Close

Form 8-K MCDONALDS CORP For: Sep 18

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 4/25/2024

1. META
2. CMG
3. IBM
4. HCP
5. BIIB
6. PI
7. BSX
8. LRCX
9. LH
10. ALGN


September 18, 2015 10:30 AM EDT


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 8-K
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): September 18, 2015
 

McDONALD’S CORPORATION
(Exact Name of Registrant as Specified in Charter)
Delaware
 
1-5231
 
36-2361282
(State or Other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
 
 
 
 

One McDonald’s Plaza
Oak Brook, Illinois
(Address of Principal Executive Offices)
60523
(Zip Code)
 

(630) 623-3000 
(Registrant’s telephone number, including area code)
 

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




Item 8.01. Other Events.
In connection with the announcement in early May 2015 to restructure its global business, McDonald’s Corporation (the “Company”) changed its reporting segments, effective July 1, 2015, from a geographic focus to segments each of which combines markets with similar characteristics, challenges and opportunities for growth, as follows:
•
U.S. - the Company’s largest segment, which accounted for more than 40% of the Company’s 2014 operating income. This segment did not change as a result of the new reporting structure.
•
International Lead Markets - established markets including Australia, Canada, France, Germany and the U.K., which we believe operate within similar economic and competitive dynamics, and offer similar growth opportunities. Collectively, these markets represented about 40% of the Company’s 2014 operating income.
•
High-Growth Markets - markets we believe have relatively higher restaurant expansion and franchising potential including China, Italy, Korea, Poland, Russia, Spain, Switzerland and the Netherlands. Together, these markets accounted for more than 10% of the Company’s 2014 operating income.
•
Foundational Markets and Corporate - the remaining markets in the McDonald’s system, each of which we believe has the potential to operate under a largely franchised model. Corporate activities will also be reported in this segment.
Management’s determination of the Company’s new reporting segments was based on its strategic priorities, and the new reporting segments reflect how management now reviews and evaluates operating performance. The new structure seeks to more closely align similar markets to better leverage their collective insights, energy and expertise to deliver a better overall experience for our customers.
Starting with the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, the Company’s new reporting segments will be presented as described above. The Company will present prior periods in accordance with the change in future quarterly and annual filings.
The Company is issuing this Current Report on Form 8-K in order to provide investors with segment summary financial information and segment historical data that is consistent with its new reporting structure. The schedules in Exhibit 99.1 provide unaudited summary financial information and other data according to the new reporting segments for the previously reported years ended December 31, 2010 through 2014, the previously reported quarters in 2014, and the first two quarters for the year ending December 31, 2015.
This information in no way revises or restates the Company’s previously reported consolidated financial statements for any period. It does not change the Company's previously reported total assets, liabilities or shareholders' equity or its reported net income or earnings per share, nor does it reflect any subsequent information or events, other than as required to reflect the change in reporting segments as described above. The updated information should be read in conjunction with our previously filed reports.
This release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These statements use words such as "believe" and "potential." These forward-looking statements involve a number of risks and uncertainties. Certain factors that could cause actual results to differ materially from our expectations are detailed in the Company's reports filed with the Securities and Exchange Commission, including the information shown under Item 1A, "Risk Factors," in its most recently filed annual report on Form 10-K, as updated by the information shown under Part II, Item 1A, "Risk Factors," in its subsequently filed quarterly reports on Form 10-Q.




Item 9.01. Financial Statements and Exhibits.

(d)
Exhibits.

99.1
Schedule of Segment Summary Financial Information and Other Data for the years ended December 31, 2010 through 2014 and quarters ended March 31, 2014 through June 30, 2015.





SIGNATURES
    
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
 
McDONALD’S CORPORATION
 
 
 
 
(Registrant)
 
 
 
 
 
 
 
Date:
September 18, 2015
 
By:
/s/ Kathy Martin
 
 
 
 
 
Kathy Martin
 
 
 
 
 
Corporate Vice President – Assistant Controller

 




Exhibit Index
 
Exhibit No. 99.1
Schedule of Segment Summary Financial Information and Other Data for the years ended December 31, 2010 through 2014 and quarters ended March 31, 2014 through June 30, 2015.




