McDonalds in the United Kingdom

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Case Details:

Case Code : BSTR339
Case Length : 32 Pages
Period : 1974-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : McDonald's Corporation
Industry : Fast food
Countries : UK

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"It is important to note that our business in the U.K. remains strong. Even in spite of declining consumer confidence in the U.K., our sales, our guest counts, and our margins continued to grow in the second quarter and were a strong contributor to our overall results." ¹

- Ralph Alvarez, President and Chief Operating Officer of McDonald's Corporation, in 2008.

"Everyone will make their own decision on what suits them and their family and their lifestyle. But it's good-quality food at affordable prices and if that works for families then they'll keep on coming back. On average, our customers come three times a month. So out of 90 meals a month, three will be at McDonald's. I'm perfectly comfortable with that fitting in to anyone's diet." ²

- Steve Easterbrook , CEO of McDonald's Corporation, UK, in 2009.

Overcoming Challenges, Gaining Momentum

For the first quarter ended March 31, 2009, US-based fast food chain McDonald's Corporation (McDonald's) delivered strong sales growth in the UK despite the global economic recession³.

McDonalds in the United Kingdom - Next Page>>

1] "McDonald's Q2 2008 Earnings Call Transcript," www.seekingalpha.com, July 23, 2008.
2] Dominic Walsh, "British Beef, Reduced Salt, Lower Sugar, Free Range Eggs, Roast Coffee - Is This Really McDonald's?" www.business.timesonline.co.uk, March 9, 2009.
3] The global economic crisis began in July 2007 due to a loss in the value of securitized mortgages in the US resulted in a liquidity crisis. The reasons attributed for the downfall of the economy were collapse of the US mortgage market that led to bursting of the housing bubble in the US, soaring commodity prices, and stock market volatility. In September 2008, the crisis deepened, as stock markets crashed worldwide, large financial institutions collapsed, and several mortgage lenders and insurance companies went bankrupt.

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