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“McDonald’s: The World’s Favorite Place to Eat"
McDonald’s Report
A Report Of
Company
Analysis On
McDonalds
San Bernardino, California, United States
Submitted By
C.MOHAN
24X51E0016
2nd Sem, MBA
DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION
SANTHIRAM ENGINEERING COLLEGE :: NANDYAL
(AUTONOMOUS)
Approved by AICTE: New Delhi, 2(1) & 12(B) recognition by UGC Act, 1956
Accredited by NAAC (Grade-A), Accredited by NBA (ECE & CSE) ISO 9001:2015 Certified
Institution, Permanently Affiliated to JNT University, Ananthapuramu.
NH-40, Nandyal Dist.- 518501, A. P.
2024-2025 Batch
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McDonalds
TABLE OF
CONTENTS
Particulars
• Introduction
• Vision, Mission and values
• McDonald’s – “Our Business” Overview
• Organizational structure
• Board of Director
• Awards
• Products of McDonald’s
• DEPARTMENT OF McDonald’s
• SWOT Analysis
• Future Growth and Sustainability
• McDonald’s Revenue Overview (2020-2024)
• Revenue Breakdown by Region: McDonald’s
Performance Analysis
• Financial Performance During the COVID-19
Pandemic
• Sales Increase Over the Last 5 Years (2020-2024)
• Customer Experience and Engagement at
McDonald’s
• Conclusion
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Chris kempczinski will remain the chairman and CEO of the McDonald’s.
He became CEO in 2019 and chairman of the board in 2024
Introduction
McDonald’s is one of the world’s most recognized fast food chains, known for its golden arches and
iconic menu items like the Big Mac and Happy Meal. The company was originally founded in 1940
by brothers Richard and Maurice McDonald as a small drive-in restaurant in San Bernardino,
California. Their innovative "Speedee Service System" introduced a new way of preparing food
quickly and efficiently, which laid the foundation for modern fast food.
In 1954, Ray Kroc, a milkshake machine salesman, saw potential in the McDonald brothers’
operation. He joined the company and opened the first franchised McDonald’s in Des Plaines,
Illinois, in 1955. Eventually, Kroc purchased the business from the brothers and transformed
McDonald’s into a global franchise powerhouse.
As of 2025, the CEO of McDonald’s is Chris Kempczinski, who took over the role in November
2019. Under his leadership, the company has focused on modernization, digital innovation, and
sustainability efforts to adapt to changing consumer expectations.
Company type Public
Traded as • NYSE: MCD
• DJIA component
• S&P 100 component
• S&P 500 component
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ISIN US5801351017
Industry Fast food restaurants, real estate
Founded May 15, 1940; 84 years ago, in San Bernardino, California, United
States
April 15, 1955; 70 years ago
(McDonald's Corporation)
Founders Richard & Maurice McDonald
(original restaurant chain)
Ray Kroc
(McDonald's Corporation)
Headquarters Chicago, Illinois
,
United States
Number of 41,822 restaurants (2023)
locations
Area served Worldwide (119+ countries)
Key people • Chris Kempczinski
(Chairman and CEO)
Founding Years (1940s)
➢ 1940: Richard and Maurice McDonald opened the first McDonald's restaurant in San
Bernardino, California, originally called McDonald's Bar-B-Q.
➢ 1948: They revamped their business, introducing the “Speedee Service System,” a
revolutionary method focused on efficiency and consistency, which became the foundation
of modern fast food.
The Ray Kroc Era (1954–1984)
➢ 1954: Ray Kroc, a milkshake machine salesman, discovered the McDonald brothers'
restaurant and saw its potential for franchising.
➢ 1955: Kroc opened the first McDonald’s franchise in Des Plaines, Illinois, and founded
McDonald's System, Inc., later renamed McDonald’s Corporation.
➢ 1961: Kroc bought exclusive rights to the McDonald’s name and system from the brothers
for $2.7 million.
➢ 1965: McDonald’s went public with its first stock offering.
Global Expansion (1970s–1990s)
➢ 1971–1990s: McDonald’s expanded aggressively internationally, entering markets in Japan,
Australia, the UK, Germany, and China.