Exhibit 99.1
MCDONALD'S CORPORATION
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
UNITED STATES
(Unaudited and $ in millions)
 
 
 
Years Ended December 31
Summary Operating Results
2014
2013
2012
2011
2010
 
 
 
 
 
 
     Sales by company-operated restaurants
$
4,351.3

$
4,512.3

$
4,530.3

$
4,432.6

$
4,229.4

     Revenues from franchised restaurants
4,299.7

4,339.0

4,283.4

4,095.6

3,882.2

Total Revenues
8,651.0

8,851.3

8,813.7

8,528.2

8,111.6

 
 
 
 
 
 
Company-operated Restaurant Margins
756.1

830.4

882.7

913.6

902.1

Franchised Restaurant Margins
3,572.2

3,625.7

3,593.6

3,436.4

3,239.0

G&A
772.3

740.0

781.8

779.1

781.3

Other Operating (Inc)/Exp, net
33.5

(63.2
)
(55.9
)
(95.3
)
(86.7
)
Operating Income
$
3,522.5

$
3,779.3

$
3,750.4

$
3,666.2

$
3,446.5

 
 
 
 
 
 
Other Financial Information
 
 
 
 
 
Comparable Sales*
(2.1
)%
(0.2
)%
3.3
%
4.8
%
3.8
%
Comparable Guest Counts*
(4.1
)%
(1.6
)%
1.9
%
3.3
%
5.3
%
 
 
 
 
 
 
Franchised Sales*
$
31,095.7

$
31,344.0

$
31,062.4

$
29,739.4

$
28,166.0

 
 
 
 
 
 
Company-operated Margin %
17.4
 %
18.4
 %
19.5
%
20.6
%
21.3
%
Franchised Margin %
83.1
 %
83.6
 %
83.9
%
83.9
%
83.4
%
 
 
 
 
 
 
Operating Income % Change
(7
)%
1
 %
2
%
6
%
7
%
Operating Income % Change, excl. currency translation*
(7
)%
1
 %
2
%
6
%
7
%
 
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
 
Conventional Franchised
12,836

12,739

12,605

12,546

12,477

Developmental Licensed
—

—

—

—

—

Foreign Affiliated
—

—

—

—

—

     Total Franchised
12,836

12,739

12,605

12,546

12,477

     Company-operated
1,514

1,539

1,552

1,552

1,550

Systemwide Restaurants
14,350

14,278

14,157

14,098

14,027

 
 
 
 
 
 
Total Assets
$
11,872.1

$
11,711.8

$
11,431.6

$
10,865.5

$
10,467.7

Total Capital Expenditures
736.1

875.5

1,065.0

786.5

530.5

Total Depreciation and Amortization
512.2

503.6

477.1

446.0

433.0

 
 
 
 
 
 
* Represents a non-GAAP financial measure as used throughout the schedules included in Exhibit 99.1. The definitions that apply to these measures are provided at the end of this exhibit.




MCDONALD'S CORPORATION
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
UNITED STATES
(Unaudited and $ in millions)
 
 
 
 
 
Three Months Ended
 
 
March 31,
June 30,
September 30,
December 31,
Summary Operating Results
 
2014
2014
2014
2014
 
 
 
 
 
 
     Sales by company-operated restaurants
 
$
1,040.9

$
1,133.4

$
1,097.3

$
1,079.7

     Revenues from franchised restaurants
 
1,013.2

1,115.6

1,104.8

1,066.1

Total Revenues
 
2,054.1

2,249.0

2,202.1

2,145.8

 
 
 
 
 
 
Company-operated Restaurant Margins
 
180.1

207.9

182.9

185.2

Franchised Restaurant Margins
 
836.1

934.4

921.3

880.4

Operating Income
 
$
820.8

$
980.5

$
914.4

$
806.8

 
 
