Financial Metrics and McDonald’s

Every group member must submit a copy of this completed activity to the Assignment Folder

Your First Name and Last Name Student Number

Tuhin Babooram 301203766

Zoom Group Number: 3

You were assigned Revenues or Expenses? Expenses

Activity Details

Step 1
Students are assigned to groups and are instructed to review the income statement below
from a Revenue or Expense perspective:

https://corporate.mcdonalds.com/content/dam/gwscorp/assets/investors/financial-information/annual-reports/2020%20Annual%20Report.pdf

Step 2
Begin by reviewing the information in the Letter to Shareholders on pages 1-5 utilizing the
following link: https://corporate.mcdonalds.com/content/dam/gwscorp/assets/investors/financial-information/annual-
reports/2020%20Annual%20Report.pdf

Step 3
Now answer the following 2 questions

Question 1:
Did Revenues or Expenses go up/down/no change? What was the percentage change in
Revenue or Expenses year over year (YOY)?

% Change in Revenue = 2020 Revenue – 2019 Revenue

2019 Revenue
% Change in Expense = 2020 Expense – 2019 Expense
2019 Expense
Answer Question 1 Here:

The expenses decreased by 3.4 %.

% Change in Expense = 11,883.8 – 12,294.6 = (3.4)%

12,294.6

Question 2:
What was going on in 2020 that would impact Revenues or Expenses? Consider the information
in the letter to shareholders outlining vision to get insights into how money was spent, what
was driving revenues. Also, consider the environment in 2020 to advise what the company may
have been spending money on and where revenues would/would not be coming from.

Answer Question 2 Here:

Due to the covid-19 restrictions imposed by the Government, dine was not allowed in any
restaurants. So, Mc Donalds had to reduce its occupancy by reducing the number of staff in the
restaurant. Also, the food and paper expenses also decreased as people were not buying from
Mc Donalds during the lockdown period.

Every group member must submit a copy of this completed activity to the Assignment Folder