Skip to content

MCD · MCDONALDS CORP

33 filings

10-K

MCD 10-K Annual Reports

MCDONALDS CORP - 33 annual reports

Filing record · 2016–202610-K1110-Q328-K136

2025
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2025
McDonald's Corporation reported solid financial performance for the fiscal year ended December 31, 2025. Total revenues increased by 4% to $26.9 billion, with Systemwide sales growing 7% to $139.4 billion, indicating strong global demand. The company achieved a 3.1% increase in global comparable sales, driven by consistent growth in its U.S., International Operated Markets, and International Developmental Licensed Markets segments. Net income rose 4% to $8.6 billion, with diluted earnings per share reaching $11.95, up 5%. The company's strategic "Accelerating the Arches" growth strategy, focusing on maximizing marketing, committing to core menu items, and doubling down on digital, delivery, drive-thru, and restaurant development, continues to drive performance. McDonald's is aggressively pursuing restaurant development, planning to open approximately 2,600 new restaurants in 2026, with a long-term target of 50,000 global units by the end of 2027. The company also returned $7.1 billion to shareholders through dividends and share repurchases, underscoring a commitment to shareholder value.
Feb 24, 2026
2024
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2024
McDonald's Corporation reported its fiscal year 2024 results, facing a slight decrease in global comparable sales (-0.1%), with mixed performance across segments. The U.S. saw a modest increase of 0.2%, while International Operated Markets and International Developmental Licensed Markets experienced slight decreases. Despite this, consolidated revenues grew 2% to $25.9 billion, and systemwide sales reached $130.7 billion. The company continued to invest in its 'Accelerating the Arches' growth strategy, focusing on marketing, core menu innovation (like the 'Best Burger' initiative), and accelerating digital, delivery, drive-thru, and restaurant development. Significant capital expenditure in 2024 was directed towards new restaurant openings and enhancements, with over 2,100 new restaurants added globally. The company remains committed to returning value to shareholders, with a 6% increase in quarterly dividend and a total of $7.7 billion returned through dividends and share repurchases in 2024. The company also reported an increase in cash from operations but a decrease in free cash flow, alongside a higher capital expenditure budget for 2025 to support further expansion.
Feb 25, 2025
2023
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2023
McDonald's Corporation's 2023 Form 10-K highlights a year of robust performance, characterized by a 10% increase in consolidated revenues to $25.5 billion and a significant 24% rise in operating income to $11.6 billion. This growth was fueled by strong comparable sales across all segments, increasing by 9.0% globally, driven by strategic menu price adjustments and digital engagement. The company continues to execute its 'Accelerating the Arches' growth strategy, focusing on maximizing marketing, committing to core menu items with initiatives like 'Best Burger,' and doubling down on digital, delivery, drive-thru, and restaurant development. This strategy is supported by substantial capital expenditures, with over 2,000 new restaurants opened globally and plans to expand to 50,000 restaurants by 2027. The company also returned approximately $7.6 billion to shareholders through dividends and share repurchases, underscoring its commitment to shareholder value.
Feb 22, 2024
2022
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2022
McDonald's Corporation's 2022 10-K filing highlights a year of resilience and strategic evolution. Despite a flat revenue growth of $23.2 billion (up 6% in constant currencies), the company demonstrated strong comparable sales growth of 10.9% across all segments, indicating robust customer demand and effective execution of its 'Accelerating the Arches' strategy. This growth was driven by strategic menu pricing, digital and delivery expansion, and strong performance in key markets like the U.S., France, Germany, and the UK. Financially, the company navigated various challenges, including the sale of its Russian business and impacts from global economic pressures. While diluted EPS decreased by 17% to $8.33, this was influenced by significant charges related to the Russia business sale and a French tax audit settlement. McDonald's demonstrated a strong commitment to shareholder returns, repurchasing $3.9 billion in stock and increasing its quarterly dividend by 10%, returning a total of $8.1 billion to shareholders. The company is strategically positioning itself for future growth by evolving its strategy to include accelerated restaurant development and further digital integration, aiming to enhance customer experience and drive long-term value.
