What can you learn from a McDonald's SWOT analysis?


Quick Answer

A McDonald's SWOT analysis reveals the company's strengths, weaknesses, opportunities and threats. A SWOT analysis for McDonald's is available at ValueLine.com and uses data gathered in 2014.

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Full Answer

Stock investors can review a McDonald's SWOT analysis to gain valuable information on the health of its business. The analysis begins with a brief description of McDonald's business operations and goes on to state how many restaurants operate under the McDonald's brand, including the percentage of franchisee-owned restaurants. This section also includes the number of countries that have McDonald's restaurants, and also includes names of some of the chain's popular menu items. The Strengths category highlights things that make McDonald's a strong global brand, such as its "Golden Arches" and "Big Mac" sandwich, which are recognized in major cities around the world.

Another strength for McDonald's is its ability to diversify its income, and the company's sales come from various global regions including South America. Negative publicity is a major weakness for McDonald's, according to the SWOT analysis. McDonald's must deal with negative perceptions about its food offerings being unhealthy. The company also experiences high employee turnover.

McDonald's is able to upgrade its menu options to appeal to consumers with changing tastes. Younger consumers preferring restaurant foods using organic and natural ingredients pose a threat to the company.

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