➢ Introduced the Golden Arches as a global brand icon and created region-specific menu items
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to cater to local tastes.
Innovation and Menu Growth
➢ Iconic menu items like the Big Mac (1968), Egg McMuffin (1972), Happy Meal (1979), and
McNuggets (1983) were introduced.
➢ Continued investing in automation, marketing (e.g., “I’m Lovin’ It” in 2003), and digital
ordering platforms.
Modern Era (2000s–Today)
➢ Focus on sustainability, healthier menu options, and technology (mobile apps, kiosks,
delivery partnerships).
➢ Introduced McCafé, remodeled restaurants with digital screens, and emphasized drive-thru
and delivery services—especially during and after the COVID-19 pandemic.
Today
➢ McDonald’s operates in over 100 countries with more than 38,000 restaurants worldwide.
➢ It is one of the most recognized brands globally and remains a dominant force in the fast-
food industry.
McDonald’s began in 1940 as a small drive-in restaurant in San Bernardino, California, operated
by Richard and Maurice McDonald. In 1948, the brothers introduced a streamlined "Speedee
Service System" that revolutionized the fast-food industry by emphasizing efficiency and
consistency. In 1954, Ray Kroc, a milkshake machine salesman, discovered their operation and
saw the potential for franchising. He opened the first McDonald's franchise in 1955 in Des Plaines,
Illinois, and eventually bought out the brothers in 1961. Under Kroc’s leadership, McDonald's
expanded rapidly across the United States and then globally, becoming a symbol of American
culture. Iconic menu items like the Big Mac, Egg McMuffin, and Happy Meal helped drive its
popularity. Today, McDonald’s is one of the world’s largest restaurant chains, known for its golden
arches, with over 38,000 locations in more than 100 countries.
Vision, Mission and values
Vision
Old Vision (Early Years – 1950s to 1990s)
Focus: Speed, consistency, and affordability.
Implied Vision:
“To provide customers with quick-service meals that are consistent in quality and affordable across
all locations.”
Current Vision (2000s–Today):
Stated Vision :
“To move with velocity to drive profitable growth and become an even better McDonald's serving
more customers delicious food each day around the world.”
Mission
“To make delicious feel-good moments easy for everyone.”
What This Means:
➢ “Delicious” – Focus on quality and taste of food.
➢ “Feel-good moments” – Creating a positive experience for customers (not just food, but
atmosphere, service, convenience).
➢ “Easy” – Emphasizing convenience through fast service, digital ordering, drive-thru, and
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delivery.
➢ “For everyone” – Aiming for affordability, accessibility, and inclusiveness across
cultures and regions.
McDonald’s operates with a clear set of values that guide its decisions, culture, and customer
interactions. These values support its mission and vision and are consistent across its global
operations.
Serve
“We put our customers and people first.” McDonald’s prioritizes customer satisfaction and employee
well-being, aiming to create a welcoming and reliable experience.
Inclusion
“We open our doors to everyone.” The company promotes diversity, equity, and inclusion, both
in hiring and in how they serve communities globally.
Integrity
“We do the right thing.” McDonald’s emphasizes honesty, transparency, and ethical behavior,
especially in business practices and supply chains.
Community
“We are good neighbors.” McDonald’s invests in local communities, supports charitable efforts
like Ronald McDonald House Charities, and promotes sustainability and responsible sourcing.
Family
“We get better together.” The company believes in building a strong internal culture that treats
employees like family and fosters collaboration.
McDonald’s – “Our Business” Overview
McDonald’s Corporation is one of the largest and most recognized fast-food companies in the
world. Its business model, brand, and global operations have made it a leader in the quick-service
restaurant (QSR) industry.
What Is McDonald’s Business?
“We’re in the business of feeding communities and creating feel-good moments – anytime,
anywhere.”
➢ Preparing and selling fast food: Burgers, fries, chicken products, beverages, breakfast
items, and more.
➢ Franchise operations: The majority of McDonald’s restaurants are operated by
independent franchisees, which is a key part of their growth strategy.
➢ Brand management: McDonald’s focuses heavily on marketing, innovation, and
maintaining a consistent customer experience worldwide.
