FINANCIAL ANALYSIS

Category 1: The Basics

What is the Corporation's name?

The Company is registered with the name of Mc. Donald's Corporation. The company first filed for United States trademark in the year 1961. Their present form of Logo appeared in the year 1968.

What are the Corporation's address and telephone number?

The Company has its global presence in over 119 countries, with registered Head Quarters at Oak Brook, Illinois, United States.

Have you requested the latest annual and quarterly reports?

Not required as the information is easily available through its website.

What information is available about the Corporation on the internet?

The Website of Mc. Donald's Corporation contains all the relevant information required to assess its strategic and financial standings. From key financial highlights to its detailed financial statement can easily be accessed and downloaded.

Where is the stock traded?

Mc. Donald's is registered in the New York Stock Exchange (NYSE)

What type of products or service does the firm offer?

Mc. Donald's is considered as the largest Hamburger fast food chain across the world, with global presence in 119 countries through its sophisticated network of franchises.



Briefly describe the prospects for this company?

The corporation is amongst the largest in the world. The story of its expansion dates back to its creation in the year 1955. Since then magnificent increase in its global presence has been witnessed, which continues till date. It has almost 33,500 restaurants across the globe with an employee base comfortably exceeding half a million. Mc. Donald's products have been appreciated across the globe, even in countries that totally ban Ham and Beef. The company has maintained its dominance in such market with the shifting of its global strategy from Ham to Beef and chicken across the Muslim territories and from Beef to chicken and vegetable in India.

Category 2: Dividend Income

Is the Corporation currently paying dividend? If so how much?

The Mc. Donald's corporation has had an excellent record of paying out dividends since its incorporation. For the year ended 2011, Mc. Donald's announced a dividend of 2.53 Dollars per share. An increase from the preceding year 2010 is witnessed, in which the dividends were announced at the rate of 2.26 Dollars per share.

What is the dividend yield for this stock?

Dividend yield is calculated by dividing the Full year dividend with the market share price. The calculation is as follows:

Dividend Yield = Dividend per share / Market price per share

Therefore,

Dividend Yield = $ 2.53 / $ 97.38

Dividend Yield = 3% (Approx)

Has the dividend payout increased or decreased over the past three years?

The dividend payouts have substantially grown over time since incorporation. The most recent three year statistics are illustrated below:

How does the yield for this investment compare with those for other potential Investment?

Other investments when compared to the stock exchange may seems face, but are generally less profitable. These may include T-Bills, profits on saving accounts, Open End Mutual funds and other government securities. At the moment a 3% dividend yield with a $ 5.27 per share EPS and further a lucrative movement in share price for ...