This is a company that operates in the food industry. It has businesses on fast foods and burgers. The company runs a number of restaurants in different countries around the world. McDonald has spread so fast due to the chain of co-ordinated efforts of its managers and directors who are based in the countries and regions the company operates. The company invests relatively enough in advertisement and this in a way fosters its rapid growth. The ever available market for food stuff brought the idea of participating in the food industry. It fetches high profits for since the cash inflows do not so much depend on seasons.
The company has grown from a state company to a global multinational company. An employ of thousands of workers around the world. It has many branches of the mother company that operates under a CEO at the mother company. McDonald Company has a history on the shareholding market. It participates in stocks as the following:
D40 East 5
2nd Street New York, NY 10022,
One Lincoln Street
Boston, MA 02111
The Vanguard Group, Inc. (3) 57,759,626 5.8%
100 Vanguard Blvd.
Malvern, PA 19355
The above companies and corporations hold shares as indicated with the McDonald Company. The company has issued the stated shares but maintains its control over the management. The control of the company is stable despite the fact that other companies hold shares with it. The share capital is important in the expansion process of McDonald Company. The internal control has its part that it plays in the company compared to the financial performance. Other than the cost of capital associated with it, the management and advisory services that are rendered.
The expansion of the company to as many countries as possible is another indicator that the company is performing well. The company that started in one country now has branches all over the world starting the west, Middle East Africa and Asia. The company reaps from economies of scale.
Company ratios
McDonald performance in reference to the liquidity ratios, leverage ratios, efficiency ratios, profitability ratios and the company market value has so far been doing very good. The ratios indicate that the company can be able to meet its cash obligations both in the short run and in the long run. The company is relatively liquid since its current ratio and quick ratios show a positive trend meaning the company is performing well. Thus, the investment decisions of the company are in the right direction to move it to the next level.
The management team.
The company has the culture of holding an individual as a director for long time and this fosters continuity in decisions that are made and proper implementations of the strategic plans of the company. For example the CEO and President of the company Don Thompson has worked for Mcdonald for more than 23 years. Jose Armario the Executive vice president has been working for McDonald since 1996. This indicates that the stability of the company is due to stability in governance. The practice is the one that has seen the growth of the company McDonald. The company has employed a group competent and well educated young man to lead the activities in the different branches in the world. This has also played a big part in the development of the company.
The internal control that seems to be much less as that of the financial control indicates that there is no much effect in the performance of the company. The company thus, should double its investment in the industry for more profits and expansion. Then shareholding should be widened but the control of the company should be maintained to the original company management.
