EXHIBIT 99
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Investor Release
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FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
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01/24/01 Investors: Xxxx Xxxxx, 000-000-0000
Media: Xxxx Xxxxxxxx, 000-000-0000
FOR ACCESS TO CONFERENCE CALL:
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When: 11:30 a.m. CST, Wednesday,
January 24, 2001
Where: xxxx://xxx.xxxxxxxxx.xxx
McDONALD'S REPORTS GLOBAL RESULTS
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OAK BROOK, IL -- XxXxxxxx'x Corporation today announced global results for the
quarter and year ended December 31, 2000.
. For the first time, Systemwide sales exceeded $40 billion for the year,
increasing 7% for the quarter and the year in constant currencies.
. Sales for the year for Europe, Asia/Pacific and Latin America increased 9%
in constant currencies. U.S. sales increased 3% for the year.
. Diluted net income per common share increased 10% for the year and 6% for
the quarter in constant currencies.
. The Company repurchased $2.0 billion of stock during the year.
Key highlights - Consolidated 2000 1999 Increase/(Decrease)
Dollars in millions, except per common As In Constant
share data Reported Currencies*
Quarters ended December 31
Systemwide sales $9,924.5 $9,749.7 2% 7%
Total revenues 3,589.6 3,372.9 6 13
Operating income 774.0 816.8 (5) 1
Net income 452.0 486.2 (7) -
Net income per common share - diluted .34 .35 (3) 6
Years ended December 31
Systemwide sales $40,181.2 $38,490.7 4% 7%
Total revenues 14,243.0 13,259.3 7 12
Operating income 3,329.7 3,319.6 - 5
Net income 1,977.3 1,947.9 2 6
Net income per common share - diluted 1.46 1.39 5 10
* Information in constant currencies excludes the effect of foreign currency
translation on reported results, except for hyperinflationary economies, such
as Russia, whose functional currency is the U.S. dollar.
-1-
SUMMARY COMMENTARY
Chairman and Chief Executive Officer Xxxx X. Xxxxxxxxx said, "McDonald's
served nearly one billion more customers in 2000 than in 1999 and grew earnings
per share 10 percent for the year in constant currencies. Despite a number of
operating challenges, our worldwide comparable sales were positive and
Systemwide sales increased seven percent in constant currencies for the year.
During the year, we added 1,606 XxXxxxxx'x restaurants, 103 McDonald's dessert-
only kiosks, and 792 restaurants operated by our Other Brands, 707 of which were
the result of our Boston Market acquisition. We also introduced the Golden
Arches to two new countries, American Samoa and French Guiana. For the quarter,
Systemwide sales increased seven percent and earnings per share grew six percent
in constant currencies.
"The U.S. business posted many achievements during the year, including
faster drive-thru service times; product innovations; improved food perception
scores on appearance, freshness and taste; and a successful new advertising
campaign. These achievements contributed to the three percent U.S. sales growth
and nine percent U.S. operating income growth for the year.
"Europe's constant currency sales increased nine percent for the year and
five percent for the quarter. During the year, we added 517 restaurants and
posted slightly positive comparable sales in Europe, strengthening our
competitive position. These results were tempered by the recent decline in
consumer confidence in the European beef supply. However, by educating customers
about our strict product specifications that assure our beef is safe from BSE,
communicating our industry-leading safety and quality standards, and introducing
additional menu variety, we partially offset the negative impact.
"Asia/Pacific sales increased nine percent for the year and 11 percent for
the quarter in constant currencies despite weak consumer spending in many
markets. We increased our market presence by adding 606 restaurants in
Asia/Pacific in 2000. We were pleased with Japan's strong sales for the quarter
and China's and South Korea's strong results for both the quarter and the year.
However, Australia's results continued to be negatively affected by the goods
and services tax introduced in July 2000.
"Canada's focus on food taste, value and service drove excellent
performance throughout the quarter and the year.
"Latin America's performance continued to be affected by difficult economic
conditions, stemming from the major devaluation in Brazil in January 1999.
-2-
"Moving forward, McDonald's will pursue additional growth by intensifying
our focus on building sales at existing restaurants, improving the customer
experience, expanding the ways in which we serve customers and adding
restaurants. We plan to add about 1,700 restaurants in 2001, including about
1,600 XxXxxxxx'x restaurants (excluding dessert-only kiosks.)
