McDonald's
Country
United States
Sector
Retail
Offices
-
Employees
-
Brand value
$22,230m
Brand rating
AAA
Enterprise value
$102,389m
Value / market cap
21.7%
User rating
Market cap
* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.
Performance of the brand
The McDonald’s Corporation is represented in over 119 countries and on average may serve up to 64 million customers a day. Its business model is slightly different to that of other fast food restaurants as the McDonald’s Corporation earns its revenue as: an investor in properties, a franchiser of restaurants and an operator of restaurants.
In 2010, The McDonald’s Corporation started their year determined to build momentum and focused on its main goal; to strengthen the McDonald’s brand on a global scale. The results were more than satisfying with global competitive sales increasing by 5% and their operating income growing by 9%. The McDonald’s Corporation recorded a total revenue of $24,075 million in the financial year 2010 (FY2010) an increase of $1.33 million compared to the financial year (FY2009). In addition to these results, the McDonald’s Corporation returned $5.1 billion to its shareholders through share repurchases and dividends paid, and further provided a 27% return to investors for the year. Moreover, McDonald’s achieved a net income of $4,946 million in FY2010 compared to $4,551 in FY2009. The operating income increased by $632 million to $7,473 million in FY2010.
In 2011, the total brand value of McDonald’s increased by $4,019 million to $24,211 million. McDonald’s has further improved its brand rating from AAA- in 2010 to AAA in 2011 and increased in its brand ranking from 18 to 17 within The BrandFinance® Global 500 2011.
Positive Aspects
The McDonald’s Corporation has created the Ronald McDonald House Charities (RMHC) in a bid to create an organisation that will serve to help sick children and children in need
McDonald’s has accepted and cherished that the majority of its customers are families with young children. The organisation that has been built is to acknowledge all the children around the world and to demonstrate how special each and every child is to its corporation. Annually, McDonald’s brings the top high school basketball talents in the nation together to raise money for this particular charity.
With global warming becoming an ever-increasing threat to our environment and planet, the McDonald’s Corporation has taken responsibility to ensure each of its workplaces will become more ‘green’
In 2008, in their efforts to provide eco-friendly workplaces and restaurants, McDonald’s opened its first corporate- owned pilot green restaurant. Such ‘green’ attributes for instance included energy-efficiency equipment and lighting.
The option for a healthier alternative has now become a reality for the McDonald’s Corporation. In recent years, McDonald’s has actively strived to promote positive effects on the world and how we as consumers are drawn to fast-food restaurants for their convenience and simplicity
Healthy eating is a very big part of society today, and, as a result, the McDonald’s Corporation has taken responsibility in providing healthier choices on its menu. With the introduction of organic ingredients found in their coffee, milkshakes and ice-cream, as well as salads and a selection of sandwiches instead of the typical burger and chips meal, McDonald’s has recognised the need to redesign its menu to benefit the health of the people who consume it.
Negative Aspects
Obesity levels continue to rise, and the McDonald’s Corporation, the biggest fast-food giant, has been at the centre of this debate for several years
Over the years, speculation has grown as to the quality of the food being served at its restaurants around the world. McDonald’s has been criticised for not providing any nutritional value to its meals. However, McDonald’s has tried to combat such accusations by providing a nutrition guide on the front of all its packaged meals. However, critics have slated these facts and figures for being irrelevant and absurd to even think such mass-produced hamburgers and chips are a useful or nutritious part of any diet. On average, a McDonald’s meal is high in fat, sugar, animal-products and sodium, while being low in fibre, vitamins and minerals. Unsurprisingly, a poor nutritional diet, obesity and other heart diseases are often being link with what McDonald’s serves to its consumers on a daily basis.
Last changed September 30, 2011
League tables
McDonald's appears in the following brand league tables:
Rank 18 in the
Global 500 2012.
Rank 17 in the
Global 500 2011.
Rank 17 in the
Global 500 2011.
Rank 18 in the
Global 500 2010.
Rank 12 in the
Global 500 2009.
Rank 22 in the
Global 500 2008.
Rank 18 in the
Global 250 2007.
2012 brand performance*
Brand value
$22,230m
Brand rating
AAA
Enterprise value
$102,389m
Value / ent. value
21.7%
* Figures taken on 31st December 2011.
2011 brand performance*
Brand value
$21,842m
Brand rating
AAA
Enterprise value
$89,595m
Value / ent. value
24.4%
* Figures taken on 31st December 2010.
2010 brand performance*
Brand value
$20,193m
Brand rating
AAA-
Enterprise value
$77,140m
Value / ent. value
26.2%
* Figures taken on 31st December 2009.
2009 brand performance*
Brand value
$20,003m
Brand rating
AAA-
Enterprise value
-
Value / ent. value
-
* Figures taken on 31st December 2008.
Brandirectory user rating*
* Average values from a total of 2 votes.