Feb 24, 2023
2021
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2021
McDonald's Corporation's 2021 Form 10-K highlights a strong recovery and growth following the impact of the COVID-19 pandemic. The company reported significant increases in consolidated revenues, operating income, and diluted earnings per share, driven by robust comparable sales growth across all segments, particularly in the U.S. and International Operated Markets. The "Accelerating the Arches" growth strategy, with its focus on maximizing marketing, committing to core menu items, and doubling down on digital, delivery, and drive-thru channels, appears to be effectively driving business performance. The company demonstrated a strong commitment to returning capital to shareholders through increased dividends and share repurchases, underscoring its financial health and confidence in future cash flows. Furthermore, McDonald's continues to prioritize its people and communities through various initiatives, including diversity, equity, and inclusion programs and a commitment to environmental sustainability. The heavily franchised business model, with 93% of restaurants being franchised, provides a stable and predictable revenue stream. The outlook for 2022 remains positive, with expectations for continued Systemwide sales growth driven by new restaurant openings and strategic investments in modernization and digital capabilities.
Feb 24, 2022
2020
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2020
McDonald's Corporation's 2020 Form 10-K highlights a challenging year impacted by the COVID-19 pandemic, which led to a 10% decrease in total revenues and a 19% decrease in operating income. Despite these headwinds, the company demonstrated resilience, with U.S. comparable sales showing a slight increase and the company continuing its strategic focus on digital, delivery, and drive-thru (the "3 D's") to enhance customer experience and drive future growth. The company also maintained its commitment to shareholders by increasing its quarterly cash dividend by 3% and returned significant capital through dividends. The report outlines the "Accelerating the Arches" growth strategy, emphasizing maximizing marketing, committing to core menu items (especially chicken and beef), and doubling down on digital, delivery, and drive-thru. While the pandemic presented operational challenges, McDonald's adapted by implementing enhanced safety protocols and providing franchisee support. The company's heavily franchised model provides a degree of revenue stability, but the impact of government regulations and evolving consumer behavior due to COVID-19 remains a key consideration for near-term performance.
Feb 23, 2021
2019
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2019
McDonald's Corporation's 2019 Form 10-K report highlights a year of solid performance, characterized by continued execution of its Velocity Growth Plan. The company reported global comparable sales growth of 5.9%, driven by strong performance across all segments, including the U.S. and International Operated Markets. This growth was supported by strategic initiatives like the 'Experience of the Future' (EOTF) deployment, digital advancements including the acquisition of Dynamic Yield for personalization, and expansion of its delivery platform, which saw significant growth in systemwide sales. Financially, McDonald's demonstrated resilience with consolidated revenues remaining flat year-over-year (up 3% in constant currencies) and diluted earnings per share increasing by 5% to $7.88. The company also continued its commitment to shareholder returns, delivering $8.6 billion through dividends and share repurchases, successfully meeting its three-year target. Looking ahead, McDonald's outlined its 2020 outlook, anticipating continued investment in technology and restaurant modernization, alongside long-term financial targets focused on sustained growth in systemwide sales, operating margin, and earnings per share.
Feb 26, 2020
2018
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2018
McDonald's Corporation's 2018 Form 10-K highlights a strategic shift towards a more heavily franchised model, with approximately 93% of restaurants being franchised by year-end 2018 and a goal to reach approximately 95% long-term. This move aims to generate more stable and predictable revenue streams while operating with a less resource-intensive structure. The company's 'Velocity Growth Plan' continued to show strength, driving positive global comparable sales for 14 consecutive quarters. Key growth accelerators include 'Experience of the Future' (EOTF) modernization, digital initiatives like mobile ordering and self-order kiosks, and expanding delivery services, which significantly increases average check size. These initiatives are designed to enhance customer experience, drive guest count growth, and improve overall financial performance. Financially, despite an 8% decrease in consolidated revenues due to refranchising, the company reported an 18% increase in diluted earnings per share to $7.54. Significant capital is being returned to shareholders through dividends and substantial share repurchases, demonstrating confidence in future cash flow generation.
Feb 22, 2019
2017
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2017
McDonald's Corporation's 2017 10-K filing highlights a strategic shift towards long-term growth driven by the "Velocity Growth Plan." This plan focuses on customer-centric initiatives, including enhancing the food and value proposition, improving the customer experience through "Experience of the Future" (EOTF) modernizations and digital integration, and expanding delivery services. The company reported strong comparable sales growth across all segments, signaling a successful transition from a turnaround phase to a growth phase. Financially, McDonald's demonstrated improved operating income and diluted EPS in 2017, partly due to a gain from the sale of its China and Hong Kong businesses. The company also continued its strategy of refranchising, achieving its target of 4,000 refranchised restaurants ahead of schedule, moving closer to its long-term goal of approximately 95% franchised operations. This strategy aims to provide more stable revenue streams and lower operating costs. Shareholder returns were robust, with significant amounts distributed through dividends and share repurchases.
