part3cd summary
TRANSCRIPT
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8/6/2019 Part3cd Summary
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Section 3:
Enviromental Responsibilityctctctctctctctctctctctc
- 1990, formally established Global Enviromental Commitment Durings 1990s, eliminated300.000.000 of product packaging by redesigning and reducing materials used. Key
environmental priorities for packaging:
y Minimizing weighty Maximizing use of recycled materialsy Preference for renewable materialsy Minimizing the amount of harmful chemicals used in productiony Reducing CO2 and other greenhouse gas emissionsy Maximizing end-of-life options such as recycling
- Open first green restaurant in Umea, Sweden in 2000. In August 2008, McDonald's USA openeda new green restaurant in Chicago, Illinois - focus on efficiency in the design and construction of
the restaurant, reduction of energy and water use in equipment and operations
Community:
1- Supporting Ronald McDonald House Charities (RMHC) an independentorganization whose mission is to create, find and support programs that directly improvethe health and well-being of children across the world
o Provides free use of facilities, equipment, materials and a portion of general andadministrative costs for the global office ofRMHC
o Raises $25 million forRMHC Canada 10 cents from the sale of every HappyMeal purchased
2- Sponsorships:o 1976: Official Sponsor of Summer Olympic Games inMontrealo 1998: Official Restaurant of the Olympic Games and provided food service for
athletes at the Olympic Winter Games in Nagano, Japan
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o 2010 and beyond: The London 2012 Olympic Games will markMcDonaldseighth Olympic Games as a Worldwide Partner and ninth as the OfficialRestaurant of the Olympic Games.
o Mc Donalds Champion Kids: 2010 Olympic Winter Games they brought kidsaround the world (US, Canada, Germay, Poland and Ukraine) to Vancouver to
experience to excitement of the Winter Gameso 2010 World Cup
3- Disaster Relief: provide food and other assistance to victims of such disasters as the 9/11tragedy in New York City, Pennsylvania and Washington, DC in 2001, the tsunami inSoutheast Asia in 2004, the destructive 2005 and 2008 hurricane seasons and, mostrecently, the devastating earthquake in Haiti in January 2010.
o McDonalds and Arcos Dorados support earthquake relief efforts inHaiti:$1,647,000 was raised
o May 12 earthquake in China: 40,000 meals to earthquake victims, workers andmembers of militay, hospital
M
c DonaldBlood donation
4- Animal Welfareo McDonalds Europes Agricultural Assurance Program, which requires suppliers to
achieve safety, quality and sustainability in their agricultural production practices.
5- Camp Mickey Ds:o Sybel Pici, owner of three McDonalds restaurants in Texas, created Camp Mickey
Dsan innovative program that helps students come to grips with the demands ofthe workplace, while making the connection between school and work. The annualtraining camp is held at local McDonalds restaurants, and now serves 38 highschools in 14 school districts.
6- Scholarships:o For the past 7 years, McDonalds franchisees in Pennsylvania, in association with
Ronald McDonald House Charities, have awarded college scholarships to 15 highschool seniors annually.
Financial analysis
2006 2007 2008 2009 2010
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Annual revenue ($million)
20,895 22,787 23,552 22,745 24,075
Net profit margin (%) 16.42 10.51 18.34 20.01 20.55
ROE (%) 22.93 15.67 32.23 32.43 33.80
Debt-to-equity 0.55 0.61 0.76 0.75 0.79
Inventory turnover 144.88 181.86 210.96 214.17 219.06
Stock price ($) 44.33 58.91 62.19 62.44 76.76
19,000
19,500
20,000
20,500
21,000
21,500
22,000
22,500
23,000
23,500
24,000
24,500
2006 2007 2008 2009 2010
20,895
22,787
23,552
22,745
24,075
Annual revenue ($ million)
Annual revenue ($ million)
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16.42
10.51
18.34
20.01 20.05
0
5
10
15
20
25
2006 2007 2008 2009 2010
Net profit margin (%)
Net profit margin (%)
22.93
15.67
32.23 32.4333.8
0
5
10
15
20
25
30
35
40
2006 2007 2008 2009 2010
ROE (%)
ROE (%)
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0.55
0.61
0.76 0.750.79
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2006 2007 2008 2009 2010
Debt-to-equity
Debt-to-equity
44.33
58.9162.19 62.44
76.76
0
10
20
30
40
50
60
70
80
90
2006 2007 2008 2009 2010
Stock Price ($)
Stock Price ($)