Key Elements of McDonald’s Business Model
Aspect Description
Franchising About 90% of McDonald’s restaurants are
franchised, generating income through rent,
royalties, and fees.
Company-Owned Stores The remaining restaurants are company-
operated, giving McDonald’s direct control
over operations.
Real Estate McDonald’s often owns the land and
buildings, leasing them to franchisees—a
highly profitable strategy.
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Brand & Marketing Global advertising campaigns (e.g., “I’m
Lovin’ It”) and local adaptations build brand
loyalty.
Menu Innovation Introduces new items regularly while
localizing the menu in different countries.
Technology & Digital Focuses on mobile ordering, delivery, and
self-service kiosks to improve speed and
personalization.
Global Reach
➢ Operates in 100+ countries
➢ 38,000+ restaurants worldwide
➢ Serves millions of customers every day
Organizational structure
McDonald’s operates with a divisional organizational structure that supports its global scale and
local responsiveness. The company’s structure allows it to manage operations efficiently while
adapting to different markets around the world.
Type: Divisional Structure (Geographic and Functional Hybrid)
McDonald’s structure is mainly geographic but includes functional elements at the top level. This
means the company is organized by both regions and business functions.
Key Components of McDonald’s Organizational Structure:
1. Global Corporate Headquarters
➢ Located in Chicago, Illinois, USA.
➢ Responsible for overall strategy, brand management, global marketing, technology,
and corporate governance.
2. Geographic Divisions (Major Markets)
McDonald’s divides its global business into geographic segments:
➢ United States’
➢ International Operated Markets (IOM)
(e.g., UK, Canada, Germany, Australia)
➢ International Developmental Licensed Markets (IDL)
(e.g., Asia, Africa, Latin America – mostly franchise-based)
3. Corporate Functional Areas
These support all regions and include:
➢ Operations
➢ Finance
➢ Human Resources
➢ Marketing
➢ Supply Chain
➢ Technology (Digital & IT)
➢ Legal and Compliance
4.CEO-Led Structure
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➢ The Chief Executive Officer (CEO) is the top executive, overseeing all divisions and
reporting to the Board of Directors.
➢ As of 2025, the CEO is Chris Kempczinski (as of last confirmed info).
Board of Director
Chris Kempczinski – Chairman of the Board and Chief Executive Officer (CEO)
Chris Kempczinski became CEO in 2019 and assumed the combined role of Chairman and CEO in
May 2024, following the retirement of Enrique "Rick" Hernandez. Under his leadership, McDonald's
has continued to expand its global presence and innovate in customer experience.
Miles White – Lead Independent Director
Miles White, former CEO of Abbott Laboratories, serves as the Lead Independent Director. He plays
a crucial role in ensuring effective governance and providing independent oversight of the company's
management.
Mike Hsu – Independent Director
Mike Hsu is the Chairman and CEO of Kimberly-Clark Corporation. He was nominated to McDonald's
Board in 2024, bringing over 30 years of experience in the consumer products industry. His expertise
is valuable as McDonald's continues to enhance its brand and customer engagement strategies.
Enrique “Rick” Hernandez, Jr. – Former Non-Executive Chairman
Enrique Hernandez served on McDonald's Board for 28 years, including eight years as Chairman. He
retired in May 2024, having overseen significant growth and transformation during his tenure.
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Richard “Rick” Lenny – Former Director
Rick Lenny retired from McDonald's Board in October 2023 after 18 years of service. He contributed
to the company's strategic initiatives, including executive compensation programs and sustainability
efforts.
Awards
➢ Global Effie Awards – Iridium Effie: McDonald’s U.S. and Wieden+Kennedy NY won the
top global award for their “Famous Orders” campaign, recognized as the most effective
marketing campaign worldwide in 2023
➢ APAC Effie Awards 2024 – Bronze: The “No Smiles” campaign by McDonald’s Japan and
TBWA\HAKUHODO earned a Bronze in the Influencer category for its innovative approach to
Gen Z recruitment.
➢ Newsworks Awards 2024 – Grand Prix: OMD UK secured the Grand Prix for a campaign
that celebrated 90s pop culture, emphasizing McDonald’s commitment to quality beef
➢ Hong Kong Effie Awards 2024 – Grand Effie: DDB Group Hong Kong and McDonald’s won
the Grand Effie for campaigns like “McDiploma,” “Coffee Retirement,” and “McNuggets Art
World,” showcasing creativity and effectiveness.