Feb 23, 2018
2016
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2016
McDonald's Corporation's 2016 10-K filing highlights a company in transition, driven by a "turnaround plan" initiated in 2015. This plan emphasizes operational improvements, refranchising, cost savings, and returning capital to shareholders. In 2016, the company achieved its refranchising target ahead of schedule, moving towards its long-term goal of approximately 95% franchised restaurants, which management believes will lead to more stable revenue streams and lower operating costs. Financially, the company reported increased operating income and diluted earnings per share, driven by global comparable sales growth of 3.8%, the highest since 2011. However, consolidated revenues saw a slight decrease due to the refranchising efforts, which replace company-owned sales with franchise fees. The company also successfully returned significant capital to shareholders through dividends and substantial share repurchases, meeting its three-year target of $30 billion.
Mar 1, 2017
2015
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2015
This 10-K filing for McDonald's Corporation for the fiscal year ended December 31, 2015, highlights the company's strategic shift under new leadership to reset the business and restore growth. A significant focus for the year was the execution of a turnaround plan aimed at enhancing customer experience, driving operational growth, creating brand excitement, and improving financial value. This included reorganizing into new operating segments (U.S., International Lead Markets, High Growth Markets, and Foundational Markets & Corporate) to foster greater accountability and faster decision-making. The company is actively working to optimize its restaurant ownership mix by refranchising approximately 4,000 restaurants by 2018, aiming for a 95% franchised model long-term. This strategy, along with efforts to deliver cost savings and return capital to shareholders, is central to the company's financial enhancement plan. While consolidated revenues and operating income saw a decline year-over-year, partly due to foreign currency translation and strategic charges, the company reported positive momentum in comparable sales in the latter half of the year, indicating early signs of the turnaround plan's effectiveness.
Feb 25, 2016
2014
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2014
McDonald's Corporation's 2014 10-K filing reveals a challenging year marked by a 15% decrease in net income to $4.76 billion and a 13% drop in diluted EPS to $4.82. This performance was impacted by a significant supplier issue in China affecting results in China, Japan, and other markets, as well as weak operating performance in the U.S. and volatile conditions in Russia and Ukraine. The company saw a 1.0% decrease in comparable sales globally, with guest counts declining across all segments. Despite these headwinds, McDonald's remains committed to its franchise-led model and plans to return significant cash to shareholders. In 2014, $6.4 billion was returned through dividends and share repurchases, as part of a larger $18-20 billion cash return target for 2014-2016. The company is also focused on strategic initiatives for future growth, including menu optimization, modernizing the customer experience, and enhancing convenience, signaling a path towards recovery and long-term value creation.
Feb 24, 2015
2013
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2013
McDonald's Corporation's 2013 Form 10-K highlights a year of modest revenue growth, largely driven by expansion, but challenged by flat comparable sales and declining guest counts across key markets like Europe and APMEA. The company is navigating a competitive landscape with price sensitivity and slower growth in the informal eating out (IEO) segment. Despite these headwinds, McDonald's continued its strategic focus on optimizing its menu, modernizing the customer experience through re-imaging initiatives, and broadening accessibility. Financial performance saw a slight increase in operating income and diluted EPS, supported by strong cash flow generation, which enabled continued returns to shareholders through dividends and share repurchases. The company reaffirms its commitment to long-term growth targets and outlines plans for 2014 focused on improving execution, enhancing value offerings, and further leveraging digital strategies, particularly in underperforming markets like Germany, Japan, and the U.S.
Feb 24, 2014
2012
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2012
McDonald's Corporation's 2012 10-K report highlights a year of steady performance amidst a challenging global economic environment. The company demonstrated resilience, achieving positive comparable sales growth and a slight increase in operating income. The franchise-heavy business model continues to be a core strength, contributing significantly to stable revenue streams and lower capital intensity. Strategic priorities focused on optimizing the menu, modernizing the customer experience, and broadening accessibility, which drove global comparable sales and guest count increases. Despite economic headwinds and increased competition, McDonald's maintained its market share in key regions like the U.S., Europe, and APMEA. The company continued its investment in restaurant reimaging and new openings, underscoring its commitment to long-term growth. Furthermore, McDonald's demonstrated strong shareholder returns through consistent dividend increases and a robust share repurchase program, signaling confidence in its financial stability and future prospects.
