![McDonald's logo](https://upload.wikimedia.org/wikipedia/commons/4/4b/McDonald%27s_logo.svg)
McDonald's Corporation is an American
multinational fast food chain, founded in 1940 as a
restaurant operated by
Richard and Maurice McDonald
Richard McDonald (February 1909 – July 14, 1998) and Maurice McDonald (1902 – December 11, 1971), together known as the McDonald Brothers, were American entrepreneurs who founded the fast food company McDonald's. They opened the original Mc ...
, in
San Bernardino, California
San Bernardino (; Spanish for "Saint Bernardino") is a city and county seat of San Bernardino County, California, United States. Located in the Inland Empire region of Southern California, the city had a population of 222,101 in the 2020 ce ...
, United States. They rechristened their business as a
hamburger
A hamburger, or simply burger, is a food consisting of fillings—usually a patty of ground meat, typically beef—placed inside a sliced bun or bread roll. Hamburgers are often served with cheese, lettuce, tomato, onion, pickles, bacon, ...
stand, and later turned the company into a
franchise
Franchise may refer to:
Business and law
* Franchising, a business method that involves licensing of trademarks and methods of doing business to franchisees
* Franchise, a privilege to operate a type of business such as a cable television p ...
, with the
Golden Arches
The Golden Arches are the symbol of McDonald's, the global fast food restaurant chain. Originally, real arches were part of the restaurant design. They were incorporated into the chain's logo in 1962, which resembled a stylized restaurant, and i ...
logo being introduced in 1953 at a location in
Phoenix, Arizona
Phoenix ( ; nv, Hoozdo; es, Fénix or , yuf-x-wal, Banyà:nyuwá) is the capital and most populous city of the U.S. state of Arizona, with 1,608,139 residents as of 2020. It is the fifth-most populous city in the United States, and the on ...
. In 1955,
Ray Kroc
Raymond Albert Kroc (October 5, 1902 – January 14, 1984) was an American businessman. He purchased the fast food company McDonald's in 1961 and was its CEO from 1967 to 1973. Kroc is credited with the global expansion of McDonald's, turnin ...
, a businessman, joined the company as a franchise agent and proceeded to purchase the chain from the McDonald brothers. McDonald's had its previous headquarters in
Oak Brook, Illinois
Oak Brook is a village mostly in DuPage County with a small portion in Cook County in Illinois. Per the 2020 census, the population was 8,163. This suburb of Chicago has the headquarters of several companies and organizations including Ace Ha ...
, but moved its global headquarters to
Chicago
(''City in a Garden''); I Will
, image_map =
, map_caption = Interactive Map of Chicago
, coordinates =
, coordinates_footnotes =
, subdivision_type = Country
, subdivision_name ...
in June 2018.
McDonald's is the world's largest
restaurant chain
A chain store or retail chain is a retail outlet in which several locations share a brand, central management and standardized business practices. They have come to dominate the retail and dining markets and many service categories, in many pa ...
by revenue, serving over 69 million customers daily in over 100 countries
in more than 40,000 outlets as of 2021.
McDonald's is best known for its hamburgers,
cheeseburger
A cheeseburger is a hamburger topped with cheese. Traditionally, the slice of cheese is placed on top of the meat patty. The cheese is usually added to the cooking hamburger patty shortly before serving, which allows the cheese to melt. Chees ...
s and
french fries, although their menus include other items like chicken, fish, fruit, and salads. Their most well-known licensed item on the menu would be their french fries with the
Big Mac
The Big Mac is a hamburger sold by the international fast food restaurant chain McDonald's. It was introduced in the Greater Pittsburgh area in 1967 and across the United States in 1968. It is one of the company's flagship products and signat ...
close behind.
The company has been the recipient of criticism for the unhealthiness of their food. The McDonald's Corporation revenues come from the rent,
royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. According to two reports published in 2018, McDonald's is the world's second-largest private employer with 1.7 million employees (behind
Walmart
Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarter ...
with 2.3 million employees). , McDonald's has the sixth-highest global
brand valuation Brand valuation is the process of estimating the total financial value of a brand. A conflict of interest exists if those who value a brand were also involved in its creation. The ISO 10668 standard specifies six key requirements for the process of ...
.
McDonald's
has been subject to criticism over the health effects of its products, its treatment of employees, and other business practices.
History
![DowneyMcdonalds](https://upload.wikimedia.org/wikipedia/commons/1/17/DowneyMcdonalds.jpg)
Siblings
Richard and Maurice McDonald
Richard McDonald (February 1909 – July 14, 1998) and Maurice McDonald (1902 – December 11, 1971), together known as the McDonald Brothers, were American entrepreneurs who founded the fast food company McDonald's. They opened the original Mc ...
opened the first McDonald's at 1398 North E Street at West 14th Street in
San Bernardino, California
San Bernardino (; Spanish for "Saint Bernardino") is a city and county seat of San Bernardino County, California, United States. Located in the Inland Empire region of Southern California, the city had a population of 222,101 in the 2020 ce ...
(at ), on May 15, 1940. The brothers introduced the "Speedee Service System" in 1948, putting into expanded use the principles of the modern
fast-food restaurant that their predecessor
White Castle had put into practice more than two decades earlier. The original mascot of McDonald's was a chef hat on top of a hamburger who was referred to as "Speedee". In 1962, the Golden Arches replaced Speedee as the universal mascot. The mascot, clown
Ronald McDonald
Ronald McDonald is a clown character used as the primary mascot of the McDonald's fast-food restaurant chain. He inhabits the fictional world of McDonaldland, with his friends Mayor McCheese, the Hamburglar, Grimace, Birdie the Early Bird and ...
, was introduced in 1965. He appeared in advertising to target their audience of children.
On May 4, 1961, McDonald's first filed for a U.S.
trademark
A trademark (also written trade mark or trade-mark) is a type of intellectual property consisting of a recognizable sign, design, or expression that identifies products or services from a particular source and distinguishes them from othe ...
on the name "McDonald's" with the description "Drive-In Restaurant Services", which continues to be renewed. By September 13, McDonald's, under the guidance of Ray Kroc, filed for a trademark on a new logo—an overlapping, double-arched "M" symbol. But before the double arches, McDonald's used a single arch for the architecture of their buildings. Although the "
Golden Arches
The Golden Arches are the symbol of McDonald's, the global fast food restaurant chain. Originally, real arches were part of the restaurant design. They were incorporated into the chain's logo in 1962, which resembled a stylized restaurant, and i ...
" logo appeared in various forms, the present version was not used until November 18, 1968, when the company was favored a U.S. trademark.
The present corporation credits its founding to
franchised businessman
Ray Kroc
Raymond Albert Kroc (October 5, 1902 – January 14, 1984) was an American businessman. He purchased the fast food company McDonald's in 1961 and was its CEO from 1967 to 1973. Kroc is credited with the global expansion of McDonald's, turnin ...
on April 15, 1955. This was in fact the ninth opened McDonald's restaurant overall, although this location was destroyed and rebuilt in 1984. Kroc was recorded as being an aggressive business partner, driving the McDonald brothers out of the industry.
Kroc and the McDonald brothers fought for control of the business, as documented in Kroc's autobiography. In 1961, he purchased the McDonald brothers' equity in the company and began the company's worldwide reach. The sale cost Kroc $2.7 million, a huge sum during that time.
The San Bernardino restaurant was eventually torn down in 1971, and the site was sold to the
Juan Pollo chain in 1998. This area serves as headquarters for the Juan Pollo chain, and a McDonald's and Route 66 museum. With the expansion of McDonald's into many international markets, the company has become a symbol of
globalization
Globalization, or globalisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences), is the process of foreign relation ...
and the spread of the
American way
The American way of life or the American way refers to the American nationalist ethos that adheres to the principle of life, liberty and the pursuit of happiness. At the center of the American way is the belief in an American Dream that is clai ...
of life. Its prominence has made it a frequent topic of public debates about
obesity
Obesity is a medical condition, sometimes considered a disease, in which excess body fat has accumulated to such an extent that it may negatively affect health. People are classified as obese when their body mass index (BMI)—a person's ...
,
corporate ethics
Business ethics (also known as Corporate Ethics) is a form of applied ethics or professional ethics, that examines ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of business co ...
, and
consumer
A consumer is a person or a group who intends to order, or uses purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities. ...
responsibility.
Products
![HK Kln Bay Telford Plaza McDonalds Restaurant McSPICY Chicken Filet French fries Nov-2014 Love mark sign n coke](https://upload.wikimedia.org/wikipedia/commons/2/20/HK_Kln_Bay_Telford_Plaza_McDonalds_Restaurant_McSPICY_Chicken_Filet_French_fries_Nov-2014_Love_mark_sign_n_coke.jpg)
McDonald's predominantly sells
hamburger
A hamburger, or simply burger, is a food consisting of fillings—usually a patty of ground meat, typically beef—placed inside a sliced bun or bread roll. Hamburgers are often served with cheese, lettuce, tomato, onion, pickles, bacon, ...
s, various types of
chicken
The chicken (''Gallus gallus domesticus'') is a domesticated junglefowl species, with attributes of wild species such as the grey and the Ceylon junglefowl that are originally from Southeastern Asia. Rooster or cock is a term for an adu ...
