McDonald’s Corporation (MCD) operates company-owned and franchised restaurants in over 100 countries. The company operates primarily as a franchisor with approximately 95% of its current restaurants operated by franchisees.
McDonald’s operations are divided into the following segments:
▪ United States: Restaurants throughout the United States
▪ International Operated Markets: Restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the United Kingdom
▪ International Developmental Licensed Markets & Corporate: Restaurants in other international locations around the globe, as well as all corporate activities.

McDonald’s believes that the International Developmental Licensed Markets & Corporate segment has significant potential for rapid growth and expansion. Recent data (in millions) for the three segments are as follows:

a. Determine the profit margin for each of the three segments.
b. Determine the investment turnover for the three segments.
c. Use the DuPont formula to determine the return on investment for the three segments.
d. Analyze and interpret the results of (a), (b), and (c).

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Sales Operating income Invested assets United States $ 7,829 3,789 21,010 International Operated Markets $ 9,571 3,315 24,744 International Developmental Licensed Markets & Corporate $1,809 220 6,873