"We expect earnings per share growth in 2001 to be 10 to 13 percent,
excluding the impact of foreign currency translation, for earnings per share of
$1.60 to $1.65 in constant dollars. If exchange rates stay where they are, we
expect foreign currency to negatively impact our reported 2001 earnings per
share by about one cent. We expect the first quarter to be very challenging, due
to outstanding results and an extra trading day in 2000, and continuing consumer
confidence issues about European beef.
"We will continue our share repurchase program in 2001, as we believe it is
the best use of our free cash flow and credit capacity. We purchased $2.0
billion of our stock in 2000, bringing the total for our $4.5 billion, three-
year share repurchase program to $3.3 billion or 91.1 million shares. We expect
to purchase the remaining $1.2 billion of the program by the end of this year."
OPERATING RESULTS
McDonald's operates primarily in the quick-service restaurant business. In
addition, the Company operates other restaurant concepts: Aroma Cafe, Boston
Market, Chipotle Mexican Grill and Donatos Pizza. Collectively these four
businesses are referred to as "Other Brands." Throughout this release, Other
Brands' financial information is included in the Other segment, except where
specifically noted.
Impact of Foreign Currencies on Reported Results
While changing foreign currencies affect reported results, McDonald's
lessens exposures, where practical, by financing in local currencies, hedging
certain foreign-denominated cash flows and by purchasing goods and services in
local currencies.
The primary currencies negatively affecting reported results for the
quarter and the year were the Euro, the British Pound and the Australian Dollar.
In addition, the Japanese Yen had a negative effect for the quarter, but a
positive impact for the year.
-3-
Systemwide Sales and Revenues
Systemwide sales represent sales by Company-operated, franchised and
affiliated restaurants. Total revenues include sales by Company-operated
restaurants and fees from restaurants operated by franchisees and affiliates.
These fees include rent, service fees and royalties that are based on a percent
of sales, with specified minimum payments along with initial fees.
Systemwide sales
Dollars in millions 2000 1999 Increase/(Decrease)
As In Constant
Reported Currencies*
Quarters ended December 31
U.S. $4,823.9 $4,681.6 3% n/a
Europe 2,210.4 2,449.8 (10) 5%
Asia/Pacific 1,749.3 1,697.0 3 11
Latin America 470.2 438.0 7 8
Other** 670.7 483.3 39 43
Total Systemwide sales $9,924.5 $9,749.7 2% 7%
Years ended December 31
U.S. $19,572.8 $19,005.6 3% n/a
Europe 9,292.8 9,557.0 (3) 9%
Asia/Pacific 7,051.4 6,435.7 10 9
Latin America 1,790.0 1,665.6 7 9
Other** 2,474.2 1,826.8 35 36
Total Systemwide sales $40,181.2 $38,490.7 4% 7%
* Excluding the effect of foreign currency translation on reported results.
** Includes Systemwide sales for Other Brands of $227.0 million and $605.2
million for the quarter and year 2000, respectively. In 1999, Systemwide
sales for Other Brands were $44.5 million and $90.6 million for the quarter
and year, respectively.
n/a Not applicable
On a global basis, the increases in sales and revenues for the quarter and
the year were primarily due to expansion. The year also benefited from positive
comparable sales, while comparable sales for the quarter were flat. Foreign
currency translation had a negative effect on the growth rates for both
Systemwide sales and revenues for the quarter and the year. For the year, the
stronger Japanese Yen had a greater positive currency translation effect on
sales compared with revenues. This is due to our affiliate structure in Japan.
Under this structure, we record a royalty in revenues based on a percentage of
Japan's sales, whereas all of Japan's sales are included in Systemwide sales.
For this reason, Systemwide sales were less negatively affected by foreign
currency translation for the year than were revenues.
-4-
On a constant currency basis, revenues increased at a higher rate than
sales in both periods primarily due to the addition of Other Brands and the
consolidation of Argentina and Indonesia, for financial reporting purposes,
beginning in the first quarter 2000.
U.S. sales increased three percent for the quarter and the year due to
expansion and positive comparable sales. In Europe, expansion, partly offset by
negative comparable sales, drove the constant currency sales increase for the
quarter, while expansion along with slightly positive comparable sales drove the
increase for the year. This segment benefited from strong performances in the
Netherlands and Russia for both periods and Spain for the year. Also
contributing significantly to the increases were the United Kingdom for both
periods and France and Italy for the year. This segment's results were dampened
by the decline in consumer confidence regarding the safety of the European beef
supply in the fourth quarter.
