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McDonald's a Global Phenomenon

Mc Donald’s Formed in 1954, McDonald's brand is the leading global foodservice


retailer with more than 30,000 local restaurants serving nearly 50 million people in more
than 120 countries each day. Our rich history began with the founder Ray Kroc's vision
and his commitment, transformed in our talented executives, and will keep the shine on
McDonald's arches for years to come.

McDonald's Mission
McDonald's mission is to be our customers' favorite place and way to eat with inspired
people who delight each customer with unmatched quality, service, cleanliness and value
every time ... we invite you to be the part of this winning team and give yourself an
opportunity to grow with the family of people striving to create smiles on the faces of
millions of people everyday.

McDonald's in Pakistan
Aiming to be the world's best quick service restaurant, McDonald's Pakistan opened its
doors in September 1998 at Lahore and presently operating in seven major cities with a
network of 20 restaurants. With a strong belief in the Ray Krock phrase when you are
green you are growing, McDonald's Pakistan has an aggressive plan to expand in all other
cities of Pakistan and is rapidly growing with the focus to provide friendly and quick
service restaurant experience to our customers.

Lakson Group of Companies


McDonald's Pakistan is a part of the Lakson Group of Companies, with a Head Office in
Karachi and a regional office at Lahore. Lakson Group also owned, Lakson Tobacco Co.
Colgate Pakistan Ltd, Century Insurance Ltd. Express Newspaper, Cyber Net and various
others businesses.

The Team
To realize the McDonald's service vision, we believe in strengthening our team and
ensure to deliver the right skills and knowledge to the right person for getting the right
job done. Our strength for making our strong team players to shine under the Golden
Arches lies in the People Practice and Development Program, we focus to deliver.
McDonalds Global Sales
Big Mac's International Revenues Sizzle in 2006
Oct 24, 2006 Daniel Workman
McDonald's franchises and operates more than 32,000 fast-food restaurants in over 100 countries. Which 9
countries generate 70% of Micky Dees' revenues?

Restaurants in the U.S. account for about 35% of total revenues (expected to hit US$22 billion in 2006).

Collectively France, Germany and the United Kingdom contribute over 20%.

Canadian revenues comprise about 5% of company totals. Australia, China and Japan revenues add up to
7%, while fast-growing McDonald's restaurants in Brazil generate about 2.5%.

McDonald's revenues by geographic segment in 2005

• Europe ... $7,072 (35% of total company revenues)


• United States ... $6,955 (34%)
• Australia/Asia-Pacific ... $2,815 (14%)
• Latin America ... $1,327 (6%)
• Canada ... $948 (5%)
• Other ... $1,343 (6%)

Amounts are in US$ million. The percentage of total company revenues shows in parentheses.

And The Winner Is...

September 2006 marked the 41st consecutive month of global sales increases for McDonald's when
compared to previous reporting periods. Revenue growth in the U.S was fuelled by the introduction of Asian
chicken salad, the premium-priced Spicey Chicken Sandwich, more breakfast menu items and extended
restaurant hours.

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In Europe, McDonald's continues its focus on everyday value menus such as Ein Mal Eins ("one by one") in
Germany and Pound Saver in the U.K. along with such premium offerings as salads and Big Tasty
sandwiches. McDonald's introduced a rice burger in Taiwan in 2005, that was so successful that the
company is also selling this product in other Asian markets in 2006.
As a result, McDonald's European restaurants enjoyed more customer visits and the highest company-
operated margins since 2001. Strong sales in Russia, France and Germany surpassed moderate sales
decreases in the U.K.

In the quarter ending Septermber 2006, Big Mac's global sales rose 5.8% over the year-earlier period.
Margins for both company-operated and franchised restaurants improved in all geographic segments for the
third consecutive quarter. Overall revenues increased 10%, while operating income and earnings per share
jumped 15% and 17% respectively.

To keep its global momentum going in 2006, McDonald's will become the world's first fast-service restaurant
to provide nutritional information on its food packaging on the majority of its food packaging. Big Mac will use
easy-to-understand icon and bar chart labelling in more than 20,000 of its restaurants worldwide, and
continues to cheerlead a healthy lifestyle which includes exercise.

Perhaps the biggest winners are McDonald's shareowners. In October, the company announced an
increase in dividend to $1 per share, an increase of 276% from 2002. McDonald's stock (MCD on NYSE)
looks like a modest long-term buy to me at $40 and below.

Note: Suite101 does not offer investment advice. Instead, we seek to educate and inform our readers by
writing about the latest trends in world trade. Armed with these insights, you are in a much better position to
make your own decisions. We encourage you to add your thoughts to our analysis by starting a discussion
below.

