McDonald’s

financial
analysis
A presentation by Dhruwan, Meet and Paniyatorn
 INTRODUCTION TO SOURCES OF FINANCE ANALYSIS OF SOURCES
MCDONALD’S OF FINANCE (SHOWN

Table of IN THE CHART)

contents…

CASH FLOW FORECAST FORECAST AND TERM- BIBLIOGRAPHY

(SHOWN IN THE BASED ANALYSIS
CHART)
An insight into the fast food giant…

 McDonald's is the world's leading food service retailer with more than 31,000
eateries in 119 nations serving 50 million clients every day.
 Celebrating more than 12 years of leadership in the fast-food industry in
India, McDonald's currently has a system of more than 160 cafés the nation
over, with its first restaurant in 1996.
 At present in its brilliant years, McDonald's has turned into an everyday staple
of the Indian Fast food industry.
 In this article, we will talk about its income and source of finance.
Sources of finance…

One of the main sources of funds for McDonalds is sales proceeds.

From the sales made by McDonald restaurants, the revenue earned minus all the expenditures
incurred, gives it a surplus.

This amount is retained by the business and used to finance its expansion into new market areas
through establishment of new restaurants or purchase of new assets.

McDonald also gets finances from partnership ventures. The partners contribute capital for the
business

Retained earnings and retained profits are often used as a source of finance. Over the years that the
chain has operated in India, their retained earnings have been used for their expansionary missions.
Cash flow analysis…
 Click icon to add picture

Cash flow statement for the fiscal years of 2014-2018

Note: The financial results for 2019 have not been mentioned due to the running fiscal year of 2019 ad accounts will be
published at the end of the year which is December 31 st
 McDonald’s Corp.’s cash provided by operations
declined from 2016 to 2017 but then increased from
2017 to 2018 exceeding 2016 level. This could be a
result of increase in prices of the raw material due to
relatively low production (flour, rice, etc.)

McDonald’s Corp.’s cash (used for) provided by

investing activities increased from 2016 to 2017 but

Analysis… then declined significantly from 2017 to 2018 because

of the fall in share market which caused McDonald’s to
step back

McDonald’s Corp.’s cash provided by (used for)

financing activities increased from 2016 to 2017 but
then slightly declined from 2017 to 2018. Financial
activities are subject to change and cannot be
accurately analyzed
Definitions of important terminologies…
Cash flow statement item Description
Amount of cash inflow (outflow) from
Cash provided by operations operating activities, excluding
discontinued operations.
Amount of cash inflow (outflow) of
Cash (used for) provided by investing investing activities, excluding discontinued
activities operations. Investing activity cash flows
include making and collecting loans.

Amount of cash inflow (outflow) of

financing activities, excluding
Cash provided by (used for) financing discontinued operations. Financing activity
activities cash flows include obtaining resources
from owners.
Bibliography…
 https://www.stock-analysis-on.net/NYSE/Company/McDonalds-Corp/Financial-St
atement/Statement-of-Cash-Flows
 https://www.marketwatch.com/investing/stock/mcd/financials/cash-flow
 https://www.google.com/search?rlz=1C1CHBF_enIN847IN847&sxsrf=ACYBGNTP3e
UYeOeTZ23rD71t4nDgFIgqmQ:1570015027110&q=%22simple%22+cash+flow+state
ment+for+mcdonalds&sa=X&ved=2ahUKEwjcnO7fuf3kAhW78HMBHckrDIYQ5t4CMA
J6BAgHEAc&biw=1536&bih=702&dpr=1.25
 https://www.google.com/search?rlz
=1C1CHBF_enIN847IN847&biw=1536&bih=702&sxsrf=ACYBGNRhSUv_RRTmz4fy9jY
KIZxI2lUsAg%3A1570015032933&ei=OIeUXezOOMzaz7sPh9C34AU&q=sources+of+fin
ance+for+mcdonald%27s&oq=
sources+of+&gs_l
=psy-ab.1.1.35i39l2j0i273l2j0j0i67l2j0i20i263j0i67l2.11335.13622..14922...0.1..0
.264.2360.0j3j8......0....1..gws-wiz.......0i71j0i131.f_hhO7diAB0
 https://ivypanda.com/essays/sources-of-finance-for-the-mcdonald-inc-report/