McDonald's

McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger fast food restaurants, serving more than 58 million customers daily.[4] In addition to its signature restaurant chain, McDonald¶s Corporation held a minority interest in Pret A Manger until 2008, was a major investor in the Chipotle Mexican Grill until 2006,[5] and owned the restaurant chain Boston Market until 2007.[6] A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.[7] McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include alternatives considered healthier such as salads, wraps and fruit.

History

McDonald's Logo used from 1968 to 2003. It still exists at most of the restaurants.

"Speedee"

1962. in Des Plaines. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant. The modern double arched "M" symbol that continues to be in use today at McDonald's restaurants did not appear until November 18. Japan. 1961."Ronald" Main article: History of McDonald's The business began in 1940." Speedee was eventually replaced with Ronald McDonald by 1967 when the company first filed a U. Corporate overview .S. Germany. compelling the McDonald brothers to leave the fast food industry. El Salvador and Sweden. and the company became listed on the public stock markets in 1965. the company filed a logo trademark on an overlapping. France. The first McDonald's restaurants opened in the United States. McDonald's first filed for a U. double arched "M" symbol. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion. on September 13.[8] the ninth McDonald's restaurant overall. on April 15. Illinois. Costa Rica. when a trademark was filed for a single arch. In the same year. trademark on the now famous symbol that continues to be in use through the end of the year 2009. when the company filed a U. in order of openings. as documented in both Kroc's autobiography and in the McDonald brothers' autobiography." which continues to be renewed through the end of December 2009.[10] With the expansion of McDonald's into many international markets. The site of the McDonald brothers' original restaurant is now a monument. Its prominence has also made it a frequent topic of public debates about obesity.S. Canada. The overlapping double arched "M" symbol logo was temporarily disfavored by September 6. corporate ethics and consumer responsibility. Panama. shaped over many of the early McDonald's restaurants in the early years. trademark on a clown shaped man having a puffed out costume legs. The McDonald brothers and Kroc feuded over control of the business. Australia. California.[9] Kroc was also noted for aggressive business practices.S. 1955. with a restaurant opened by brothers Richard and Maurice McDonald in San Bernardino. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc. 1968. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee. with the description "Drive-In Restaurant Services. trademark on the name McDonald's on May 4. the company has become a symbol of globalization and the spread of the American way of life. the Netherlands. 1961.

located mostly in downtown districts. there is also a McDonald's with a 24carat (100%) gold chandelier and similar light fixtures. locations in high-density city neighborhoods often omit drive-through service. though the latter two steps are frequently combined. with indoor and sometimes outdoor seating. such as the "Solid Gold McDonald's. paying for. Drive-Thru. . Focusing on its core brand. McDonald's operates over 31.5 million people. such as Piles Café. and picking up orders. following the lead of other fast-food chains. Specially themed restaurants also exist. that offer Walk-Thru service in place of Drive-Thru.[14] Types of restaurants Most standalone McDonald's restaurants offer both counter service and drive-through service.[12][13] Until December 2003. British Columbia. In some countries. it also owned Donatos Pizza. McDonald's restaurants are found in 119 countries[11] and territories around the world and serve nearly 47 million customers each day.Facts and figures McDonald's boasts its service to "99 billion customers".[15] In Victoria. "McDrive" locations near highways offer no counter service or seating.[11] The company also operates other restaurant brands. often has separate stations for placing. The company owned a majority stake in Chipotle Mexican Grill until October 2006. employing more than 1. or "McDrive" as it is known in many countries.000 restaurants worldwide." a 1950s rock-androll themed restaurant. McDonald's sold Boston Market to Sun Capital Partners. Auto-Mac. On August 27. it was first introduced in Arizona in 1975. In contrast. McDonald's began divesting itself of other chains it had acquired during the 1990s. 2007. Pay and Drive. There are also a few locations. when McDonald's fully divested from Chipotle through a stock exchange.