 
 
 
 
Other Financial Information
 
 
 
 
 
Comparable Sales
 
(1.7
)%
(1.5
)%
(3.3
)%
(1.7
)%
 
 
 
 
 
 
Franchised Sales
 
$
7,338.1

$
8,058.3

$
7,975.1

$
7,724.2

 
 
 
 
 
 
Company-operated Margin %
 
17.3
 %
18.3
 %
16.7
 %
17.2
 %
Franchised Margin %
 
82.5
 %
83.8
 %
83.4
 %
82.6
 %
 
 
 
 
 
 
Operating Income % Change
 
(3
)%
1
 %
(10
)%
(15
)%
Operating Income % Change, excl. currency translation
 
(3
)%
1
 %
(10
)%
(15
)%
 
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
 
Conventional Franchised
 
12,722

12,757

12,795

12,836

Developmental Licensed
 
—

—

—

—

Foreign Affiliated
 
—

—

—

—

     Total Franchised
 
12,722

12,757

12,795

12,836

     Company-operated
 
1,539

1,533

1,532

1,514

Systemwide Restaurants
 
14,261

14,290

14,327

14,350





MCDONALD'S CORPORATION
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
UNITED STATES
(Unaudited and $ in millions)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 
March 31,
June 30,
Summary Operating Results
 
 
 
2015
2015
 
 
 
 
 
 
     Sales by company-operated restaurants
 
 
 
$
990.2

$
1,074.2

     Revenues from franchised restaurants
 
 
 
987.9

1,100.0

Total Revenues
 
 
 
1,978.1

2,174.2

 
 
 
 
 
 
Company-operated Restaurant Margins
 
 
 
151.1

177.2

Franchised Restaurant Margins
 
 
 
803.5

911.6

Operating Income
 
 
 
$
731.8

$
925.8

 
 
 
 
 
 
Other Financial Information
 
 
 
 
 
Comparable Sales
 
 
 
(2.6
)%
(2.0
)%
 
 
 
 
 
 
Franchised Sales
 
 
 
$
7,247.4

$
8,002.4

 
 
 
 
 
 
Company-operated Margin %
 
 
 
15.3
 %
16.5
 %
Franchised Margin %
 
 
 
81.3
 %
82.9
 %
 
 
 
 
 
 
Operating Income % Change
 
 
 
(11
)%
(6
)%
Operating Income % Change, excl. currency translation
 
 
 
(11
)%
(6
)%
 
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
 
Conventional Franchised
 
 
 
12,840

12,867

Developmental Licensed
 
 
 
—

—

Foreign Affiliated
 
 
 
—

—

     Total Franchised
 
 
 
12,840

12,867

     Company-operated
 
 
 
1,499

1,451

Systemwide Restaurants
 
 
 
14,339

14,318





MCDONALD'S CORPORATION
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
INTERNATIONAL LEAD MARKETS
(Unaudited and $ in millions)
 
 
 
Years Ended December 31
Summary Operating Results
2014
2013
2012
2011
2010
 
 
 
 
 
 
     Sales by company-operated restaurants
$
5,443.0

$
5,512.3

$
5,653.7

$
5,739.5

$
5,127.0

     Revenues from franchised restaurants
3,101.5

3,023.0

2,914.7

2,871.5

2,501.2

Total Revenues
8,544.5

8,535.3

8,568.4

8,611.0

7,628.2

 
 
 
 
 
 
Company-operated Restaurant Margins
1,080.3

1,078.1

1,098.2

1,131.0

1,050.8

Franchised Restaurant Margins
2,485.8

2,429.8

2,354.1

2,327.7

2,013.8

G&A
621.2

586.2

610.5

599.5

574.7

Other Operating (Inc)/Exp, net
(89.6
)
(107.1
)
(66.1
)
(49.7
)
(48.9
)
Operating Income
$
3,034.5

$
3,028.8

$
2,907.9

$
2,908.9

$
2,538.8

 
 
 
 
