Name: Abdelmessih Ashraf Sobhy

ID: 20211169
Course: Intro. To Marketing
 Assignment 1

1)What is Product
Definition: Product refers to the functions and features of a good or
service

• Should satisfy the needs of the customer

• May have a Unique Selling Proposition (USP)
• Product also includes a range of factors such as (packaging, quality,
warranties, after-sales service and branding) .

The Product is : Fast Food

2)Name of a product Definition: The name that a business,

company or enterprise chooses to give a product created.
Product Name: McDonald’s
3)Stages:
Stages in the Product Lifecycle PLC
Development: – high costs but no sales Launch –introduction stage high
expenditure on
promotion and product development, low sales
Growth: sales increase and product should break-even
Maturity: sales stabilize, less expenditure on promotion needed, revenue &
profit should be high
Decline: sales decline, extension strategies can be adopted or the product
withdrawn

4) High low Price

Historical daily share price chart and data for McDonald's since 1970 adjusted for
splits. The latest closing stock price for McDonald's as of October 28, 2022 is
274.52.

 The all-time high McDonald's stock closing price was 274.52 on October
28, 2022.
 The McDonald's 52-week high stock price is 274.81, which is 0.1% above
the current share price.
 The McDonald's 52-week low stock price is 217.68, which is 20.7% below
the current share price.
 The average McDonald's stock price for the last 52 weeks is 251.24.

5) Profit
July 26 (Reuters) - McDonald's Corp (MCD.N) on Tuesday reported comparable
sales and profit above market expectations even as expenses soared, as the burger
chain benefited from steady online demand, new product launches and higher
prices.
The chain's global same-store sales jumped nearly 10% in the second quarter
compared with expectation of a 6.5% rise.

Even so, the Chicago-based company said it is considering whether to add more
discounted menu options because soaring inflation - particularly in Europe - is
leading some lower-income consumers to "trade-down" to cheaper items and to
buy fewer big combination meals, Chief Financial Officer Kevin Ozan said during
a call with investors.

To draw customers, McDonald's introduced online-exclusive offers that boosted its

app downloads, while the launch of new offerings, including Spicy Chicken
McNuggets and Chocolatey Pretzel McFlurry, has also helped.

McDonald's shares rose about 1.8% in early trading.

U.S. sales rose 3.7% for the quarter, versus estimates of about 3%, driven by menu
price increases in the high single digits, Ozan said.

The number of customers per order declined. Drive-thru sales, which soared during
the pandemic, dropped back to pre-pandemic levels as restaurants reopened, he
said.

Meanwhile, McDonald's expects its costs for food and paper to be 12% to 14%
higher through this year.

Margins for company-operated restaurants "were hampered by significant

commodity and wage inflation as well as rising energy costs," Ozan said. "We
expect these inflationary pressures will continue to impact margins for the
remainder of the year."

Total expenses surged 25% to $4.01 billion in the second quarter, weighing on net
income, which nearly halved to $1.19 billion, or $1.60 per share.

The results included $1.2 billion of charges related to the sale of its business in
Russia. On an adjusted basis, earnings per share of $2.55 exceeded estimates of
$2.47, according to Refinitiv data.

Total revenue fell 3% to $5.72 billion and missed expectations of $5.81 billion, hit
by weak demand in China due to COVID-19 resurgences and related government
curbs.
6) Sales
"Our third quarter 2022 performance demonstrated broad-based business
momentum as global comparable sales increased nearly 10%. I remain confident in
our Accelerating the Arches strategy as our teams around the world continue to
execute at a high level," said McDonald's President and Chief Executive Officer,
Chris Kempczinski. "As the macroeconomic landscape continues to evolve and
uncertainties persist, we are operating from a position of competitive strength. I
also want to thank our franchisees, who have done a tremendous job navigating
this environment, while providing great value to our customers."

