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Mc Ds

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Submitted By Zam93
Words 381
Pages 2
Zaheer Notes
Share Analysis * Right then, on the screen is a graph showing the share prices at different points during the last 5 years. * As you can see, share prices peaked during 2011 and 2012. * Now we can translate this graph into some ratios to look what it actually shows * So, the earnings per share figure has continued to grow since 2011 * However we need to look at the price to earnings ratio to fully understand what’s going on. * In 2011 there was a big increase in the price to earnings ratio * Share prices were high, and the demand had increased * But why? Investors were expecting a big growth in earnings in the future

Geographical Segments/SBU’s * McDonalds segmentation focuses closely on its franchises and its McCafe brand. * Now, well all know about that cliché where Americans are known for their love for massive burgers right? So let’s look at what the actual numbers say about this... * The US has the largest fast food market in the world, estimated of produced $191billion * So how are McDonalds performing in the states compared to the rest of the world * First of all, as mentioned earlier more than 80% of McDonalds restaurants are franchises * So, because of the limited time we have today, I will be focuses on the revenues of franchised restaurants rather than the company owned ones. * If we take a look at the bar chart on the screen, almost half of the sales are coming from America, followed by Europe, Asia Pacific & Middle East and Africa, and then the other countries. * America has the largest fast food market in world and McDonalds dominates this market in terms of market share, so it is expected for them to produce most of their revenue here. * Europe fall behind America, however McDonalds are looking to target the European market to increase its revenue there. *

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