International Journal of Tourism and Hospitality in Asia Pasific
Vol 7, No 3 (2024): October 2024

Financial Performance Evaluation of Fast-Food Restaurant

Munazza Zahra (Women University Bagh, Bagh 12500, Pakistan)
Meenu Baliyan (IMS Engineering College Ghazibad, Uttar Pradesh, India)
Jasmine Tan (Universiti Sains Malaysia)
Hooi Jin Tan (Universiti Sains Malaysia)
Xin Way Tan (Universiti Sains Malaysia)
Siti Nazatul Huda Binti Nordin (Universiti Sains Malaysia)
Daisy Mui Hung Kee (Universiti Sains Malaysia)



Article Info

Publish Date
04 Dec 2024

Abstract

This study examines McDonald's financial performance from 2019 to 2023, focusing on key financial metrics such as profitability, operational efficiency, liquidity, solvency, and cash flow. The objective is to assess McDonald's financial health and identify factors contributing to its sustained market leadership in the fast-food industry. Using descriptive statistics and regression analysis, the study evaluates McDonald's financial ratios, including operating profit margin, return on assets, inventory turnover, and current ratio, among others. The results reveal strong profitability and effective cost control, with a consistent operating profit margin and robust asset management. McDonald's liquidity is sufficient to meet short-term obligations, and its prudent debt management reflects financial stability. The company’s investment in digital transformation and operational improvements, such as streamlined inventory management and enhanced customer engagement, have further contributed to its financial resilience. In conclusion, McDonald's has demonstrated adaptability and resilience amidst external challenges, ensuring continued financial success. The study suggests that McDonald's should continue investing in digital platforms and menu innovation to meet evolving customer preferences. The implications of these findings are significant for the fast-food industry, highlighting the importance of strategic financial management in maintaining market leadership and long-term growth.

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Journal Info

Abbrev

IJTHAP

Publisher

Subject

Humanities

Description

IJTHAP aims to enhance theoretical development in the field of hospitality and tourism. In order to promote those innovations and fresh ideas, the journal alsso accepts conceptual research, book review, as well as essays of experience belongs to hospitality practitioners. The mission of IJTHAP is to ...