In Asia/Pacific, the constant currency sales increases for both periods
were primarily driven by expansion. Comparable sales were positive for the
quarter and relatively flat for the year. This segment benefited from strong
positive comparable sales in China for both periods and Japan for the quarter.
Sales in this segment continued to be negatively impacted by weak consumer
spending in Australia due to the goods and services tax introduced in July 2000.
In Latin America, the constant currency sales increases were due to
expansion, partly offset by negative comparable sales. Weak consumer spending
continued to negatively affect most markets in this segment; however, Mexico
posted strong positive comparable sales in both periods.
In the Other segment, the increases for the quarter and the year were
primarily driven by the addition of Other Brands, as well as positive comparable
sales and expansion in Canada.
Combined Operating Margins
The following combined operating margin information represents margins for
McDonald's restaurant business only.
-5-
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Combined operating margins Quarters ended Years ended
December 31 December 31
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2000 1999 2000 1999
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Dollars in millions
Company-operated $ 385.0 $ 408.6 $1,669.6 $1,673.9
Franchised 720.7 755.9 3,002.0 3,008.4
Combined operating margins $1,105.7 $1,164.5 $4,671.6 $4,682.3
Percent of sales/revenues
Company-operated 15.6% 17.1% 16.9% 17.7%
Franchised 79.0 79.8 79.5 80.3
Combined operating margin dollars decreased $58.8 million for the
quarter and $10.7 million for the year. In constant currencies, combined
operating margin dollars increased by $10.9 million, or one percent, for the
quarter and $191.5 million, or four percent, for the year. The U.S. and Europe
segments accounted for over 80 percent of the combined margin dollars in both
periods.
As a percent of sales, consolidated Company-operated margins decreased
for the quarter and the year. Food & paper costs as a percent of sales were flat
for the quarter and increased for the year, while payroll costs increased for
the quarter and were flat for the year. Occupancy & other operating expenses
increased as a percent of sales for both periods.
In the U.S., Company-operated margins increased as a percent of sales
for the quarter but decreased for the year. Food & paper costs decreased as a
percent of sales for the quarter and the year, while payroll costs and occupancy
& other operating expenses increased for both periods. In each of the remaining
segments, Company-operated margins decreased as a percent of sales for both
periods.
Consolidated franchised margins as a percent of applicable revenues
decreased for the quarter and the year. The decrease in the margin as a percent
of revenues was primarily due to higher occupancy costs as a result of our
strategy to lease more sites. By leasing a higher proportion of new sites, we
have reduced initial capital requirements. However, as anticipated, this
practice reduces franchised margins because the financing costs implicit in the
lease are included in occupancy expense, whereas for owned sites, financing
costs are reflected in interest expense. The consolidation of Argentina and
Indonesia also contributed to the decline in margins as a percent of revenues.
-6-
Selling, General & Administrative Expenses
Selling, general & administrative expenses increased one percent for
the quarter and seven percent for the year. The increases were primarily due to
spending to support the development of Other Brands and the consolidation of
Argentina and Indonesia. Excluding Other Brands and the consolidations, selling,
general & administrative expenses decreased five percent for the quarter and
increased one percent for the year. Selling, general & administrative expenses
benefited from weaker foreign currencies and lower expense for performance-based
incentive compensation.
Other Operating Income and Expense
Other operating income and expense consists of transactions related to
franchising and the food service business. Equity in earnings of unconsolidated
affiliates decreased for the year primarily as a result of a gain reported in
1999 on the sale of real estate in a U.S. partnership. The decrease in other
expense for the quarter and the year was primarily due to lower provisions for
property dispositions in 2000, costs in 1999 associated with the implementation
of our Made For You food preparation system and the write-off of software in the
second quarter 1999.
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Other operating income and expense Quarters ended Years ended
December 31 December 31
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Dollars in millions 2000 1999 2000 1999
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Gains on sales of restaurant businesses $28.5 $36.4 $ 86.9 $ 75.0
Equity in earnings of unconsolidated
affiliates 28.1 28.7 120.9 138.3
Other (0.8) (14.5) (11.4) (108.1)
Total $55.8 $50.6 $196.4 $105.2
Operating Income
Consolidated operating income decreased $42.8 million for the quarter,
but increased $12.1 million, or one percent, in constant currencies. For the
year, consolidated operating income increased $10.1 million and, in constant
currencies, $161.3 million or five percent. The constant currency increases for
both periods were due to higher combined operating margin dollars and other
operating income, partly offset by higher selling, general & administrative
expenses. Operating income by segment includes the allocation of corporate
selling, general & administrative expenses.
