McDonalds Corporation

Presented By: Ardis Shannon Adam Krupa Jigar Patel David Seid Samuel George

McDonalds Mission
Be the best quick service restaurant experience. By providing quality, service, cleanliness and value that make every customer in every restaurant smile.

3 World wide strategies

Best employer Operational

Excellence Continue to grow and be profitable

History
1940 First McDonalds 1952 Attempts at

franchising 1954 Milk Shake Machine 1955 prototype opens in Des Plaines, IL 1956 14 McDonalds 1961 McDonald brothers sell rights

1965 McDonalds go public 1968 Introduction of

Big Mac and shift to Network Television 1970 1600 restaurants 1980 6000 McDonalds Restaurants 1990 record sales

History Continued
1994 Kuwait City, Kuwait 2002 Forty seven years after
30,000 locations 2000 new restaurants World Wide Web McDonalds a recognized Brand

Name

Recent Acquisitions/Divestitures
Boston

Market Chipolte Mexican Grill Donatos Pizza chain McCafe

Training
Surpasses

even the U.S. Army Provides career opportunities Service Enhancement Process Consistent through CD-ROMs

ReHIREment
Program

established for mature workers Ease of transition of older workers returning to the workforce. Flexible scheduling so as not to jeopardize their Social Security benefits. More than 40,000 older workers serve McDonalds customers on any given day

McJobs
Assistance

to employees with mental and physical disabilities. More than 9,000 workers went through the program. Given formal graduation ceremony

Management Development Programs

Crew

Development Restaurant Management Mid-Management Executive Development

Hamburger University
Management Training

Center Worldwide Education Program Technology 200 per class 65,000 managers graduated to date

Women and Minorities

Soars

above stereotype of average fast-food

joint Compose more than 50 percent of McDonalds current workforce Featured as the The Best Companies for Minorities

Product Lines
Hamburgers Chicken

Sandwiches French Fries Beverages Breakfast Items Desserts

Technology
McDonalds

in Sweden Worlds First Snowmobile Drive-Thru & ExxonMobil??? Speedpass invades McDonalds

McDonalds

Industry Trends
What

is happening with fast food?

People are more educated

McDonalds

Responds

Americas First McCafe In Downtown Chicago

Financial Agenda
System Wide Sales McDonalds Corporation Revenues Cash Flow Financial Ratios Stock Performance

System Wide Sales In The Year 2000 $40.181 Billion

Affiliated 6% 6 Company operated Resturants 2% 2

Franchised 6% 6

McDonalds Corporation Sales By Segment

Latin America 2 % Other 2 %

U.S. 2% 2 Asia/Pacific 2% 2

Europe 2% 2

Income
(in millions)
Net Revenues
$22 ,22 2 $66 ,66 2
$22 2 2 , $66 6 6 , $22 2 2 ,

Net Income

Earnings / Share
$222 . $222 . $666 .

$22 ,22 2

'22

'22

'22

'2 2

'2 2

'2 2

'22

'22

'22

Cash Flow Statement

In (millions)
2000 1999

Net Income Net Cash Provided By Operating Activities Net Cash Provided By Investing Activities Net Cash Provided By Financing Activities Cash and equivalents increase(decrease) Cash and equivalents at beginning of year Cash and Equivalents at end of year

$1,977.3 $1,947.9 $2,751.5 3,008.9 (2,212.6) (2,261.8) (536.7) (626.8) $2.2 $419.5 $421.7 $120.3 $299.2 $419.5

Analysis P/E Ratio Price to Sales Price to Book Quick Ratio Inventory Turnover Total Debt to Equity Net Profit Margin Return on Assets Return on Investment Return on Equity Revenue/Employee

Financial Ratios McDonald

21.42 2.36 3.52 0.76 109.28 0.89 11.01 7.54 8.30 17.62 40,852

Industry
25.49 1.97 3.95 0.63 32.44 0.64 7.62 8.67 10.54 17.65 77,289

Stock Performance
Mkt Cap 35.877B 52-wk Range 24.75 - 31.00 Last Trade Mar. 8 27.91

Making A Difference
We have an obligation to give back to the communities that give us so much." - Founder Ray Kroc, 1955

Social Commitments
9-11

Relief Effort Environmental Concerns Educational Involvement Quality & Safety Procedures Ronald McDonald House Charities (RHMC)

Stay Tuned

Terence Haynes
Senior Vice President, U.S. Controller

Native of South Africa Education: Bachelor of Commerce University of Witwatersand in Johannesburg Prior Position: Chief Financial Officer in the U.K.