cash and cash equivalentsTrade and notes receivable, netInventoryPrepaids and other current assets, netDeferred income taxes, net Total current assetsProperty and equipment, netIntangible assets, netGoodwillNet investment in property leased to franchiseesOther assets, netTotal assets187.6142.913.375.115.1 332.5370.61,013.21,062.726.4135.398.9 2,747.2 2,707.1LIABILITIES AND STOCKHOLDERS’ EQUITYCurrent liabilities:Accounts payable Accrued advertisingOther accrued liabilitiesCurrent portion of long term debt and capital leases106.971.9200.993.3 127.067.8220.067.5Total current liabilitiesTerm debt, net of current portionCapital leases, net of current portionOther liabilities, netDeferred income taxes, ,618.81,732.31,128.4974.8Total liabilitiesCommitments and ContingenciesStockholders’ equity:Total stockholders’ equityTotal liabilities and stockholders’ equityBarry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected 2,747.216 2,707.1
BURGER KING HOLDINGS, INC. AND SUBSIDIARIESConsolidated Statements of Income(In millions, exceptper share data)2010Revenues:Company restaurant revenuesFranchise revenuesTotal revenuesCompany restaurant expenses:Food, paper and product costsPayroll and employee benefitsOccupancy and other operating costs Total operating costs and expensesIncome from operationsInterest expenseInterest incomeTotal interest expense, netIncome before income taxesIncome tax expenseBarry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected1,839.3662.92,502.2 585.0568.7461.1Total Company restaurant expensesSelling, general and administrative expensesProperty expensesOther operating (income) expenses, netNet incomeYears Ended June 30,2009 1,880.5656.92,537.42008 ,614.8495.859.4(0.7 )1,643.7494.358.11.91,538.0501.062.1(0.6 )2,169.32,198.02,100.5332.9339.4354.249.6(1.0 )57.3(2.7 )67.1(5.9 )48.654.661.2284.397.5284.884.7293.0103.4186.8 200.117 189.6
BURGER KING HOLDINGS, INC. AND SUBSIDIARIESConsolidated Statements of Cash Flows2010Cash flows from operating activities:Net incomeAdjustments to reconcile net income to net cash provided by operatingactivities:Depreciation and amortizationImpairment of long-lived assetsImpairment on non-restaurant propertiesGain on hedging activitiesLoss (gain) on remeasurement of foreign denominated transactionsGain on refranchisings and dispositions of assetsBad debt expense (recoveries), netStock-based compensationDeferred income taxesChanges in current assets and liabilities, excluding acquisitions anddispositions:Trade and notes receivablePrepaids and other current assetsAccounts and drafts payableAccrued advertisingOther accrued liabilitiesOther long-term assets and liabilities, net Years Ended June 30,2009(In millions)186.8 200.12008 189.6111.7—2.9(1.6 )40.9(9.5 )0.817.016.998.10.5—(1.3 )50.1(11.0 )0.716.212.195.6——(2.0 )(55.6 )(16.8 )(2.7 )11.420.3(15.9 )(1.4 )(20.8 )6.4(22.3 )(1.5 )2.1(35.4 )3.3(7.7 )(20.8 )3.8(8.6 )14.920.811.1(6.2 )(28.4 )310.4310.8243.4(150.3 )21.5(14.0 )7.9(204.0 )26.4(67.9 )3.5(178.2 )27.0(54.2 )6.1(134.9 )(242.0 )(199.3 )(67.7 )38.5(38.5 )4.2(34.2 )3.5(2.7 )(7.4 )94.3(144.3 )3.0(34.1 )3.3(20.3 )(55.5 )50.0—3.8(34.2 )9.3(35.4 )Net cash used for financing activities(96.9 )(105.5 )(62.0 )Effect of exchange rates on cash and cash equivalentsIncrease (decrease) in cash and cash equivalents(12.7 )65.9(7.6 )(44.3 )14.4(3.5 )Net cash provided by operating activitiesCash flows from investing activities:Payments for property and equipmentProceeds from refranchisings, disposition of asset and restaurant closuresPayments for acquired franchisee operations, net of cash acquiredOther investing activitiesNet cash used for investing activitiesCash flows from financing activities:Repayments of term debt and capital leasesBorrowings under revolving credit facility and otherRepayments of revolving credit facilityProceeds from stock option exercisesDividends paid on common stockExcess tax benefits from stock-based compensationRepurchases of common stockBarry M Frohlinger, Inc. 1981 – 2012 All content herein is copyright protected18