-7-
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Operating income Increase/(Decrease)
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As In Constant
Dollars in millions 2000 1999 Reported Currencies*
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Quarters ended December 31
U.S. $ 385.3 $ 338.9 14% n/a
Europe 267.3 322.3 (17) (3)%
Asia/Pacific 88.0 99.3 (11) (2)
Latin America 14.5 33.4 (57) (58)
Other** 18.9 22.9 (17) (14)
Total operating income $ 774.0 $ 816.8 (5)% 1%
Years ended December 31
U.S. $1,599.1 $1,471.7 9% n/a
Europe 1,124.1 1,203.4 (7) 6%
Asia/Pacific 421.1 404.3 4 6
Latin America 97.4 127.5 (24) (23)
Other** 88.0 112.7 (22) (22)
Total operating income $3,329.7 $3,319.6 -% 5%
* Excluding the effect of foreign currency translation on reported results.
** Includes operating losses for Other Brands of $8.1 million and $41.5
million for the quarter and year 2000, respectively. In 1999, operating
losses for Other Brands were $4.9 million and $7.5 million for the quarter
and year, respectively.
n/a Not applicable
U.S. operating income increased $46.4 million, or 14 percent, for the
quarter and $127.4 million, or nine percent, for the year. The increases for
both periods were driven by higher combined operating margin dollars, lower
selling, general and administrative expenses and higher other operating income.
Europe's operating income decreased three percent for the quarter and
increased six percent for the year in constant currencies. Strong results in the
Netherlands and Spain for both periods and France and Italy for the year
contributed to this segment's performance. The concern regarding the safety of
the European beef supply negatively impacted this segment's results in the
fourth quarter.
Operating income in Asia/Pacific decreased two percent for the quarter
and increased six percent for the year in constant currencies. Australia's
results were negatively affected for both periods by the introduction of the
goods and services tax in July 2000, while the segment benefited from strong
performances in China and South Korea. Taiwan, which benefited from a weak
comparison with the prior year due to the September 1999 earthquake, also
contributed to this segment's results for both periods. The partial sale of our
Japanese affiliate's ownership in Toys `R' Us Japan, in connection with an
initial public offering of Toys `R' Us Japan, contributed to the increase for
the year.
-8-
Latin America's operating income decreased 58 percent for the quarter
and 23 percent for the year in constant currencies. Both periods were negatively
impacted by the continuing difficult economic conditions experienced by most
markets in the region, which resulted in negative comparable sales and lower
margins.
In the Other segment, the investment spending for Other Brands was
partially offset by Canada's increases for the quarter and the year.
INTEREST, NONOPERATING EXPENSE AND INCOME TAXES
For both periods, higher interest expense was primarily due to higher average
debt levels, partly offset by weaker foreign currencies. The higher average debt
levels were a result of the Company using its available credit capacity to fund
share repurchases.
Nonoperating (income) expense for the quarter and the year reflected
lower minority interest expense in 2000. For the year, nonoperating (income)
expense also reflected a gain related to the sale of a partial ownership
interest in a majority-owned subsidiary outside the U.S. and lower translation
losses.
The fourth quarter effective income tax rate was 31.3 percent compared
with 31.6 percent in 1999. The effective tax rate for the year was 31.4 percent
compared with 32.5 percent in 1999. The decrease in the income tax rate was the
result of a tax benefit resulting from an international transaction. The
effective income tax rate for 2001 is expected to be 32.0 to 33.0 percent.
WEIGHTED AVERAGE SHARES
Weighted average shares outstanding for the fourth quarter and the year were
lower compared with the prior year due to shares repurchased. In addition,
outstanding stock options had a less dilutive effect than in the prior year. The
Company repurchased $305 million or 8.7 million shares of its common stock in
the fourth quarter, bringing the total for 2000 to 56.7 million shares for $2.0
billion.
