ABSTRACT
If good strategy is reflected in performance over time, then few firms have had a better strategy over the years than McDonald’s. The modern-day company took shape in 1954, when Ray Croc teamed up with brothers Dick and Mac McDonald to open the first location with the famous golden arches. By 1958, McDonald’s had sold its 100 millionth hamburger. The stock went public in 1965, selling for $22.50 per share; by this time, there were over 500 locations across the U.S. Since these early years, McDonald’s has grown and profited steadily, providing value for its customers, wealth for its owners, and a variety of opportunities for its employees. By 2009 the company had more than 31,000 locations in 118 countries, with system-wide revenues of over $54 billion and earnings of over $4.3 billion. Indeed, with over 1.1 billion shares outstanding, McDonald’s share price ended 2008 at $62.19.