Feb 25, 2013
2011
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2011
McDonald's Corporation's 2011 Form 10-K report showcases a robust financial performance, driven by consistent growth in comparable sales and operating income across its global segments. The company demonstrated resilience in challenging economic conditions by focusing on its 'Plan to Win' strategy, which emphasizes people, products, place, price, and promotion, leading to an increase in total revenues and a healthy operating margin. Key initiatives included menu optimization, modernization of the customer experience through restaurant reimaging, and efforts to broaden brand accessibility. The company also maintained a strong commitment to returning value to shareholders through substantial dividends and share repurchases, underscoring its financial discipline and confidence in future performance. Financially, McDonald's reported significant increases in key metrics such as net income, diluted earnings per share, and cash from operations. The strong performance is attributed to effective cost management, strategic pricing, and the leveraged benefits of its predominantly franchised business model. The company's outlook for 2012 remained positive, with plans to continue investing in restaurant development, reimaging, and technology to enhance customer experience and drive further market share gains, while navigating global economic uncertainties.
Feb 24, 2012
2010
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2010
McDonald's Corporation's 2010 10-K filing reveals a company demonstrating robust financial performance, driven by consistent global comparable sales growth and operational efficiencies. The company successfully navigated a challenging economic environment, attributing its success to the "Plan to Win" strategy, which focuses on people, products, place, price, and promotion. This strategy has enabled McDonald's to enhance the customer experience, expand its McCafé offerings, and modernize restaurant appearances. Financially, McDonald's reported strong revenue growth, increased operating income, and significant cash flow generation. The company continued its commitment to shareholder returns through substantial share repurchases and dividend increases, underscoring its financial discipline and confidence in future performance. Despite global economic headwinds, McDonald's outlook for 2011 remains positive, with plans to further optimize its menu, customer experience, and accessibility across its diverse geographic segments.
Feb 25, 2011
2009
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2009
McDonald's Corporation's 2009 10-K filing highlights a company navigating a challenging global economic environment with resilience. Despite economic headwinds, McDonald's demonstrated strength through comparable sales growth and improved operating margins. The company continued its strategic focus on enhancing customer experience through its 'Plan to Win,' emphasizing value, menu variety, and convenience. A key strategic move was the ongoing refranchising of restaurants, which shifts the business model towards a more asset-light, franchisor-centric approach, contributing to stable cash flow and improved returns. Financially, McDonald's reported solid performance with growth in operating income and net income per share, driven by both company-operated and franchised restaurants across its major geographic segments. The company also remained committed to returning capital to shareholders through dividends and share repurchases, reflecting confidence in its long-term financial health and growth prospects.
Feb 26, 2010
2008
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2008
McDonald's Corporation's 2008 10-K filing reveals a year of robust performance characterized by strong comparable sales growth and a strategic shift towards a more heavily franchised business model. Despite a challenging economic environment, the company achieved a 6.9% increase in comparable sales and a 3.1% rise in comparable guest counts. This growth was fueled by successful initiatives across key markets, including the U.S. (breakfast, chicken, beverages), Europe (tiered menus, reimaging), and APMEA (convenience, breakfast, value). The company continued its commitment to returning capital to shareholders, returning $5.8 billion in 2008 through dividends and share repurchases, and maintained strong financial discipline. The company's strategic direction emphasizes "being better, not just bigger," focusing on understanding customer needs, sharing best practices, and optimizing operations. The ongoing transition to a more franchised model is expected to enhance cash flow stability and returns. Looking ahead to 2009, McDonald's plans to continue investing in restaurant improvements, expanding its beverage offerings, and focusing on core menu favorites, while navigating expected commodity cost increases and potential negative impacts from foreign currency translation.
Feb 25, 2009
2007
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2007
McDonald's Corporation's 2007 10-K filing reveals a year of strategic restructuring and solid operational performance, highlighted by strong comparable sales growth and an increased focus on franchising. The company experienced a significant net income decrease primarily due to a substantial non-cash impairment charge related to the sale of its Latin American and Caribbean businesses. Despite this one-time charge, underlying operational performance remained robust, with growth in key markets like Europe and APMEA, driven by initiatives focused on convenience, value, and menu variety. McDonald's continued its commitment to returning capital to shareholders through significant share repurchases and dividend increases. Looking ahead, McDonald's plans to optimize its restaurant ownership mix by refranchising a substantial number of company-operated restaurants, aiming to improve long-term brand performance and returns. The company also announced plans to introduce new beverage offerings, starting with specialty coffee, which is expected to contribute to growth in the coming years.