-9-
FORWARD-LOOKING STATEMENTS
Certain forward-looking statements are included in this report. They use such
words as "may," "will," "expect," "believe," "plan" and other similar
terminology. These statements reflect management's current expectations
regarding future events and operating performance and speak only as of the date
of this report. These forward-looking statements involve a number of risks and
uncertainties. The following are some of the factors that could cause actual
results to differ materially from those expressed in or underlying our
forward-looking statements: the effectiveness of operating initiatives and
advertising and promotional efforts, the effects of the Euro conversion, as well
as changes in: global and local business and economic conditions; currency
exchange (particularly the Euro) and interest rates; food, labor and other
operating costs; political or economic instability in local markets;
competition; consumer preferences, spending patterns and demographic trends;
legislation and governmental regulation; and accounting policies and practices.
The foregoing list of important factors is not exclusive.
The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
FOURTH QUARTER CONFERENCE CALL
In conjunction with its Fourth Quarter earnings release, McDonald's Corporation
will broadcast its conference call with members of management live over the
Internet on Wednesday, January 24, 2001 at 11:30 a.m., Central Standard Time.
Interested parties are invited to listen by logging on to
xxxx://xxx.xxxxxxxxx.xxx/xxxxxxxxx/xxxxxxxx and clicking "Investor Webcasts"
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under "Latest News".
-10-
McDONALD'S CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
Dollars and shares in millions, except per common share data
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Inc/(Dec)
Quarters ended December 31, 2000 1999 $ %
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SYSTEMWIDE SALES $9,924.5 $9,749.7 174.8 2
Revenues
Sales by Company-operated
restaurants 2,676.6 2,424.9 251.7 10
Revenues from franchised
and affiliated restaurants 913.0 948.0 (35.0) (4)
TOTAL REVENUES 3,589.6 3,372.9 216.7 6
Operating costs and expenses
Company-operated
restaurants 2,272.4 2,010.8 261.6 13
Franchised restaurants
--occupancy costs 191.9 191.7 0.2 -
Selling, general &
administrative expenses 407.1 404.2 2.9 1
Other operating (income)
expense (55.8) (50.6) (5.2) 10
Total operating costs
and expenses 2,815.6 2,556.1 259.5 10
OPERATING INCOME 774.0 816.8 (42.8) (5)
Interest expense 111.9 98.2 13.7 14
Nonoperating (income)
expense 4.6 8.3 (3.7) n/m
Income before provision
for income taxes 657.5 710.3 (52.8) (7)
Provision for
income taxes 205.5 224.1 (18.6) (8)
NET INCOME $ 452.0 $ 486.2 (34.2) (7)
NET INCOME PER
COMMON SHARE $ 0.35 $ 0.36 (0.01) (3)
NET INCOME PER
COMMON SHARE-DILUTED $ 0.34 $ 0.35 (0.01) (3)
Weighted average
common shares outstanding 1,307.0 1,353.3
Weighted average
common shares outstanding
-diluted 1,335.8 1,401.4
n/m Not meaningful
-11-
XxXXXXXX'X CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
Dollars and shares in millions, except per common share data
--------------------------------------------------------------------------
Inc/(Dec)
Years ended December 31, 2000 1999 $ %
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SYSTEMWIDE SALES $40,181.2 $38,490.7 1,690.5 4
Revenues
Sales by Company-operated
restaurants 10,467.0 9,512.5 954.5 10
Revenues from franchised
and affiliated restaurants 3,776.0 3,746.8 29.2 1
TOTAL REVENUES 14,243.0 13,259.3 983.7 7
Operating costs and expenses
Company-operated
restaurants 8,750.1 7,829.6 920.5 12
Franchised restaurants
--occupancy costs 772.3 737.7 34.6 5
Selling, general &
administrative expenses 1,587.3 1,477.6 109.7 7
Other operating (income)
expense (196.4) (105.2) (91.2) n/m
Total operating costs
and expenses 10,913.3 9,939.7 973.6 10
OPERATING INCOME 3,329.7 3,319.6 10.1 -
Interest expense 429.9 396.3 33.6 8
Nonoperating (income)
expense 17.5 39.2 (21.7) n/m
Income before provision