 
 
Other Financial Information
 
 
 
 
 
Comparable Sales
0.8
 %
0.2
 %
3.1
%
5.4
%
5.0
%
Comparable Guest Counts
(1.2
)%
(1.1
)%
1.4
%
3.9
%
3.9
%
 
 
 
 
 
 
Franchised Sales
$
17,921.5

$
17,506.7

$
17,034.5

$
16,782.7

$
14,728.5

 
 
 
 
 
 
Company-operated Margin %
19.8
 %
19.6
 %
19.4
%
19.7
%
20.5
%
Franchised Margin %
80.1
 %
80.4
 %
80.8
%
81.1
%
80.5
%
 
 
 
 
 
 
Operating Income % Change
0
 %
4
 %
0
%
15
%
7
%
Operating Income % Change, excl. currency translation
1
 %
5
 %
4
%
8
%
7
%
 
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
 
Conventional Franchised
5,367

5,236

5,055

4,915

4,760

Developmental Licensed
14

14

13

13

12

Foreign Affiliated
—

—

—

—

—

     Total Franchised
5,381

5,250

5,068

4,928

4,772

     Company-operated
1,336

1,354

1,418

1,459

1,523

Systemwide Restaurants
6,717

6,604

6,486

6,387

6,295

 
 
 
 
 
 
Total Assets
$
12,538.4

$
14,815.5

$
14,001.9

$
11,912.4

$
10,938.8

Total Capital Expenditures
792.1

793.3

844.8

922.1

769.2

Total Depreciation and Amortization
521.2

507.4

495.2

481.3

423.9

 
 
 
 
 
 
The markets included in the McDonald's International Lead Markets segment are Australia, Canada, France, Germany, and the U.K. and the related markets of Ireland, Luxembourg, New Zealand and the Pacific Islands.




MCDONALD'S CORPORATION
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
INTERNATIONAL LEAD MARKETS
(Unaudited and $ in millions)
 
 
 
 
 
Three Months Ended
 
 
March 31,
June 30,
September 30,
December 31,
Summary Operating Results
 
2014
2014
2014
2014
 
 
 
 
 
 
     Sales by company-operated restaurants
 
$
1,299.5

$
1,402.4

$
1,405.3

$
1,335.8

     Revenues from franchised restaurants
 
736.3

788.3

819.0

757.9

Total Revenues
 
2,035.8

2,190.7

2,224.3

2,093.7

 
 
 
 
 
 
Company-operated Restaurant Margins
 
247.9

276.4

289.9

266.1

Franchised Restaurant Margins
 
584.2

631.6

661.3

608.7

Operating Income
 
$
703.2

$
765.6

$
830.6

$
735.1

 
 
 
 
 
 
Other Financial Information
 
 
 
 
 
Comparable Sales
 
1.5
%
0.1
%
0.4
%
1.3
 %
 
 
 
 
 
 
Franchised Sales
 
$
4,238.6

$
4,570.9

$
4,735.5

$
4,376.5

 
 
 
 
 
 
Company-operated Margin %
 
19.1
%
19.7
%
20.6
%
19.9
 %
Franchised Margin %
 
79.3
%
80.1
%
80.8
%
80.3
 %
 
 
 
 
 
 
Operating Income % Change
 
3
%
2
%
3
%
(7
)%
Operating Income % Change, excl. currency translation
 
3
%
0
%
2
%
0
 %
 
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
 
Conventional Franchised
 
5,237

5,276

5,287

5,367

Developmental Licensed
 
14

14

14

14

Foreign Affiliated
 
—

—

—

—

     Total Franchised
 
5,251

5,290

5,301

5,381

     Company-operated
 
1,358

1,343

1,352

1,336

Systemwide Restaurants
 
6,609

6,633

6,653

6,717





MCDONALD'S CORPORATION
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
INTERNATIONAL LEAD MARKETS
(Unaudited and $ in millions)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 
March 31,
June 30,
Summary Operating Results
 
 
 