Some PlayPlace playgrounds have been renovated into "R Gym" areas. the yellow was turned golden for a more "sunny" look. most McDonald's in Australia have McCafés located within the existing McDonald's restaurant. the first major redesign since the 1970s.[16] while others called McExpress have limited seating and/or menu or may be located in a shopping mall. McDonald's introduced its "Forever Young" brand by redesigning all of their restaurants. McDonald's introduced McCafé. In Tasmania. California designed for family-friendly image Some McDonald's in suburban areas and certain cities feature large indoor or outdoor playgrounds. McStop is a location targeted at truckers and travelers which may have services found at truck stops. there are McCafés in every store. McCafé is a concept created by McDonald's Australia. Contemporary art or framed photographs hang on the walls.[17] Playgrounds McDonald's in Panorama City. As of the end of 2003 there were over 600 McCafés worldwide. a café-style accompaniment to McDonald's restaurants in the style of Starbucks. To warm up their look. but the red is muted to terra cotta. Business model . with modern hanging lights to produce a softer glow. Other McDonald's are located in Wal-Mart stores. with many more being constructed soon after. Some locations are connected to gas stations/convenience stores.To accommodate the current trend for high quality coffee and the popularity of coffee shops in general. starting with Melbourne in 1993. with the rest of the states quickly following suit.[18][19] The design includes the traditional McDonald's yellow and red colors. After upgrading to the new McCafe look and feel. the restaurants have less plastic and more brick and wood. Today. some Australian stores have noticed up to a 60% increase in sales. The first PlayPlace with the familiar crawl-tube design with ball pits and slides was introduced in 1987 in the USA. Redesign In 2006. and olive and sage green were also added.

and an operator of restaurants. The selection of meats McDonald's uses varies with the culture of the host country. and. when two of the activists refused to back down. McDonald's trains its franchisees and others at Hamburger University in Oak Brook. . The corporation wrote to the group demanding they desist and apologize. pork.[21][22] Controversies As a prominent example of the rapid globalization of the American fast food industry.S. As a condition of many franchise agreements. sued them for libel in one of the longest cases in British civil law. In other countries. its expansion. criticizing its environmental. which may also be calculated on the basis of sales. local entities or governments. the Corporation may own or lease the properties on which McDonald's franchises are located. and its business practices. country. if not all cases. which are calculated as a percentage of sales. and location. McDonald's restaurants are operated by joint ventures of McDonald's Corporation and other. A documentary film of the McLibel Trial has been shown in several countries. The UK business model is different.S. which vary by contract. as well as the single largest purchaser of beef. nearly one in eight workers in the U. Illinois. and labor record. activists from a small group known as London Greenpeace (no connection to the international group Greenpeace) distributed leaflets entitled What's wrong with McDonald's?. is an example of this criticism. with the majority under the ownership of the company. In addition to ordinary franchise fees and marketing fees. also known as McDonald's Restaurants v Morris & Steel. the franchisee does not own the location of its restaurants.McDonald's Corporation earns revenue as an investor in properties. health. age. Approximately 15% of McDonald's restaurants are owned and operated by McDonald's Corporation directly. and apples.[20] making it one of the S&P 500 Dividend Aristocrats. Shareholder dividends McDonald's has increased shareholder dividends for 25 consecutive years. in that fewer than 30% of restaurants are franchised. (According to a news piece on Fox News this figure is one in ten.. The remainder are operated by others through a variety of franchise agreements and joint ventures. The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. a franchiser of restaurants. According to Fast Food Nation by Eric Schlosser (2001). As a matter of policy. McDonald's does not make direct sales of food or materials to franchisees. In 1990. potatoes. McDonald's may also collect rent.) The book also states that McDonald's is the largest private operator of playgrounds in the U. instead organizing the supply of food and materials to restaurants through approved third party logistics operators. McDonald's is often the target of criticism for its menu. In most. have at some time been employed by McDonald's. The McLibel Trial.