Read more at Suite101: McDonalds Global Sales: Big Mac's International Revenues Sizzle in
2006 http://internationaltrade.suite101.com/article.cfm/mcdonalds_global_sales#ixzz0rZxM8ayR
McDonald’s sales rise globally, decline in
U.S.
Fast-food company: Breakfast menu, free Wi-Fi were popular
U.S. offerings
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Parsing McDonald's January sales
Feb. 9: Matthew DiFrisco, of Oppenheimer & Co., shares his reaction to the fast-food
chain's January sales.
CNBC
Supersize Sales at McDonald's
http://www.fool.com/investing/dividends-income/2007/01/17/supersize-sales-at-mcdonalds.aspx

Alyce Lomax
January 17, 2007

Good grief, McDonald's (NYSE: MCD)! Those are some awesome comparable-store sales for
December. It's difficult not to be impressed by the performance of the Golden Arches over the
course of the past year.

McDonald's global same-store sales increased 7.2% in December (versus a 5% increase last year).
In the U.S., comps increased 6.9%, and in Europe, they increased 8.2% (versus 4.4% and 4.6%
increases last year, respectively.) The Asia Pacific, Middle East, and African segment wasn't quite as
strong in December, with a 4.8% increase, compared with a 5.9% increase this time last year.

About its success domestically, McDonald's cited ongoing strength with its breakfast offerings, its
Snack Wraps, and its premium chicken menu options.

McDonald's also reported its comps for the fourth quarter and for the year. Same-store sales
increased 6.3% for the fourth quarter (versus 4.2% a year ago), and 5.7% for all of 2006 (versus
3.9% for 2005). The company also said it will report earnings of $1.00 per share for the quarter,
although that is aided by a $0.39 per-share benefit from its Chipotle (NYSE: CMG)spinoff. Still,
analysts were expecting earnings of $0.58 per share, and of course, McDonald's earnings from
continuing operations come in at $0.61 per share, aided by a penny benefit from foreign currency
translation.

It would be easy to say that maybe McDonald's has gone too far, too fast, and its hungry
competition like Burger King (NYSE: BKC) and Wendy's (NYSE: WEN) might start to eat its lunch,
but I got burned by questioning McDonald's ongoing strength this time last year.

I was a little bit bearish on McDonald's, and I was still skeptical in the spring, but I've certainly had
to eat crow since then. (Supersize that crow, please.) As the year progressed, and McDonald's kept
delivering, I finally ended up coming around and nominating McDonald's as theBest Blue Chip for
2007 for the Motley Fool CAPS community to consider. CAPS players didn't agree that it will be "the
best," but shareholders certainly can't complain at this stage of the game. The shares have
appreciated 28.3% over the past 12 months and hit a new 52-week high today.

It's clear that McDonald's didn't stage any temporary turnaround -- it seems that the company is
really delivering on its goal to not only be bigger, but better as well. Of course, we'll all have to wait
and see what 2007 holds for this fast food giant, but for the time being, I'm not sure it would be
prudent to bet against McDonald's.

McDonald's paid a meaty dividend this past year; if you're looking for dividend-paying stocks, look
no further than Motley Fool Income Investor. A 30-day free trial can help you learn how to get paid
to invest.

Alyce Lomax does not own shares of any of the companies mentioned.

Legal Information. © 1995-2008 The Motley Fool. All rights reserved.


Previous Page
McDonald's Reports Sales Results
[2001-07-24] McDonald's Corporation (NYSE: MCD) today announced global results for the

six months and quarter ended June 30, 2001.

* Systemwide sales increased 5% for the six months and 4% for the quarter in constant
currencies.

* Sales increased in all segments for the six months: 2% in the U.S. and, in constant
currencies, 10% in Latin America, 6% in Asia/Pacific and 3% in Europe.

* Revenues increased 9% for the six months and 8% for the quarter in constant currencies.

* Diluted net income per common share was 34 cents for the quarter, 35 cents in constant
currencies.

* The Company repurchased $738 million of stock during the six months.

* 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.

Chairman and chief executive officer Jack Greenberg said, "McDonald's reported earnings
per share of 34 cents for the quarter, in line with guidance issued last month. In constant
currencies, earnings per share was 35 cents; Systemwide sales increased 4%; and revenues
increased 8%.