➢ Marketing Excellence Awards 2024 – Singapore: McDonald’s Singapore was named
“Marketer of the Year,” earning 10 gold, 6 silver, and 2 bronze awards for campaigns such as
“Grimace Digital Collectibles” and “The Call of Crispy.”
Products of McDonald’s
Burgers & Sandwiches:
McAloo Tikki, McVeggie, McSpicy Paneer, McSpicy Chicken, McChicken, Fillet-O-Fish, Butter
Paneer Grilled Burger, Butter Chicken Grilled Burger, Veg Maharaja Mac, Chicken Maharaja Mac,
Spicy Paneer Wrap, Spicy Chicken Wrap, Pizza McPuff
Chicken & Nuggets
Chicken McNuggets, McWings, Chicken Strips
Fries & Sides
World Famous Fries, Masala Wedges, Mexican Cheesy Fries
Breakfast Menu
McEgg, McEgg Muffin, McGrilled Chicken Muffin, McVeg Muffin, Hash Browns
Desserts & Snacks
McFlurry (Choco Crunch), Soft Serve Cone, Sundae (Chocolate), McSwirl Chocolate, Apple Pie
As of 2025, McDonald's continues to see strong sales across its diverse menu, with certain items
standing out as top performers. Here's an overview of the most popular products contributing to the
brand's success this year:
French Fries
McDonald's French Fries remain the chain's most iconic and best-selling item. The company serves
an estimated 9 million pounds of fries daily worldwide, amounting to over 3.29 billion pounds annually
. Their crispy texture and consistent quality have solidified their status as a fast-food staple.
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Big Mac
The Big Mac continues to be a flagship product for McDonald's. Its distinctive structure and special
sauce have kept it a favorite among customers, contributing significantly to the company's sales
McCrispy & Chicken Offerings
McDonald's has successfully expanded its chicken menu, with the McCrispy sandwich becoming a
major revenue driver. The McCrispy has evolved into a $1 billion brand, leading to the introduction
of variations like the Spicy McCrispy Deluxe and the Chicken Big Mac
McPlant Burger
Catering to the growing demand for plant-based options, the McPlant Burger, featuring a Beyond
Meat patty, has gained popularity among vegetarians and flexitarians .
Seasonal & Limited-Time Beverages
McDonald's seasonal offerings, such as the Shamrock Shake, continue to draw customers during
specific times of the year. Introduced in 1967, this mint-flavored shake has become a tradition for
many
DEPARTMENT OF McDonald’s
Sales Department at McDonald’s
The Sales Department at McDonald’s plays a vital role in driving revenue, supporting franchise
growth, and aligning sales strategies with marketing and operations. It helps franchisees meet
financial goals through tools, training, and strategic guidance. The team manages pricing,
promotions, and sales forecasting while also enhancing digital sales via mobile apps, delivery
platforms, and loyalty programs. By analyzing market trends and customer behavior, the department
ensures strong performance across regions and maintains McDonald’s competitive edge in the fast-
food industry.
Marketing Department at McDonald’s
The Marketing Department at McDonald’s plays a key role in strengthening the brand, engaging
customers, and driving sales. It develops advertising campaigns, promotes menu items, and aligns
with business goals like boosting foot traffic and app usage. The team manages TV, digital, social
media, and in-store marketing while using market research to tailor campaigns for different regions.
Notable efforts include the “I’m Lovin’ It” slogan, celebrity meals, and CSR initiatives focused on
sustainability and diversity. Overall, marketing keeps McDonald’s relevant, competitive, and
connected to its global audience.
Finance Department at McDonald’s
The Finance Department at McDonald’s manages the company’s financial health through budgeting,
forecasting, reporting, and cost control. It analyzes revenue from both company-owned and
franchised restaurants, oversees compliance and risk management, and supports strategic
decisions like store expansion and tech investments. By aligning with other departments, it ensures
financial goals support broader business objectives, helping maintain profitability and investor
confidence.