2015
2015
 
 
 
 
 
 
     Sales by company-operated restaurants
 
 
 
$
1,141.1

$
1,231.8

     Revenues from franchised restaurants
 
 
 
649.7

705.1

Total Revenues
 
 
 
1,790.8

1,936.9

 
 
 
 
 
 
Company-operated Restaurant Margins
 
 
 
217.4

245.7

Franchised Restaurant Margins
 
 
 
511.9

564.4

Operating Income
 
 
 
$
583.5

$
688.6

 
 
 
 
 
 
Other Financial Information
 
 
 
 
 
Comparable Sales
 
 
 
0.9
 %
3.8
 %
 
 
 
 
 
 
Franchised Sales
 
 
 
$
3,760.3

$
4,107.8

 
 
 
 
 
 
Company-operated Margin %
 
 
 
19.1
 %
19.9
 %
Franchised Margin %
 
 
 
78.8
 %
80.0
 %
 
 
 
 
 
 
Operating Income % Change
 
 
 
(17
)%
(10
)%
Operating Income % Change, excl. currency translation
 
 
 
(3
)%
7
 %
 
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
 
Conventional Franchised
 
 
 
5,366

5,413

Developmental Licensed
 
 
 
14

14

Foreign Affiliated
 
 
 
—

—

     Total Franchised
 
 
 
5,380

5,427

     Company-operated
 
 
 
1,333

1,304

Systemwide Restaurants
 
 
 
6,713

6,731





MCDONALD'S CORPORATION
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
HIGH GROWTH MARKETS
(Unaudited and $ in millions)
 
 
 
Years Ended December 31
Summary Operating Results
2014
2013
2012
2011
2010
 
 
 
 
 
 
     Sales by company-operated restaurants
$
6,071.5

$
6,321.6

$
5,950.5

$
5,600.9

$
4,610.3

     Revenues from franchised restaurants
773.7

721.6

650.0

651.9

551.3

Total Revenues
6,845.2

7,043.2

6,600.5

6,252.8

5,161.6

 
 
 
 
 
 
Company-operated Restaurant Margins
780.3

1,019.1

1,017.9

999.2

851.9

Franchised Restaurant Margins
554.5

531.1

490.8

495.3

415.2

G&A
388.7

351.3

335.8

327.0

282.0

Other Operating (Inc)/Exp, net
12.2

(51.1
)
(54.4
)
(6.9
)
(12.0
)
Operating Income
$
933.9

$
1,250.0

$
1,227.3

$
1,174.4

$
997.1

 
 
 
 
 
 
Other Financial Information
 
 
 
 
 
Comparable Sales
(2.8
)%
(0.6
)%
2.3
%
8.1
%
5.1
%
Comparable Guest Counts
(2.9
)%
(2.2
)%
0.2
%
6.1
%
3.5
%
 
 
 
 
 
 
Franchised Sales
$
4,678.0

$
4,304.8

$
3,869.3

$
3,850.4

$
3,268.1

 
 
 
 
 
 
Company-operated Margin %
12.9
 %
16.1
 %
17.1
%
17.8
%
18.5
%
Franchised Margin %
71.7
 %
73.6
 %
75.5
%
76.0
%
75.3
%
 
 
 
 
 
 
Operating Income % Change
(25
)%
2
 %
5
%
18
%
12
%
Operating Income % Change, excl. currency translation
(23
)%
1
 %
10
%
11
%
12
%
 
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
 
Conventional Franchised
1,503

1,345

1,214

1,110

1,039

Developmental Licensed
411

234

164

87

68

Foreign Affiliated
285

269

240

202

166

     Total Franchised
2,199

1,848

1,618

1,399

1,273

     Company-operated
2,832

2,791

2,584

2,410

2,242

Systemwide Restaurants
5,031

4,639

4,202

3,809

3,515

 
 
 
 
 
 
Total Assets
$
5,866.0

$
6,335.5

$
5,739.5

$
4,928.6

$
4,482.4

Total Capital Expenditures
804.8

831.1

817.1

701.7

551.1

Total Depreciation and Amortization
387.8

357.3

312.3

291.4

239.1

 
 
 
 
 
 
The markets included in the McDonald's High-Growth Markets segment are China, Italy, Korea, Poland, Russia, Spain, Switzerland, and the Netherlands and the related markets of Hong Kong and Macau.




MCDONALD'S CORPORATION
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
HIGH GROWTH MARKETS
(Unaudited and $ in millions)
 
 
 
 
 
Three Months Ended
 
 
March 31,
June 30,
September 30,
December 31,
Summary Operating Results
 
2014
2014
2014
2014
 
 
 
 
 
 
     Sales by company-operated restaurants
 
$
1,556.8

$
1,639.0

$
1,526.7

$
1,349.0

     Revenues from franchised restaurants
 
187.3

200.7

195.9

189.8

Total Revenues
 
1,744.1

1,839.7

1,722.6

1,538.8

 
 
 
 
 
 
Company-operated Restaurant Margins
 
221.2

253.9

187.1

118.1

Franchised Restaurant Margins
 
133.5

145.2

140.1

135.7

Operating Income
 
$
252.5

$
308.4

$
214.3

$
158.7

 
 
 
 
 
 
Other Financial Information
 
 
 
 
 
Comparable Sales
 
2.5
 %
1.2
%
(9.6
)%
(4.2
)%
 
 
 
 
 
 
Franchised Sales
 
$
1,132.9

$
1,204.6

$
1,208.7

$
1,131.8

 
 
 
 
 
 
Company-operated Margin %
 
14.2
 %
15.5
%
12.3
 %
8.8
 %
Franchised Margin %
 
71.2
 %
72.3
%
71.5
 %
71.5
 %
 
 
 
 
 
 
Operating Income % Change
 
(3
)%
4
%
(44
)%
(49
)%
Operating Income % Change, excl. currency translation
 
(3
)%
4
%
(42
)%
(41
)%
 
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
 
Conventional Franchised
 
1,368

1,399

1,433

1,503

Developmental Licensed
 
288

316

371

411

Foreign Affiliated
 
269

272

278

285

     Total Franchised
 
1,925

1,987

2,082

2,199

     Company-operated
 
2,763

2,780

2,781

2,832

Systemwide Restaurants
 
4,688

4,767

4,863

5,031





MCDONALD'S CORPORATION
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
HIGH GROWTH MARKETS
(Unaudited and $ in millions)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 
March 31,
June 30,
Summary Operating Results
 
 
 
2015
2015
 
 
 
 
 
 
     Sales by company-operated restaurants
 
 
 
$
1,288.1

$
1,431.5

     Revenues from franchised restaurants
 
 
 
168.2

181.4

Total Revenues
 
 
 
1,456.3

1,612.9

 
 
 
 
 
 
Company-operated Restaurant Margins
 
 
 
139.4

179.7

Franchised Restaurant Margins
 
 
 
116.5

129.0

Operating Income
 
 
 
$
123.1

$
218.9

 
 
 
 
 
 
Other Financial Information
 
 
 
 
 
Comparable Sales
 
 
 
(3.2
)%
(1.4
)%
 
 
 
 
 
 
Franchised Sales
 
 
 
$
1,060.8

$
1,130.5

 
 
 
 
 
 
Company-operated Margin %
 
 
 
10.8
 %
12.6
 %
Franchised Margin %
 
 
 
69.3
 %
71.1
 %
 
 
 
 
 
 
Operating Income % Change
 
 
 
(51
)%
(29
)%
Operating Income % Change, excl. currency translation
 
 
 
(36
)%
(14
)%
 
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
 
Conventional Franchised
 
 
 
1,512

1,549

Developmental Licensed
 
 
 
426

429

Foreign Affiliated
 
 
 
269

272

     Total Franchised
 
 
 
2,207

2,250

     Company-operated
 
 
 
2,868

2,876

Systemwide Restaurants
 
 
 