"While these results are below trendline, we are encouraged by improved performance in
Europe, where we saw sequential improvement in comparable sales throughout the quarter.
France led the segment with positive comparable sales for each of the past four months.
We've seen progress, but there are still consumer concerns about the safety of the European
beef supply in certain markets. Therefore, we continue to proactively communicate our very
high safety and quality standards, as well as promote menu variety and value. We are hopeful
that the worst is behind us and Europe's results will continue to improve.

"In the U.S., we faced tough comparisons with last year's Teenie Beanie Babies promotion,
which was the fourth most successful Happy Meal in our history. Looking forward, we are
excited about our New Tastes Menu and believe our renewed emphasis on food taste, variety
and improving operations will drive customer visits and sales.
"Our Asia/Pacific segment delivered a 9% sales increase in constant currencies for the
quarter, primarily due to expansion. McDonald's Japan, our largest market in this segment,
will have an initial public offering (IPO) on July 26. After the IPO, McDonald's will retain
50% ownership in McDonald's Japan. Our partner, Den Fujita, and his family, will own
approximately 26% and he will continue to actively manage the business. As a result of this
transaction, McDonald's will record a gain of approximately $130 million in third quarter
2001, to reflect an increase in the carrying value of our investment, as a result of the cash
proceeds from the IPO.

"While this has been a tough six months, we are intent upon improving the business by
building comparable sales around the world through improved operations, effective
marketing and menu development. And we continue to focus on controlling costs to improve
profitability. To that end, we are in the process of reviewing approximately 250
underperforming restaurants for possible closing. These restaurants are primarily located in
certain emerging markets. We expect this will result in charges to earnings in the second half
of the year.

"We remain confident in our business fundamentals and expect to post significantly stronger
results in the second half. Accordingly, our previously stated outlook, for relatively flat
constant currency earnings per share for the year, remains the same.''

The company operates in the food service industry and primarily operates quick-service
restaurant businesses under the McDonald's brand. To capture additional meal occasions,
the Company also operates other restaurant concepts: Aroma Cafe, Boston Market, Chipotle
Mexican Grill and Donatos Pizza. Collectively these four businesses are referred to as
``Partner Brands.'' In addition, McDonald's has a minority ownership in Pret A Manger.

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.

Reported results for the six months and quarter were negatively affected by foreign currency
translation primarily due to the weaker Euro, British Pound, Japanese Yen, Australian Dollar
and the Brazilian Real.

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.

On a global basis, the increases in sales and revenues for the six months and quarter were
primarily due to restaurant expansion and the acquisition of Boston Market in the second
quarter 2000, partly offset by negative comparable sales. Foreign currency translation had a
negative effect on the growth rates for both Systemwide sales and revenues for the six
months and quarter. On a constant currency basis, revenues increased at a higher rate than
sales for both periods primarily due to the acquisition of Boston Market restaurants, which
are all Company-operated, and an increase in the royalty percent received from our Japanese
affiliate, effective January 1, 2001.

U.S. sales increased 2% for the six months and were flat for the quarter. The growth for the
six months was due to expansion, partly offset by negative comparable sales. Both periods
were negatively impacted by the difficult comparison with the successful June 2000 Teenie
Beanie Babies promotion.

In Europe, Asia/Pacific and Latin America, constant currency sales increased for the six
months and quarter due to expansion, partly offset by negative comparable sales.

In Europe, France and the U.K. were primary contributors to the sales growth for the quarter
and six months. Also, the Netherlands and Russia delivered strong performances in both
periods. Comparable sales continued to be affected by consumer confidence issues regarding
the European beef supply in certain markets. Sales trends are improving in several markets,
most notably France, which had positive comparable sales in each month from March
through June. We expect the impact from the concerns regarding European beef will
continue to lessen as the year progresses.

In Asia/Pacific, the six months and quarter benefited from positive comparable sales in
China and strong results in several Southeast Asia markets. Japan also contributed
significantly to the increases for both periods. Weak consumer spending in Australia, partly
due to the goods and services tax introduced in July 2000, continued to negatively impact
sales growth. As we pass the anniversary of the introduction of the tax, our comparisons
become easier; however, consumer spending remains weak in Australia.

In Latin America, expansion and positive comparable sales in Mexico for the six months and
quarter and in Brazil for the six months were the primary contributors to the sales increases.
Weak consumer spending continued to negatively affect most markets in this segment.
In the Other segment, the increases for the six months and quarter were primarily driven by
Canada and the Partner Brands.

The following combined operating margin information represents margins for McDonald's
restaurant business only.

In constant currencies, combined operating margin dollars decreased by $25.4 million for
the six months and $12.4 million for the quarter; a 1% decline for both periods. The U.S. and
Europe segments accounted for over 80% of the combined margin dollars in both periods.

