Description
Company Profile
Mission Statement
Ownership & Organization
Alliances
Products & Technology
Market Trends & Growth
Key Players
SWOT Analysis
Financial Overview
Past and Present
Financial Ratio Analysis
Probable Outcomes and Predictable Crises
Critical Success Factors
Presentation
Overview
Ricardo:
?
Company Profle
?
Mission Statement
?
Ownership & Organization
Vania:
?
Alliances
?
Products & echnology
?
Mar!et rends & "rowth
?
#ey Players
Presentation
Overview
Andrew:
?
S$O Analysis
ali%:
?
&inancial O'er'iew
?
Past and Present
?
&inancial Ratio Analysis
?
Pro%a%le Outcomes and Predicta%le
Crises
?
Critical Success &actors
Background &
Overview
Company Profle
?
&ounded in ()*+
?
Operates in more than (,-
countries glo%ally
?
Parent company ./M 0rands
?
Ser'es appro1imately (+
million customers in more than
*2+,, restaurants glo%ally
Background &
Overview
Mission Statement
./M 0RA34S:
?
0uild their %rands in China
?
Aggressi'e international
e1pansion
?
5mpro'e /6S6 %rand position
?
4ri'e long term Shareholder
and 7ranchisee 'alue
Background &
Overview
Ownership & Organization
?
4a'id 3o'a!2 C8O o7 ./M
0rands
?
Roger 8aton C8O o7 #&C
?
#&C &ranchise %rea!down:
?
Restaurant "eneral Manager
?
Assistant Managers
?
A'erage o7 +,9:* employees
per store
Background &
Overview
Ownership and
Organization Company Franchisee Total
Beginning of
Year
956 4,210 5,166
New Builds 6 74 80
Acquisitions
None
Refranchises 60 60 None
Closures 47 107 154
ther None !1"# !1"#
$nd of Year
%otal
855 4&""5 5&080
' of %otal 17 8( 100
Background &
Overview
Alliances
?
Pizza ;ut & aco 0ell
?
.um 0rands: $orld<s largest
proprietor o7 multi9%randed
7ast97ood locations
?
#&C holds =)> o7 .um
0rands mar!et share
Background &
Overview
Charita%le Alliances
?
Animal $el7are
?
$orld ;unger
Background &
Overview
Products & echnology
#&C<S Point o7 4i?erence:
?
Secret Recipe 7or &ried Chic!en
&ast9&ood Competiti'e echnology:
?
Automation
?
;eating
?
&ood Production
?
Shel79@i7e
?
5ngredients
Market Overview
Mar!et rends & "rowth
?
"lo%al Recession A 5ncrease in
consumption o7 cheaper 7oods
?
B:> o7 Americans eat 7ast 7ood
out o7 con'enience
?
::> o7 Americans and :,> o7
the Asia Pacifc Mar!et eat 7ast9
7ood at least once a wee!
Market Overview
Mar!et rends & "rowth
?
#&C<s usually clustered in
ur%an centres
?
Soaring 7ood prices nota%ly
wheat2 health and diet concerns
ha'e slowed growth o7 7ast 7ood
chains since +,,= in /6S6
?
8merging Mar!ets: Pre7er
international %rands
Market Overview
#ey Players
?
5nternational:
?
Mc4onaldCs
?
4omestic:
?
$endy<s
?
0urger #ing
?
Sonic
?
Dac! in the 0o1
Strategic Analysis
Strengths: Mar!et Share
?
#&C has roughly E+> o7 the
glo%al chic!en on the %one
mar!et share
?
3early : times as much as their
nearest competitor
?
China +,,)2 (=> increase in
mar!et share
?
Aided #&C in declining /6S6
Mar!et growth
Strategic Analysis
Strengths
4i?erentiation:
?
rademar!ed items and
Recipes
5nternational Presence:
?
"lo%al 4i'ersifcation and
a%ility to e1pand rapidly Fi6e6
ChinaG
Strategic Analysis
Strengths
USA 5,166
Mainland China 2,497
Japan 1,150
Great Britain 689
Canada 780
Australia 572
Indonesia 336
Malaysia 431
Strategic Analysis
$ea!nesses
Systemic:
?
5ntegrity o7 Supplier &
4istri%utors
?
4ecentralization o7 Ownership9
&ranchisee model Fi6e6
Huality2ser'ice2cleaniness2 etc6G
0randing:
?
Mom and &amily 'alues: ;ealth
and weight issues
Strategic Analysis
Opportunities
Sta%ility 5n Commodity
Pricing:
?
Analysts indicate that
chic!en prices should stay
sta%le in short term
?
