McDonald's Announces 3-Year Total Cash Return Target

             McDonald's Announces 3-Year Total Cash Return Target

PR Newswire

OAK BROOK, Ill., May 28, 2014

OAK BROOK, Ill., May 28, 2014 /PRNewswire/ --During an investor conference
presentation today, McDonald's Corporation President and Chief Executive
Officer Don Thompson announced an intensified commitment to the Company's
customer-focused strategic framework – the Plan to Win – and other actions to
enhance long-term shareholder value.

"The Plan to Win along with our competitive advantages, System alignment and
financial discipline has served as our strategic roadmap, guiding the
execution of our global growth priorities," said Don Thompson. "Today, the
Plan to Win has evolved as we reenergize the McDonald's System by placing the
customer at the center of everything we do. We are pursuing targeted growth
opportunities to provide our customers with their favorite food and drink,
create memorable experiences, offer unparalleled convenience and become an
even more trusted brand to deliver the most meaningful impact for our
customers and our business."

In addition, the Company announced plans to optimize its capital and ownership
structures and scrutinize G&A spending. Specifically, the Company expects to:

  oReturn $18 to $20 billion to shareholders between 2014 and 2016 through a
    combination of dividends and share repurchases, representing a 10% to 20%
    increase over the amount of cash returned between 2011 and 2013;
  oRefranchise at least 1,500 restaurants by the end of 2016, primarily in
    Asia/Pacific, Middle East and Africa (APMEA) and Europe, reflecting a more
    than 50% increase in refranchising activity compared with the prior
    three-year period; and
  oAnalyze G&A spending with the primary intent of reallocating resources to
    higher return initiatives and growth areas, including development of the
    Company's global digital capabilities.

"The actions we are taking to enhance long-term shareholder value fit squarely
within our proven business model," said Senior Executive Vice President and
Chief Financial Officer Pete Bensen. "Our 3-year cash return target is based
on several activities including the significant free cash flow generated from
our operations, as well as the use of cash proceeds from our debt additions
and refranchising activity. Financial discipline has always been a
cornerstone of McDonald's strategic plan, and we will pursue these activities
while maintaining appropriate levels of financial flexibility, liquidity and
access to capital for the Company and the System. Our commitment to this
discipline continues to fortify our long-standing financial strength and our
ability to deliver sustained profitable growth."

Don Thompson concluded, "We are committed to continuous improvement in
everything we do – from the food we serve, to our engagement with our
customers, to the management of our financial resources. Guided by our
evolved customer-focused priorities, the McDonald's System is determined to
create experiences that our customers notice and appreciate so they reward us
with their business and loyalty."


The Company plans to release May 2014 sales information on June 9, 2014.


McDonald's is the world's leading global foodservice retailer with over 35,000
locations serving approximately 70 million customers in over 100 countries
each day. More than 80% of McDonald's restaurants worldwide are owned and
operated by independent local business men and women.


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.

SOURCE McDonald's Corporation

Contact: Investors, Kathy Martin, 630-623-7833, or Media: Heidi Barker,
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