(BQ) Part 2 book “Hospitality financial management” has contents: The time value of money, investment analysis, hospitality industry applications of time value of money concepts and skills,, the investment package, crafting and negotiating the deal, tying it all together. | C H A P T E R 7 THE TIME VALUE OF MONEY F E A T U R E S T O R Y RAY KROC: HOW MUCH GOLD ARE ARCHES WORTH? THE GOLDEN In 1965, McDonald’s went public with its first stock offering. If you purchased 100 shares of stock at that time, they would have cost you $2,250. Today, your initial investment would have a value of well over $ million. McDonald’s success was founded on the entrepreneurial zeal of Ray Kroc, who used his almost evangelical ability to motivate nearly everyone he encountered. These qualities enabled Kroc to build the largest and most successful restaurant franchise company in the world. His fair and balanced franchise partnership is said to be his greatest legacy. Ray’s operating credo of ‘‘Quality, Service, Cleanliness, and Value’’ became the mantra for all McDonald’s owners and established a permanent benchmark for the entire foodservice industry. His exacting mandates for uniformity and product consistency made 178 CHAPTER 7 䡲 THE TIME VALUE OF MONEY it possible for a customer to get an identical Big Mac威 and fries in Houston or in Moscow. To underscore his own commitment to ‘‘taking the hamburger business more seriously than anyone else,’’ he established Hamburger University and demonstrated his willingness to invest in the training and education of McDonald’s people. McDonald’s Golden Arches are said to be the second most widely recognized trademark in the world. It has been said that 96% of all Americans have eaten at a McDonald’s restaurant on at least one occasion. Today, McDonald’s is one of the largest restaurant brands in the world, with more than 30,000 local restaurants serving nearly 50 million customers in more than 119 countries each day. How much do you think those original 100 shares of stock will be worth in another fifty years? S O U R C E S http: / / / corp / news / corppr / 2005 / cpr . http: / / / mcdonald’s / —ID 10974— / .