Feb 25, 2008
2006
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2006
McDonald's Corporation's 2006 10-K filing demonstrates a strong year of growth and strategic focus, driven by its 'Plan to Win' initiative. The company reported significant increases in comparable sales, systemwide sales, and revenue, reflecting improved customer relevance and successful menu innovations. Net income saw a substantial rise, partly due to the disposal of its investment in Chipotle Mexican Grill, which was categorized as discontinued operations. Financially, McDonald's returned substantial capital to shareholders through dividends and share repurchases, signaling confidence in its cash flow generation. The company also continued its strategy of optimizing its ownership mix, with a target to reduce the percentage of Company-operated restaurants in major markets. This strategic realignment, coupled with operational improvements and a focus on enhancing the customer experience, positions McDonald's for continued success in the competitive food service industry.
Feb 26, 2007
2005
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2005
McDonald's Corporation's 2005 10-K filing highlights a year of solid financial performance and strategic execution. The company reported a 14% increase in net income to $2.6 billion, with diluted earnings per share rising to $2.04. This growth was driven by a 7% increase in total revenues to $20.5 billion, fueled by comparable sales growth of 3.9% globally, building on a strong 2004. The company also saw a significant increase in cash from operations, reaching $4.3 billion, which supported substantial capital expenditures, dividend increases, and share repurchases, demonstrating a commitment to returning value to shareholders. The report details the ongoing success of the 'Plan to Win' strategy, which focuses on enhancing customer experience through improvements in people, products, place, price, and promotion. The company emphasized its continued focus on menu innovation, operational efficiency, and marketing initiatives, including the 'i'm lovin' it' campaign. Furthermore, McDonald's is actively managing its restaurant ownership mix, with plans to re-franchise some company-operated restaurants and expand its use of the developmental license model in select markets to optimize profitability and returns.
Feb 27, 2006
2004
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2004
McDonald's Corporation's 2004 10-K filing highlights a period of significant revitalization and financial discipline following a strategic shift in 2003. The company reported record consolidated revenues of $19.06 billion, a 11% increase year-over-year, driven by strong comparable sales growth of 6.9% and favorable currency translations. Net income per diluted share improved to $1.79, a substantial increase from $1.15 in 2003, reflecting successful operational improvements and increased financial discipline. The company emphasized its "Plan to Win" strategy, focusing on improving core menu offerings, enhancing customer experience, and streamlining operations. Investments were increasingly directed towards existing restaurants rather than new unit expansion. Significant debt reduction was achieved, and the company returned value to shareholders through a 38% increase in dividends and continued share repurchases. The outlook for 2005 anticipates continued moderate growth in Systemwide sales and operating income, with a focus on menu evolution, restaurant remodeling, and customer well-being initiatives.
Mar 4, 2005
2003
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2003
McDonald's Corporation's 2003 10-K report highlights a significant strategic shift towards revitalizing the business by focusing on improving customer experience and enhancing financial discipline. Following challenging economic conditions and increased competition, the company introduced a 'Plan to Win' aimed at driving growth through increased customer visits to existing restaurants, rather than solely through new unit expansion. This plan emphasized operational excellence, leadership marketing, and a more disciplined approach to capital allocation and expense control. Financially, 2003 showed positive momentum with a notable increase in net income per share, a rebound in comparable sales growth after a decline in the prior year, and a substantial rise in cash from operations. The company also demonstrated improved financial health by reducing capital expenditures, paying down debt, and significantly increasing dividends to shareholders. While global operations presented mixed results with strong performance in some regions and challenges in others, the overall narrative is one of recovery and strategic refocusing.
Mar 5, 2004
2002
MCDONALDS CORP Annual Report, Year Ended Dec 31, 2002
McDonald's Corporation's 2002 10-K filing reveals a year marked by strategic restructuring and significant charges, leading to a notable decrease in net income compared to the prior year. The company incurred substantial charges related to market restructuring, restaurant closures, and technology write-offs, impacting profitability. Despite these headwinds, the core business demonstrated resilience, with overall revenue and systemwide sales showing modest growth, driven by restaurant expansion, particularly in key international markets. Despite the financial challenges, McDonald's continues to invest in its global brand and operations. The company's strategic actions are aimed at optimizing operations and focusing resources on core opportunities. Key financial metrics like operating income and net income were significantly affected by one-time charges, making year-over-year comparisons challenging without adjusting for these "significant items." Investors should note the company's ongoing commitment to returning capital to shareholders through dividends and share repurchases, alongside strategic financial management, including debt reduction efforts.
