Summary
McDonald's Corporation (MCD) filed an 8-K on February 25, 2019, announcing a new global business segment structure that became effective January 1, 2019. This change aligns the company's reporting with its strategic priorities and management's review of operating performance, supporting its Velocity Growth Plan. The new segments are U.S., International Operated Markets, and International Developmental Licensed Markets. Investors should note that these new segments will be reflected in financial reporting starting with the Form 10-Q for the quarter ending March 31, 2019, with prior periods being restated for comparability. The primary purpose of this filing is to provide investors with historical segment financial data consistent with the new structure. The attached Exhibit 99.1 contains unaudited summary financial information and other data for the years ended December 31, 2016 through 2018, and for the quarters of 2018. It is crucial for investors to understand that this information does not revise previously reported consolidated financial statements, nor does it alter reported total assets, liabilities, shareholders' equity, net income, or earnings per share for any prior period. This filing is for informational purposes to facilitate a better understanding of the company's performance under the updated reporting framework.
Key Highlights
- 1McDonald's has adopted a new global business segment structure effective January 1, 2019, consisting of U.S., International Operated Markets, and International Developmental Licensed Markets.
- 2This organizational change is intended to support the company's strategic priorities and its Velocity Growth Plan.
- 3The new segment reporting will commence with the Form 10-Q for the quarter ending March 31, 2019.
- 4Prior period financial data will be restated under the new segment structure in future filings for comparability.
- 5The filing provides unaudited historical segment financial information for 2016-2018 and 2018 quarterly periods via Exhibit 99.1.
- 6This 8-K filing does not revise previously reported consolidated financial statements, net income, or earnings per share.
- 7The primary objective is to enhance investor understanding of performance under the new reporting segments.