As a percent of sales, consolidated Company-operated margins decreased for the six months
and quarter. Food & paper costs, payroll costs and occupancy & other operating expenses all
increased as a percent of sales for both periods.

In the U.S., Company-operated margins decreased as a percent of sales for both periods. As a
percent of sales, food & paper costs decreased while payroll costs increased for both periods.
Occupancy & other operating expenses were flat for the six months and increased for the
quarter.

In each of the remaining segments, Company-operated margins decreased as a percent of


sales for both periods. In Europe and Latin America, the decline was primarily due to
negative comparable sales and higher food costs. In addition, Europe experienced higher
labor costs. Asia/Pacific's Company-operated margin percent decreased primarily due to
negative comparable sales and higher labor costs for the six months and higher food & paper
costs and occupancy & other operating expenses for the quarter.

Franchised margins as a percent of applicable revenues in the U.S., Europe and Latin
America decreased for the six months and quarter, partly due to negative comparable sales
for both periods. In addition, the decreases in Europe for the six months and Latin America
for both periods were partly due to temporary rent assistance provided to franchisees in
certain markets. The franchised margin percent in Asia/Pacific increased for both periods
primarily due to an increase in the royalty percent received from our Japanese affiliate.

Franchised margins as a percent of revenues in all segments were also negatively impacted
by 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.

Selling, general & administrative expenses increased 5% for the six months and quarter. The
increases were primarily due to the acquisition of Boston Market and increased spending on
future store technology improvements, partly offset by weaker foreign currencies. Excluding
Partner Brands, selling, general & administrative expenses increased 2% for the six months
and 3% for the quarter.

Equity in earnings of unconsolidated affiliates decreased for both periods, primarily due to
the increase in Japan's royalty expense and a weaker Japanese Yen and, for the six months,
weaker results in Japan. Although the increase in royalty expense reduced McDonald's equity
in earnings for Japan, it was more than offset by the royalty benefit McDonald's received in
franchised revenues. Other expense for the second quarter included a $24 million asset
impairment charge in Turkey due to our assessment of the ongoing impact of significant
currency devaluation on our business. For the six months, other expense also included the
write-off of certain technology costs and a gain on the sale of real estate in Singapore.

Consolidated operating income decreased $113.3 million, or 7%, for the six months and
$70.2 million, or 8%, for the quarter, in constant currencies. The decreases for both periods
were due to lower combined operating margin dollars, lower other operating income and
higher selling, general & administrative expenses, partly due to the acquisition of Boston
Market.

U.S. operating income increased $7.6 million, or 1%, for the six months, while decreasing
$6.4 million, or 1%, for the quarter. The increase for the six months was due to higher
combined operating margin dollars and other operating income, partly offset by higher
selling, general & administrative expenses. The decrease for the quarter was mainly due to
lower combined operating margin dollars and higher selling, general & administrative
expenses, partly offset by higher other operating income.

Europe's operating income decreased 9% for the six months and 5% for the quarter in
constant currencies. Driving this segment's improved performance over the first quarter was
significant improvement in France's results, as well as strong results in the Netherlands and
Russia. However, operating income continued to be negatively affected by the decline in
consumer confidence regarding the safety of the European beef supply in certain markets.
Operating income in Asia/Pacific increased 5% for the six months and 2% for the quarter in
constant currencies. In both periods, this segment benefited from a strong performance in
China and an increase in the royalty percent received from Japan. In addition, a gain on the
sale of real estate in Singapore contributed significantly to the increase for the six months.

Latin America's operating income decreased 32% for the six months and 37% for the quarter
in constant currencies. Both periods were negatively impacted by the continuing difficult
economic conditions experienced by most markets in the region.

In the Other segment, the results for both periods were impacted by the asset impairment
charge in Turkey, driven by the recent currency devaluation.

For both periods, higher interest expense was primarily due to higher average debt levels,
partly offset by lower average interest rates and weaker foreign currencies. The higher
average debt levels were a result of the Company using its available credit capacity to
repurchase shares of its common stock.

Nonoperating (income) expense for the six months included lower foreign currency
translation losses, while the quarter included lower foreign currency translation gains. In
addition, nonoperating expense included the first quarter write-off of a financing receivable
from a Latin American supplier and minority interest expense related to the sale of real
estate in Singapore. Also, second quarter 2000 included a gain related to the sale of a partial
ownership interest in a majority- owned subsidiary outside the U.S.