,
chicken sandwiches,
French fries,
soft drinks,
breakfast items, and
desserts. In most markets, McDonald's offers
salad
A salad is a dish consisting of mixed, mostly natural ingredients with at least one raw ingredient. They are typically served at room temperature or chilled, though some can be served warm. Condiments and salad dressings, which exist in a va ...
s and
vegetarian
Vegetarianism is the practice of abstaining from the consumption of meat (red meat, poultry, seafood, insects, and the flesh of any other animal). It may also include abstaining from eating all by-products of animal slaughter.
Vegetariani ...
items,
wraps and other localized fare. On a seasonal basis, McDonald's offers the
McRib
The McRib is a barbecue-flavored pork sandwich periodically sold by the international fast food restaurant chain McDonald's. It was first introduced to the McDonald's menu in 1981, following test marketing the year before.
After poor sales, it ...
sandwich. Some speculate the seasonality of the McRib adds to its appeal. During March of each year, McDonald's offers a
Shamrock Shake
The Shamrock Shake is a seasonal green mint flavored milkshake dessert sold at some McDonald's restaurants during March to celebrate St. Patrick's Day in the US, Canada and Ireland.
Origin
The Shamrock Shake was first introduced in 1970. Rog ...
to honor
Saint Patrick's Day
Saint Patrick's Day, or the Feast of Saint Patrick ( ga, Lá Fhéile Pádraig, lit=the Day of the Festival of Patrick), is a cultural and religious celebration held on 17 March, the traditional death date of Saint Patrick (), the foremost patr ...
.
In addition, the chain also sells some items within the United States on a regional bases; for example, the Hatch Green Chile Double Cheeseburger, which is topped with
New Mexico green chile, is only available in the southwestern state of
New Mexico
)
, population_demonym = New Mexican ( es, Neomexicano, Neomejicano, Nuevo Mexicano)
, seat = Santa Fe
, LargestCity = Albuquerque
, LargestMetro = Tiguex
, OfficialLang = None
, Languages = English, Spanish ( New Mexican), Navajo, Ke ...
.
Products are offered as either "dine-in" (where the customer opts to eat in the restaurant) or "take-out" (where the customer opts to take the food off the premises). "Dine-in" meals are provided on a plastic tray with a paper insert on the floor of the tray. "Take-out" meals are usually delivered with the contents enclosed in a distinctive McDonald's-branded brown paper bag. In both cases, the individual items are wrapped or boxed as appropriate.
Since
Steve Easterbrook became CEO of the company, McDonald's has streamlined the menu which in the United States contained nearly 200 items. The company has looked to introduce healthier options, and removed
high-fructose corn syrup
High-fructose corn syrup (HFCS), also known as glucose–fructose, isoglucose and glucose–fructose syrup, is a sweetener made from corn starch. As in the production of conventional corn syrup, the starch is broken down into glucose by enzy ...
from
hamburger buns. The company has removed
artificial preservatives from
Chicken McNuggets
Chicken McNuggets are a type of chicken nuggets sold by the international fast food restaurant chain McDonald's. They consist of small pieces of reconstituted boneless chicken meat that have been battered and deep fried. Chicken McNuggets w ...
, replacing chicken skin, safflower oil and citric acid found in Chicken McNuggets with pea starch, rice starch and powdered lemon juice.
In September 2018, McDonald's USA announced that they no longer use artificial preservatives, flavors and colors entirely from seven classic burgers sold in the U.S., including the hamburger, cheeseburger, double cheeseburger, McDouble, Quarter Pounder with Cheese, double Quarter Pounder with Cheese and the Big Mac. Nevertheless, the pickles will still be made with an artificial preservative, although customers can choose to opt out of getting pickles with their burgers.
In November 2020, McDonald's announced McPlant, a plant-based burger, along with plans to develop additional meat alternative menu items that extend to chicken substitutes and breakfast sandwiches.
This announcement came after the successful testing of
Beyond Meat
Beyond Meat, Inc. is a Los Angeles–based producer of plant-based meat substitutes founded in 2009 by Ethan Brown. The company's initial products were launched in the United States in 2012. History Founding
Ethan Brown founded the company in ...
plant based meat substitutes.
International menu variations
![Croque McDo](https://upload.wikimedia.org/wikipedia/commons/f/f1/Croque_McDo.jpg)
McDonald's Menu are different in their countries. Restaurants in several countries, particularly in Asia, serve soup. This local deviation from the standard menu is a characteristic for which the chain is particularly known, 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, or
Ebi (prawn) Burger in Singapore and Japan).
In Germany and some other Western European countries, McDonald's sells beer. In New Zealand, McDonald's sells
meat pies
A meat pie is a pie with a filling of meat and often with other savory ingredients. They are found in cuisines worldwide.
Meat pies are usually baked, fried, or deep fried to brown them and develop the flavour through the Maillard reaction. M ...
, after local affiliate
McDonald's New Zealand
McDonald's Restaurants (New Zealand) Limited (also using the trading name "Macca's") is the New Zealand subsidiary of the international fast food restaurant chain McDonald's. Its first location opened in 1976. In 2017 McDonald's New Zealand had ...
partially relaunched the
Georgie Pie
Georgie Pie was a fast food chain owned by retailer Progressive Enterprises specialising in meat pies that hoped to be "New Zealand’s own homegrown alternative to the global fast-food industry giants such as McDonald's, Pizza Hut and Burg ...
fast food chain it bought out in 1996. In Greece, the signature hamburger, Big Mac, is changed by adding Tzatziki sauce and packaging in a pita.
In the United States and Canada, after limited trials on a regional basis, McDonald's began offering in 2015 and 2017, respectively, a partial breakfast menu during all hours its restaurants were open. All-day breakfast was phased out from menus at the start of the
COVID-19 pandemic
The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identi ...
in 2020.
Restaurants
There are over 36,000 McDonald's restaurants globally. Over a third of these (14,146 restaurants) are in the United States alone - the second highest number is in Japan with 2,975 restaurants, followed by China with 2,700. These three countries make up a majority of global McDonald's stores.
Types of restaurants
Most standalone McDonald's restaurants offer both
counter service and
drive-through service, with indoor and sometimes outdoor seating.
Drive-Thru, Auto-Mac, Pay and Drive, or "McDrive" as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the latter two steps are frequently combined;
it was first introduced in
Sierra Vista
Sierra Vista is a city in Cochise County, Arizona, United States. According to the 2020 Census, the population of the city is 45,308, and is the 27th most populous city in Arizona. The city is part of the Sierra Vista-Douglas Metropolitan Are ...
,
Arizona
Arizona ( ; nv, Hoozdo Hahoodzo ; ood, Alĭ ṣonak ) is a state in the Southwestern United States. It is the 6th largest and the 14th most populous of the 50 states. Its capital and largest city is Phoenix. Arizona is part of the Fou ...
in 1975, following the lead of other fast-food chains. The first such restaurant in Britain opened at
Fallowfield
Fallowfield is a suburb of Manchester, England, with a population at the 2011 census of 15,211. Historically in Lancashire, it lies south of Manchester city centre and is bisected east–west by Wilmslow Road and north–south by Wil ...
,
Manchester
Manchester () is a city in Greater Manchester, England. It had a population of 552,000 in 2021. It is bordered by the Cheshire Plain to the south, the Pennines to the north and east, and the neighbouring city of Salford to the west. The t ...
in 1986.
In 1994, McDonald's attempted Hearth Express, a prototype specializing in homestyle takeout meals. Among the fare offered were meatloaf, fried chicken, and baked ham. This experiment started with a single location in
Darien, Illinois
Darien is a city in DuPage County, Illinois, United States. Per the 2020 census, the population was 22,011. A southwestern suburb of Chicago, Darien was named after the town of Darien, Connecticut. Darien is just north of I-55 and Historic U.S. ...
, but closed in only one year.
McDrive
In some countries, McDrive locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service. There are also a few locations, mostly in downtown districts, that offer a "Walk-Thru" service in place of Drive-Thru.
McCafé
McCafé is a
café
A coffeehouse, coffee shop, or café is an establishment that primarily serves coffee of various types, notably espresso, latte, and cappuccino. Some coffeehouses may serve cold drinks, such as iced coffee and iced tea, as well as other non ...
-style accompaniment to McDonald's restaurants. The concept was created by McDonald's Australia, starting with
Melbourne
Melbourne ( ; Boonwurrung/Woiwurrung: ''Narrm'' or ''Naarm'') is the capital and most populous city of the Australian state of Victoria, and the second-most populous city in both Australia and Oceania. Its name generally refers to a met ...
in 1993. As of 2016, most McDonald's in Australia have McCafés located within the existing McDonald's restaurant. In
Tasmania
)
, nickname =
, image_map = Tasmania in Australia.svg
, map_caption = Location of Tasmania in AustraliaCoordinates:
, subdivision_type = Country
, subdi ...
