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Discuss the trends in the revenue for McDonalds. Is this a problem?

Discuss the trends in the revenue for McDonalds. Is this a problem?

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Expert Solution

In 2017, McDonald's generated a total revenue of 22.82 billion U.S. dollars.

Over the last thirteen fiscal years, McDonald’s revenue achieved its peak in 2013 at 28.11 billion U.S. dollars. Since this peak, the revenue has decreased annually over the last three years, hitting 22.82 billion U.S. dollars in 2017. In 2017, 8 billion U.S. dollars were generated in the U.S., the largest contribution to the McDonald’s total revenue. Other international lead markets such as Australia, Canada and France were the second largest contributors generating 7.34 billion U.S. dollars.

McDonald’s was founded in California in the United States in 1940. Its products include a variety of burgers, sandwiches, French fries, chicken nuggets, ice cream, soft drinks, and hot beverages. As well as these, McDonald’s serves breakfast items, such as breakfast muffins, pancakes, and bagels. On October 6 2015, U.S. restaurants began serving breakfast items throughout the entire day.

With a brand value of over 88 billion U.S. dollars, McDonald’s is by far the most valuable fast food brand in the world. Its closest competitor, Starbucks, has a much smaller brand value of just over 44 billion U.S. dollars. Starbucks, however, offers a very different range of products than McDonald’s and specializes in coffee. Other leading fast food brands that offer a more comparable range of products to McDonald’s are Burger King and KFC.Given below are Revenue in US billion dollars.

2017 22.82
2016 24.62
2015 25.41
2014 27.44
2013 28.11
2012 27.57
2011 27.01
2010 24.08
2009 22.75
2008 23.52
2007 22.79
2006 20.9
2005 19.12

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