Mar 12, 2003
1999
MCDONALDS CORP Annual Report, Year Ended Dec 31, 1999
McDonald's (MCD) reported a strong 1999 for shareholders, with reported net income rising 26% to $1.95 billion ($1.39 diluted EPS) and operating income up 20% to $3.32 billion. Those reported figures are flattered by 1998 comparisons: 1998 included $322 million of pre-tax Made For You and home office special charges. Excluding those items, net income grew about 10% (13% in constant currencies) and operating income about 8% (10% in constant currencies). Systemwide sales grew 7% to $38.5 billion, and the company added 1,790 restaurants, bringing the system to 26,806 across 118 countries. The balance sheet and cash flow profile remain strong. Cash from operations rose to $3.0 billion and free cash flow (operating cash less capex) increased 29% to $1.14 billion. Management continues to prioritize share repurchases funded by free cash flow, buying back $933 million of stock in 1999 and sponsoring a $3.5 billion program through 2001. Return on average common equity improved to 20.8%. Debt was roughly $7.3 billion, and the company maintained Aa2/AA ratings. The key risks are geographic and operational. Latin America was weak, with operating income down 29% as Brazil's currency devaluation and economic difficulties hit results, and Europe was pressured by Russia. Franchised margins slipped as the company leased more sites, which raises occupancy costs. Management guides to 1,800 to 1,900 new McDonald's restaurants in 2000, a 2000 effective tax rate of about 32%, and pending acquisition of Boston Market brand assets expected to close in mid-2000.
Mar 28, 2000
1998
MCDONALDS CORP Annual Report, Year Ended Dec 31, 1998
McDonald's reported 1998 Systemwide sales of $35.98 billion (up 7%) and total revenues of $12.42 billion (up 9%), with 1,668 net restaurant additions bringing the system to 24,800 restaurants across 114 countries. Excluding $322 million of pre-tax charges (Made For You costs of $162 million and a $160 million home office productivity special charge), operating income grew 10% to $3.08 billion and net income rose 8% to $1.77 billion, or $1.30 per share. Reported operating income fell 2% to $2.76 billion and reported net income declined 6% to $1.55 billion ($1.14 per share, $1.10 diluted), after the one-time charges. Constant-currency growth was notably stronger than reported results, as weaker Asian and Latin American currencies, particularly the Japanese yen, weighed on reported figures. Cash generation strengthened, with cash from operations rising 13% to $2.77 billion and free cash flow reaching $887 million, the eighth consecutive year of positive free cash flow and the first year operations outside the U.S. generated positive free cash flow. Management is returning cash to shareholders through buybacks, repurchasing 38 million shares for about $1.2 billion in 1998 and announcing a plan to buy back $3.5 billion of stock by year-end 2001. Total debt rose to $7.0 billion, with 67% now fixed-rate, and the company maintained strong credit ratings (Aa2/AA/AA+). Investors should weigh the growth in unit expansion and cash flow against risks in international markets, notably Russia, Southeast Asia, Japan, and Brazil, where economic turmoil is expected to weigh on 1999 results. The company guided to about 1,750 new restaurants in 1999, a 1999 effective tax rate of 32.5% to 33.5%, and expects roughly $100 million in annual SG&A savings from the home office initiative beginning in 2000.
Mar 31, 1999
1997
MCDONALDS CORP Annual Report, Year Ended Dec 31, 1997
McDonald's reported 1997 systemwide sales of $33.6 billion (up 6%) and total revenues of $11.4 billion (up 7%), with operating income rising 7% to $2.8 billion. Net income grew 4% to $1.64 billion, while diluted EPS grew 6% to $2.29, helped by share repurchases. Growth was driven by unit expansion: the Company added 2,110 restaurants in 1997 to reach 23,132 systemwide, with Asia/Pacific and Europe contributing most of the increase. However, U.S. comparable sales were only slightly positive, average sales per restaurant fell in international markets, and weaker foreign currencies (notably the Japanese Yen) dampened reported results. Currency translation reduced shareholders' equity by $295 million. Balance sheet and cash flow remained strong. Cash from operations was $2.44 billion, covering capital expenditures of $2.11 billion for the seventh consecutive year, and free cash flow improved to $331 million from $86 million. Total debt rose to $6.5 billion, with debt-to-capitalization at 42%, and the Company's Aa2/AA ratings were maintained. Management guided to a 1998 effective tax rate of 32.5% to 33.5% and plans a similar pace of restaurant additions in 1998. Investors should note the heavy reliance on continued international expansion and the sensitivity of reported results to foreign exchange movements.