for income taxes 2,882.3 2,884.1 (1.8) -
Provision for
income taxes 905.0 936.2 (31.2) (3)
NET INCOME $ 1,977.3 $ 1,947.9 29.4 2
NET INCOME PER
COMMON SHARE $ 1.49 $ 1.44 0.05 3
NET INCOME PER
COMMON SHARE-DILUTED $ 1.46 $ 1.39 0.07 5
Weighted average
common shares outstanding 1,323.2 1,355.3
Weighted average
common shares outstanding
-diluted 1,356.5 1,404.2
n/m Not meaningful
-12-
XxXXXXXX'X CORPORATION SYSTEMWIDE SALES
Dollars in millions
------------------------------------------------------------------------
% Inc/(Dec)
As In Constant
Quarters ended December 31, 2000 1999 Reported Currencies*
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US
Operated by franchisees $3,769.0 $3,659.2 3
Operated by the Company 780.7 728.5 7
Operated by affiliates 274.2 293.9 (7)
4,823.9 4,681.6 3 n/a
Europe
Operated by franchisees 1,176.9 1,323.3 (11)
Operated by the Company 922.1 1,002.7 (8)
Operated by affiliates 111.4 123.8 (10)
2,210.4 2,449.8 (10) 5
Asia/Pacific
Operated by franchisees 445.8 469.7 (5)
Operated by the Company 413.3 399.7 3
Operated by affiliates 890.2 827.6 8
1,749.3 1,697.0 3 11
Latin America
Operated by franchisees 242.1 218.4 11
Operated by the Company 207.2 127.4 63
Operated by affiliates 20.9 92.2 (77)
470.2 438.0 7 8
Other**
Operated by franchisees 308.0 298.0 3
Operated by the Company 353.3 166.6 112
Operated by affiliates 9.4 18.7 (50)
670.7 483.3 39 43
Systemwide
Operated by franchisees 5,941.8 5,968.6 -
Operated by the Company 2,676.6 2,424.9 10
Operated by affiliates 1,306.1 1,356.2 (4)
$9,924.5 $9,749.7 2 7
* Excluding the effect of foreign currency translation on reported results.
** The Other segment includes $227.0 million of sales in 2000 and $44.5 million
in 1999 related to Other Brands.
-13-
XxXXXXXX'X CORPORATION SYSTEMWIDE SALES
Dollars in millions
------------------------------------------------------------------------
% Inc/(Dec)
As In Constant
Years ended December 31, 2000 1999 Reported Currencies*
------------------------------------------------------------------------
US
Operated by franchisees $15,330.7 $14,857.9 3
Operated by the Company 3,063.8 2,956.6 4
Operated by affiliates 1,178.3 1,191.1 (1)
19,572.8 19,005.6 3 n/a
Europe
Operated by franchisees 5,097.1 5,194.9 (2)
Operated by the Company 3,729.8 3,876.7 (4)
Operated by affiliates 465.9 485.4 (4)
9,292.8 9,557.0 (3) 9
Asia/Pacific
Operated by franchisees 1,809.3 1,787.5 1
Operated by the Company 1,777.9 1,609.3 10
Operated by affiliates 3,464.2 3,038.9 14
7,051.4 6,435.7 10 9
Latin America
Operated by franchisees 928.8 820.7 13
Operated by the Company 764.4 494.3 55
Operated by affiliates 96.8 350.6 (72)
1,790.0 1,665.6 7 9
Other**
Operated by franchisees 1,297.6 1,168.0 11
Operated by the Company 1,131.1 575.6 97
Operated by affiliates 45.5 83.2 (45)
2,474.2 1,826.8 35 36
Systemwide
Operated by franchisees 24,463.5 23,829.0 3
Operated by the Company 10,467.0 9,512.5 10
Operated by affiliates 5,250.7 5,149.2 2
$40,181.2 $38,490.7 4 7
* Excluding the effect of foreign currency translation on reported results.
** The Other segment includes $605.2 million of sales in 2000 and $90.6 million
in 1999 related to Other Brands.
-14-
McDONALD'S CORPORATION TOTAL REVENUES
Dollars in millions
----------------------------------------------------------------------
% Inc/(Dec)
As In Constant
Quarters ended December 31, 2000 1999 Reported Currencies*
----------------------------------------------------------------------
U.S. $ 1,321.8 $ 1,258.8 5 n/a
Europe 1,163.6 1,273.6 (9) 5
Asia/Pacific 463.5 458.1 1 8
Latin America 248.2 176.7 40 42
Other** 392.5 205.7 91 95
$ 3,589.6 $ 3,372.9 6 13
----------------------------------------------------------------------
% Inc/(Dec)
As In Constant
Years ended December 31, 2000 1999 Reported Currencies*
----------------------------------------------------------------------
U.S. $ 5,259.1 $ 5,093.0 3 n/a
Europe 4,753.9 4,924.9 (3) 7
Asia/Pacific 1,987.0 1,832.3 8 11
Latin America 949.3 680.3 40 41
Other** 1,293.7 728.8 78 79
$14,243.0 $13,259.3 7 12
* Excluding the effect of foreign currency translation on reported results.