Service Department at McDonald’s
The Service Department at McDonald’s ensures consistent, high-quality customer experiences
across all locations. It sets service standards, trains staff, and monitors performance in areas like
speed, accuracy, cleanliness, and friendliness. The team manages customer feedback, resolves
complaints, and supports new technologies like kiosks and mobile ordering. By working with
operations and training teams, it helps maintain McDonald’s reputation for fast, friendly, and reliable
service.
SWOT Analysis
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Strengths
McDonald’s leads the global fast-food industry with strong brand recognition, a franchise-based
model, and consistent service worldwide. Its strengths include rapid expansion, standardized
operations, and ongoing menu innovation. Investments in digital tools like mobile apps, kiosks, and
loyalty programs have boosted customer engagement and convenience.
Weaknesses
Despite its success, McDonald’s faces challenges like inconsistent service due to franchise reliance,
criticism over unhealthy food, and complex menus that can slow operations. High employee turnover
also impacts service quality and raises training costs.
Opportunities
McDonald’s has growth opportunities in expanding its McPlant line for healthier options, leveraging
digital tools like mobile ordering and loyalty programs, and expanding into emerging markets in Asia,
Africa, and Latin America. Sustainable practices and eco-friendly packaging can also enhance the
brand’s image and attract environmentally conscious consumers.
Threats
McDonald’s faces threats from intense competition, changing consumer preferences for healthier or
plant-based diets, and economic downturns that reduce dining out. Supply chain disruptions and
regulatory challenges, including labor laws and food safety standards, also pose risks to its
performance..
Future Growth and Sustainability
McDonald’s has key opportunities for growth through menu innovation, technology, and
sustainability. Expanding its McPlant line and offering healthier options will cater to growing
demand for plant-based diets. Digital initiatives like mobile ordering, loyalty programs, and
delivery partnerships are reshaping customer engagement and driving sales.
Emerging markets in Asia, Africa, and Latin America present further expansion potential, driven
by urbanization and rising incomes. Additionally, McDonald's commitment to sustainability through
eco-friendly packaging and responsible sourcing will strengthen its brand image and appeal to
environmentally conscious consumers.
In summary, McDonald's future growth relies on innovation, digital transformation, and sustainability
to stay competitive and meet changing customer demands
McDonald’s Revenue Overview (2020-2024)
Year Revenue (in billions USD) Year-over-Year Growth
2024 $25.92 +1.67%
2023 $25.49 +9.97%
2022 $23.18 -0.17%
2021 $23.22 +20.90%
2020 $19.21 -10.09%
2024: Revenue increased by 1.67% to $25.92 billion, reflecting steady growth.
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2023: A significant 9.97% rise in revenue to $25.49 billion, driven by strong global performance.
2022: A slight decline of 0.17% to $23.18 billion, attributed to global economic challenges.
2021: A robust recovery with a 20.90% growth to $23.22 billion, as markets rebounded post-
pandemic.
2020: A 10.09% decrease to $19.21 billion, impacted by the COVID-19 pandemic and related
restrictions.
Revenue Breakdown by Region: McDonald’s
Performance Analysis
2023 Revenue (in 2022 Revenue (in Year-over-
Region
millions USD) millions USD) Year Growth
U.S. $2,633.0 $2,506.6 +5.0%
International Operated Markets $3,110.1 $2,776.1 +12.0%
International Developmental
$599.6 $570.7 +5.0%
Licensed Markets & Corporate
Total $6,342.7 $5,853.4 +8.0%
The U.S. market contributed approximately 41% of McDonald's total revenue in 2023
International Operated Markets, which include regions like Europe and Asia, showed strong
growth, reflecting McDonald's strategic expansion in these areas.
The International Developmental Licensed Markets & Corporate segment, encompassing
regions such as the Middle East and Latin America, also experienced steady growth
Financial Performance During the COVID-19 Pandemic
The COVID-19 pandemic significantly impacted McDonald's operations worldwide, leading to
fluctuations in revenue and operational adjustments.
The COVID-19 pandemic, which emerged in late 2019 and rapidly spread across the globe in 2020,
triggered an unprecedented global health and economic crisis. As governments imposed lockdowns
and restrictions to contain the virus, businesses faced significant disruptions in operations, supply
chains, and consumer demand. These challenges led to widespread financial instability, with sharp
contractions in GDP, stock market volatility, and shifts in corporate earnings across virtually every
sector.