, there are McCafés in every restaurant, with the rest of the states quickly following suit.
After upgrading to the new McCafé look and feel, some Australian restaurants have noticed up to a 60 percent increase in sales. At the end of 2003, there were over 600 McCafés worldwide.
"Create Your Taste" restaurants
From 2015 to 2016, McDonald's tried a new gourmet burger service and restaurant concept based on other gourmet restaurants such as
Shake Shack
Shake Shack is an American fast casual restaurant chain based in New York City. It started out as a hot dog cart inside Madison Square Park in 2001, and its popularity steadily grew. In 2004, it received a permit to open a permanent kiosk with ...
and
Grill'd. It was rolled out for the first time in Australia during the early months of 2015 and expanded to China, Hong Kong, Singapore, Arabia and New Zealand, with ongoing trials in the US market. In dedicated "Create Your Taste" (CYT) kiosks, customers could choose all ingredients including type of bun and meat along with optional extras. CYT food was served to the table on wooden boards, fries in wire baskets, and salads in china bowls with metal cutlery at a higher price. In November 2016, Create Your Taste was replaced by a "Signature Crafted Recipes" program designed to be more efficient and less expensive.
Other
![McDonald's Itäkeskus](https://upload.wikimedia.org/wikipedia/commons/f/fb/McDonald%27s_It%C3%A4keskus.jpg)
Some locations are connected to
gas stations and
convenience stores, while others called McExpress have limited seating or menu or may be located in a
shopping mall
A shopping mall (or simply mall) is a North American term for a large indoor shopping center, usually anchored by department stores. The term "mall" originally meant a pedestrian promenade with shops along it (that is, the term was used to refe ...
. Other McDonald's are located in
Walmart
Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarter ...
stores. McStop is a location targeted at truckers and travelers which may have services found at
truck stop
A truck stop, known as a service station in the United Kingdom, and a travel center by major chains in the United States, is a commercial facility which provides refueling, rest ( parking), and often ready-made food and other services to motor ...
s.
In the United Kingdom, McDonald's restaurants can be found in service stations, petrol stations, McDrive Thru,
Asda Superstores and Supercenters, shopping centres, retail parks and high street restaurants. One McDonald's Drive-Thru in
Crawley is located in the car park of a
Sainsbury's
J Sainsbury plc, trading as Sainsbury's, is the second largest chain of supermarkets in the United Kingdom, with a 14.6% share of UK supermarket sales.
Founded in 1869 by John James Sainsbury with a shop in Drury Lane, London, the company ...
store. Other McDonald's locations named 'McExpress' or 'McDonald's & Go' have limited seating and can be found more commonly in railway stations and airports.
In Sweden, Happy Meal containers can be used as goggles,
with the game ''Slope Stars''.
In the Netherlands, McDonald's has introduced McTrax that doubles as a recording studio; it reacts to touch.
They can create their own beats with a
synth
A synthesizer (also spelled synthesiser) is an electronic musical instrument that generates audio signals. Synthesizers typically create sounds by generating waveforms through methods including subtractive synthesis, additive synthesis and ...
and tweak sounds with special effects.
On the river
Elbe
The Elbe (; cs, Labe ; nds, Ilv or ''Elv''; Upper and dsb, Łobjo) is one of the major rivers of Central Europe. It rises in the Giant Mountains of the northern Czech Republic before traversing much of Bohemia (western half of the Czech Re ...
in
Hamburg
(male), (female) en, Hamburger(s),
Hamburgian(s)
, timezone1 = Central (CET)
, utc_offset1 = +1
, timezone1_DST = Central (CEST)
, utc_offset1_DST = +2
, postal ...
, Germany is the world's only McBoat, a float through service (similar to drive through) for people on the river.
Special diet
![McDonald's kosher](https://upload.wikimedia.org/wikipedia/commons/f/fd/McDonald%27s_kosher.JPG)
The first
kosher McDonald's was established in 1997 at the
Abasto de Buenos Aires mall in
Buenos Aires
Buenos Aires ( or ; ), officially the Autonomous City of Buenos Aires ( es, link=no, Ciudad Autónoma de Buenos Aires), is the capital and primate city of Argentina. The city is located on the western shore of the Río de la Plata, on South ...
, Argentina. There are many kosher branches in Israel.
PlayPlaces
![McDonald's with Prominent Playland](https://upload.wikimedia.org/wikipedia/commons/a/af/McDonald%27s_with_Prominent_Playland.JPG)
McDonald's playgrounds are called McDonald's PlayPlace. Some McDonald's in suburban areas and certain cities feature large indoor or outdoor
playgrounds. The first PlayPlace with the familiar crawl-tube design with ball pits and slides was introduced in 1987 in the US, with many more being constructed soon after.
McDonald's Next
McDonald's Next use open-concept design and offer "Create Your Taste" digital ordering. The concept store also offers free mobile device charging and table service after 6:00 pm. The first store opened in
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delta i ...
in December 2015.
2006 redesign
![New McDonald's restaurant in Mount Pleasant, Iowa](https://upload.wikimedia.org/wikipedia/commons/3/31/New_McDonald%27s_restaurant_in_Mount_Pleasant%2C_Iowa.jpg)
In 2006, McDonald's introduced its "Forever Young" brand by redesigning all of its restaurants, the first major redesign since the 1970s. It resembles a coffee shop, with wooden tables, faux-leather chairs, and muted colors; the red was muted to terracotta, the yellow was shifted to golden for a more "sunny" look, and olive and sage green were added. The warmer look has less plastic and more brick and wood, with modern hanging lights for a softer glow. Many restaurants feature free
Wi-Fi
Wi-Fi () is a family of wireless network protocols, based on the IEEE 802.11 family of standards, which are commonly used for local area networking of devices and Internet access, allowing nearby digital devices to exchange data by radio wav ...
and flat-screen TVs. Other upgrades include double drive-thrus, flat roofs instead of the angled red roofs, and fiber glass instead of wood. Instead of the familiar golden arches, the restaurants feature "semi-swooshes" (half of a golden arch), similar to the Nike
swoosh
The Swoosh is the logo of American sportswear designer and retailer Nike. Today, it has become one of the most recognizable brand logos in the world, and the most valuable, having a worth of $26 billion alone.
Bill Bowerman and Phil Knight fou ...
.
Smoking ban
McDonald's began banning smoking in 1994 when it restricted customers from smoking within its 1,400 wholly owned restaurants.
COVID-19 pandemic
![McDonaldsCurbsidePickupMarkhamTownSquare](https://upload.wikimedia.org/wikipedia/commons/4/49/McDonaldsCurbsidePickupMarkhamTownSquare.jpg)
As a result of the
COVID-19 pandemic
The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identi ...
, McDonald's closed most seating and all play areas in its United States restaurants. It transitioned to drive-thru and curbside orders at locations and
online food ordering
Online food ordering is the process of ordering food, for delivery or pickup, from a website or other application. The product can be either ready-to-eat food (e.g., direct from a home-kitchen, restaurant, or a virtual restaurant) or food that h ...
delivery services. The re-opening of McDonald's restaurants for drive-thru in the United Kingdom generated significant queues of traffic throughout the country. In July 2020, for the years's second quarter, McDonald's reported earnings of 66 cents per share. Compared to the same period of last year, it represented a fall of 68%.
Treatment of employees
Automation
Since the late 1990s, McDonald's has attempted to replace employees with electronic kiosks which would perform actions such as taking orders and accepting money. In 1999, McDonald's first tested "E-Clerks" in suburban
Chicago, Illinois
(''City in a Garden''); I Will
, image_map =
, map_caption = Interactive Map of Chicago
, coordinates =
, coordinates_footnotes =
, subdivision_type = Country
, subdivision_name ...
, and
Wyoming, Michigan
Wyoming is a city in Kent County in the U.S. state of Michigan. The population was 76,501 at the 2020 census. Wyoming is the second most-populated community in the Grand Rapids metropolitan area and is bordered by Grand Rapids on the northeas ...
, with the devices being able to "save money on live staffers" and attracting larger purchase amounts than average employees.
In 2013, the
University of Oxford
, mottoeng = The Lord is my light
, established =
, endowment = £6.1 billion (including colleges) (2019)
, budget = £2.145 billion (2019–20)
, chancellor ...
estimated that in the succeeding decades, there was a 92% probability of food preparation and serving to become automated in fast food establishments. By 2016, McDonald's "Create Your Taste" electronic kiosks were seen in some restaurants internationally where customers could custom order meals. As employees pushed for higher wages in the late-2010s, some believed that fast food companies such as McDonald's would use the devices to cut costs for employing individuals.
In September 2019, McDonald's purchased an AI-based start-up Apprente for replacing human servers with voice-based technology in its US drive-throughs.
Wages
On August 5, 2013, ''
The Guardian
''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers ''The Observer'' and ''The Guardian Weekly'', ''The Guardian'' is part of the Gu ...