Mar 30, 1998
1996
MCDONALDS CORP Annual Report, Year Ended Dec 31, 1996
McDonald's reported 1996 Systemwide sales of $31.8 billion (up 6% in U.S. dollars, but roughly 8% on a constant-currency basis) and total revenues of $10.7 billion (up 9%). Net income rose 10% to $1.57 billion, or $2.21 per share, though operating income grew only about 1% to $2.63 billion because of a $72 million special charge to strengthen the U.S. business (closing roughly 115 low-volume satellite restaurants) and a $16 million SFAS 121 impairment charge in Mexico. Excluding these charges, operating income would have risen about 5%. The company's franchise-driven model, with rent and service fees of roughly 12.5% of sales and 20-year contracts, provides stable, predictable revenue, and 1996 was the sixth consecutive year that operating cash flow exceeded capital expenditures. Growth is increasingly international. Outside the U.S. accounted for 49% of Systemwide sales, 57% of total revenues, and 59% of operating income, and the company added 2,642 restaurants in 1996, bringing the system to 21,022 locations in 101 countries. U.S. comparable sales were negative in 1996, reflecting a highly competitive domestic environment, while weaker foreign currencies, particularly the Japanese yen, dampened reported results. Management plans 2,400 to 2,800 openings in 1997, with more emphasis on full-menu traditional restaurants and international markets. Balance sheet leverage edged up as total debt rose to $5.5 billion and the company continued buybacks ($605 million in 1996, under a $2.0 billion program through 1998). Shareholders' equity grew 11% to $8.7 billion, and the company maintains strong credit ratings (Aa2/AA). Management guided to a 1997 effective tax rate of 32.5% to 33.5%, versus 30.1% in 1996, which benefited from a $50 million one-time international tax benefit.
Mar 28, 1997
1995
MCDONALDS CORP Annual Report, Year Ended Dec 31, 1995
McDonald's reported a strong 1995 with systemwide sales of $29.9 billion (up 15%), total revenues of $9.8 billion (up 18%), operating income of $2.6 billion (up 16%), and net income of $1.43 billion (up 17%), or $1.97 per share. Growth was driven by an accelerated expansion program, with 2,430 restaurants added systemwide (bringing the total to 18,380), positive comparable sales in the U.S., and stronger foreign currencies. Operations outside the U.S. now generate 47% of systemwide sales and 54% of operating income, with Europe, Asia/Pacific, and Latin America contributing the bulk of international growth. The filing also highlights several watch points. Company-operated restaurant margins declined to 19.2% of sales from 19.8%, with U.S. company margins falling to 17.7% on higher payroll costs. U.S. operating income grew only 3%, and the Company flagged intense U.S. competition and continued margin pressure. Total debt rose to $4.8 billion, the current ratio was a deliberately low 0.53, and 1995 results included a $60 million unrealized loss on the Discovery Zone investment. Management guided to 2,500 to 3,200 annual restaurant additions in 1996 and 1997 and a 1996 effective tax rate of 32.5% to 33.5%, and it authorized $2.2 billion of share repurchases over three years. From a shareholder perspective, the company continued to return capital through a dividend increase (to $.26 per share from $.23), buybacks, and a strong return on average common equity of 19.9%. Credit ratings remained strong (Aa2/AA/AA+), and cash from operations of $2.3 billion exceeded capital expenditures for the fifth consecutive year. The key investor questions are whether international growth can offset U.S. margin pressure and whether the aggressive expansion pace can sustain returns.
Mar 28, 1996
1994
MCDONALDS CORP Annual Report, Year Ended Dec 31, 1994
McDonald's reported a strong 1994, with systemwide sales rising 10% to $25.99 billion and total revenues up 12% to $8.32 billion. Operating income grew 13% to $2.24 billion and net income rose 13% to $1.22 billion, or $1.68 per share (up 16% per share, aided by share repurchases). Growth was driven by accelerated expansion, with 1,212 restaurants added (751 outside the U.S.), positive comparable sales in the U.S. from value programs such as Extra Value Meals, and stronger foreign currencies in 1994. Operations outside the U.S. now generate about 50% of revenues and operating income, and the company reported 15,205 systemwide restaurants across 79 countries at year-end. Profitability and balance-sheet metrics remained solid. Company-operated margins improved to 19.8% of sales and franchised margins were 82.8% of revenues. Return on average assets was 17.6% and return on average common equity was 19.4%. Cash provided by operations rose 15% to $1.93 billion and exceeded capital expenditures for the fourth straight year. Management kept leverage in check, with total debt at 39% of total capitalization and long-term debt down to $2.94 billion from $3.49 billion, while repurchasing about $500 million of stock in 1994 under a three-year $1.0 billion program. Investors should note several headwinds. Mexico's economy and the December 1994 peso devaluation hurt results and are expected to weigh on 1995, Japan's affiliate remained weak, and a one-time $15 million non-cash advertising accounting charge reduced G&A. Net income was also held back by about $56 million in nonoperating losses, largely currency translation losses from Mexico and Brazil. Management guides to 1,200 to 1,500 new restaurants in 1995 and a 35.0% to 35.5% effective tax rate, and it continues to emphasize real estate ownership and franchising, which provides stable, rent-based revenue.
