Yummy for investors, as well as for visitors

Well, McDonald’s can definitely afford to eat its burgers and save it too. Matthew Paull, CFO of world’s largest hamburger chain, expects that the company will be able to return at least $10 billion in cash to its shareholders over a period of two years by 2008. The company also reiterated its commitment to be in line with the health levels (read fat) prescribed by the New York City law. The company is already trying to reduce the fat levels in its French fries. McDonald’s is also working on to come up with new premium chicken salad & modified chicken snack wrap, which have been major components of McDonald’s menu for years. The company is planning to spend a whopping $1.8 billion on capital expenditure during 2006 and another $1.8 to $1.9 billion in 2007. According to Chief Executive Jim Skinner, in a move to streamline costs, McDonald’s has now reduced its advertising expenditure through television from 85-70% of the total advertising budget. McDonald’s is experiencing its strongest business results in 30 years, he added.

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Source:- IIPM Editorial

An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative