McDonald's Corporation

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International Guild of Hospitality & Restaurant Managers

McDonald's Corporation operates in the food service industry, primarily operating quick-service restaurant businesses under the McDonald's brand. These restaurants serve a varied, yet limited, value-priced menu in 121 countries around the world. McDonald's menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish and several chicken sandwiches, Chicken McNuggets, french fries, salads, milk shakes, McFlurry desserts, sundaes and soft-serve cones, pies, cookies and soft drinks and other beverages. In addition, the restaurants sell a variety of other products during limited-time promotions. Approximately 80% of McDonald's restaurants and more than 80% of the Systemwide sales of McDonald's restaurants are in eight markets: Australia, Brazil, Canada, France, Germany, Japan, the United Kingdom and the United States.

McDonald's restaurants operating in the United States and certain international markets are open during breakfast hours and offer a full-or limited-breakfast menu. Breakfast offerings include Egg McMuffin and Sausage McMuffin with Egg sandwiches, hotcakes, biscuit and bagel sandwiches, and muffins.

To capture additional meal occasions, the Company operates other restaurant concepts under its Partner Brands: Boston Market, Chipotle and Donatos Pizzeria, which are all located primarily in the United States, and Aroma Cafe, located primarily in the United Kingdom. In addition, the Company has a minority ownership in U.K.-based Pret A Manger. In fourth quarter 2001, the Company approved a plan to dispose of its Aroma Cafe business in the United Kingdom and expects to complete the sale in the first half of 2002. Chipotle is a fresh-Mex grill serving gourmet burritos and tacos. Donatos sells pizza, subs and salads. Boston Market is a home-meal replacement concept serving chicken, meatloaf and a variety of side dishes. Pret A Manger is a quick-service food concept that serves mainly cold sandwiches, snacks and drinks during lunchtime.

All restaurants are operated by the Company or, under the terms of franchise arrangements, by franchisees that are independent entrepreneurs, or by affiliates operating under joint-venture agreements between the Company and local business people. The Company's operations are designed to assure consistency and high quality at every McDonald's restaurant. When granting franchises and forming joint-venture agreements, the Company is selective and is not in the practice of franchising to, or partnering with, investor groups or passive investors.

Under the conventional franchise arrangement, franchisees provide capital by initially investing in the equipment, signs, seating and decor of their restaurant businesses, and by reinvesting in the business over time. The Company shares the investment by generally owning or leasing the land and building. Franchisees in the United States generally have the option to own new restaurant buildings while leasing the land from the Company. Franchisees contribute to the Company's revenue stream through payment of rent and service fees based upon a percentage of sales, with specified minimum payments, along with initial fees. The conventional franchise arrangement typically lasts 20 years and franchising practices are generally consistent throughout the world.

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The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly urged to obtain professional advice with qualified individuals or corporations for any investments of funds.