0enefcial in 7urther
maintaining costs to pro'ide
%etter margins
Strategic Analysis
/6S Chic!en Price per l%s6
FcentsG
Month Value
Feb 2009 86.70
Mar 2009 85.73
Apr 2009 85.38
May 2009 86.96
Jun 2009 88.17
Jul 2009 88.56
Aug 2009 86.77
Sep 2009 84.88
Oct 2009 82.85
!" 2009 82.13
)ec "00* 82.15
Jan 2010 83.00
Strategic Analysis
Opportunities
8merging Mar!ets:
?
8stimated *> growth rate in
emerging economies
?
Percei'e %rands as superior to
local
?
Asia Pacifc region rates high
glo%ally in 7ast 7ood 7reHuency
'isits
?
@ow @a%our Costs
Strategic Analysis
Opportunities
4i'ersifcation in Mature
Mar!ets:
?
4e'elop 5ncremental sales
layers Fi6e6 0rea!7ast2 new
%e'erages2 e1panded protein
options2 etc6G
81pansion o7 Multi%randing:
?
Single store location pairings
with Pizza ;ut and aco 0ell
Strategic Analysis
hreats
?
Mature Mar!et 4iet and ;ealth
concerns FB*> o7 Americans eat
less 7ried chic!en due to health
concernsG
?
&oreign Currency &luctuations
?
Animal $el7are Acti'ists Fi6e6
P8AG
?
8merging Competition in
Mature Mar!ets Fi6e6 Chic!en &il
AG
?
A'ian &lue
Financial Overview
PastIPresent
Past:
?
Steady share price increase o'er past
ten years
?
#&C /6S6 Sales per unit ha'e grown
%y +> o'er last E years
?
Present:
?
.um 0rands achie'ed =6)> growth in
+,,) compared to +,,-
?
Annual Sales per restaurant in /6S6
are around (6: million2 on par with
industry
Financial Overview
PastIPresent
#&C /6S6 Sales per /nit:
Year End
thousands
2008 2007 2006 2005 2004 % groth
+,C -. /*67 /**4 /*77 /*54 /8*6 "'
Financial Overview
PastIPresent
#&C 4i'ision Sales "rowth:
!n "illions 2008 2007 2006 2005 2004 5#year groth
+,C -0.0 Co12an3 .ales4
/10"
,ranchisee .ales4
/400
/10"
/400
/104
/(0*
/104
/(08
/104
/(06
!4'#
"'
+,C
5nternational
Co12an3
.ales4 /104
,ranchisee
.ales4 /706
/10(
/607
/101
/507
/101
/50"
/100
/407
*'
1('
+,C China Co12an3
.ales4 /"05
,ranchisee
.ales4 /101
/107
/101
/10(
/008
/100
/007
/00*
/006
"8'
18'
Financial Overview
&inancial Ratio Analysis
4e%tI8Huity:
.um 0rands: :6+-
Mc4onalds: ,6B*
5ndustry: +6,,
"ross Proft Margin:
.um 0rands: +,6=>
Mc4onalds: EE6,>
5ndustry: :*6+>
Return on Assets:
.um 0rands: (*>
Mc4onalds: (*6(>
5ndustry: (+6*>
Financial Overview
&inancial Ratio Analysis
8arnings Per Share:
.um 0rands: +6++
Mc4onalds: E6((
Current Ratio:
.um 0rands: ,6B
Mc4onalds: (6(
5ndustry: (6,
5n'entory urno'er:
.um 0rands: *=6E
Mc4onalds: ((B
5ndustry: )B6-
Financial Overview
&inancial Ratio Analysis
Juic! Ratio:
.um 0rands: ,6E
Mc4onalds: (6,
5ndustry: (6,
Asset urno'er:
.um 0rands: (6(E
Mc4onalds: ,6-
5ndustry: (6(
Probable Outcomes &
Predictable Crises
(6 Continue rapid e1pansion in
emerging mar!ets
+6 4i'ersifcation o7 Menus in
3orth America
:6 5mpro'e control processes on
ethical operations
E6 5mpro'e operational and
supply chain eKciency
Critical Success
Factors
(G 4e'elop %rand eHuity in
new mar!ets and sustain a
di?erentiated %rand in
e1isting mar!ets
+G 4e'elop and sustain
healthy relationships with
7ranchisees and other sta!e
holders
Critical Success
Factors
:G Pro'ide an in7rastructure that
is Le1i%le enough to adapt to
local mar!ets under the
um%rella %rand
EG 8nsure the integrity o7 supply
and distri%ution networ!s in the
7ace o7 international 'ariances2
en'ironmental crises and
intensi7ying ethical concerns6
doc_852988956.ppt
Company Profile
Mission Statement
Ownership & Organization
Alliances
Products & Technology
Market Trends & Growth
Key Players
SWOT Analysis
Financial Overview
Past and Present
Financial Ratio Analysis
Probable Outcomes and Predictable Crises
Critical Success Factors
Presentation
Overview
Ricardo:
?