The McDonald’s sign originated as the word “McDonald’s” with the mascot “Speedee” standing below holding a sign. The Golden Arches symbol was used in the logo in 1962, but the arches themselves had been introduced in 1953 as part of a new restaurant being built. The arches have been used in the logo ever since but it has undergone many transformations as seen above. The brand name has been used in several variations of the logo whilst other variations simply display the golden arches symbol with or without a background. The current logo in use in the US is the M trademark with the strap line ‘I’m lovin’ it’ below, but the logo varies throughout
Mission statement
The McDonald’s Corporation’s strategy “Plan to Win” centres on the five basics of exceptional customer service – People, Products, Place, Price and Promotion. It strives to evolve and elevate the McDonald’s customer experience. Their vision is to be the world’s best quick-service restaurant and thereby offer an excellent customer experience. With an average of 64 million customers served every day, the McDonald’s Corporation serves to provide quality, cleanliness and value so that every customer in every restaurant is satisfied. McDonald’s’ brand mission is to “be the customers favourite place and way to eat”.
Company history
In 1940, two brother’s Richard and Maurice McDonald opened a restaurant in San Bernarino, California. They shut down the restaurant temporarily in 1948, to reopen as a self-service drive-in restaurant. In 1955, Ray Kroc purchased a franchised McDonald’s restaurant, then went on to purchase the McDonald’s brother’s equity in the company. Following massive expansion with over 700 restaurants built across the US over the next 10 years, McDonalds celebrated its 10th anniversary with its first public stock offering at $22.50 per share. In 1967 restaurants opened in Canada and Puerto Rico. By 1983 the McDonalds chain had expanded into 32 countries with a total of 7778 restaurants at the end of the year. Today there are over 31,000 McDonald’s restaurants in 124 countries worldwide.
Brand history
Though McDonald’s was founded in 1940, it was the purchase of Ray Kroc’s first restaurant in 1955 which started to establish the McDonald’s brand. With restaurants being built rapidly from the end of the 1950’s onwards, McDonald’s first filed for a U.S. trademark on the name McDonald’s in May 1961 with the description “Drive-In Restaurant Services”. The company also filed a trademark for the logo; a double arched “M” symbol in September of that year, which was later adapted to the modern double arched “M” symbol which is in use today, trademarked in 1968.
The original McDonald’s mascot was “Speedee”, a man with a hamburger shaped head wearing a chef’s hat, which was replaced in 1967 by Ronald McDonald, the well known clown figure which is still used today.
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Geography and products
The McDonald's Corporation is headquartered in Oak Brook, Illinois, US.
The McDonald’s Corporation is represented in over 119 countries and on average may serve up to 64 million customers a day. Its business model is slightly different to that of other fast food restaurants as the McDonald’s Corporation earns its revenue as: an investor in properties, a franchiser of restaurants and an operator of restaurants.
The success for the McDonald’s Corporation remains global, with all areas of the world contributing significantly to the overall results. A record number of customers visited their restaurants and drive-throughs across the USA. Sales in Europe grew by 44%, and also guest counts increased by serving up to 200 million additional customers than in 2009.
Trademarks
McDonald’s vigorously protects its global brand name, and therefore will uphold its trading name which includes the words Mc or Mac. Several cases have evoked McDonald’s to sue many traders who have used these words in their trading names.
Strapline
McDonald's have used a large number of slogans in the past, changing them every few years or so, often using several slogan’s running concurrently. The ‘I’m lovin’ it’ slogan is still used in various advertising campaigns, which was introduced globally in 2003. The slogan echoes its goal to be the world’s favourite choice in fast-food dining. It’s a personal salute to everything McDonald’s stands for and serves to achieve, for its customers and the brand itself. It’s contemporary and catchy jingle that accompanies the slogan helps to conjure happy thoughts.
A new campaign with the phrase ‘What We’re Made Of’ was introduced in 2008 and throughout the Olympics, but the previous slogan was and is still used at the same time.
Advertising
The advert below promotes the free Coca Cola glass offered with McDonald's meals, an example of the collaboration between two global brands.
PR
McDonald's 2009 Corporate Responsibility Report
Sponsorships
McDonald’s are one of the largest corporate sponsors of the sports world, with involvement in a range of sports, their major sponsorships include the Olympics and the Fifa World Cup.
In 1968 McDonald’s first got involved with the Olympics, by airlifting hamburgers to athletes in Grenoble, France. They became an official sponsor in 1976 for the Olympic Games in Montreal. Between 1988 and 1994 McDonald’s has been a sponsor of several countries around the world of National Olympic Committees. In 1996 they joint the Top Olympic Program, becoming a Worldwide Sponsor, the first time in the history of the Olympics that a branded restaurant operated in the Olympic Village.
McDonald’s became an official sponsor of the World Cup in 1994, which took place in the United States. They have recently renewed their long-term deal with Fifa until 2014, with global rights to both the recent 2010 World Cup South Africa and the 2014 World Cup in South America. They also hold rights to the Confederations Cups tournaments during this time. Under this deal McDonald’s remain the exclusive retail foodservice operations sponsor, entitling them to special advertising rights held throughout the tournaments.
