McDonald’s Valuation through Financial Ratios for Decision Making by Chinese Investors

Abstract

The use of financial statements and ratios has been noted to be essential in the determination of the position of a company in the market. While McDonald’s is sitting in the global space as big incorporation in the catering industry, it is essential for its competitiveness and financial performance to be known. The topic of this research is an analysis of McDonald’s Company valuation based on multiple financial ratios for investors in the Chinese market. From the results, China registered a growth trajectory in the catering industry making them easy for new entries to be realized. While this can be seen as an unattractive market, McDonald’s has been using the situation for its expansion in the country. Further, from its financial strategies and statements, the company has been using better approaches to manage its operations and maintain its status in the market. The significance of this research is that it gives an insight to academe and professionals on how a company can design strategies to influence a new market and attract investors.