** The Other segment revenue related to Other Brands for the fourth quarter and
year 2000 was $216.7 million and $563.8 million, respectively. In 1999,
revenue related to Other Brands was $34.5 million for the quarter and $56.7
for the year.
-15-
McDONALD'S CORPORATION OPERATING MARGINS
OPERATING MARGINS - McDONALD'S RESTAURANT BUSINESS**
------------------------------------------------------------------------
% Inc/(Dec)
Quarters ended Percent Amount As In Constant
December 31, 2000 1999 2000 1999 Reported Currencies*
------------------------------------------------------------------------
Company-operated
U.S. 16.7% 16.5% $ 130.1 $ 120.0 8 n/a
Europe 17.1 19.4 157.5 194.5 (19) (7)
Asia/Pacific 13.7 14.5 56.8 58.0 (2) 4
Latin America 11.3 14.4 23.5 18.3 28 29
Other 12.5 13.5 17.1 17.8 (4) 1
Total 15.6% 17.1% $ 385.0 $ 408.6 (6) 1
Franchised
U.S. 80.0% 80.1% $ 432.9 $ 424.8 2 n/a
Europe 77.6 79.0 187.3 214.1 (13) 3
Asia/Pacific 83.1 83.7 41.7 48.8 (15) (2)
Latin America 69.0 76.9 28.3 38.0 (26) (25)
Other 78.6 78.0 30.5 30.2 1 5
Total 79.0% 79.8% $ 720.7 $ 755.9 (5) 1
------------------------------------------------------------------------
% Inc/(Dec)
Years ended Percent Amount As In Constant
December 31, 2000 1999 2000 1999 Reported Currencies*
------------------------------------------------------------------------
Company-operated
U.S. 17.0% 17.5% $ 521.1 $ 516.2 1 n/a
Europe 18.3 19.2 682.7 742.6 (8) 2
Asia/Pacific 16.2 16.6 288.8 267.5 8 9
Latin America 12.4 14.1 94.6 69.9 35 36
Other 14.5 14.9 82.4 77.7 6 7
Total 16.9% 17.7% $1,669.6 $1,673.9 - 4
Franchised
U.S. 80.4% 81.0% $1,764.8 $1,730.1 2 n/a
Europe 78.3 79.0 802.2 828.1 (3) 10
Asia/Pacific 82.7 83.6 173.0 186.5 (7) (1)
Latin America 73.0 77.5 135.0 144.1 (6) (5)
Other 78.9 78.5 127.0 119.6 6 7
Total 79.5% 80.3% $3,002.0 $3,008.4 - 4
* Excluding the effect of foreign currency translation on reported results.
** Operating margin information relates to McDonald's restaurant business and
excludes Other Brands.
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XxXXXXXX'X CORPORATION FINANCIAL INFORMATION
COMPANY-OPERATED MARGINS AS A PERCENT OF SALES -
McDONALD'S RESTAURANT BUSINESS*
-------------------------------------------------------------------------
Quarters ended Years ended
December 31 December 31
2000 1999 2000 1999
-------------------------------------------------------------------------
Food & paper 33.7 33.7 34.0 33.7
Payroll & employee
benefits 26.0 25.5 25.4 25.4
Occupancy & other
operating expenses 24.7 23.7 23.7 23.2
Total expenses 84.4 82.9 83.1 82.3
Company-operated margins 15.6 17.1 16.9 17.7
* Operating margin information relates to McDonald's restaurant business and
excludes Other Brands.
SELLING,GENERAL & ADMINISTRATIVE EXPENSES
-------------------------------------------------------------------------
% Inc/(Dec)
As In Constant
Years ended December 31 2000 1999 Reported Currencies*
-------------------------------------------------------------------------
U.S. $ 755.4 $ 765.7 (1) n/a
Europe 392.1 400.9 (2) 8
Asia/Pacific 147.9 134.5 10 14
Latin America 124.7 88.9 40 42
Other** 167.2 87.6 91 92
$1,587.3 $1,477.6 7 11
* Excluding the effect of foreign currency translation on reported results.
