San Jose, CA - With almost 24,000 restaurants in 113 countries around the world, McDonald's serves more than 38 million customers every day. However, even though we are the global leader in the foodservice industry, our market potential is enormous. On any given day, we serve less than 1% of the world's population.
McDonald's vision is to be the world's best quick service restaurant experience. We have competitive strengths that make us the best in most of the markets where we do business. To be the best everywhere, we must build on these strengths: outstanding recognition of our brand (named one of the most valuable in the world), experienced management, high quality food, site development expertise, advanced operations systems, unique global infrastructure and outstanding franchising organization. These position us to capitalize on global opportunities.
McDonald's international business contributes over 60% of total operating income and continues to grow. We operate our global, multinational business in a local, decentralized way. The combination of local management, global infrastructure, financial strength and more than thirty years of international operating experience enables us to develop new markets and grow in existing ones.
Our U.S. business has undergone some exciting changes. We have reorganized our business structure, placing accountability and responsibility for decision- making closer to the field operations. We have a new advertising campaign, "Did Somebody Say McDonald's?", which emphasizes the emotional bond customers have with McDonald's. We are installing a new cooking system that will enable us to make food to the customer's order, at the speed of McDonald's. And we are reviewing our menu with three priorities: changing current products to meet consumer needs, adding products in existing categories, and finally, experimenting to create new products, much as we did with the Big Mac and Chicken McNuggets.
Our strategies to achieve our vision are convenience, superior value and excellent operations. Our efforts to increase market share, profitability and customer satisfaction have been successful, producing high returns to shareholders. Our compound annual total return has been 18% over the past 10 years. And, in 1965, when McDonald's went public, one hundred of our shares cost $2,250. On September 30, 1998, those shares had grown to 37,180 worth more than $2.2 million.
Meat Industry Insights News Service
P.O. Box 553
Northport, NY 11768
Phone: 631-757-4010
Fax: 631-757-4060
E-mail: sflanagan@sprintmail.com
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