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McDonald's Corporation (MCD) operates company-owned and franchised restaurants in over 100 countries. The company operates primarily as a franchisor with approximately 85% of its current

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McDonald's Corporation (MCD) operates company-owned and franchised restaurants in over 100 countries. The company operates primarily as a franchisor with approximately 85% of its current restaurants operated by franchisees. McDonald's goal is to franchise approximately 95% of its restaurants in the long termi. McDonald's operations are dlyided into the following segmentst - United Statest Restaurants throughout the United States - International Lead Markets: Restaurants in Australia, Canada, France, Germany, and the United Kingdom - High Growth Markets: Restaurants in China, Italy, Korea, Poland, Russia, Spain, and Switreriand - Foundational Markets a Corporate: Restaurants not contained in the preceding segments plus corporate activities McDonald's believes that the High Growth segment has significant potential for rapid growth and expansion. Recent data (in milions) for the first throe primary segments are as follows: a. Determine the profit margin for each of the three segments. Round to one decimal place. b. Determine the investment tumover for the three segments. Round to two decimal places. b. Determine the investment tumover for the three segments. Round to two decimal places. c. Use the DuPont formula to determine the return on investment for the three segments. Round to one decimal place. d. Analyze and interpret the results of (a),(b), and (c). 1. The U.S. segment has the highest profit margin and ROI but the lowest investment turnover. This may be due to its high level of invested assets. 2. The International Lead segment has the highest profit margin and investment turnover but the RoI lower than the U.S segment. This may be due to a low-pricing strategy. 3. The High Growth segment has the lowest profit margin and investment turnover but the highest ROI. This may be due to promotions and a low-pricing strategy that attempts to grow market share

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