With approximately 34,480 restaurants in 119 countries at the year-end of 2012, McDonalds’s remains’ one of the most recognizable fast food franchise in the world and dominant player in the fast food restaurant. Superior supply chain management which allows McDonald’s to manage raw materials prices that results in efficiency and robust profit margins. By employing capital in the point of sale of system, multiple order points self via self-order kiosks, hand held devices and side by side drive-thru, McDonald’s has enhanced the customer experience all while growing guest counts and comparable sales. Innovation in product mix such as Cheddar Bacon Onion premium and Chickens Sandwiches creates new sources of revenue growth and a higher average check for McDonald’s Corporation. S&P forecasts that the quick service restaurant segment will perform relatively well in 2013 with a revenue increase of 3.0% to 1.79 billion. Weaknesses. Economic challenges in the U.S could pressure margins as consumers have less discretionary income to allocate towards food items. Highly fragmented and mature, the restaurant industry has many players such as quick-service eating establishments, casual dining full-service restaurants, self-service cafeterias, 100% home delivery/ takeover providers which could trigger price wars, thus lowering margins. Opportunities. Due to rising working population, increased purchasing power and changing lifestyles of China citizens, McDonald’s is seeking to open over 300 restaurants in China by the end of According to NRN article, the Indian region could contribute 800 million to McDonald’s operations by Threats. Unexpected vicissitudes in commodity prices could stifle McDonald’s profit margins as raw materials increase . The ever-growing obesity problems in the U.S could change consumer perceptions about McDonald’s. McDonald’s operating income could be affected if the government imposes policies that raises the minimum wage from its current standing of 7.25.

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