- Mcdonald S Conducts Operations Worldwide And Is Managed In Three Primary Geographic Segments U S International Lead M 1 (134.02 KiB) Viewed 18 times
McDonald's conducts operations worldwide and is managed in three primary geographic segments: U.S., International Lead Markets (including Australia, Canada, France, Germany, and the UK), and High Growth Markets (including China, Italy, Korea, Poland, Russia, Spain, Switzerland, and the Netherlands). A hybrid geographic/corporate segment, Foundational Markets & Corporate, reports on the results of all other countries as well as any unallocated amounts. McDonald's allocates resources to, and evaluates the performance of, its segments based on operating income. The asset totals disclosed by geography are directly managed by those regions and include accounts receivable, inventory, certain fixed assets, and certain other assets. Corporate assets primarily include cash and cash equivalents, investments, deferred tax assets, and other assets. Refer to the following geographic segment data (in millions) from the 2017 annual report of McDonald's Corp.: Revenues Operating income Depreciation and amortization expense Assets 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 U.S. $ 8,006.4 8,252.7 8,558.9 $ 4,022.4 3,768.7 3,612.0 524.1 510.3 515.2 $12,648.6 11,960.6 11,806.1 $ Foundational Markets & Corporate $1,940.5 2,985.1 International High Growth Lead Markets Markets $ 7,340.3 $5,533.2 7,223.4 6,160.7 7,614.9 6,172.8 3,066.4 $ 3,166.5 $2,001.4 $362.4 1,048.8 841.1 88.6 (20.2) 2,838.4 2,712.6 461.1 451.6 460.9 $11,844.3 $ 231.7 $ 146.5 362.0 192.6 363.9 215.7 $4,480.7 $4,830.1 9,112.5 5,208.6 4,742.1 11,136.3 5,248.6 9,747.7 $ Total
Company $22,820.4 24,621.9 25,413.0 $ 9,552.7 7,744.5 7,145.5 $ 1,363.4 1,516.5 1,555.7 $33,803.7 31,023.9 37,938.7
Requirea: b. Using the DuPont model to show margin and turnover, calculate ROI for each of the three primary geographic segments for 2017. (Do not round intermediate calculations. Round your percentage answers to 1 decimal place.) U.S. International Lead Markets High Growth Markets ROI(%) % % % c. Looking only at the data presented here, which business segment appears to offer McDonald's Corp. the greatest potential for high returns in the future? O U.S. O International Lead Markets