** The Other segment includes $84.5 million of selling, general & administrative
expenses in 2000 and $12.6 million in 1999 related to Other Brands.
-17-
XxXXXXXX'X CORPORATION RESTAURANT INFORMATION
SYSTEMWIDE RESTAURANTS
-----------------------------------------------------------------------
At December 31, 2000** 1999** Inc/(Dec)
-----------------------------------------------------------------------
U.S.* 12,804 12,629 175
Europe
Germany 1,091 1,008 83
England 952 884 68
France 857 790 67
Italy 290 242 48
Spain 276 229 47
Sweden 227 202 25
Netherlands 205 201 4
Poland 181 160 21
Other 1,381 1,227 154
Total Europe 5,460 4,943 517
Asia/Pacific
Japan* 3,598 3,258 340
Australia 701 684 17
Taiwan 338 319 19
China 326 252 74
South Korea 243 176 67
Philippines 235 217 18
Hong Kong 177 163 14
Other 642 585 57
Total Asia/Pacific 6,260 5,654 606
Latin America
Brazil 543 464 79
Argentina 209 182 27
Mexico 205 170 35
Other 553 483 70
Total Latin America 1,510 1,299 211
Other
Canada* 1,154 1,125 29
Other McDonald's 511 443 68
Other Brands*** 1,008 216 792
Total Other 2,673 1,784 889
Systemwide restaurants 28,707 26,309 2,398
Countries 120 118 2
* Includes satellites at December 31, 2000: U.S. 999; Japan 1,649;
Canada 280. At December 31, 1999: U.S. 1,048; Japan 1,333;
Canada 259.
** Adjusted to exclude dessert-only kiosks from the restaurant counts as
follows: 600 (553 in Brazil) at December 31, 2000 and 497 (457 in Brazil) at
December 31, 1999.
*** Restaurants at December 31, 2000: Aroma Cafe 41; Boston Market 707;
Chipotle Mexican Grill 104; Donatos Pizza 156. At December 31,1999:
Aroma Cafe 32; Chipotle Mexican Grill 37; Donatos Pizza 147.
-18-
XxXXXXXX'X CORPORATION RESTAURANT INFORMATION
RESTAURANT ADDITIONS
-----------------------------------------------------------------------
Quarters ended Years ended
December 31 December 31
2000* 1999* 2000** 1999**
-----------------------------------------------------------------------
U.S. 101 100 175 157
Europe 218 254 517 522
Asia/Pacific 272 255 606 599
Latin America 79 76 211 199
Other - McDonald's 58 46 97 121
Other Brands 86 21 792*** 198
Systemwide additions 814 752 2,398 1,796
* Adjusted by 39 in 2000 and 100 in 1999 to exclude dessert-only kiosks.
** Adjusted by 103 in 2000 and 192 in 1999 to exclude dessert-only kiosks.
*** Includes 707 Boston Market restaurants acquired in 2000.
SYSTEMWIDE RESTAURANTS
-----------------------------------------------------------------------
At December 31, 2000* 1999* Inc/(Dec)
-----------------------------------------------------------------------
US
Operated by franchisees 10,169 9,986 183
Operated by the Company 1,912 1,837 75
Operated by affiliates 723 806 (83)
12,804 12,629 175
Europe
Operated by franchisees 3,094 2,722 372
Operated by the Company 2,142 2,005 137
Operated by affiliates 224 216 8
5,460 4,943 517
Asia/Pacific
Operated by franchisees 1,648 1,496 152
Operated by the Company 1,496 1,248 248
Operated by affiliates 3,116 2,910 206
6,260 5,654 606
Latin America
Operated by franchisees 748 665 83
Operated by the Company 680 364 316
Operated by affiliates 82 270 (188)
1,510 1,299 211
Other
Operated by franchisees 1,136 1,080 56
Operated by the Company 1,422 605 817
Operated by affiliates 115 99 16
2,673 1,784 889
Systemwide
Operated by franchisees 16,795 15,949 846
Operated by the Company 7,652 6,059 1,593
Operated by affiliates 4,260 4,301 (41)
28,707 26,309 2,398
* Adjusted to exclude dessert-only kiosks as follows: 600 at December 31, 2000
and 497 at December 31, 1999.
# # #
-19-
