McDonald's Reports First Quarter 2013 Results

                McDonald's Reports First Quarter 2013 Results

PR Newswire

OAK BROOK, Ill., April 19, 2013

OAK BROOK, Ill., April 19, 2013 /PRNewswire/ --McDonald's Corporation today
announced results for the first quarter ended March 31, 2013. While the
Company posted higher revenues  and earnings per share  for the quarter,
comparable sales  and operating income  declined - affected by comparison
against strong prior year results that included an additional day in 2012 due
to leap year.

"McDonald's remains diligently focused on enhancing our menu, restaurants and
the overall customer experience to become more relevant to today's consumers,"
said McDonald's President and Chief Executive Officer Don Thompson. "While the
Company's results for the quarter reflected difficult prior year comparisons
and the ongoing impact of global economic headwinds, we continue our efforts
to build market share and deliver sustained profitable growth for all
stakeholders."

First Quarter results included:

  oGlobal comparable sales decreased 1.0%
  oConsolidated revenues increased 1% (1% in constant currencies)
  oConsolidated operating income decreased 1% (flat in constant currencies)
  oDiluted earnings per share of $1.26, up 2% (3% in constant currencies)
  oReturned $1.1 billion to shareholders through dividends and share
    repurchases

In the U.S., comparable sales decreased 1.2% in the first quarter due in part
to the challenging eating-out environment. Operating income declined 3% for
the quarter. Despite these results, McDonald's U.S. outperformed the
competition and increased market share. During the quarter, the U.S. fortified
its value leadership position with the Dollar Menu, expanded its menu variety
with innovative new products and enhanced the customer experience through
ongoing restaurant reimaging. Looking ahead, the U.S. is focused on menu and
convenience initiatives to drive sales and restaurant profitability.

For the quarter, Europe's results were dampened by ongoing economic
uncertainty. First quarter comparable sales were down 1.1%,  while operating
income increased 1% (up 1% in constant currency)  - led by performance in the
U.K. and Russia, partly offset by Germany. Moving forward, the segment's
business plans emphasize building market share by featuring value across all
day parts, offering compelling premium products and expanding the brand's
presence through extended operating hours and new restaurant growth.

In Asia/Pacific, Middle East and Africa (APMEA), first quarter comparable
sales declined 3.3% primarily due to ongoing weakness in Japan and negative
results in China. The segment's quarterly operating income was down 1% (up 2%
in constant currencies). McDonald's APMEA remains focused on driving
performance by offering unique value platforms, accelerating growth at
breakfast, and broadening accessibility through service and convenience
initiatives and new restaurant development.

Don Thompson concluded, "We have an outstanding brand, an aligned System and
an unsurpassed global infrastructure - making us uniquely well-positioned to
capitalize on future growth opportunities around the world. We are committed
to strengthening our business by building upon the solid foundation that is
already in place. As we move forward, top-line comparisons will begin to ease
while the challenging global environment and bottom-line pressures are
expected to persist. For the month of April, global comparable sales are
expected to be slightly negative. We are confident that we have the right
plans in place to differentiate the McDonald's experience and strengthen our
business momentum for the long term."

KEY HIGHLIGHTS - CONSOLIDATED
Dollars in millions, except per share data
                                                             Increase
Quarters Ended March 31,    2013        2012        Inc/     Excluding
                                                    (Dec)    Currency
                                                             Translation
Revenues                    $ 6,605.3   $ 6,546.6   1     %  1           %
Operating income            1,949.5     1,964.6     (1)      0
Net income                  1,270.2     1,266.7     0        1
Earnings per share-diluted* $ 1.26      $ 1.23      2     %  3           %

* Foreign currency translation had a negative impact of $0.01 on diluted
  earnings per share for the quarter.

THE FOLLOWING DEFINITIONS APPLY TO THESE TERMS AS USED THROUGHOUT THIS RELEASE

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.
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. The number of weekdays and weekend days, referred to as the
calendar shift/trading day adjustment, can impact comparable sales and guest
counts. In addition, the timing of holidays can impact comparable sales and
guest counts.

Information in constant currency 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.

RELATED COMMUNICATIONS

This press release should be read in conjunction with Exhibit 99.2 in the
Company's Form 8-K filing for supplemental information related to the
Company's results for the quarter ended March 31, 2013.

McDonald's Corporation will broadcast its investor conference call live over
the Internet at 10:00 a.m. Central Time on April 19, 2013. A link to the live
webcast will be available at www.investor.mcdonalds.com. There will also be an
archived webcast and podcast available for a limited time.

The Company plans to release April 2013 sales information on May 8, 2013.

FORWARD-LOOKING STATEMENTS

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 forward-looking statements involve
a number of risks and uncertainties. The factors that could cause actual
results to differ materially from our expectations are detailed in the
Company's filings with the Securities and Exchange Commission, such as its
annual and quarterly reports and current reports on Form 8-K.

McDONALD'S CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
Dollars and shares in millions, except per share data
Quarters Ended March 31,               2013        2012        Inc/ (Dec)
Revenues
Sales by Company-operated restaurants  $ 4,445.4   $ 4,432.2   $ 13.2   0    %
Revenues from franchised restaurants   2,159.9     2,114.4     45.5     2
TOTAL REVENUES                         6,605.3     6,546.6     58.7     1
Operating costs and expenses
Company-operated restaurant expenses   3,726.0     3,654.4     71.6     2
Franchised restaurants—occupancy       395.2       374.7       20.5     6
expenses
Selling, general & administrative      596.5       592.5       4.0      1
expenses
Other operating (income) expense, net  (61.9)      (39.6)      (22.3)   (56)
Total operating costs and expenses     4,655.8     4,582.0     73.8     2
OPERATING INCOME                       1,949.5     1,964.6     (15.1)   (1)
Interest expense                       128.1       128.9       (0.8)    (1)
Nonoperating (income) expense, net     4.6         (11.8)      16.4     n/m
Income before provision for income     1,816.8     1,847.5     (30.7)   (2)
taxes
Provision for income taxes             546.6       580.8       (34.2)   (6)
NET INCOME                             $ 1,270.2   $ 1,266.7   $ 3.5    0    %
EARNINGS PER SHARE-DILUTED             $ 1.26      $ 1.23      $ 0.03   2    %
Weighted average shares                1,010.8     1,030.0     (19.2)   (2)  %
outstanding-diluted

n/m Not meaningful

SOURCE McDonald's Corporation

Website: http://www.mcdonalds.com
Contact: Investors, Chris Stent, +1-630-623-3801, or Media, Heidi Barker,
+1-630-623-3791