first attested in the mid-1980s[30] and later popularized by Canadian novelist Douglas Coupland in his book Generation X. has become a buzz word for low-paid. denounced the definition as a "slap in the face" to all restaurant employees.[26] In 2001. The book also brought into question McDonald's advertisement techniques in which it targets children. when they contained beef broth. UK chief executive Steve Easterbrook said: "British consumers are increasingly interested in the quality. The soya that is fed to McDonald¶s chickens is supplied by agricultural giant Cargill and comes directly from Brazil. Eric Schlosser's book Fast Food Nation included criticism of the business practices of McDonald's. While the book did mention other fast-food chains.[28] Arguments in defense In response to public pressure.'" Merriam-Webster responded that "we stand by the accuracy and appropriateness of our definition. In a bid to tap into growing consumer interest in the provenance of food. Among the critiques were allegations that McDonald's (along with other companies within the fast food industry) uses its political influence to increase its profits at the expense of people's health and the social conditions of its workers. sourcing and . unskilled work with few prospects or benefits and little security. McDonald's announced that it was eliminating the super size option.) McDonald's disputes the idea. former CEO of McDonald's. Six weeks after the film premiered. the fast-food chain recently switched its supplier of both coffee beans and milk. as a client of Cargill's. successfully sued McDonald's for misrepresenting their French fries as vegetarian. largely Hindu and Buddhist.[27] Morgan Spurlock's 2004 documentary film Super Size Me said that McDonald's food was contributing to the epidemic of obesity in society. McDonald's has sought to include more healthy choices in its menu and has introduced a new slogan to its recruitment posters: "Not bad for a McJob". the company launched an advertising campaign with the slogan "Would you like a career with that?" on Irish television. but soya farmers are guilty of further crimes including slavery and the invasion of indigenous peoples¶ lands. vegetarian groups. The allegation is that McDonald's. In 2002. In 2007. outlining that their jobs have many prospects.Despite the objections of McDonald's the term "McJob" was added to Merriam-Webster's Collegiate Dictionary in 2003.[23] Defined as "a low-paying job that requires little skill and provides little opportunity for advancement"."[25] In 1999.[24] In an open letter to Merriam-Webster. it focused primarily on McDonald's. and that the company was failing to provide nutritional information about its food for its customers. French anti-globalisation activist José Bové vandalized a half-built McDonald's to protest against the introduction of fast food in the region. Jim Cantalupo. and was creating the adult happy meal. and stated that "a more appropriate definition of a 'McJob' might be 'teaches responsibility.[29] (The word McJob. Greenpeace alleges that not only is soya destroying the Amazon rain forest in Brazil. is complicit in these activities.

[38] . The extra energy it takes to recycle this plastic results in a higher output of greenhouse gases. a Guardian study shows otherwise.[32][33] Environmental record Discarded fast food packaging contributes to the urban litter problem in cities worldwide In April 2008. in Europe.[36] The U. the plastics can contaminate waste streams. McDonald's has been using a corn-based bioplastic to produce containers for some of their products. 2008 that. McDonald's plans to expand this project. causing other recycled plastics to become unsaleable. Also. a conservation group. by conserving natural resources through recycling and reusing materials. In this trial.S.ethics of the food and drink they buy".[35] Furthermore.S. McDonald's coffee is now brewed from beans taken from stocks that have been certified by the Rainforest Alliance. milk supplies used for its hot drinks and milkshakes have been switched to organic sources which could account for 5% of the UK's organic milk output. in the U. pies and cookies.[34] In addition.[37] McDonald's reports that they are committed towards environmental leadership by effectively managing electric energy. and by addressing water management issues within the restaurant. McDonald's has been recycling vegetable grease by converting it to fuel for their diesel trucks.[31] McDonald's announced on May 22. will prevent this plan from becoming a national standard anytime soon. it will be introducing cooking oil for its french fries that contains no trans fats. Environmental Protection Agency has recognized McDonald's continuous effort to reduce solid waste by designing more efficient packaging and by promoting the use of recycledcontent materials. Although industries who use this product claim a carbon savings of 30% to 80%. and Canada. although the lack of biomass power plants in the U. Similarly. The results show that this type of plastic does not break down in landfills as efficiently as other conventional plastics.S. The company will use canola-based oil with corn and soy oils by year's end for its baked items. McDonald's announced that 11 of its Sheffield restaurants have been using a biomass trial that had cut its waste and carbon footprint by half in the area. waste from the restaurants were collected by Veolia Environmental Services and used to produce energy at a power plant.

