3. Introduction
Founded in the United States in 1940
Opened by brothers Richard and Maurice
McDonald
McDonald's is the world's largest chain of
hamburger fast food restaurants
Serving around 68 million customers daily in 119
countries
It has more than 36000 outlets
According to BBC: McDonald's is the world's
second largest private employer with 1.9 million
employees
8. McDonald’s
Initial
Success
In 1965: McDonald's Corporation went public
Common shares were offered at $22.50 per
share
By the end of the first day's trading the price
had shot up to $30
In 1969 : McDonald's sold its five billionth
hamburgers
By 1969: McDonald's restaurants had reached
all 50 states of US
9.
10. McDonald’s
Initial
Success
(Contd…)
In 1968 McDonald's opened its 1,000th restaurant
In 1972 the company passed $1 billion in annual
sales
By 1976, McDonald's had served 20 billion
hamburgers
By 1976, McDonald's sales exceeded $3 billion
11. Reasons for
Decreased
Demand of
McDonalds
inUS
Increasing Prices at McDonalds
Concern Over Cholesterols and Calories
Primary Fast Food Consumers (15-29) shrunk
from 27.5 to 22.5%
Increased competition from other fast food
restaurants
Obesity Concerns in US
12. Tackling
the
Challenges
Cutting the Prices
Introduced a value menu with small hamburgers
for 59 cents
French Fries and Soft Drink combination price was
made half off
Concern over Cholesterol and Calories
Replace Ice Cream with Low fatYogurt
Substituted vegetable oil for Beef tallow
Brain muffins and cereals were introduced in
Breakfast
Introduced McLean Deluxe, a new reduced fat
Hamburger
13. Introduction of New Items
1995: Introduced McPizza
1996: Arc Deluxe
1999: “Made for you” freshly cooked meals
All of these efforts failed to increase sales
Tackling
the
Challenges
(Contd…)
17. McDonald’s
Global
Position
Opening restaurant at a rate of 4 to 5 times fast as
in US
Earning more than 60% Profits abroad
McDonalds has Predicted that it will have 50,000
restaurants by the end of the decade
18. Reinvention
Phase
Since 2003, sales were again increased
Closed more than 700 restaurants (mostly in
the United States and Japan)
The elimination of 600 jobs
Elimination of $853 million different Charges
19. “Super Sized” fries and drinks were eliminated
New menu items were introduced: Chicken wraps,
Premium Coffee, Apple slices, Premium Salads
In 2006, became the first fast food company to put
nutritional Labels on its products
In 2007, new cooking oils were replaced
Reinvention
Phase
(Contd…)