This report examines the financial performance of various industries during the pandemic,
highlighting both the adverse effects and unexpected areas of growth. It also explores how
companies adapted to the crisis, the role of government stimulus, and the long-term implications for
financial resilience and strategic planning in a post-pandemic economy.
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In 2020, McDonald's experienced a decline in revenue due to global lockdowns and reduced
consumer spending. However, the company showed resilience, with a significant recovery in 2021,
achieving a 20.90% increase in revenue. This growth continued into 2023, with a 9.97% rise,
reflecting successful adaptation strategies.
Quarterly Revenue Trends (2020–2024)
The quarterly chart illustrates the sharp decline in Q2 2020, followed by a steady recovery in
subsequent quarters. The upward trend post-2020 indicates McDonald's effective strategies in
navigating the pandemic's challenges.
Sales Increase Over the Last 5 Years (2020-2024)
The period from 2020 to 2024 marked a dynamic phase for businesses worldwide, shaped by the
immediate impact of the COVID-19 pandemic and the subsequent global economic recovery. During
this time, many companies experienced significant shifts in consumer behavior, supply chain
structures, and digital transformation, all of which influenced sales performance.
While 2020 posed substantial challenges due to lockdowns and economic uncertainty, the years that
followed saw gradual recovery, innovation-driven growth, and increased consumer confidence. This
report analyzes the trend of sales increases over the last five years, examining key drivers of growth,
sector-specific performance, and the strategies that enabled businesses to adapt and thrive in a
rapidly evolving market environment.
As businesses navigated these changes, many adopted new technologies and redefined their
customer
‘
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2020-2021: Revenue increased by +20.90%, which was a strong recovery following the pandemic's
impact in 2020.
2021-2022: A slight decline of -0.17% was observed in 2022, as McDonald’s faced economic
challenges.
2022-2023: The company showed a +9.97% growth, signaling a strong rebound as the world
adapted to post-pandemic conditions.
2023-2024: A modest +1.67% growth was recorded, indicating stable performance in a more
mature market.
Customer Experience and Engagement at McDonald’s
Aspect McDonald’s Approach Impact on Engagement
McDonald’s emphasizes fast service through Reduces wait times,
Speed of Service drive-thrus, express lanes, and efficient improving customer
kitchen operations. satisfaction.
Digital displays, kitchen screens, and staff Builds trust and ensures a
Order Accuracy
training reduce mistakes. reliable experience.
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Aspect McDonald’s Approach Impact on Engagement
McDonald’s mobile app, self-order kiosks, Enhances convenience and
Digital Ordering
and integration with delivery apps (Uber attracts tech-savvy
Platforms
Eats, DoorDash). customers.
MyMcDonald’s A loyalty program offering points and Encourages repeat visits and
Rewards personalized deals via the app. customer retention.
Regular sanitation protocols and remodeled
Restaurant Positively impacts brand
interiors maintain a clean and modern
Cleanliness perception and comfort.
environment.
Customer Surveys on receipts, in-app feedback, and Provides insights for
Feedback Tools social media monitoring. improving service quality.
Increases purchase
Targeted App-based deals and limited-time offers
frequency through
Promotions tailored to user preferences.
personalized offers.
Improves emotional
Friendly Staff Emphasis on hospitality and customer
connection and guest
Training service in staff training programs.
satisfaction.
Conclusion
In conclusion, McDonald’s remains a dominant force in the global fast-food industry, supported by
its strong brand image, efficient franchise model, and continuous innovation in products and
technology. These strengths have helped it maintain customer loyalty and adapt to changing market
conditions. However, the company must address its internal weaknesses such as service
inconsistencies, health-related criticism, and high employee turnover. At the same time, McDonald’s
has significant opportunities to grow through plant-based offerings, digital platforms, and emerging
markets. To remain competitive and sustainable in the long term, it must also navigate external
threats including increasing competition, evolving consumer preferences, and global economic
challenges. Overall, McDonald’s is well-positioned for future growth if it continues to adapt
strategically while upholding its core values and operational excellence
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Thank you
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