Economic

McDonald’s has the largest market share in the fast-food industry at 10% global share. After suffering a
hit brought forth by the Covid-19 Pandemic which resulted to a 10.9% annual revenue decline for 2020,
it has now recorded 14.46% increase in revenue at Quarter III of 2021 considering that there are now
lesser health restrictions being implemented. However, that doesn’t mean that they are now back in
track considering that almost 200 stores worldwide permanently closed due to the lockdown we
experienced on Quarter II of 2020. We also have to consider the effect by the TRAIN Law which was
implemented last January 1, 2018. Taking everything into account of all the things that happened during
the global pandemic, the TRAIN Law increased the taxes imposed to most products sold by McDonald’s.
While changes in foreign currency exchange rates affect reported results, McDonald's mitigates
exposures, where practical, by purchasing goods and services in local currencies, financing in local
currencies and hedging certain foreign-denominated cash flows. Management reviews and analyzes
business results excluding the effect of foreign currency translation and bases incentive compensation
plans on these results, because the Company believes this better represents its underlying business
trends. Results excluding the effect of foreign currency translation are calculated by translating current
year results at prior year average exchange rates.

Technological

McDonald’s made significant investment and innovation in what they believed to be their key
comparative advantages with their core customers, the “three D’s”: digital, drive-thru, and delivery.
Going into the pandemic, McDonald’s actually found itself well positioned to build on its prior digital
innovations to create a user experience well-suited for the constraints posed by the pandemic.
McDonald’s recent technology innovations including the development of the McDonald’s mobile
application, acquisition of personalization technology provider Dynamic Yield, Mobile Order and Pay,
and self-order kiosks, together, have transformed customer experiences in and around their restaurants,
giving customers more ways to securely pay and personalize their orders to meet their needs.

Political/Legal

IATF’s ECQ, MECQ, GCQ and MGCQ regulations affected all forms of business within the country.
Similarly, McDonald’s operation was limited depending on the community quarantine that was being
implemented in their area. This impacted the Company’s revenues severely considering that even at the
most lenient community quarantine status, they still cannot operate at their maximum capacity.

Global

McDonald’s enjoys the privilege of being the most valuable fast-food brand in the world. In 2019,
McDonald’s brand value increased to $130.37 billion from $126.04 billion in 2018. No other fast-food
brand was even close to McDonald’s worth with the brand value of just over $44 billion for the second-
placed Starbucks.
McDonald’s restaurants offer a substantially uniform menu, although there are geographic variations to
suit local consumer preferences and tastes. In addition, McDonald’s tests new products on an ongoing
basis.

McDonald’s menu includes hamburgers and cheeseburgers, chicken sandwiches, wraps, french fries,
salads, oatmeal, shakes, desserts, sundaes, soft serve cones, pies, soft drinks, coffee and other
beverages. In addition, the restaurants sell a variety of other products during limited-time promotions.
One great example of a geographical variation is the McSpaghetti. The McSpaghetti is only available in
our country.

https://bstrategyhub.com/mcdonalds-swot-analysis
https://strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-analysis
https://www.klook.com/blog/mcdonalds-around-the-world/