McDonald's lost in an appeal to Malaysia's highest court. labor and health records. specifically a restaurant it opened in Sweden in 2000 that was the first to intentionally incorporate green ideas. McDonald's won a technical victory for showing that some allegations were untrue. and a drink²required 46 grams of packaging. McDonald's sued a Scottish café owner called McDonald.400 by British magistrates for illegally employing and over-working child labor in one of its London restaurants. After the longest trial in UK legal history. Western Australia. McDonald's has defended itself in several cases involving workers' rights. The McLibel Case was also a massive public relations disaster for McDonald's.[45] . This is thought to be one of the largest fines imposed on a company for breaking laws relating to child working conditions (R v 2002 EWCA Crim 1094). in the McLibel case. McDonald's sued two activists for distributing pamphlets attacking its environmental.[39] When McDonald¶s received criticism for its environmental policies in the 1970s. most of which involved trademark disputes. 2009. McDonald¶s eliminated the need for intermediate containers for cola by having a delivery system that pumps syrup directly from the delivery truck into storage containers. November 21.[41] In addition. saving two million pounds of packaging annually. 1952). it requires only 25 grams. today. In one noteworthy case. The company has threatened many food businesses with legal action unless they drop the Mc or Mac from their trading name. as well as the increased usage of bulk packaging ultimately decreased packaging by 24 million pounds annually. allowing a 46% reduction. weight reductions in packaging and products. the Federal Court.In an effort to reduce energy usage by 25% in its restaurants. Building on past efforts. even though the business in question dated back over a century (Sheriff Court Glasgow and Strathkelvin. fries. as the judge also found that while more than half of what was on the pamphlet was truthful. For example.[42] Overall. much of the information simply the opinions of the activists and therefore nonprosecutable. In April 2007 in Perth. McDonald's opened a prototype restaurant in Chicago in 2009 with the intention of using the model in its other restaurants throughout the world. an ³average meal´ in the 1970s²a Big Mac. In 2001 the company was fined £12.[40] For instance.000. McDonald's designed the Chicago site to save energy by incorporating old and new ideas such as managing storm water.[43] Legal cases Main article: McDonald's legal cases McDonald's has been involved in a number of lawsuits and other legal cases. McDonald's pleaded guilty to five charges relating to the employment of children under 15 in one of its outlets and was fined AU$8. it began to make substantial progress towards source reductions efforts. McDonald's Malaysian operations lost a lawsuit to prevent another restaurant calling itself McCurry. On September 8. using skylights for more natural lighting and installing some partitions and tabletops made from recycled goods.[44] It has also filed numerous defamation suits.

wraps and other localized fare. Main article: McDonald's products See also: McDonald's products (international) McDonald's predominantly sells hamburgers. Headquarters . breakfast items. it also plays a tune that appears to be an altered version of Devo's song "Doctor Detroit. which was featured on the band's album cover. In addition to the figurine's image. and desserts. Portugal is the only country with McDonald's restaurants serving soup. various types of chicken sandwiches and products. McDonald's offers salads and vegetarian items.[46] Products A McDonald's Big Mac combo meal served with French fries and Coca-Cola. This local deviation from the standard menu is a characteristic for which the chain is particularly known. French fries." Devo copyrighted and trademarked the Energy Dome and is taking legal action against McDonald's. In a McDonald's American Idol figurine promotion. Freedom of Choice. soft drinks.Possibly the most infamous legal case involving McDonald's was the 1994 decision in The McDonald's Coffee Case. the figurine that represents "New Wave Nigel" wears something that closely resembles Devo¶s Energy Dome. In most markets. and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of McRice in Indonesia).

To date. is located in Oak Brook. At times. and makes coolers of orange drink with their logo available for local events of all kinds. radio. Children's advertis . Illinois. the headquarters of McDonald's The McDonald's headquarters complex. McDonald's has used 23 different slogans in United States advertising. it has run into trouble with its campaigns. sponsors sporting events ranging from Little League to the Olympic Games.[48] Advertising Main article: McDonald's advertising McDonald's has for decades maintained an extensive advertising campaign. In addition to the usual media (television.McDonald's Plaza. McDonald's Plaza. the founder of Oak Brook. Nonetheless. the company makes significant use of billboards and signage. It sits on the site of the former headquarters and stabling area of Paul Butler. and newspaper).[47] McDonald's moved into the Oak Brook facility from an office within the Chicago Loop in 1971. television has always played a central role in the company's advertising strategy. as well as a few other slogans for select countries and regions.

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