5,075

5,126





MCDONALD'S CORPORATION
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
FOUNDATIONAL MARKETS & CORPORATE
(Unaudited and $ in millions)
 
 
 
Years Ended December 31
Summary Operating Results
2014
2013
2012
2011
2010
 
 
 
 
 
 
     Sales by company-operated restaurants
$
2,303.5

$
2,528.0

$
2,468.0

$
2,519.8

$
2,266.6

     Revenues from franchised restaurants
1,097.1

1,147.9

1,116.4

1,094.2

906.6

Total Revenues
3,400.6

3,675.9

3,584.4

3,614.0

3,173.2

 
 
 
 
 
 
Company-operated Restaurant Margins
264.3

368.0

380.0

411.1

369.0

Franchised Restaurant Margins
962.2

1,020.5

999.0

972.3

795.5

G&A
705.7

708.1

727.1

688.1

695.3

Other Operating (Inc)/Exp, net
62.5

(25.8
)
(67.1
)
(84.9
)
(21.5
)
Operating Income
$
458.3

$
706.2

$
719.0

$
780.2

$
490.7

 
 
 
 
 
 
Other Financial Information
 
 
 
 
 
Comparable Sales
(0.1
)%
1.5
 %
3.1
 %
6.3
%
7.7
%
Comparable Guest Counts
(4.8
)%
(3.0
)%
1.8
 %
3.1
%
5.7
%
 
 
 
 
 
 
Franchised Sales
$
15,922.1

$
17,095.0

$
17,721.1

$
17,275.5

$
14,984.3

 
 
 
 
 
 
Company-operated Margin %
11.5
 %
14.6
 %
15.4
 %
16.3
%
16.3
%
Franchised Margin %
87.7
 %
88.9
 %
89.5
 %
88.9
%
87.7
%
 
 
 
 
 
 
Operating Income % Change
(35
)%
(2
)%
(8
)%
59
%
39
%
Operating Income % Change, excl. currency translation
(22
)%
7
 %
1
 %
46
%
39
%
 
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
 
Conventional Franchised
1,068

1,035

995

956

1,003

Developmental Licensed
4,803

4,499

4,173

3,829

3,405

Foreign Affiliated
3,257

3,320

3,423

3,417

3,408

     Total Franchised
9,128

8,854

8,591

8,202

7,816

     Company-operated
1,032

1,054

1,044

1,014

1,084

Systemwide Restaurants
10,160

9,908

9,635

9,216

8,900

 
 
 
 
 
 
Total Assets
$
4,004.9

$
3,763.5

$
4,213.5

$
5,283.4

$
6,086.3

Total Capital Expenditures
250.4

324.8

322.3

319.5

284.7

Total Depreciation and Amortization
223.3

216.8

203.9

196.3

180.2

 
 
 
 
 
 
McDonald's Foundational Markets & Corporate segment includes all remaining non-U.S. markets not included in the Company's International Lead and High-Growth Markets segments and all Corporate-related expenses.




MCDONALD'S CORPORATION
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
FOUNDATIONAL MARKETS & CORPORATE
(Unaudited and $ in millions)
 
 
 
 
 
Three Months Ended
 
 
March 31,
June 30,
September 30,
December 31,
Summary Operating Results
 
2014
2014
2014
2014
 
 
 
 
 
 
     Sales by company-operated restaurants
 
$
593.3

$
611.1

$
566.9

$
532.2

     Revenues from franchised restaurants
 
273.0

291.2

271.2

261.7

Total Revenues
 
866.3

902.3

838.1

793.9

 
 
 
 
 
 
Company-operated Restaurant Margins
 
74.2

77.9

61.6

50.6

Franchised Restaurant Margins
 
238.9

257.0

237.0

229.3

Operating Income
 
$
159.5

$
134.5

$
113.2

$
51.1

 
 
 
 
 
 
Other Financial Information
 
 
 
 
 
Comparable Sales
 
2.3
 %
1.7
 %
(4.0
)%
(0.1
)%
 
 
 