Company Profle
?
Mission Statement
?
Ownership & Organization
Vania:
?
Alliances
?
Products & echnology
?
Mar!et rends & "rowth
?
#ey Players
Presentation
Overview
Andrew:
?
S$O Analysis
ali%:
?
&inancial O'er'iew
?
Past and Present
?
&inancial Ratio Analysis
?
Pro%a%le Outcomes and Predicta%le
Crises
?
Critical Success &actors
Background &
Overview
Company Profle
?
&ounded in ()*+
?
Operates in more than (,-
countries glo%ally
?
Parent company ./M 0rands
?
Ser'es appro1imately (+
million customers in more than
*2+,, restaurants glo%ally
Background &
Overview
Mission Statement
./M 0RA34S:
?
0uild their %rands in China
?
Aggressi'e international
e1pansion
?
5mpro'e /6S6 %rand position
?
4ri'e long term Shareholder
and 7ranchisee 'alue
Background &
Overview
Ownership & Organization
?
4a'id 3o'a!2 C8O o7 ./M
0rands
?
Roger 8aton C8O o7 #&C
?
#&C &ranchise %rea!down:
?
Restaurant "eneral Manager
?
Assistant Managers
?
A'erage o7 +,9:* employees
per store
Background &
Overview
Ownership and
Organization Company Franchisee Total
Beginning of
Year
956 4,210 5,166
New Builds 6 74 80
Acquisitions
None
Refranchises 60 60 None
Closures 47 107 154
ther None !1"# !1"#
$nd of Year
%otal
855 4&""5 5&080
' of %otal 17 8( 100
Background &
Overview
Alliances
?
Pizza ;ut & aco 0ell
?
.um 0rands: $orld<s largest
proprietor o7 multi9%randed
7ast97ood locations
?
#&C holds =)> o7 .um
0rands mar!et share
Background &
Overview
Charita%le Alliances
?
Animal $el7are
?
$orld ;unger
Background &
Overview
Products & echnology
#&C<S Point o7 4i?erence:
?
Secret Recipe 7or &ried Chic!en
&ast9&ood Competiti'e echnology:
?
Automation
?
;eating
?
&ood Production
?
Shel79@i7e
?
5ngredients
Market Overview
Mar!et rends & "rowth
?
"lo%al Recession A 5ncrease in
consumption o7 cheaper 7oods
?
B:> o7 Americans eat 7ast 7ood
out o7 con'enience
?
::> o7 Americans and :,> o7
the Asia Pacifc Mar!et eat 7ast9
7ood at least once a wee!
Market Overview
Mar!et rends & "rowth
?
#&C<s usually clustered in
ur%an centres
?
Soaring 7ood prices nota%ly
wheat2 health and diet concerns
ha'e slowed growth o7 7ast 7ood
chains since +,,= in /6S6
?
8merging Mar!ets: Pre7er
international %rands
Market Overview
#ey Players
?
5nternational:
?
Mc4onaldCs
?
4omestic:
?
$endy<s
?
0urger #ing
?
Sonic
?
Dac! in the 0o1
Strategic Analysis
Strengths: Mar!et Share
?
#&C has roughly E+> o7 the
glo%al chic!en on the %one
mar!et share
?
3early : times as much as their
nearest competitor
?
China +,,)2 (=> increase in
mar!et share
?
Aided #&C in declining /6S6
Mar!et growth
Strategic Analysis
Strengths
4i?erentiation:
?
rademar!ed items and
Recipes
5nternational Presence:
?
"lo%al 4i'ersifcation and
a%ility to e1pand rapidly Fi6e6
ChinaG
Strategic Analysis
Strengths
USA 5,166
Mainland China 2,497
Japan 1,150
Great Britain 689
Canada 780
Australia 572
Indonesia 336
Malaysia 431
Strategic Analysis
$ea!nesses
Systemic:
?
5ntegrity o7 Supplier &
4istri%utors
?
4ecentralization o7 Ownership9
&ranchisee model Fi6e6
Huality2ser'ice2cleaniness2 etc6G
0randing:
?
Mom and &amily 'alues: ;ealth
and weight issues
Strategic Analysis
Opportunities
Sta%ility 5n Commodity
Pricing:
?
Analysts indicate that
chic!en prices should stay
sta%le in short term
?