'' revealed that 90 percent of McDonald's UK workforce are on
zero-hour contract
A zero-hour contract is a type of employment contract between an employer and an employee whereby the employer is not obliged to provide any minimum number of working hours to the employee. The term 'zero-hour contract' is primarily used in the ...
s, making it possibly the largest such private sector employer in the country. In April 2017, due to employee strikes, they gave all employees the option of fixed contracts instead. A study released by Fast Food Forward conducted by Anzalone Liszt Grove Research showed that approximately 84 percent of all fast food employees working in
New York City
New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the most densely populated major city in the Un ...
in April 2013 had been paid less than their legal wages by their employers.
From 2007 to 2011, fast food workers in the U.S. drew an average of $7 billion of
public assistance
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...
annually resulting from receiving low wages. The McResource website advised employees to break their food into smaller pieces to feel fuller, seek refunds for unopened holiday purchases, sell possessions online for quick cash, and to "quit complaining" as "stress hormone levels rise by 15 percent after ten minutes of complaining." In December 2013, McDonald's shut down the McResource website amidst negative publicity and criticism. McDonald's plans to continue an internal telephone help line through which its employees can obtain advice on work and life problems.
Liberal
Liberal or liberalism may refer to:
Politics
* a supporter of liberalism
** Liberalism by country
* an adherent of a Liberal Party
* Liberalism (international relations)
* Sexually liberal feminism
* Social liberalism
Arts, entertainment and m ...
think tank
A think tank, or policy institute, is a research institute that performs research and advocacy concerning topics such as social policy, political strategy, economics, military, technology, and culture. Most think tanks are non-governmenta ...
the
Roosevelt Institute
The Roosevelt Institute is a liberal American think tank. According to the organization, it exists "to carry forward the legacy and values of Franklin and Eleanor Roosevelt by developing progressive ideas and bold leadership in the service of re ...
accuses some McDonald's restaurants of actually paying less than the minimum wage to entry positions due to "rampant"
wage theft
Wage theft is the failing to pay wages or provide employee benefits owed to an employee by contract or law. It can be conducted by employers in various ways, among them failing to pay overtime; violating minimum-wage laws; the misclassificati ...
. In
South Korea
South Korea, officially the Republic of Korea (ROK), is a country in East Asia, constituting the southern part of the Korean Peninsula and sharing a land border with North Korea. Its western border is formed by the Yellow Sea, while its eas ...
, McDonald's pays part-time employees $5.50 an hour and is accused of paying less with arbitrary schedule adjustments and pay delays.
In late 2015, data collected anonymously by
Glassdoor
Glassdoor is an American website where current and former employees anonymously review companies. Headquartered in San Francisco, California, it has additional offices in Chicago, Dublin, London, and São Paulo. Glassdoor also allows its users to ...
suggests that McDonald's in the United States pays entry-level employees between $7.25 an hour and $11 an hour, with an average of $8.69 an hour. Shift managers get paid an average of $10.34 an hour. Assistant managers get paid an average of $11.57 an hour. McDonald's CEO,
Steve Easterbrook, earns an annual salary of $1,100,000. His total compensation for 2017 was $21,761,052.
Strikes
McDonald's workers have on occasions decided to
strike
Strike may refer to:
People
* Strike (surname)
Physical confrontation or removal
*Strike (attack), attack with an inanimate object or a part of the human body intended to cause harm
*Airstrike, military strike by air forces on either a suspected ...
over pay, with most of the employees on strike seeking to be paid $15.00. When interviewed about the strikes occurring, former McDonald's CEO Ed Rensi stated: "It's cheaper to buy a $35,000 robotic arm than it is to hire an employee who's inefficient making $15 an hour bagging french fries" with Rensi explaining that increasing employee wages could possibly take away from entry-level jobs.
However, according to Easterbrook, increasing wages and benefits for workers saw a 6% increase in customer satisfaction when comparing 2015's first quarter data to the first quarter of 2016, with greater returns seen as a result.
In September 2017, two British McDonald's stores agreed to a strike over
zero-hours contracts for staff. Picket lines were formed around the two stores in
Crayford and
Cambridge
Cambridge ( ) is a College town, university city and the county town in Cambridgeshire, England. It is located on the River Cam approximately north of London. As of the 2021 United Kingdom census, the population of Cambridge was 145,700. Cam ...
. The strike was supported by the
Leader of the Opposition Jeremy Corbyn
Jeremy Bernard Corbyn (; born 26 May 1949) is a British politician who served as Leader of the Opposition and Leader of the Labour Party from 2015 to 2020. On the political left of the Labour Party, Corbyn describes himself as a socialist ...
.
Occupation
Workers at the McDonald's franchise at Saint-Barthélémy,
Marseille
Marseille ( , , ; also spelled in English as Marseilles; oc, Marselha ) is the prefecture of the French department of Bouches-du-Rhône and capital of the Provence-Alpes-Côte d'Azur region. Situated in the camargue region of southern Fra ...
, occupied the restaurant, in protest against its planned closure. Employing 77 people, the restaurant is the second-biggest private sector employer in Saint-Barthélémy, which has an unemployment rate of 30 percent. Lawyers for Kamel Guemari, a shop steward at the franchise, claimed an attempt was made to kill him when a car drove at him in the restaurant car park.
Working conditions
In March 2015, McDonald's workers in 19 U.S. cities filed 28 health and safety complaints with the U.S.
Occupational Safety and Health Administration
The Occupational Safety and Health Administration'' (OSHA ) is a large regulatory agency of the United States Department of Labor that originally had federal visitorial powers to inspect and examine workplaces. Congress established the agenc ...
which allege that low staffing, lack of protective gear, poor training and pressure to work fast has resulted in injuries. The complaints allege that, because of a lack of
first aid
First aid is the first and immediate assistance given to any person with either a minor or serious illness or injury, with care provided to preserve life, prevent the condition from worsening, or to promote recovery. It includes initial in ...
supplies, workers were told by management to treat
burn injuries
A burn is an injury to skin, or other tissues, caused by heat, cold, electricity, chemicals, friction, or ultraviolet radiation (like sunburn). Most burns are due to heat from hot liquids (called scalding), solids, or fire. Burns occur mainl ...
with condiments such as
mayonnaise and
mustard
Mustard may refer to:
Food and plants
* Mustard (condiment), a paste or sauce made from mustard seeds used as a condiment
* Mustard plant, one of several plants, having seeds that are used for the condiment
** Mustard seed, seeds of the mustard p ...
. The Fight for $15 labor organization aided the workers in filing the complaints.
Animal welfare standards
In 2015, McDonald's pledged to stop using eggs from
battery cage
Battery cages are a housing system used for various animal production methods, but primarily for egg-laying hens. The name arises from the arrangement of rows and columns of identical cages connected together, in a unit, as in an artillery batt ...
facilities by 2025. Since McDonald's purchases over 2 billion eggs per year or 4 percent of eggs produced in the United States, the switch is expected to have a major impact on the egg industry and is part of a general trend toward cage-free eggs driven by consumer concern over the harsh living conditions of hens.
The aviary systems from which the new eggs will be sourced are troubled by much higher mortality rates, as well as introducing environmental and worker safety problems. The high hen mortality rate, which is more than double that of battery cage systems, will require new research to mitigate. The facilities have higher ammonia levels due to faeces being kicked up into the air. Producers raised concerns about the production cost, which is expected to increase by 36 percent.
McDonald's continues to source pork from facilities that use
gestation crate
A gestation crate, also known as a sow stall, is a metal enclosure in which a farmed sow used for breeding may be kept during pregnancy.Wilson G. Pond, Fuller W. Bazer, Bernard E. Rollin (eds.), ''Animal Welfare in Animal Agriculture'', CRC Press ...
s, and in 2012 pledged to phase them out.
Corporate overview
Facts and figures
![Ronald Reagan - McDonald's](https://upload.wikimedia.org/wikipedia/commons/1/1c/Ronald_Reagan_-_McDonald%27s.jpg)
McDonald's restaurants are in 120 countries and territories and serve 68 million customers each day.
[McDonald's – The Leading Global Food Service Retailer :: AboutMcDonalds.com](_blank)
Retrieved May 8, 2008 McDonald's operates 37,855 restaurants worldwide, employing more than 210,000 people as of the end of 2018.
There are a total of 2,770 company-owned locations and 35,085 franchised locations, which includes 21,685 locations franchised to conventional franchisees, 7,225 locations licensed to developmental licensees, and 6,175 locations licensed to foreign affiliates.
Focusing on its core brand, McDonald's began
divesting
In finance and economics, divestment or divestiture is the reduction of some kind of asset for financial, ethical, or political objectives or sale of an existing business by a firm. A divestment is the opposite of an investment. Divestiture is ...
itself of other chains it had acquired during the 1990s. The company owned a majority stake in
Chipotle Mexican Grill
Chipotle Mexican Grill, Inc. (, ), often known simply as Chipotle, is an American chain of fast casual restaurants specializing in bowls, tacos and Mission burritos made to order in front of the customer. Chipotle operates restaurants in the Uni ...
until October 2006, when McDonald's fully divested from Chipotle through a stock exchange.
