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
®
Jim Skinner
CEO
YTD September 2011
In Constant Currencies
Operating Income
9%
Earning Per Share
10%
Global Customers Per Day
64
Million
McDonald’s Top 7 Markets
14%
Market Share
Competitive Advantage
Size and Scale
Ability to Invest
Brand Strength
System Alignment
Long-term Financial Targets*
Sales Growth
3-5%
Operating Income Growth**
6-7%
1 Year – ROIIC***
High Teens
* Average annual in constant currencies
** Excluding impairment and other charges
*** Trailing 12 mos. incremental op income (excluding impairment and other charges)
plus depr. and amort divided by adjusted cash used for investing activities at constant rates
Cash Returned to Shareholders
$5.1 Billion
YTD Oct 2011
Don Thompson
President and COO
Global Comp Sales
6.8%
YTD
Oct ’11
6.9%
5.7%
5.0%
3.8%
2006
2007
2008
2009
2010
5.0%
Global Comp Guest Counts
4.9%
YTD
Oct ’11
3.8%
3.3%
3.1%
2.3%
1.4%
2006
2007
2008
2009
2010
Pete Bensen
CFO
Total Shareholder Return
5 Year CAGR Through September 2011
McDonald’s
15.2%
Dow Jones
1.4%
S&P 500
(1.2%)
Consolidated Combined
Operating Margin*
31.2%
31.7%
29.8%
27.4%
YTD
Sept ’11
24.4%
21.9%
2006
2007
2008
2009
* Operating income less impairment and other charges as a percent of revenue
2010
Combined Operating Margin*
U.S.
Europe
APMEA
43.2%
35.6%
29.7%
25.3%
21.9%
2006
2007
2008
2009
2010
YTD
Sept
’11
2006
2007
13.5%
2008
2009
2010
YTD
Sept
’11
* Operating income less impairment and other charges as a percent of revenue
2006
2007
2008
2009
2010
YTD
Sept
’11
Franchised
Restaurants
80%
Total Restaurant Margin $
($ In Billions)
$2.6
Total
Company
Operated Margin
$5.4
Franchised
Margin
$8.0
Consolidated Company Operated Margin
YTD
Sept ’11
19.6%
19.0%
18.2%
17.3%
17.6%
16.2%
2006
2007
2008
2009
2010
Preliminary 2012 Commodity
Cost Outlook
U.S.
4.5% - 5.5%
Europe
2.5% - 3.5%
Selling, General and Administrative
As a Percent of Revenues
YTD
Sept ’11
11.0%
10.4%
10.0%
9.8%
9.7%
8.6%
2006
2007
2008
2009
2010
Return on Invested Capital*
(ROIC)
TTM
Sept ’11
19.6%
20.9%
21.9%
22.5%
17.6%
15.8%
2006
2007
2008
2009
2010
* Op income (excl. impairment and other charges) plus depr and amort divided by adjusted avg gross assets
Return on Incremental Invested Capital*
(ROIIC)
Ending Sept ’11
1 Year
28.4%
3 Year
36.9%
* Incremental op income (excluding impairment and other charges) plus depr and amort divided by adjusted cash used
for investing activities at constant rates
Capital Expenditures
($ in Billions)
U.S.
Europe
APMEA
Other Countries
and Corporate
$2.6
$2.9
$0.8
$0.7
$1.1
$1.2
$0.6
$0.8
$0.2
$0.1
2011 Proj
2012 Plan
Restaurant Openings
U.S.