Mar 29, 1995
1993-A2
MCDONALDS CORP Annual Report (Amendment), Year Ended Dec 31, 1993
This is Amendment No. 2 to McDonald's Corporation's Form 10-K for the fiscal year ended December 31, 1993. It was filed June 29, 1994, and its sole purpose is to add the Form 11-K annual report for the McDonald's Corporation Profit Sharing Program, along with the plan's financial statements and schedules. The excerpt contains only the amendment cover page, the Item 14(a) exhibit index, and the Form 11-K cover and signature page. It does not include McDonald's own consolidated financial statements, revenue, earnings, balance sheet, or operating results. Because the employee plan financial statements and schedules were filed under cover of Form SE, the actual plan asset values, investment holdings, and transaction details are not in this text. For investors, this amendment is a compliance filing with limited direct investment information. It confirms that the company's Profit Sharing Program was registered and reported under Section 15(d) of the Securities Exchange Act of 1934 for 1993. To assess McDonald's 1993 performance, an investor should review the original Form 10-K and its annual report to shareholders, which contain the audited consolidated financials, segment data, and management discussion. This amendment supplements those documents without changing the company's reported corporate results.
Jun 29, 1994
1993-A
MCDONALDS CORP Annual Report (Amendment), Year Ended Dec 31, 1993
McDonald's reported 1993 net income of $1,082.5 million, up 12.9% from $958.6 million in 1992 and 11.5% above 1991's $859.6 million. After preferred stock dividends, net income available to common shareholders was $1,036.8 million, and fully diluted earnings per common share rose to $2.83 from $2.53, an increase of about 11.9%. This exhibit covers only the earnings-per-share computation, so it does not include revenue, margins, cash flow, or balance sheet data that would be needed for a complete assessment of the business. Per-share growth outpaced net income growth in 1993 because the share base shrank. Weighted average common shares outstanding fell to 355.9 million from 363.2 million, a decline of about 2.0%, which is consistent with share repurchases. Fully diluted shares fell to 366.7 million from 373.9 million. Together, the rise in net income and the lower share count produced the stronger EPS gain. Preferred stock dividends rose sharply to $46.9 million in 1993 from $14.7 million in 1992, reducing earnings available to common shareholders. Investors should review the 10-K's financial statements and notes to understand the reason for this increase, including any new preferred issuance, and to assess how it affects future common earnings.
Apr 5, 1994
1993
MCDONALDS CORP Annual Report, Year Ended Dec 31, 1993
McDonald's reported a strong 1993 with Systemwide sales up 8% to $23.6 billion (about 10% excluding weaker foreign currencies) and total revenues up 4% to $7.4 billion. Operating income rose 7% to $1.98 billion, and net income rose 13% to $1.08 billion, or $2.91 per share. Growth was driven by accelerated expansion, with 900 restaurants added in 1993 and plans for 900 to 1,200 additions in 1994. Results were held back by weaker foreign currencies, which reduced reported net income by roughly $32 million, and by new U.S. tax legislation that raised the effective tax rate to 35.4% from 33.8%. The balance sheet strengthened over the past three years. Total debt as a percent of total capitalization fell to 37% from 49% in 1991, and cash provided by operations ($1.68 billion) exceeded capital expenditures for the third straight year. Return on average common equity improved to 19.0% and return on average assets to 17.1%. Management returned capital to shareholders through $620 million in 1993 treasury stock purchases and a new program to buy up to $1 billion of stock over three years, while dividends per share rose to $0.42. The company relies on franchising, with franchisees supplying most of the capital and paying rent and percentage-of-sales fees. Franchised revenues rose 11% to $2.25 billion, and franchised restaurant margins were 83.1%. International operations are now a major growth engine, accounting for 47% of total revenues and 45% of operating income. Management's stated strategy is to keep building the global system while leveraging real estate ownership and low-cost building designs to control costs.
Mar 29, 1994