The effective income tax rate was 32.3% and 32.6% for the six months and quarter 2001,
respectively. The 2000 effective tax rate was 32.0% for both periods. The increase in the
income tax rate in 2001 was primarily the result of the Turkey asset impairment charge,
which could not be tax-effected for financial reporting purposes.

Weighted average shares outstanding for the six months and quarter 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. During the first six months of 2001, the Company
repurchased 24.4 million shares of its common stock for approximately $738 million.
UPDATE 1-McDonald's shares fall on
concern over US consumer
Fri Jan 11, 2008 6:41pm GMT
Quotes

McDonald's Corporation
MCD.N
$69.92
+0.04+0.06%
06/21/2010

P.F. Chang's China Bistro, Inc


PFCB.O
$45.45
-0.76-1.64%
06/21/2010

The Coca-Cola Company


KO.N
$52.48
+0.17+0.32%
06/21/2010
(Recasts with outcome from McDonald's franchisee survey;
updates share activity)
REGULATORY NEWS

By Brad Dorfman
Jan 11 (Reuters) - Shares of McDonald's Corp (MCD.N) fell as much as 8 percent on Friday,
as a survey of franchisees showed December same-store sales grew at the lowest level in
the six-year history of the poll.
The survey of 31 domestic franchisees, representing 195 restaurants of the nearly 14,000 in
the United States, showed same store sales were up juts 1.8 percent.
Sales in the west rose just 0.4 percent, versus 1.9 percent in the east and 3.7 percent in the
central United States, according to the survey conducted by restaurant stock analyst Mark
Kalinowski.
McDonald's share decline led a downturn in many other U.S. restaurant stocks, amid
concerns a U.S. recession could hurt even lower-priced restaurants.
"With gas (gasoline) prices at all-time highs, the discretionary income of the consumer is
shrinking," said William Lefkowitz, options strategist at vFinance Investments.
But shares of P.F. Chang's China Bistro Inc (PFCB.O) bucked the restaurant trend, rising
over 11 percent after the casual dining chain raised its fourth-quarter outlook due mainly to
better-than-expected December sales.
McDonald's stock had done well through 2007 posting a 33 percent increase for the year
while the Standard & Poor's 500 index .SPX rose only 3.5 percent.
The company has seen strong sales growth overseas, while U.S. sales have been boosted
by newer items like chicken snack wraps and improved coffee.
But that performance also left the stock at a vulnerable level, some analysts said.
McDonald's shares were down 6.8 percent at $54.21 in afternoon trading on the New York
Stock exchange, after falling as low as $53.32 earlier in the session.
Coming into Friday, the stock traded at a multiple of 20 times estimated 2008 earnings, the
third highest multiple in the Dow Jones Industrial average .DJI. It trailed only Coca-Cola Co
(KO.N) and Procter & Gamble (PG.N), two stocks that have been boosted by their defensive
status as consumers generally buy things like soap and soft drinks even during a recession.
"The P/E (price-to-earnings ratio) is back to a level where for me it's a little bit expensive,"
Janna Sampson, co-chief investment officer at Oakbrook Investments in Lisle, Illinois, said.
"That said, relative to some of its competitors, I'd have to say its P/E still looks reasonable."
Sampson's company holds about 205,000 McDonald's shares.
Yum Brands Inc (YUM.N), which owns Taco Bell, Pizza Hut and KFC chains traded at 23
times estimated 2008 earnings before Friday. Like McDonald's, that company has an
extensive overseas presence, which could help shelter it from a U.S. recession.
"People were hoping that their international growth would offset decreased sales in the
United States," Lefkowitz said of McDonald's. "However, investors are starting to believe that
international growth will not be able to do that."
On Friday, Friedman, Billings, Ramsey resumed coverage of McDonald's at a "market
perform" rating with a 12-month price target of $53. But analyst Howard Penney said
McDonald's should be able to sustain U.S. same-store-sales growth in the first half of 2008.
"We believe that McDonald's premium valuation reflects the company's ability to post
continued positive same-store-sales trends," Penney wrote in a research note.
Some analysts were also skeptical of the notion that consumers would stop eating at
McDonald's in a down economy.
"For the most part, fast food seems to be becoming more of a consumer staple," Morningstar
analyst John Owens said. "That was the case in previous downturns in the consumer cycle."
Yum shares were down 5.4 percent at $36.89. P.F. Chang's stock was up 11.4 percent to
$24.30.
Overall, the Dow Jones U.S. restaurant and bars index .DJUSRU was down 5.4 percent.
(Additional reporting by Doris Frankel and Lisa Baertlein)