This presentation contains certain forward-looking statements
that reflect management’s expectations regarding future
events and operating performance and speak only as of
November 10, 2011. The forward-looking statements that are
detailed in the Company’s filings with the SEC such as our
annual (10-K) and quarterly (10-Q) reports also apply to
this presentation.
Our website also includes reconciliations of any non-GAAP
financial measures we mention in our presentation to its
corresponding GAAP measures. Those reconciliations may
be found at www.investor.mcdonalds.com.
© 2011 McDonald’s Corporation
®
Jan Fields
President, McDonald’s U.S.A.
McDonald’s U.S.
Of Total
42% Restaurants
31% Revenues
43% Operating Income
McDonald’s U.S.
YTD October 2011
Comp Sales
4.1%
U.S. Operating Income
($ in Billions)
YTD
Sept ’11
$2.7
$2.8
$3.1
$3.2
$3.4
$2.7
4%
2006
2007
2008
2009
2010
U.S. Franchised Margins
($ in Billions)
Margin $
Margin %
$3.2
$2.9
$3.0
$2.7
YTD
Sept ’11
$2.6
$2.5
83.9%
83.3%
82.8%
83.1%
83.4%
82.3%
2006
2007
2008
2009
2010
U.S. Company Operated Margins
($ in Millions)
Margin $
Margin %
$843.0
YTD
Sept ’11
$875.8
$902.1
$856.5
$832.4
21.3%
19.1%
2006
18.7%
2007
18.5%
19.4%
2008
2009
20.5%
$673.2
2010
McDonald’s U.S.
YTD October 2011
Comp Guest Counts
2.9%
Return on Invested Capital*
(ROIC)
TTM
Sept ’11
25.6%
25.9%
24.6%
23.1%
2006
23.5%
2007
23.9%
2008
2009
2010
* Op income (excl. impairment and other charges) plus depr and amort divided by adjusted avg gross assets
McDonald’s U.S.
Return on Incremental Invested Capital*
ROIIC
Ending Sept ’11
1 Year
3 Year
24.2%
36.6%
* Incremental Op Income (excl. impairment and other charges) plus depreciation and amortization divided by
adjusted cash used for investing activities at constant rates
TTM Sept ’11
Cash Flow
Average O/O Equity
$338,000
$5.5M
U.S. Growth from Various Segments
Salads and Fish
Fries and Desserts
10%
11%
25%
Breakfast Foods
Beverages
19%
12%
23%
Chicken
Beef
Growth in Average
Annual Restaurant Sales
$875,000
U.S. Beverage Industry
$156 Billion
Business
More than $125,000
Average Annual Sales / Restaurant
Oatmeal
14% Sales
Outside of Breakfast
U.S. Breakfast Industry
$57 Billion
McDonald’s U.S.
5.1%
Breakfast Sales
Thru October
Jim Johannesen
Chief Operating Officer, McDonald’s U.S.A.
Sales
+6.5%
Goal
50,000
Actual
62,000
Doug Goare
President
McDonald’s Europe
McDonald’s Europe
7,069
40
14 Million
Restaurants
Markets
Customers per Day
McDonald’s Europe
Of Total
20% Restaurants
40% Revenues
38% Operating Income
Jerome Tafani
CFO
McDonald’s Europe
Europe Revenues
($ in Billions, % Increase in Constant Currency)
Revenue $
Growth %
$8.9
$7.6
$9.9
$9.3
$9.6
YTD
Sept ’11
$8.2
8%
6%
2006
8%
7%
2007
2008
5%
6%
2009
2010
Europe Comp Sales
YTD October 2011
Europe
UK
France
Russia
Germany
5.4%
8.4%
4.9%
16.6%
3.3%
Europe Average Restaurant Sales
TTM Sept ’11
$3.6 Million
2005
$2.4 Million
More than 50% increase
Europe Franchised Margin
($ in Millions)
Margin $
Margin %
$1,964.6
$1,997.9
$2,062.6
YTD
Sept ’11
$1,795.3
$1,647.7
79.0%
78.6%
$1,356.7
78.1%
78.3%
78.2%
2009
2010
77.4%
2006
2007
2008
Europe Company-Operated Margin
($ in Millions)
Margin $
Margin %
$1,373.4
$1,339.7
YTD
Sept ’11
$1,239.7
$1,205.2
$1,139.3
19.8%
$960.1
17.7%
18.0%
2007
2008
18.4%
16.3%
2006
2009
2010
19.3%
Europe Operating Income*
($ in Billions, % Increase in Constant Currency)
Op Income $
Growth %
$2.6
$2.6
$2.8
YTD
Sept ’11
$2.4
$2.1
$1.7
13%
16%
18%
12%
8%
2006
2007
* Excluding impairment and other charges
2008
2009
2010
9%
Europe Return on Invested Capital*
ROIC
TTM
Sept ’11
19.9%
20.7%
21.9%
22.6%
17.5%
15.8%
2006
2007
2008
2009
2010
* Op Income (excl. impairment and other charges) plus depr and amort divided by adjusted avg gross assets
Europe
Return on Incremental Invested Capital*
ROIIC
Ending Sept ’11
1 Year
29.3%
3 Year
33.2%
* Incremental op income (excluding impairment and other charges) plus depr and amort divided by adjusted cash
used for investing activities at constant rates
Europe’s Major Markets
Germany
France
UK
Russia
65%
of Europe
Revenue
70%
of Europe
Operating Income
UK Performance
YTD Sept ’11
Operating
Income Growth*
13%
% Franchised
64%
Average
Restaurant Sales
(US $ Millions)
* In constant currencies
$3.2
France Performance
YTD Sept ’11
Operating
Income Growth*
% Franchised
Average
Restaurant Sales
(US $ Millions)
* In constant currencies
7%
82%
$4.9
Germany Performance
YTD Sept ’11
Operating
Income Growth*
% Franchised
Average
Restaurant Sales
(US $ Millions)
* In constant currencies
5%
82%
$3.5
Russia Performance
YTD Sept ’11
Operating
Income Growth*
Average
Restaurant Sales
(US $ Millions)
* In constant currencies
16%
$5.6
Consumer Confidence Index Comparison
by Country
10
Germany
0
-10
Europe
-20
UK
France
-30
-40
Q4
2009
Q1
Source: European Commission
Q2
Q3
2010
Q4
Q1
Q2
2011
Q3
Europe Informal Eating Out
(IEO)
$185 Billion
Industry
250
Restaurant Openings in 2012