World's best known
Oak Brook, IL 60523
Employees: 1,800,000 worldwide
CEO: Don Thompson
Stock Symbol: MCD
McDonald's is the world's best known fast-food chain. With its familar golden arches logo, McDonald's has over 36,000 restaurants worldwide serving Big Macs, Chicken McNuggets, hamburgers, salads, coffee and french fries.
Most restaurants offer drive-thru service
and some suburban locations offer outdoor playgrounds for children.
More than 80% of McDonald's restaurants are operated by independent franchisors. The number of restaurants in the U.S. has reached saturation and most new McDonald's are now being opened in Europe, Middle East and Asia. The company says it serves over 70 million customers in 119 countries each day.
In order to be considered as a McDonald's franchisee, an individual must have at least $500,000 in personal financing. There are about 2,400 owner/operators systemwide. Many franchisees own multiple restaurants.
McDonald's has been trying to boost sales by keeping restaurants open 24 hours a day. An estimated 30% of store revenue comes from breakfast sales.
The company also offers free wi-fi access in many restaurants.
There are 2,800 employees at corporate headquarters which provide support functions for restaurants.
In 2014, the company reported revenues of $27.4 billion. Sales decreased 1%. Net income was $4.75 billion.
"2014 was a challenging year for McDonald's around the world. Our results declined as unforeseen events and weak operating performance pressured results in each of our geographic segments," said McDonald's President and Chief Executive Officer Don Thompson. "As we begin 2015, we are taking decisive action to regain momentum in sales, guest counts and market share. This involves driving foundational improvements in our major markets and continuing our recovery efforts in markets affected by unusual events. We are accelerating our efforts behind solutions that capitalize on the investments we're making in our technology and our restaurants to bring McDonald's Experience of the Future to life for our customers and deliver on our commitment to drive sustained, profitable growth for all stakeholders."
McDonald's is a major sponsor of the Olympic Games through 2020.
The company announced in February that CEO Don Thompson will step down on March 1. Senior Executive Vice President and Chief Brand Officer Steve Easterbrook has been named the new CEO.
The first McDonald's restaurant was located
in San Bernardino, CA in 1954 and operated by two brothers Dick
and Mac McDonald. Ray Kroc, a milk shake machine salesman, thought
the restaurant was great and purchased the rights from the brothers.
Kroc opened his first McDonald's restaurant in Des Plaines, IL
in 1955 and preached cleanliness in restaurants.
McDonald's would grow quickly as it signed
on franchisees to open restaurants around the country. McDonald's
would go public in 1965.
The Big Mac was introduced systemwide in
1968 and was the brainchild of Jim Delligatti, one of Ray Kroc's
earliest franchisees, who by the late 1960s operated a dozen
stores in Pittsburgh.
The Egg McMuffin was developed by owner
operator Herb Peterson in 1973.
McDonald's sold the Boston Market restaurant
chain in 2007 and owns a stake in Chipotle Mexican Grill.
McDonald's launched a new coffee kiosk in 2009 in most of its restaurants called McCafe featuring premium coffees including mochas, capuccinos and hot chocolate.
McDonald's introduced Mighty Wings in 2013 but were removed due to poor sales.
An estimated 10% of all workers have once worked at McDonald's in their lifetime.
The following benefit information is primarily
for corporate employees.
Employees receive medical, dental and vision
coverage along with life insurance.
Base pay and incentive pay is offered if
corporate, regional or division offices meet their annual goals.
Top performers can also receive additional incentive pay.
- McDonald's offers paid vacation for corporate, region and division
office employees as well as Restaurant Management employees.
The amount of vacation time employees have available depends
on how long they have worked at McDonald's. In addition, McDonald's
offers nine paid holidays (less for part-time workers) for eligible
- Eligible employees can take an eight-week sabbatical for every
10 years of full-time continuous service with the company.
- From mid-May through mid-September, McDonald's corporate, division
and region offices' work hours begin a half hour early in order
to end early (1:00) on Fridays.
Profit Sharing and Savings Plan - Profit Sharing and Savings Plan lets employees
save from 1% to 50% of their pay on a tax-deferred basis in the
401(k) feature of the plan. McDonald's matches employee contributions
with $3 for each $1 of the first 1% of pay they contribute, and
$1 for each $1 on the next 4% they contribute. For employees
who contribute at least 1% to the plan, McDonald's may make a
discretionary profit sharing match of up to 4% of pay to their
401(k) accounts. Employees are always 100% vested in their contributions
and the company matches.
- Mc$ave is a special money market fund for McDonald's employees.
Money put into Mc$ave is invested in the Prime Reserve Fund managed
by T. Rowe Price.
Updated January 29, 2015