0enefcial in 7urther
maintaining costs to pro'ide
%etter margins
Strategic Analysis
/6S Chic!en Price per l%s6
FcentsG
Month Value
Feb 2009 86.70
Mar 2009 85.73
Apr 2009 85.38
May 2009 86.96
Jun 2009 88.17
Jul 2009 88.56
Aug 2009 86.77
Sep 2009 84.88
Oct 2009 82.85
!" 2009 82.13
)ec "00* 82.15
Jan 2010 83.00
Strategic Analysis
Opportunities
8merging Mar!ets:
?
8stimated *> growth rate in
emerging economies
?
Percei'e %rands as superior to
local
?
Asia Pacifc region rates high
glo%ally in 7ast 7ood 7reHuency
'isits
?
@ow @a%our Costs
Strategic Analysis
Opportunities
4i'ersifcation in Mature
Mar!ets:
?
4e'elop 5ncremental sales
layers Fi6e6 0rea!7ast2 new
%e'erages2 e1panded protein
options2 etc6G
81pansion o7 Multi%randing:
?
Single store location pairings
with Pizza ;ut and aco 0ell
Strategic Analysis
hreats
?
Mature Mar!et 4iet and ;ealth
concerns FB*> o7 Americans eat
less 7ried chic!en due to health
concernsG
?
&oreign Currency &luctuations
?
Animal $el7are Acti'ists Fi6e6
P8AG
?
8merging Competition in
Mature Mar!ets Fi6e6 Chic!en &il
AG
?
A'ian &lue
Financial Overview
PastIPresent
Past:
?
Steady share price increase o'er past
ten years
?
#&C /6S6 Sales per unit ha'e grown
%y +> o'er last E years
?
Present:
?
.um 0rands achie'ed =6)> growth in
+,,) compared to +,,-
?
Annual Sales per restaurant in /6S6
are around (6: million2 on par with
industry
Financial Overview
PastIPresent
#&C /6S6 Sales per /nit:
Year End
thousands
2008 2007 2006 2005 2004 % groth
+,C -. /*67 /**4 /*77 /*54 /8*6 "'
Financial Overview
PastIPresent
#&C 4i'ision Sales "rowth:
!n "illions 2008 2007 2006 2005 2004 5#year groth
+,C -0.0 Co12an3 .ales4
/10"
,ranchisee .ales4
/400
/10"
/400
/104
/(0*
/104
/(08
/104
/(06
!4'#
"'
+,C
5nternational
Co12an3
.ales4 /104
,ranchisee
.ales4 /706
/10(
/607
/101
/507
/101
/50"
/100
/407
*'
1('
+,C China Co12an3
.ales4 /"05
,ranchisee
.ales4 /101
/107
/101
/10(
/008
/100
/007
/00*
/006
"8'
18'
Financial Overview
&inancial Ratio Analysis
4e%tI8Huity:
.um 0rands: :6+-
Mc4onalds: ,6B*
5ndustry: +6,,
"ross Proft Margin:
.um 0rands: +,6=>
Mc4onalds: EE6,>
5ndustry: :*6+>
Return on Assets:
.um 0rands: (*>
Mc4onalds: (*6(>
5ndustry: (+6*>
Financial Overview
&inancial Ratio Analysis
8arnings Per Share:
.um 0rands: +6++
Mc4onalds: E6((
Current Ratio:
.um 0rands: ,6B
Mc4onalds: (6(
5ndustry: (6,
5n'entory urno'er:
.um 0rands: *=6E
Mc4onalds: ((B
5ndustry: )B6-
Financial Overview
&inancial Ratio Analysis
Juic! Ratio:
.um 0rands: ,6E
Mc4onalds: (6,
5ndustry: (6,
Asset urno'er:
.um 0rands: (6(E
Mc4onalds: ,6-
5ndustry: (6(
Probable Outcomes &
Predictable Crises
(6 Continue rapid e1pansion in
emerging mar!ets
+6 4i'ersifcation o7 Menus in
3orth America
:6 5mpro'e control processes on
ethical operations
E6 5mpro'e operational and
supply chain eKciency
Critical Success
Factors
(G 4e'elop %rand eHuity in
new mar!ets and sustain a
di?erentiated %rand in
e1isting mar!ets
+G 4e'elop and sustain
healthy relationships with
7ranchisees and other sta!e
holders
Critical Success
Factors
:G Pro'ide an in7rastructure that
is Le1i%le enough to adapt to
local mar!ets under the
um%rella %rand
EG 8nsure the integrity o7 supply
and distri%ution networ!s in the
7ace o7 international 'ariances2
en'ironmental crises and
intensi7ying ethical concerns6
doc_852988956.ppt