Until December 2003, it owned
Donatos Pizza
Donatos Pizza is a pizza delivery restaurant franchisor headquartered in Gahanna, Ohio, Gahanna, Ohio, United States. It has nearly 200 locations in eleven states, with the majority of locations in Ohio. Donatos is also served at several venue ...
, and it owned a small share of
Aroma Café
The Aroma Cafe ( S.A.) is an Argentine coffee chain and a former British coffee chain. It was founded in London, England in 1991 and started in Buenos Aires, Argentina in 2000.
McDonald's purchased Aroma in 1999. It expanded the chain in the UK ...
, from 1999 to 2001. On August 27, 2007, McDonald's sold
Boston Market
Boston Market Corporation, known as Boston Chicken until 1995, is an American fast casual restaurant chain headquartered in Golden, Colorado. It is owned by the Rohan Group.
Boston Market has its greatest presence in the Northeastern and Midwes ...
to
Sun Capital Partners
Sun Capital Partners, Inc., is an American private equity firm specializing in leveraged buyouts. Sun Capital was founded in 1995 by Marc J. Leder and Rodger Krouse, former classmates at the Wharton School of the University of Pennsylvania and ...
.
McDonald's has increased shareholder dividends for 25 consecutive years,
making it one of the
S&P 500 Dividend Aristocrats
The S&P 500 Dividend Aristocrats is a stock market index composed of the companies in the S&P 500 index that have increased their dividends in each of the past 25 consecutive years. It was launched in May 2005.
There are other indexes of divide ...
.
The company is ranked 131st on the
Fortune 500 of the largest United States corporations by revenue. In October 2012, its monthly sales fell for the first time in nine years. In 2014, its quarterly sales fell for the first time in seventeen years, when its sales dropped for the entirety of 1997.
In the United States, it is reported that drive-throughs account for 70 percent of sales. McDonald's closed down 184 restaurants in the United States in 2015, which was 59 more than what they planned to open.
This move was the first time McDonald's had a net decrease in the number of locations in the United States since 1970.
The McDonald's on-demand delivery concept, which began in 2017 with a partnership with
Uber Eats
Uber Eats is an online food ordering and delivery platform launched by Uber in 2014. Meals are delivered by couriers using cars, scooters, bikes, or on foot. It is operational in over 6,000 cities across 45 countries as of 2021. The process of ...
and added
DoorDash
DoorDash, Inc. is an American company that operates an online food ordering and food delivery platform. The company is based in San Francisco, California. It went public in December 2020 on NYSE and trades under the symbol DASH.
With a 56% m ...
in 2019 (with select locations adding
Grubhub
Grubhub Inc. is an American online and mobile prepared food ordering and delivery platform. The company is based in Chicago, Illinois.
Founded in 2004, it is a subsidiary of the Dutch company Just Eat Takeaway since 2021. Grubhub has been crit ...
in 2021), accounts for up to 3% of all business as of 2019.
The $100 billion in sales generated by McDonald's company-owned and franchise restaurants in 2019 accounts for almost 4% of the estimated $2.5 trillion global restaurant industry.
Finance
For the fiscal year 2018, McDonald's reported earnings of US$5.9 billion, with an annual revenue of US$21.0 billion, a decrease of 7.9% over the previous fiscal cycle. McDonald's shares traded at over $145 per share, and its market capitalization was valued at over US$134.5 billion in September 2018.
Business model
![Ray kroc 1976](https://upload.wikimedia.org/wikipedia/commons/3/3c/Ray_kroc_1976.jpg)
The company owns all the land on which its restaurants are situated, which is valued at an estimated $16 to $18 billion. The company earns a significant portion of its revenue from rental payments from franchisees. These rent payments rose 26 percent, between 2010 and 2015, accounting for one-fifth of the company's total revenue at the end of the period. In recent times, there have been calls to spin off the company's U.S. holdings into a potential
real estate investment trust
A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping cente ...
, but the company announced at its investor conference on November 10, 2015, that this would not happen. CEO
Steve Easterbrook discussed that pursuing the REIT option would pose too large a risk to the company's business model.
The United Kingdom and Ireland business model is different from the U.S, in that fewer than 30 percent of restaurants are franchised, with the majority under the ownership of the company. McDonald's trains its franchisees and management at
Hamburger University
Hamburger University is a training facility at the McDonald's Corporation global headquarters in Chicago, Illinois. It instructs high-potential restaurant managers, mid-managers and owner-operators in restaurant management. Hamburger Universit ...
located at its Chicago headquarters. In other countries, McDonald's restaurants are operated by joint ventures of McDonald's Corporation and other, local entities or governments.
According to ''
Fast Food Nation
''Fast Food Nation: The Dark Side of the All-American Meal'' is a 2001 book by Eric Schlosser. First serialized by ''Rolling Stone'' in 1999, the book has drawn comparisons to Upton Sinclair's 1906 muckraking novel '' The Jungle''. The book ...
'' by
Eric Schlosser
Eric Matthew Schlosser (born August 17, 1959) is an American journalist and author known for his investigative journalism, such as in his books ''Fast Food Nation'' (2001), '' Reefer Madness'' (2003), and '' Command and Control: Nuclear Weapons, ...
(2001), nearly one in eight workers in the U.S. have at some time been employed by McDonald's. Employees are encouraged by McDonald's Corp. to maintain their health by singing along to their favorite songs in order to relieve stress, attending
church services in order to have a lower
blood pressure, and taking two vacations annually in order to reduce risk for
myocardial infarction
A myocardial infarction (MI), commonly known as a heart attack, occurs when blood flow decreases or stops to the coronary artery of the heart, causing damage to the heart muscle. The most common symptom is chest pain or discomfort which may ...
. ''Fast Food Nation'' states that McDonald's is the largest private operator of playgrounds in the U.S., as well as the single largest purchaser of beef, pork, potatoes, and apples. The selection of meats McDonald's uses varies to some extent based on the culture of the host country.
In 2021, the company cut value meals and cheaper items from its menu as part of a focus on higher-priced items.
Headquarters
On June 13, 2016, McDonald's confirmed plans to move its global headquarters to
Chicago's West Loop neighborhood in the
Near West Side. The 608,000-square-foot structure opened on June 4, 2018, and was built on the former site of
Harpo Productions
Harpo Productions (or Harpo Studios) is an American multimedia production company founded by Oprah Winfrey and based in West Hollywood, California. It is the sole subsidiary of her media and entertainment company Harpo, Inc. The name "Harpo" is ...
(where ''
The Oprah Winfrey Show
''The Oprah Winfrey Show'', often referred to as ''The Oprah Show'' or simply ''Oprah'', is an American daytime syndicated talk show that aired nationally for 25 seasons from September 8, 1986, to May 25, 2011, in Chicago, Illinois. Produced ...
'' and several other Harpo productions taped).
The McDonald's former headquarters complex, McDonald's Plaza, is located in
Oak Brook, Illinois
Oak Brook is a village mostly in DuPage County with a small portion in Cook County in Illinois. Per the 2020 census, the population was 8,163. This suburb of Chicago has the headquarters of several companies and organizations including Ace Ha ...
. It sits on the site of the former headquarters and stabling area of Paul Butler, the founder of Oak Brook. McDonald's moved into the Oak Brook facility from an office within the
Chicago Loop
The Loop, one of Chicago's 77 designated community areas, is the central business district of the city and is the main section of Downtown Chicago. Home to Chicago's commercial core, it is the second largest commercial business district in Nort ...
in 1971.
Board of directors
, the board of directors had the following members:
*
Enrique Hernandez Jr., non-executive chairman; president and CEO of
Inter-Con Security
Inter-Con Security Systems, Inc. is a US-based multinational security services company headquartered in Pasadena, California that provides a full range of comprehensive security services. Inter-Con is one of the largest private security compani ...
* Lloyd H. Dean, president and CEO of
Dignity Health
Dignity Health (formerly Catholic Healthcare West) was a California-based not-for-profit public-benefit corporation that operates hospitals and ancillary care facilities in three states. Dignity Health was the fifth-largest hospital system in th ...
*
Chris Kempczinski, president and CEO of McDonald's
*
Robert A. Eckert
Robert A. "Bob" Eckert (born 1954) is an American businessman, chairman and CEO of Mattel from 2000 to 2011, CEO of Kraft Foods from 1997 to 2000, and an operating partner with the private equity firm Friedman Fleischer & Lowe.
Early life
Eckert ...
, operating partner of
Friedman Fleischer & Lowe
FFL Partners, LLC, previously known as Friedman Fleischer & Lowe, is an American private equity firm, founded in 1997 by Tully Friedman, Spencer Fleischer, David Lowe, and Christopher Masto. The firm makes investments primarily through leveraged ...
*
Margo Georgiadis, CEO of
Ancestry.com
Ancestry.com LLC is an American genealogy company based in Lehi, Utah. The largest for-profit genealogy company in the world, it operates a network of genealogical, historical records, and related genetic genealogy websites.
In November 2018, ...
*
Richard H. Lenny
Richard is a male given name. It originates, via Old French, from Old Frankish and is a compound of the words descending from Proto-Germanic ''*rīk-'' 'ruler, leader, king' and ''*hardu-'' 'strong, brave, hardy', and it therefore means 'stron ...
