McDonald's International Operated division to make a the highest contribution (54.5%) of the company's 2020 revenues and also expected to be the key to McDonald's revenue growth
International Operated Market is expected to be the single-biggest revenue driver with $11.9 billion in revenues (54.5% of Total Revenues), which will likely be $3.9 billion more the second largest segment, US Markets, in 2020.US Markets are expected to remain flat at around $8 billion in revenue for 2020
Total Revenue
WHAT IS BIG?
(1) US $8 billion (36.8%)(2) International Operated Markets $11.9 billion (54.5%)
(3) International Developmental Licensed Markets $1.9 billion (8.7%)
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TOTAL Revenues in 2020 $21.9 billion
WHAT HAS CHANGED?
From 2017-2020
+ Change in US $0 billion + Change in International Operated Markets $0.8 billion + Change in International Developmental Licensed Markets -
$1.8 billion ------------------------------------------------------------------------------------------------------
TOTAL Change 2017-2020 -$1 billion
+ McDonald's Revenues in 2017 $22.8 billion
= TOTAL Revenues in 2020 $21.9 billion*
*addition might not match due to rounding off
McDonald's Business Model
What Does McDonald's offer?
The Company operates and franchises McDonald’s restaurants, which serve a locally-relevant menu of quality food and beverages in more than 100 countries. McDonald’s franchised restaurants are owned and operated under one of the following structures - conventional franchise, developmental license, or affiliate.The Company is primarily a franchisor, and on 31st December 2018 approximately 93% of McDonald's restaurants were owned and operated by independent franchisees. Franchising enables an individual to be his or her own employer and maintain control over all employment related matters, marketing, and pricing decisions, while also benefiting from the strength of McDonald’s global brand, operating system and financial resources.
Operating Segments:
U.S.: The Company's first and largest segment. It covers all the company owned and franchised restaurants across the country.
International Operated Markets: The segment includes markets like Australia, Canada, France, Germany, Italy, Netherlands, Russia, Spain, U.K. and related markets.
International Developmental Licensed Markets & Corporate: The segment includes primarily the developmental licensee and affiliate markets like China, Japan, Brazil and related markets. Corporate activities are also reported in this segment.
What Are The Alternatives?
Major competitors are companies like Burger King, KFC, Subway, and other fast food chains.
What Is The Basis of Competition?
McDonald’s restaurants compete with international, national, regional, and local retailers of food products. The Company competes on the basis of price, convenience, service, menu variety, and product quality in a highly fragmented global restaurant industry.The Company’s primary competition are quick-service eating establishments, casual dining full-service restaurants, street stalls or kiosks, cafés, 100% home delivery/takeaway providers, specialist coffee shops, self-service cafeterias, and juice/smoothie bars.
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