The Demand for Big Macs

Presenters:FawadShayanJaffar

FAWAD

Introduction

Founded in the United States in 1940

Opened by brothers Richard and Maurice McDonald

McDonald's is the world's largest chain of hamburger fast food restaurants

Serving around 68 million customers daily in 119 countries

It has more than 36000 outlets

According to BBC: McDonald's is the world's second largest private employer with 1.9 million employees

Hamburgers

Cheese Burgers

French Fries

Breakfast Items

Soft Drinks

Milkshakes

Desserts

Products

Desserts Soft Drinks Milkshakes Breakfast

HamburgerCheese Burger

French Fries

Wendy’s

Burger King

KFC

Taco Bell

Subway

McDonald’s Competitors

Burger King Wendy’s

KFCTaco BellSubway

McDonald’s Initial Success

In 1965: McDonald's Corporation went public

Common shares were offered at $22.50 per share

By the end of the first day's trading the price had shot up to $30

In 1969 : McDonald's sold its five billionth hamburgers

By 1969: McDonald's restaurants had reached all 50 states of US

SHAYAN

McDonald’s Initial Success (Contd…)

In 1968 McDonald's opened its 1,000th restaurant

In 1972 the company passed $1 billion in annual sales

By 1976, McDonald's had served 20 billion hamburgers

By 1976, McDonald's sales exceeded $3 billion

Reasons for Decreased Demand of McDonalds in US

Increasing Prices at McDonalds

Concern Over Cholesterols and Calories

Primary Fast Food Consumers (15-29) shrunk from 27.5 to 22.5%

Increased competition from other fast food restaurants

Obesity Concerns in US

Tackling the Challenges

Cutting the Prices Introduced a value menu with small hamburgers for 59 cents

French Fries and Soft Drink combination price was made half off

Concern over Cholesterol and Calories Replace Ice Cream with Low fat Yogurt

Substituted vegetable oil for Beef tallow

Brain muffins and cereals were introduced in

Breakfast

Introduced McLean Deluxe, a new reduced fat Hamburger

Introduction of New Items

1995: Introduced McPizza

1996: Arc Deluxe

1999: “Made for you” freshly cooked meals

All of these efforts failed to increase sales

Tackling the Challenges (Contd…)

Arch Deluxe McPizza

“Made for You”

JAFFAR

McDonald’s Globalization

McDonald’s rapidly expanded abroad when it was losing at Home

Less Competition

Much room for Growth

McDonald’s Global Position

Opening restaurant at a rate of 4 to 5 times fast as in US

Earning more than 60% Profits abroad

McDonalds has Predicted that it will have 50,000 restaurants by the end of the decade

Reinvention Phase

Since 2003, sales were again increased

Closed more than 700 restaurants (mostly in the United States and Japan)

The elimination of 600 jobs

Elimination of $853 million different Charges

“Super Sized” fries and drinks were eliminated

New menu items were introduced: Chicken wraps, Premium Coffee, Apple slices, Premium Salads

In 2006, became the first fast food company to put nutritional Labels on its products

In 2007, new cooking oils were replaced

Reinvention Phase (Contd…)

Premium Coffee Chicken Wraps

Apple Slices Premium Salads

Thank You!!!!!