, non-executive of
Conagra Brands
Conagra Brands, Inc. (formerly ConAgra Foods) is an American consumer packaged goods holding company headquartered in Chicago, Illinois. Conagra makes and sells products under various brand names that are available in supermarkets, restaurants, ...
* John J. Mulligan, executive vice president and COO of
Target Corporation
Target Corporation ( doing business as Target and stylized in all lowercase since 2018) is an American big box department store chain headquartered in Minneapolis, Minnesota. It is the seventh largest retailer in the United States, and a com ...
*
Sheila A. Penrose
Sheila (alternatively spelled Shelagh and Sheelagh) is a common feminine given name, derived from the Irish name ''Síle'', which is believed to be a Gaelic form of the Latin name Caelia, the feminine form of the Roman clan name Caelius, meani ...
, non-executive chairman of
Jones Lang LaSalle
Jones Lang LaSalle Incorporated (JLL) is a global commercial real estate services company, founded in the United Kingdom with offices in 80 countries. The company also provides investment management services worldwide, including services to insti ...
*
John W. Rogers Jr., chairman and CEO of
Ariel Investments
Ariel Investments is an investment company located in Chicago, Illinois. It specializes in small and mid-capitalized stocks based in the United States.
History
Ariel was founded in 1983 by John W. Rogers, Jr., who is chairman and Co-CEO of the ...
*
Miles D. White, chairman and CEO of
Abbott Laboratories
*
Andrew J. McKenna
Andrew James McKenna Sr. (September 17, 1929 – February 7, 2023) was an American businessman and chairman emeritus of McDonald's from 2016 until his death, having been chairman from 2004 to 2016, and a director from 1991.
Early life
McKenna w ...
, chairman emeritus. Also chairman emeritus of Schwarz Supply Source
*Catherine M. Engelbert, commissioner of the
Women's National Basketball Association
The Women's National Basketball Association (WNBA) is an American professional basketball league. It is composed of twelve teams, all based in the United States. The league was founded on April 22, 1996, as the women's counterpart to the Natio ...
*
Paul S. Walsh, executive chairman of
McLaren Group
The McLaren Group is a British holding company based in Woking, England, which is involved in Formula One and other motorsport and the manufacture of luxury cars.
The group was founded by Ron Dennis shortly after his acquisition of the McLaren ...
On March 1, 2015, after being chief brand officer of McDonald's and its former head in the UK and northern Europe,
Steve Easterbrook became CEO, succeeding Don Thompson, who stepped down on January 28, 2015.
In November 2019, McDonald's board of directors voted to remove Easterbrook as CEO since he had violated corporate policies on personal conduct by entering into a relationship with a company employee. He was replaced as CEO by
Chris Kempczinski, who had been president of McDonald's USA.
In August 2022, McDonald's announced significant changes to its board. It said that existing director Sheila Penrose, chair of
JLL Inc., would retire and that Anthony Capuano, CEO of
Marriott International, executive vice president and worldwide chairman of pharmaceuticals Jennifer Taubert of
Johnson & Johnson, and Amy Weaver president and CFO of
Salesforce
Salesforce, Inc. is an American cloud-based software company headquartered in San Francisco, California. It provides customer relationship management (CRM) software and applications focused on sales, customer service, marketing automation, a ...
would join. The changes were unrelated to an effort by
activist investor
An activist shareholder is a shareholder who uses an equity stake in a corporation to put pressure on its management. A fairly small stake (less than 10% of outstanding shares) may be enough to launch a successful campaign. In comparison, a full ...
Carl Icahn
Carl Celian Icahn (; born February 16, 1936) is an American financier. He is the founder and controlling shareholder of Icahn Enterprises, a public company and diversified conglomerate holding company based in Sunny Isles Beach. Icahn takes la ...
.
Global operations
![McDonaldsWorldLocations](https://upload.wikimedia.org/wikipedia/commons/a/a6/McDonaldsWorldLocations.svg)
McDonald's has become emblematic of
globalization
Globalization, or globalisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences), is the process of foreign relation ...
, sometimes referred to as the "
McDonaldization
McDonaldization is a McWord developed by sociologist George Ritzer in his 1993 book '' The McDonaldization of Society''. For Ritzer, "McDonaldization" is when a society adopts the characteristics of a fast-food restaurant. The process of McDona ...
" of society. ''
The Economist
''The Economist'' is a British weekly newspaper printed in demitab format and published digitally. It focuses on current affairs, international business, politics, technology, and culture. Based in London, the newspaper is owned by The Eco ...
'' newspaper uses the "
Big Mac Index": the comparison of the cost of a
Big Mac
The Big Mac is a hamburger sold by the international fast food restaurant chain McDonald's. It was introduced in the Greater Pittsburgh area in 1967 and across the United States in 1968. It is one of the company's flagship products and signat ...
in various world
currencies
A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins.
A more general def ...
can be used to informally judge these currencies'
purchasing power parity. Switzerland has the most expensive Big Mac in the world as of July 2015, while the country with the least expensive Big Mac is India (albeit for a
Maharaja Mac
The Big Mac is a hamburger sold by the international fast food restaurant chain McDonald's. It was introduced in the Greater Pittsburgh area in 1967 and across the United States in 1968. It is one of the company's flagship products and signatu ...
—the next cheapest Big Mac is
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delta i ...
). The northernmost McDonald's restaurant in the world is located in
Rovaniemi
Rovaniemi ( , ; sme, Roavvenjárga ; smn, Ruávinjargâ; sms, Ruäʹvnjargg) is a city and municipality of Finland. It is the administrative capital and commercial centre of Finland's northernmost province, Lapland, and its southern part Per ...
,
Finland
Finland ( fi, Suomi ; sv, Finland ), officially the Republic of Finland (; ), is a Nordic country in Northern Europe. It shares land borders with Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of B ...
(after the restaurant in
Murmansk
Murmansk (Russian: ''Мурманск'' lit. "Norwegian coast"; Finnish: ''Murmansk'', sometimes ''Muurmanski'', previously ''Muurmanni''; Norwegian: ''Norskekysten;'' Northern Sámi: ''Murmánska;'' Kildin Sámi: ''Мурман ланнҍ'') ...
,
Russia
Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-eig ...
was closed in 2022) and the southernmost in the world is located in
Invercargill
Invercargill ( , mi, Waihōpai is the southernmost and westernmost city in New Zealand, and one of the southernmost cities in the world. It is the commercial centre of the Southland region. The city lies in the heart of the wide expanse of t ...
,
New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
.
Thomas Friedman
Thomas Loren Friedman (; born July 20, 1953) is an American political commentator and author. He is a three-time Pulitzer Prize winner who is a weekly columnist for ''The New York Times''. He has written extensively on foreign affairs, global ...
said that no country with a McDonald's had gone to war with another; however, the "
Golden Arches Theory of Conflict Prevention" is incorrect. Exceptions are the 1989 United States invasion of Panama, Kosovo War#The NATO bombing campaign, NATO's bombing of Serbia in 1999, the 2006 Lebanon War, and the 2008 South Ossetia war. McDonald's suspended operations in its corporate-owned stores in Crimea after Russia annexed the region in 2014. On August 20, 2014, as tensions Russia–United States relations, between the United States and Russia strained over Annexation of Crimea by the Russian Federation, the Russian annexation of Crimea, and the International sanctions during the Russo-Ukrainian War, resultant U.S. sanctions, the Russian government temporarily shut down four McDonald's outlets in Moscow, citing sanitary concerns. The company has operated in Russia since 1990 and at August 2014 had 438 stores across the country.
On August 23, 2014, Russian Deputy Prime Minister Arkady Dvorkovich ruled out any government move to ban McDonald's and dismissed the notion that the temporary closures had anything to do with the sanctions.
Some observers have suggested that the company should be given credit for increasing the standard of service in markets that it enters. A group of anthropologists in a study entitled ''Golden Arches East'' looked at the impact McDonald's had on East Asia and Hong Kong, in particular. When it opened in Hong Kong in 1975, McDonald's was the first restaurant to consistently offer clean restrooms, driving customers to demand the same of other restaurants and institutions. McDonald's has taken to partnering up with Sinopec, the second largest oil company in the People's Republic of China, as it takes advantage of the country's growing use of personal vehicles by opening numerous drive-thru restaurants. McDonald's has opened a McDonald's restaurant and McCafé on the underground premises of the French fine arts museum, The Louvre.
The company stated it would open vegetarian-only restaurants in India by mid-2013.
On January 9, 2017, 80% of the franchise rights in mainland China and in Hong Kong were sold for US$2.08 billion to a consortium of CITIC Limited (for 32%) and private equity funds managed by CITIC Capital (for 20%) and The Carlyle Group, Carlyle (for 20%), which CITIC Limited and CITIC Capital would form a joint venture to own the stake.