Europe
APMEA
Other Countries
and Corporate
1,300+
1,150
160
175
250
240
750
635
115
150
2011 Proj
2012 Plan
Cash Returned to Shareholders
($ in Billions)
$5.7
$4.9
2006*
2007
$6.0
$5.8
2008
$5.1
$5.1
2009
2010
* Includes $0.7 billion related to shares acquired through the Chipotle exchange
Proj
2011
Annualized Dividends Per Share
$2.80*
$2.00*
$2.20*
$2.44*
$1.50
$1.00
2006
2007
2008
2009
2010
* Represents the fourth quarter quarterly dividend amount per share on an annualized basis
Proj
2011
Share Repurchases
($ in Billions)
$3.7
$3.9
$4.0
$3.4
$2.9
2006
2007
2008
2009
$2.6
2010
Proj
2011
Tim Fenton
President
McDonald’s Asia-Pacific, Middle East & Africa
McDonald’s APMEA
8,667
37
17 Million
Restaurants
Markets
Customers per Day
McDonald’s APMEA
Of Total
26% Restaurants
22% Revenues
18%
Operating
Income
Chong De, Taiwan
APMEA GDP Growth Rates
2011
China
9%
India
8%
Middle East
4%
APMEA Informal Eating Out Industry
(IEO)
7%
$876 Billion
2011
2012
Dave Garland
CFO
McDonald’s APMEA
APMEA Revenues
($ in Billions, % Increase in Constant Currency)
YTD
Sept ’11
Revenue $
Growth %
$5.1
$4.2
$4.5
$4.3
$3.6
$3.1
15%
11%
12%
8%
2006
6%
2007
2008
2009
9%
2010
APMEA Operating Income*
($ in Billions, % Increase in Constant Currency)
YTD
Sept ’11
Op Income $
Growth %
$1.2
$1.0
$1.1
$0.8
$0.6
$0.4
25%
40%
2006
2007
* Excluding impairment and other charges
11%
28%
23%
16%
2008
2009
2010
APMEA Comp Sales
YTD October 2011
APMEA
4.1%
China
10.9%
Australia
Japan
3.2%
-0.4%
APMEA Average Restaurant Sales
TTM Sept ’11
$2.3 Million
2005
$1.3 Million
More than 75% increase
APMEA Franchised Margin
($ in Millions)
Margin $
Margin %
$511.6
$685.9
YTD
Sept ’11
$627.8
89.4%
$558.7
$410.0
$333.1
87.8%
88.3%
2006
2007
89.6%
89.6%
89.3%
2008
2009
2010
APMEA Company-Operated Margin
($ in Millions)
Margin $
Margin %
$764.6
$583.5
$341.3
15.0%
15.9%
$671.8
$624.1
$470.6
16.8%
17.8%
12.8%
2006
2007
2008
2009
YTD
Sept ’11
2010
17.6%
Australia Company-Operated Margin
24%
Sydney, Australia
China Company-Operated Margin
15%
16%
8.5%
2005
2010
YTD Sept ’11
APMEA Return on Invested Capital*
ROIC
TTM
Sept ’11
22.9%
23.7%
21.3%
18.5%
15.5%
12.2%
2006
2007
2008
2009
2010
* Op Income (excl. impairment and other charges) plus depr and amort divided by adjusted avg gross assets
APMEA
Return on Incremental Invested Capital*
ROIIC
Ending Sept ’11
1 Year
30.3%
3 Year
45.1%
* Incremental op income (excluding impairment and other charges) plus depr and amort divided by adjusted cash
used for investing activities at constant rates
2012 Plan
Sydney, Australia
750
New
Restaurants
450
Reimage
APMEA Major Markets
Australia
55%
of APMEA
Revenue
70%
of APMEA
Operating Income
China
Japan
Australia Performance
YTD Sept ’11
Operating
Income
Growth*
Average
Restaurant
Sales
(US $ Millions)
* In constant currencies
2%
$4.6
Gladesville, Australia
Japan Performance
Tokyo, Japan
Total
Restaurants
Average
Restaurant
Sales
(US $ Millions)
3,282
$2.4
Japan Comp Sales
September
4.8%
October
1.5%
China Total Restaurants
2,000
1,400
Sept ’11
2013 Proj
China Performance
YTD Sept ’11
Operating
Income
Growth*
15%
Average
Restaurant
Sales
$1.5
(US $ Millions)
* In constant currencies
Houtian, China