McDonald’s is the largest food chain provider in the world. The company is very popular among all generation of peoples. McDonald’s has become the synonym of fast food but also negative side effects like obesity are. The company was raised in the year 1955 in the US. Since then, it has become the most “powerful” company in the fast food industry. The company’s rivals, Wendy’s. Burger King or KFC are not as popular as McDonald’s due to the well prepared strategy they have. The McDonald’s strategy is very précised and well prepared. Therefore, company’s finance position is going up.
Financial Part
Vertical Analysis of the Balance Sheet shows how McDonald’s is expanding at all at the market.
2007 2006
Assets
Current Assets
Cash and Equivalents 1 981,3 6,7% 2 128,0 7,3%
Accounts and notes receivables 1 053,8 3,6% 806,9 2,8%
Inventories, at cost in ex. Of mar. 125,3 0,4% 112,4 0,4%
Prepaid expenses and other curr. Assets 421,5 1,4% 318,6 1,1%
Assets of business held for sale 0,0 0,0% 1 631,5 5,6%
Discounted operations 0,0 0,0% 194,7 0,7%
Total Current Assets 3 581,9 12,2% 5 192,1 17,9%
Other Assets
Investments in advanced to affiliates 1 156,4 3,9% 1 035,4 3,6%
Goodwill, net 2 301,3 7,8% 2 073,6 7,2%
Miscellaneous 1 367,4 4,7% 1 235,2 4,3%
Total Other Assets 4 825,1 16,4% 4 344,2 15,0%
Property and Equipment
Property and equipment at cost 32 203,7 109,6% 29 722,9 102,6%
Accumulated Depreciation -11 219,0 -38,2% -10 284,8 -35,5%
Net Property and Equipment 20 984,7 71,4% 19 438,1 67,1%
Total Assets 29 391,7 1,0 28 974,4 1,0
On the asset side of the balance sheet we can see increase in investments from 3,6% in the year 2006 to 3,9 in the year 2007. Company increased their property and equipment from 67,1% in the year 2006 up to 71,4% in the year 2007. The Current Assets increased by 5,7% in 2007 due to current assets of business held for...