On March 8, 2022, McDonald's temporarily closed their 850 locations in Russia due to the 2022 Russian invasion of Ukraine, invasion of Ukraine, but will continue to pay the salary for 62,000 employees. Approximately nine percent of global revenue and three percent of operating profit come from Russia and 100 locations in Ukraine.
On May 16, 2022, McDonald's announced that the closures would become permanent and that it was selling all its 850 stores in Russia. Furthermore, 32 years after McDonald's entered the Soviet market, the American giant wants its current business to be "de-Arched", the company plans to retain its trademarks in Russia, meaning the locations would no longer be allowed to use the McDonald's name, logo, or menu. McDonald's also said it would continue to pay its Russian employees until the sale is finalized. The company has more than 60,000 Russian employees.
On June 10, 2022, a Russian McDonald's buyer announced a new logo as an attempt at rebranding. It featured one circle and two lines, which represented a burger and two french fries. The business was rebranded as Vkusno & tochka, Vkusno i tochka, which roughly translates to "Tasty – Period."
McDonald's is to reopen its stores in Ukraine after closing them in February in non-contested areas like Kyiv and Western Ukraine. During the closure McDonald's has continued to pay its employees, number some 10,000. Originally some 109 restaurants, it is unclear how many will reopen.
On November 11, 2022, McDonald's in Belarus announced that all 25 stores in 6 cities will rebrand and operate as Vkusno & tochka, Vkusno i tochka "in several weeks".
File:McDonalds - Orlando.jpg, Orlando, Florida, United States
File:MarkhamMcDonalds.JPG, Markham, Ontario, Canada
File:London 2012 Olympic Park 027 Worlds biggest McDonalds (7683019916).jpg, Pop-up restaurant at the Queen Elizabeth Olympic Park, Olympic Park in London, United Kingdom
File:McDonald's in São Paulo, Brazil (50928201302).jpg, São Paulo, Brazil
File:McDonalds Lugano Switzerland.jpg, Lugano, Switzerland
File:McDonald's in Tallinn.jpg, Tallinn, Estonia
File:McDonald's Sargodha.jpg, Sargodha, Pakistan
File:McDonald's in Finland at night.jpg, Tampere, Finland
File:McDonald's, 119 rue Saint-Lazare, Paris 18 June 2016.jpg, Paris, France
File:McDonalds in Dubai 3.JPG, Dubai, UAE
File:Kosher McDonalds.JPG, Kosher-McDonald's in Ashkelon, Israel
File:McDonald's Biff-square branch Busan Korea 20090223.jpg, Busan, South Korea
File:マクドナルド 2006 新宿 (2244192652).jpg, Tokyo, Japan
File:南京玄武湖柳苑·麦当劳餐厅 - panoramio.jpg, Nanjing, China
File:SM Mall of Asia McDonald's.jpg, SM Mall of Asia, Pasay, Philippines
File:McDonald's restoranas Vilniuje.jpg, Vilnius, Lithuania
File:McDonald's near Circular Quay, Sydney CBD.jpg, Sydney, Australia
Marketing and advertising
McDonald's has for decades maintained an extensive advertising campaign. In addition to the usual media (television, radio, and newspaper), the company makes significant use of billboards and signage, and also sponsors sporting events ranging from Little League Baseball, Little League to the FIFA World Cup and Olympic Games. Television has played a central role in the company's advertising strategy. To date, McDonald's has used 23 different slogans in United States advertising, as well as a few other slogans for select countries and regions.
Children's advertising
Celebrity endorsements
In 1992, basketball player Michael Jordan became the first celebrity to have a McDonald's value meal named after him. The "McJordan", a Quarter Pounder with pickles, raw onion slices, bacon and barbecue sauce, was available at
Chicago
(''City in a Garden''); I Will
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In March 2014, a special "Sprite 6 Mix by LeBron James" flavor of Sprite featuring the flavors of lemon-lime, orange, and cherry, debuted just before the NBA playoffs. James’ endorsement of Sprite has also included the seasonal "cranberry" and "winter-spiced cranberry" editions of the beverage. James’ deal with Coca Cola and Sprite ended in 2020, with a new partnership with Pepsi and Mountain Dew launching in 2021.
In September 2020, McDonald's partnered with rapper Travis Scott to release the "Travis Scott Meal", a Quarter Pounder with cheese, bacon, lettuce, pickles, ketchup and mustard; medium fries with barbecue sauce; and a Sprite, nationwide. Scott designed new uniforms for McDonald's employees and released Cactus Jack merchandise using vintage visuals from the fast food chain's history. The company followed up with the "J Balvin Meal", a Big Mac with no pickles; fries with ketchup; and a Oreo McFlurry, in a partnership with reggaeton singer J Balvin. LeBron James has been a spokesman for McDonald's from 2003 to 2017 while co-endorsing Coca Cola-Sprite (drink), Sprite since early in his career.
In 2021, McDonald's partnered with Korean Boy band, boy group BTS to release the "BTS Meal" in 50 countries around the world, starting on May 26 in select countries. The meal consists of a 10-piece Chicken McNuggets, medium fries, medium Coke, and for the first time in the United States, two spicy dipping sauces: Sweet chili sauce, Sweet Chili and Cajun cuisine, Cajun.
Space exploration
McDonald's and NASA explored an advertising agreement for a planned mission to the asteroid 449 Hamburga; however, the spacecraft was eventually cancelled.
Sponsorship in NASCAR
McDonald's entered the NASCAR Cup Series in 1977, sponsoring Richard Childress for one race. Between the years 1977 and 1986, McDonald's would only sponsor a handful of races in a season. In 1993, McDonald's became the full-time sponsor for the No. 27 Junior Johnson & Associates Ford Motor Company, Ford, driven by Hut Stricklin.
In 1994, Stricklin was replaced in the car by Jimmy Spencer (racing driver), Jimmy Spencer, who would go on to win twice that season. The following season McDonald's would move over to the No. 94 Bill Elliott Racing Ford, driven by team-owner Bill Elliott. McDonald's stayed with Elliott until the 2001 season when they moved again, this time to the No. 96 PPI Motorsports Ford, driven by rookie Andy Houston. However, when the team failed to field a car for the entire season, McDonald's became absent from NASCAR until 2004, when it joined Evernham Motorsports as a part-time sponsor for drivers Elliott, Kasey Kahne, Elliott Sadler, A. J. Allmendinger, and Reed Sorenson until 2010.
During the 2010 season, McDonald's would enter its longest partnership with a team at Chip Ganassi Racing, sponsoring the No. 1 Chevrolet driven by Jamie McMurray until his final race in the 2019 Daytona 500. McDonald's moved to CGR's No. 42 of Kyle Larson, whom the company sponsored until his suspension in 2020, and also had a one-race partnership with Evernham Motorsports, Richard Petty Motorsports' No. 43 Chevrolet driven by Bubba Wallace in 2019 and 2020. McDonald's continued working with the No. 42 under new driver Ross Chastain in 2021 and also joined Wallace's new team 23XI Racing as a "founding partner".
Sports awards and honors
McDonald's is the title sponsor of the McDonald's All-American Game, all-star basketball games played each year for top ranked amateur American and Canadian boys' and girls' high school basketball graduates.
Charity
McHappy Day
![Feed the clown](https://upload.wikimedia.org/wikipedia/commons/7/72/Feed_the_clown.JPG)
McHappy Day is an annual event at McDonald's, during which a percentage of the day's sales go to charitable organization, charity. It is the signature fundraising event for Ronald McDonald House Charities.
In 2007, it was celebrated in 17 countries: Argentina, Australia, Austria, Brazil, Canada, England, Finland, France, Guatemala, Hungary, Ireland, New Zealand, Norway, Sweden, Switzerland, the United States, and Uruguay.
According to the Australian McHappy Day website, McHappy Day raised $20.4 million in 2009. The goal for 2010 was $20.8 million.
McDonald's Monopoly donation
In 1995, St. Jude Children's Research Hospital received an anonymous letter postmarked in Dallas, Texas, containing a $1 million winning McDonald's Monopoly game piece. McDonald's officials came to the hospital, accompanied by a representative from the accounting firm Arthur Andersen, who examined the card under a jeweler's eyepiece, handled it with plastic gloves, and verified it as a winner. Although game rules prohibited the transfer of prizes, McDonald's waived the rule and made the annual $50,000 annuity payments for the full 20-year period through 2014, even after learning that the piece was sent by an individual involved in an embezzlement scheme McDonald's Monopoly#Fraud, intended to defraud McDonald's.
McRefugee
McRefugees are poor people in Hong Kong, Japan, and China who use McDonald's 24-hour restaurants as a temporary hostel.
Criticism
McDonald's has been criticised for numerous aspects of its business, including the health effects of its products, its treatment of employees, and other business practices. In the late 1980s, Phil Sokolof, a millionaire businessman who had suffered a heart attack at the age of 43, took out full-page newspaper ads in New York, Chicago, and other large cities accusing McDonald's menu of being a threat to American health, and asking them to stop using beef tallow to cook their
french fries.