YUMIn 1997, PepsiCo announced its decision to spin-off its restaurant businesses to shareholders asan independent public company. In 2002, YUM completed the acquisition of Long John Silver’s(“LJS”) and A&W All-American Food Restaurants (“A&W”).YUM is the world’s largest quick service restaurant (“QSR”) company based on number ofsystem units, with over 37,000 units in more than 100 countries. There are 7,416 companyoperated units and 29,311 franchised units worldwide.Through the five concepts of KFC, Pizza Hut, Taco Bell, LJS, and A&W, the Company develops,operates, franchises and licenses a worldwide system of restaurants which prepare, package andsell a menu of competitively priced food items. In all five of its Concepts, the Company eitheroperates units or they are operated by independent franchisees or licensees under the terms offranchise or license agreements.KFC was founded in Kentucky, by Colonel Harland D. Sanders, an early developer of thequick service food business and a pioneer of the restaurant franchise concept. The Colonelperfected his secret blend of 11 herbs and spices for Kentucky Fried Chicken in 1939 andsigned up his first franchisee in 1952. KFC has more than 12,000 units throughout the world.Pizza Hut operates throughout the world. The first Pizza Hut restaurant was opened in 1958.Today, Pizza Hut is the largest restaurant chain in the world specializing in the sale of readyto-eat pizza products, with more than 15,000 units.Taco Bell specializes in Mexican style food products, including various types of tacos andburritos, salads, nachos and other related items. The first Taco Bell restaurant wa
Tuesday, CKE Restaurants [Hardee's], Cheesecake Factory, CBRL [Cracker Barrel and Jack in the Box] and Starbucks. McDonald's has a Debt Rating of A [S&P] and A3 [Moody's] and a CP rating of A-1/P-2. McDonald’s McDonald's develops
Introduction- Welcome to McDonald’s! Congratulations! You are now a McDonald’s employee. This might be your first job, a temporary job, or you might have transitioned to another McDonald’s restaurant. In any case, we welcome you to the McDonald’s family. This manual is a tool for you to use throug
Jim Johannesen Chief Operating Officer, McDonald’s U.S.A. 2901123 Sales 6.5% . Goal 50,000 Actual 62,000 211_01986 . Doug Goare President McDonald’s Europe. McDonald’s Europe 7,069 Restaurants 40 Markets 14 Million Customers per Day . Of Total 20% Restaurants 40% Revenues 38% Operating Income 282713 McDonald’s Europe. Jerome Tafani CFO
McDonald’s Plan to Win is a strategic blueprint that helps all parties in the System focus on the core drivers of McDonald’s business. McDonald’s objective of Plan to Win is to keep the McDonald’s brand relevant and meet the evolving needs of
McDonald’s Case History, 2006–2015 . Win,” clearly a play on the McDonald’s Plan to Win strategic document.11 . management on the part of McDonald’s was an “off‐base” argument. These analysts pointed to McDonald’s remarkable results that were envied by many. Stakeholders were already reaping financial rewards. On the other .
somewhere between the McDonald's in Tiananmen Square in Beijing, the McDonald's in Tahrir Square in Cairo and the McDonald's off Zion Square in Jerusalem. And it was this: No two countries that both had McDonald's had fought a war against r each other since each got its McDonald's. I'm not kidding. It was uncanny. Look at the Middle East .
McDonald's Turkey McDonald's was founded in 1940 California, US. McDonald's is one of the world's largest global foodservice company with over 39,000 locations in more than 110 countries. Approximately more than ninety percent of McDonald's restaurants worldwide are owned and operated by independent local owners and franchisees.
Senior Director Supply Chain, McDonald's Europe "McDonald's led the way in implementing a fish sustainability strategy and continues to help drive industry progress." -Jim Cannon, Sustainable Fisheries Partnership MCDONALD'S SOURCES 99% OF FISH WORLDWIDE FROM MSC-CERTIFIED FISHERIES Over the past 10 years, McDonald's commitment to
Mary plans to take Colin to see the secret garden. Mary’s visits make Colin feel a lot better. Martha’s brother, Dickon, visits Colin one day with Mary and brings lots of tame animals with him. Colin is delighted. Mary and Dickon take Colin secretly into the garden. Colin realises it is his mother’s garden, and says he will come every day. Colin spends a lot of time in the garden with .
