McDonald's Corporation

McDonald’s is one of the largest series of fast food restaurants in the world. McDonald’s is either operated by one of the many franchises, affiliates or by the corporation. Most of the revenues come from the millions of fees and royalties by the individual franchises. Since its early beginnings in the 1940s, the two brothers Richard and Maurice McDonald (with the assistance of Ray Croc) revolutionized fast food restaurants being one of the first to introduce to the"Speedee Service System" of what would be recognized today for fast food stores. The first store that was ever opened was in Illinois, which is now the headquarters today and just kept on growing. Than in 1967, the first publicized mascot for McDonald’s became the famous clown known today as Ronald McDonald. As of today, it has operations of over 31,000 stores worldwide and over 119 countries. Its main services include sales of hamburgers, fries, cheeseburgers, breakfast items, shakes and desserts of variety of choices. As of today, the McDonald’s franchise has undergone many drastic changes. For example, adding other brands such as Piles Café and McCafe to its list of growing restaurants. It also includes Lots of indoor and outdoor playgrounds that were added to some of the restaurants in order to provide a friendlier environment. Some now are even connected to gas stations, convenience stores and inside of Wal-Mart’s.

The founders of the world wide known restaurant “McDonalds” were two brothers, Richard and Maurice McDonald. The local restaurant was founded in Bernarido, California in 1940. The first person to open a franchise was Ray Kroc in 1955. McDonalds is over seen and ran by a great management team, with the CEO being Jim Skinner and the President as Don Thompson. The products that McDonalds sell consume of Burgers, Chicken, Fish, Pork, Beverages, Desserts, Franchises, Property, and Stock.

As the largest company in the restaurant and food services industry, McDonald’s Corporation has chosen to find its primary competitive advantage in the marketing and operational areas. As McDonald’s continues to grow and improve as a company, it is committed to its key success factors of cost efficiency, product development, marketing, and promotions. By focusing on these factors McDonald’s has derived its key accounting policies. The following is a list of significant accounting policies identified by the managers of McDonald’s. Consolidation Estimates in Financial Statements, Revenue Recognition, Advertising Costs, Stock-Based Compensation, Property and Equipment Goodwill, Long-Lived Assets, Franchise Revenues, and Employee Benefit Plan.

McDonalds Corporation's total current assets total to 4,176,500. The corporation’s assets include Cash and Cash Equivalents which are valued at 2,495,000; Net Receivables which are valued at 1,013,600; Inventory which is valued at 103,600; Other Current Assets which are valued at 564,300; and Short term Investments which the values were not provided. McDonalds Corporation's long term assets include: Long term Investments valued at 1,295,900; Property Plant and Equipment 21,1477,500; Goodwill valued at 2,521,500; Intangible Assets the values were not provided; and Accumulated Amortization values not provided, together the corporations long term assets and current assets are valued at 31,168,500.

McDonald's latest liabilities are as follows. Their current liabilities as of Sept, 2010 stand at $3,266,300. However their long term debt is at $11,357,100. Their deferred long term liability charges are $1,336,900. Other liabilities add up to $1,570,400. McDonald's liabilities as of Sept 2010 total up to $17,530,700.

After doing some research with my fellow group members, we came to the conclusion that McDonalds does not have owner’s equity. McDonalds is a corporation owned by shareholders across the world, there for they have stockholders equity. While researching I came across their most recent balance sheet, dated September 30, 2010. On the balance sheet, they were so kindly able to break down the stockholders equity into Misc stocks options warrants ($0), Redeemable Preferred Stock ($0), Preferred Stock ($0), Common Stock ($16,000), Retained Earnings ($32,568,900), Treasury Stock ($24,759,800), Capital Surplus ($5,108,300), and Other Stockholder Equity ($703,800) totaling in $13,637,800.