In 1990, 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?'', criticizing its environmental, health, and labor record. The corporation wrote to the group demanding they desist and apologize, and, when two of the activists refused to back down, sued them for Defamation, libel leading to the "McLibel case", one of the longest cases in English civil law. A documentary McLibel (film), film of the McLibel Trial has been shown in several countries.
In 2001,
Eric Schlosser
Eric Matthew Schlosser (born August 17, 1959) is an American journalist and author known for his investigative journalism, such as in his books ''Fast Food Nation'' (2001), '' Reefer Madness'' (2003), and '' Command and Control: Nuclear Weapons, ...
's book ''
Fast Food Nation
''Fast Food Nation: The Dark Side of the All-American Meal'' is a 2001 book by Eric Schlosser. First serialized by ''Rolling Stone'' in 1999, the book has drawn comparisons to Upton Sinclair's 1906 muckraking novel '' The Jungle''. The book ...
'' included criticism of the business practices of McDonald's, particularly with respect to its use of political influence and targeting advertisements to children. In 2002, vegetarian groups, largely Hindu and Buddhism, Buddhist, successfully sued McDonald's for misrepresenting its french fries as vegetarian, when they contained beef broth.
Critical terms such as "McJob" and "McMansion" have been added to dictionaries.
Morgan Spurlock's 2004 documentary film ''Super Size Me'' claimed that McDonald's food was contributing to the increase of
obesity
Obesity is a medical condition, sometimes considered a disease, in which excess body fat has accumulated to such an extent that it may negatively affect health. People are classified as obese when their body mass index (BMI)—a person's ...
in society and that the company was failing to provide nutritional information about its food for its customers. Six weeks after the film premiered, McDonald's announced that it was eliminating the super size option, and was creating the adult Happy Meal.
Studies of litter have found that McDonald's is one of the most littered brands worldwide. In 2012, a Keep Australia Beautiful study found that McDonald's was the most littered brand in Queensland, Australia, Queensland.
In response to public pressure, McDonald's has sought to include more healthy choices in its menu, announcing in May 2008 that, in the United States and Canada, it has switched to using cooking oil that contains no trans fats for its french fries, and canola-based oil with corn and soy oils, for its baked items, pies and cookies, by end of 2018. The company introduced a new slogan to its recruitment posters: "Not bad for a McJob".
Since McDonald's began receiving criticism for its environmental practices in the 1970s, it has significantly reduced its use of materials. In 1990, McDonald's worked with the Environmental Defense Fund to stop using "clamshell (container), clam shell"-shaped Foam food container, styrofoam food containers to store its food products.
Legal cases
McDonald's has been involved in a number of lawsuits and other legal cases, most of which involved
trademark
A trademark (also written trade mark or trade-mark) is a type of intellectual property consisting of a recognizable sign, design, or expression that identifies products or services from a particular source and distinguishes them from othe ...
disputes. The company has threatened many food businesses with legal action unless it drops the 'Mc' or 'Mac' from trading names.
European Union
In April 2017, Irish fast-food chain Supermac's submitted a request to the European Union Property Office to cancel McDonald's owned trademarks within the European Union, claiming that McDonald's engaged in "trademark bullying; registering brand names... which are simply stored away in a war chest to use against future competitors", after the trademarks had prevented Supermac's from expanding out of Ireland. The EUIPO ruled in Supermac's favour, finding that McDonald's "has not proven genuine use" of many trademarks, cancelling McDonald's owned trademarks such as "Big Mac" and certain "Mc"-related trademarks within the European Union.
Burger King responded by "trolling" McDonald's by giving their sandwiches names that included the words "Big Mac", that also mocked the original burger, which included, "Like a Big Mac But Juicier", "Like a Big Mac, But Actually Big" and "Big Mac-ish But Flame-Grilled of Course".
The McDonald’s group has had proceedings taken against it from the French Tax Authorities, with possible charges of criminal tax fraud. In July 2022, the group reached an agreement with the French judicial authorities to end criminal proceedings for tax fraud.
Malaysia
On September 8, 2009, McDonald's Malaysian operations lost a lawsuit to prevent another restaurant calling itself McCurry. McDonald's lost in an appeal to Malaysia's highest court, the Federal Court. On December 29, 2016, McDonald's Malaysia issued a statement that said only certified halal cakes are allowed inside its restaurants nationwide.
Australia
In April 2007, in Perth, Western Australia, McDonald's pleaded guilty to five charges relating to the employment of children under 15 in one of its outlets and was fined A$8,000.
United Kingdom
The longest-running legal action of all time in the UK was the McLibel case against two defendants who criticized a number of aspects of the company. The trial lasted 10 years and called 130 witnesses. The European Court of Human Rights deemed that the unequal resources of the litigants breached the defendants rights to freedom of speech and biased the trial. The result was widely seen as a "PR disaster" for McDonald's.
In the end of November 2013, controversy arose after the Rucka Rucka Ali song "Only 17", a parody of "Just a Dream (Nelly song), Just a Dream" by Nelly, was accidentally played uncensored over the speakers at a McDonald's restaurant in Wales. Subsequently, McDonald's issued an apology to the offended customers. That same week, Rucka Rucka Ali responded to the controversy on his YouTube channel by jokingly demanding a personal apology from the restaurant.
United States
The 1994 court case ''Liebeck v. McDonald's Restaurants'' examined a McDonald's practice of serving coffee so hot that when spilled, it caused third degree burns requiring weeks of hospitalization and skin grafting surgery.
The trial outcome was an award of $2.86 million (equivalent to $ million in ) for the plaintiff, 81-year old Stella Liebeck.
The amount was later reduced to $640,000 (equivalent to $ million in ). In 2019, a McDonald's employee, Jenna Ries, sued the restaurant chain over allowing sexual harassment in the work place and described the Workplace, working environment as "toxic".
See also
* Arcos Dorados Holdings
* ''The Founder'', a 2016 a biopic of Ray Kroc and the business history of McDonald's
* International availability of McDonald's products
* List of countries with McDonald's restaurants
* List of hamburger restaurants
* List of largest employers
* List of fast food restaurant chains
* MaDonal, a restaurant in Iraq that copies many features of McDonald's
* ''Maxime, McDuff & McDo'', 2002 documentary film about the unionizing of a McDonald's in Montreal
* Sundae Bloody Sundae (slogan), a public relations controversy in Portugal
* ''McMillions'', a 2020 HBO documentary series, documentary miniseries about the McDonald's Monopoly#Fraud, McDonald's Monopoly promotion scam that occurred between 1989 and 2001
References
Further reading
* Ashenfelter, Orley, and Štěpán Jurajda. "Minimum Wages, Wages, and Price Pass-Through: The Case of McDonald’s Restaurants." ''Journal of Labor Economics'' 40.S1 (2022): S179-S201
abstract* Bryman, Alan. "McDonald's as a Disneyized institution: Global implications." ''American Behavioral Scientist'' 47.2 (2003): 154-167
online*
* Eckhardt, Giana M., and Michael J. Houston. "Cultural paradoxes reflected in brand meaning: McDonald's in Shanghai, China." ''Journal of International Marketing'' 10.2 (2002): 68-8
online
*
*
* Kincheloe, Joe. "The complex politics of McDonald’s and the new childhood: Colonizing kidworld." ''International Critical Childhood Policy Studies Journal'' 4.1 (2011): 1-46
online* Kincheloe, Joe L. ''The sign of the burger: McDonald's and the culture of power'' (Temple University Press, 2002).
* Kottak, Conrad P. "Rituals at McDonald's." ''Journal of American culture'' 1.2 (1978): 370-37
online
* Kroc, Ray. ''Grinding It Out: The Making of McDonald's'', 1977 a primary source
* Langert, Bob. ''The battle to do good: Inside McDonald’s sustainability journey'' (2019).
* Livesey, Sharon M. "McDonald's and the Environmental Defense Fund: A case study of a green alliance." ''Journal of Business Communication'' (1973) 36.1 (1999): 5-39.
* Love, John F. ''McDonald's: Behind The Arches'' (1995)
online* Napoli, Lisa. ''Ray & Joan: The Man Who Made the McDonald's Fortune and the Woman Who Gave It All Away'' 2016 .
* Ram, Uri. "Glocommodification: How the global consumes the local--McDonald’s in Israel." ''Current Sociology'' 52.1 (2004): 11-31
online* Royle, Tony. ''Working for McDonald's in Europe: the unequal struggle'' (Routledge, 2004).
* Schlosser, Eric. ''Fast Food Nation: The Dark Side of the All-American Meal'' by 2001 .
* Smith, Andrew F. ed. ''Encyclopedia of Junk Food and Fast Food'' (2006)
* Tien, Nguyen Hoang. "Customization and Standardization of the Business Strategy of Foreign Enterprises in Vietnam–the McDonald’s Case and the Fast Food Sector" ''International journal of research in marketing management and sales'' 1.2 (2019): 44-50
online* Vignali, Claudio. "McDonald’s: 'think global, act local'–the marketing mix." ''British food journal'' (2001
online
* Watson, James L., ed. ''Golden arches east: McDonald's in East Asia'' (Stanford University Press, 2006
excerpt
External links
Official websiteCorporate website
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