Third quarter financial performance:

 Global comparable sales increased 9.5%, reflecting positive comparable

sales across all segments:
 U.S. increased 6.1%
 International Operated Markets segment increased 8.5%
 International Developmental Licensed Markets segment increased
16.7%
 Consolidated revenues decreased 5% (increased 2% in constant currencies).
 Systemwide sales increased 2% (9% in constant currencies).
 Consolidated operating income decreased 7% (increased 1% in constant
currencies). Excluding $106 million of prior year gains related to the sale of
McDonald's Japan stock, consolidated operating income decreased 4%
(increased 4% in constant currencies).
 Diluted earnings per share was $2.68, a decrease of 6% (flat in constant
currencies). Excluding the prior year gains described above of $0.10 per
share, diluted earnings per share decreased 3% (increased 4% in constant
currencies).
 The Company declared a 10% increase in its quarterly cash dividend to
$1.52 per share.
 7) Competitors
Burger King

Burger King is probably the most direct competitor for McDonald's, with its staple
Whopper challenging the Big Mac in the burger war. Burger King recorded over
$20 billion in revenue for the full year ending 2020 worldwide.4

As of the end of 2020, Burger King had more than 18,000 locations in more than
100 countries, with roughly 11 million daily visitors worldwide. Independent
franchisees own nearly all of those restaurants. Once a publicly-traded company,
Burger King became private after it was purchased by 3G Capital in 2010 for $4
billion.5 Burger King is owned by parent company Restaurant Brands
International, which also owns Tim Hortons and Popeyes.6

Wendy’s

Wendy’s is a fast-food restaurant chain with more than 6,800 locations worldwide.
Like Burger King and McDonald's, Wendy's focuses on burgers, fries, and other
classic American food.

As of July 30, 2021, Wendy's had a market cap of $5.1 billion, with the stock
trading around $23 per share. The average trading volume was about 4.8 million
shares per day.7 The company reported revenue of $1.71 billion in 2020.8
However, total system sales were higher because sales at franchised locations are
not included in consolidated revenues.

Yum Brands

Yum Brands (YUM) operates several large quick-service restaurant chains,

including Taco Bell, KFC (Kentucky Fried Chicken), and Pizza Hut. The 2020
annual report notes that the company had more than 50,000 restaurants with 290
country-brand combinations; more than 98% of them were franchised.9

The company's stock was trading around $131 per share and had a market cap of
$39 billion as of July 29, 2021.10 The company's revenue exceeded $5.6 billion for
the full year in 2020.11
Subway

Subway is one of the largest restaurant chains in the world in terms of size, with
over 37,000 locations in nearly 100 countries, as of Aug 2021. The company’s
menu consists primarily of sandwiches and salads.

Since Subway is a privately-held company, exact revenues are not publicly

available. Per Restaurant Business, Subway 2019 sales was reportedly $10.2
billion in the U.S.12

Chipotle

Chipotle is a fast-casual restaurant chain serving tacos, burritos, bowls, and salads.
The company was formed as a small local chain which earned significant
investment from McDonald’s before its 2006 initial public offering (IPO). Chipotle
operates more than 2,800 locations in the U.S., Canada, the United Kingdom,
Germany, and France—none of which are franchised. The company has a higher
price point than its fast-food competitors, and its slogan is "food with integrity."

Chipotle reported revenue of $6.0 billion in 2020.13 As of July 30, 2021,

Chipotle’s market cap was $52.3 billion, and its share price was about $1863.14

Starbucks

Starbucks is the world’s largest coffeehouse chain. As of December 2020, the

company operated more than 32,000 stores in 76 countries, including more than
18,000 in the United States. Starbucks serves coffee, espresso, cappuccino, tea,
pastries, sandwiches, and other foods. The chain markets itself as a high-quality
option at a high price point.

The company reported net revenue of $23.5 billion for 2020.15 As of July 30,
2021, Starbucks’ share price was about $121, and the firm's market cap was $143
billion.16