 
 
 
Franchised Sales
 
$
4,007.1

$
4,100.0

$
4,006.7

$
3,808.3

 
 
 
 
 
 
Company-operated Margin %
 
12.5
 %
12.7
 %
10.9
 %
9.5
 %
Franchised Margin %
 
87.6
 %
88.2
 %
87.4
 %
87.6
 %
 
 
 
 
 
 
Operating Income % Change
 
(1
)%
(27
)%
(45
)%
(67
)%
Operating Income % Change, excl. currency translation
 
14
 %
(18
)%
(37
)%
(47
)%
 
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
 
Conventional Franchised
 
1,042

1,049

1,058

1,068

Developmental Licensed
 
4,531

4,613

4,674

4,803

Foreign Affiliated
 
3,303

3,298

3,262

3,257

     Total Franchised
 
8,876

8,960

8,994

9,128

     Company-operated
 
1,059

1,033

1,027

1,032

Systemwide Restaurants
 
9,935

9,993

10,021

10,160





MCDONALD'S CORPORATION
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
FOUNDATIONAL MARKETS & CORPORATE
(Unaudited and $ in millions)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 
March 31,
June 30,
Summary Operating Results
 
 
 
2015
2015
 
 
 
 
 
 
     Sales by company-operated restaurants
 
 
 
$
494.7

$
523.6

     Revenues from franchised restaurants
 
 
 
239.0

250.1

Total Revenues
 
 
 
733.7

773.7

 
 
 
 
 
 
Company-operated Restaurant Margins
 
 
 
51.9

62.2

Franchised Restaurant Margins
 
 
 
209.3

220.6

Operating Income
 
 
 
$
(52.9
)
$
16.0

 
 
 
 
 
 
Other Financial Information
 
 
 
 
 
Comparable Sales
 
 
 
(5.3
)%
(3.4
)%
 
 
 
 
 
 
Franchised Sales
 
 
 
$
3,280.1

$
3,374.5

 
 
 
 
 
 
Company-operated Margin %
 
 
 
10.5
 %
11.9
 %
Franchised Margin %
 
 
 
87.6
 %
88.2
 %
 
 
 
 
 
 
Operating Income % Change
 
 
 
n/m

(88
)%
Operating Income % Change, excl. currency translation
 
 
 
n/m

(62
)%
 
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
 
Conventional Franchised
 
 
 
1,069

1,074

Developmental Licensed
 
 
 
4,821

4,850

Foreign Affiliated
 
 
 
3,239

3,244

     Total Franchised
 
 
 
9,129

9,168

     Company-operated
 
 
 
1,034

1,025

Systemwide Restaurants
 
 
 
10,163

10,193

 
 
 
 
 
 
n/m - not meaningful
 
 
 
 
 




THE FOLLOWING DEFINITIONS APPLY TO THESE TERMS AS USED THROUGHOUT EXHIBIT 99.1

•
Information excluding currency translation is calculated by translating current year results at prior year average exchange rates. Management reviews and analyzes business results excluding the effect of foreign currency translation and bases incentive compensation plans on these results because they believe this better represents the Company's underlying business trends.

•
Comparable sales represent sales at all restaurants and comparable guest counts represent the number of transactions at all restaurants, whether operated by the Company or by franchisees, in operation at least thirteen months, including those temporarily closed. Some of the reasons restaurants may be temporarily closed include reimaging or remodeling, rebuilding, road construction and natural disasters. Comparable sales exclude the impact of currency translation. Comparable sales are driven by changes in guest counts and average check, which is affected by changes in pricing and product mix. Typically, pricing has a greater impact on average check than product mix. Management reviews the increase or decrease in comparable sales and comparable guest counts compared with the same period in the prior year to assess business trends.

•
Franchised sales include sales at all franchised restaurants. Franchised sales are not recorded as revenues by the Company, but are the basis on which the Company calculates and records franchised revenues and are indicative of the health of the franchisee base.





Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings