annual (10-K) and quarterly (10-Q) reports ... - McDonald's · this presentation. Our website also...
Transcript of annual (10-K) and quarterly (10-Q) reports ... - McDonald's · this presentation. Our website also...
© 2011 McDonald’s Corporation
This presentation contains certain forward-looking statements
that reflect management’s expectations regarding future
events and operating performance and speak only as of
November 10, 2011. The forward-looking statements that are
detailed in the Company’s filings with the SEC such as our
annual (10-K) and quarterly (10-Q) reports also apply to
this presentation.
Our website also includes reconciliations of any non-GAAP
financial measures we mention in our presentation to its
corresponding GAAP measures. Those reconciliations may
be found at www.investor.mcdonalds.com.
®
Jim Skinner CEO
Operating Income 9%
Earning Per Share 10%
YTD September 2011 In Constant Currencies
Global Customers Per Day
64 Million
McDonald’s Top 7 Markets
14%
Market Share
Competitive Advantage
Ability to Invest
Size and Scale
Brand Strength
System Alignment
Long-term Financial Targets*
Sales Growth 3-5%
Operating Income Growth** 6-7%
1 Year – ROIIC*** High Teens
* Average annual in constant currencies
** Excluding impairment and other charges
*** Trailing 12 mos. incremental op income (excluding impairment and other charges)
plus depr. and amort divided by adjusted cash used for investing activities at constant rates
$5.1 Billion
YTD Oct 2011
Cash Returned to Shareholders
Don Thompson President and COO
Global Comp Sales
2006 2007 2008 2009 2010
5.7%
6.8% 6.9%
3.8%
5.0% 5.0%
YTD Oct ’11
Global Comp Guest Counts
2006 2007 2008 2009 2010
2.3%
3.8%
3.1%
1.4%
4.9%
3.3%
YTD Oct ’11
Pete Bensen CFO
Total Shareholder Return 5 Year CAGR Through September 2011
McDonald’s 15.2%
Dow Jones 1.4%
S&P 500 (1.2%)
289252
Consolidated Combined Operating Margin*
* Operating income less impairment and other charges as a percent of revenue
2006 2007 2008 2009 2010
21.9%
24.4%
27.4%
29.8%
31.2% 31.7%
YTD Sept ’11
U.S.
2006 2007 2008 2009 2010 YTD Sept ’11
35.6%
43.2%
* Operating income less impairment and other charges as a percent of revenue
Combined Operating Margin* Europe
2006 2007 2008 2009 2010 YTD Sept ’11
21.9%
29.7%
APMEA
2006 2007 2008 2009 2010 YTD Sept ’11
13.5%
25.3%
262428_Venezuela.jpg
Franchised Restaurants
80%
Total Restaurant Margin $ ($ In Billions)
$5.4 Franchised Margin
$2.6 Company
Operated Margin
Total $8.0
Consolidated Company Operated Margin
2006 2007 2008 2009 2010
16.2%
17.3% 17.6%
18.2%
19.6% 19.0%
YTD Sept ’11
Preliminary 2012 Commodity Cost Outlook
U.S. 4.5% - 5.5%
Europe 2.5% - 3.5%
Selling, General and Administrative As a Percent of Revenues
2006 2007 2008 2009 2010
11.0%
10.4% 10.0%
9.8% 9.7%
8.6%
YTD Sept ’11
Return on Invested Capital* (ROIC)
2006 2007 2008 2009 2010
15.8%
17.6%
19.6% 20.9%
21.9% 22.5%
TTM Sept ’11
* Op income (excl. impairment and other charges) plus depr and amort divided by adjusted avg gross assets
Return on Incremental Invested Capital* (ROIIC)
3 Year 36.9%
Ending Sept ’11
1 Year 28.4%
* Incremental op income (excluding impairment and other charges) plus depr and amort divided by adjusted cash used
for investing activities at constant rates
Capital Expenditures ($ in Billions)
$0.2 $0.1
$0.6 $0.8
$1.1 $1.2
$0.7
$0.8
$2.6 $2.9
2011 Proj 2012 Plan
U.S.
Europe
APMEA
Other Countries and Corporate
Restaurant Openings
115 150
635 750
240
250 160
175 U.S.
Europe
APMEA
Other Countries and Corporate
1,150 1,300+
2011 Proj 2012 Plan
Cash Returned to Shareholders ($ in Billions)
$4.9
$5.7 $5.8
$5.1 $5.1
$6.0
2006* 2007 2008 2009 2010 Proj 2011
* Includes $0.7 billion related to shares acquired through the Chipotle exchange
Annualized Dividends Per Share
$1.00
$1.50
$2.00* $2.20*
$2.44*
$2.80*
2006 2007 2008 2009 2010 Proj 2011
* Represents the fourth quarter quarterly dividend amount per share on an annualized basis
Share Repurchases ($ in Billions)
$3.7 $3.9 $4.0
$2.9 $2.6
$3.4
2006 2007 2008 2009 2010 Proj 2011
Tim Fenton President McDonald’s Asia-Pacific, Middle East & Africa
McDonald’s APMEA
8,667 Restaurants
37 Markets
17 Million Customers per Day
18% Operating Income
Of Total
26% Restaurants
22% Revenues
Taiwan_Exterior_resized
McDonald’s APMEA
Chong De, Taiwan
APMEA GDP Growth Rates
2011
China 9%
India 8%
Middle East 4%
APMEA Informal Eating Out Industry (IEO)
7%
2011 2012
$876 Billion
Dave Garland CFO McDonald’s APMEA
APMEA Revenues ($ in Billions, % Increase in Constant Currency)
2006 2007 2008 2009 2010
$3.1 $3.6
$4.2 $4.3
$5.1 $4.5
8%
12% 15%
6% 9%
YTD Sept ’11
Revenue $
Growth %
11%
APMEA Operating Income* ($ in Billions, % Increase in Constant Currency)
* Excluding impairment and other charges
2006 2007 2008 2009 2010
$0.4
$0.6
$0.8
$1.0
$1.2 $1.1
25% 40%
28% 23% 16%
YTD Sept ’11
Op Income $
Growth %
11%
APMEA Comp Sales YTD October 2011
APMEA 4.1%
Japan -0.4%
Australia 3.2%
China 10.9%
APMEA Average Restaurant Sales
TTM Sept ’11 $2.3 Million
2005 $1.3 Million
More than 75% increase
APMEA Franchised Margin ($ in Millions)
$333.1 $410.0
$511.6 $558.7
$685.9 $627.8
87.8% 88.3% 89.6% 89.6% 89.3% 89.4%
2006 2007 2008 2009 2010
YTD Sept ’11
Margin $
Margin %
APMEA Company-Operated Margin ($ in Millions)
$341.3
$470.6
$583.5 $624.1
$764.6
$671.8
12.8%
15.0% 15.9%
16.8% 17.8% 17.6%
2006 2007 2008 2009 2010
YTD Sept ’11
Margin $
Margin %
Sydney, Australia
Australia Company-Operated Margin
24%
8.5%
15% 16%
China Company-Operated Margin
2005 2010 YTD Sept ’11
APMEA Return on Invested Capital* ROIC
* Op Income (excl. impairment and other charges) plus depr and amort divided by adjusted avg gross assets
12.2%
15.5%
18.5%
21.3% 22.9%
23.7%
2006 2007 2008 2009 2010
TTM Sept ’11
APMEA Return on Incremental Invested Capital* ROIIC
* Incremental op income (excluding impairment and other charges) plus depr and amort divided by adjusted cash
used for investing activities at constant rates
3 Year 45.1%
Ending Sept ’11
1 Year 30.3%
Sydney, Australia
2012 Plan
750 New Restaurants
450 Reimage
APMEA Major Markets
Australia
China
Japan
55% of APMEA Revenue
70% of APMEA Operating Income
Australia Performance
YTD Sept ’11 Operating Income Growth*
2%
Average Restaurant Sales (US $ Millions)
$4.6
2900826
* In constant currencies
Gladesville, Australia
Japan Performance
From JapanRestaurantPhotos.ppt frame 5
Total Restaurants 3,282
Average Restaurant Sales (US $ Millions)
$2.4
Tokyo, Japan
Japan Comp Sales
September 4.8%
October 1.5%
China Total Restaurants
1,400
2,000
Sept ’11 2013 Proj
China Performance
211_05982
* In constant currencies
Houtian, China
YTD Sept ’11 Operating Income Growth*
15%
Average Restaurant Sales (US $ Millions)
$1.5