\n
<\/td>\n |
<\/td>\n | \n 2023<\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 2022<\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n | \n Inc\/ (Dec)<\/span><\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n | \n Inc\/ (Dec) <\/span><\/b><\/span><\/p>\nExcluding <\/span><\/b><\/span><\/p>\nCurrency <\/span><\/b><\/span><\/p>\nTranslation<\/span><\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n | \n 2023<\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 2022<\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n | \n Inc\/ (Dec)<\/span><\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n | \n Inc\/ (Dec) <\/span><\/b><\/span><\/p>\nExcluding <\/span><\/b><\/span><\/p>\nCurrency <\/span><\/b><\/span><\/p>\nTranslation<\/span><\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n<\/tr>\n |
\n| \n Revenues<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $\u00a0 6,406.2<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $\u00a0 5,926.5<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 8<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 6<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $ 25,493.7<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $ 23,182.6<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 10<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 10<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Operating income<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 2,801.9<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 2,582.7<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 8<\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n | \n 6<\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n | \n 11,646.7<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 9,371.0<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 24<\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n | \n 24<\/span><\/p>\n<\/td>\n |
<\/td>\n<\/tr>\n | \n| \n Net income<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 2,039.0<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 1,903.4<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 7<\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n | \n 5<\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n | \n 8,468.8<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 6,177.4<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 37<\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n | \n 37<\/span><\/p>\n<\/td>\n |
<\/td>\n<\/tr>\n | \n| \n Earnings per share-diluted<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2.80<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2.59<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 8<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 5<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $\u00a0\u00a0\u00a0\u00a0\u00a0 11.56<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 8.33<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 39<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 38<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\nResults for 2023 included the following:<\/p>\n \n- Pre-tax charges of $72 million<\/span>, or $0.08<\/span> per share, for the quarter and the year, related to the write-off of impaired software no longer in use<\/li>\n<\/ul>\n
\n- Pre-tax charges of $66 million<\/span>, or $0.07<\/span> per share, for the quarter and $290 million<\/span>, or $0.30<\/span> per share, for the year, related to the Company’s Accelerating the Arches<\/i> growth strategy, including restructuring costs associated with its internal effort to modernize ways of working (Accelerating the Organization)<\/i><\/li>\n<\/ul>\n
Results for 2022 included the following:<\/p>\n \n- Pre-tax charges of $1,281 million<\/span>, or $1.44<\/span> per share, for the year, related to the sale of the Company’s business in Russia<\/span><\/li>\n<\/ul>\n
\n- Pre-tax gain of $271 million<\/span>, or $0.40<\/span> per share, for the year, related to the Company’s sale of its Dynamic Yield business<\/li>\n<\/ul>\n
\n- $537 million<\/span>, or $0.73<\/span> per share, for the year, of nonoperating expense related to the settlement of a tax audit in France<\/span><\/li>\n<\/ul>\n
Excluding the above items, results for both periods reflected strong operating performance driven primarily by higher sales-driven Franchised margins.<\/p>\n 3<\/p>\n \n \n \n \n\n\n| \n NET INCOME AND EARNINGS PER SHARE-DILUTED RECONCILIATION\u00a0<\/span><\/p>\nDollars in millions, except per share data<\/span><\/p>\n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n
<\/td>\n | \n Quarters Ended December 31,<\/span><\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n<\/tr>\n | \n
<\/td>\n | \n Net Income<\/span><\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n | \n Earnings per share – diluted<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n\n
<\/td>\n | \n 2023<\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 2022<\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n | \n Inc\/ (Dec)<\/span><\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n | \n Inc\/ (Dec) <\/span><\/b><\/span><\/p>\nExcluding <\/span><\/b><\/span><\/p>\nCurrency <\/span><\/b><\/span><\/p>\nTranslation<\/span><\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n | \n 2023<\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 2022<\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n | \n Inc\/ (Dec)<\/span><\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n | \n Inc\/ (Dec) <\/span><\/b><\/span><\/p>\nExcluding <\/span><\/b><\/span><\/p>\nCurrency <\/span><\/b><\/span><\/p>\nTranslation<\/span><\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n<\/tr>\n | \n| \n GAAP<\/span><\/p>\n<\/td>\n | \n $ 2,039.0<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $ 1,903.4<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 7<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 5<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $\u00a0\u00a0\u00a0\u00a0 2.80<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $\u00a0\u00a0\u00a0\u00a0 2.59<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 8<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 5<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n (Gains)\/charges<\/span><\/p>\n<\/td>\n | \n 105.6<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n \u2014<\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n | \n 0.15<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n \u2014<\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n<\/tr>\n | \n| \n Tax Settlement<\/span><\/p>\n<\/td>\n | \n \u2014<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n \u2014<\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n | \n \u2014<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n \u2014<\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n<\/tr>\n | \n| \n Non-GAAP<\/span><\/p>\n<\/td>\n | \n $ 2,144.6<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $ 1,903.4<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 13<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 10<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $\u00a0\u00a0\u00a0\u00a0 2.95<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $\u00a0\u00a0\u00a0\u00a0 2.59<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 14<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 11<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n<\/tr>\n\n
<\/td>\n |
<\/td>\n<\/tr>\n | \n
<\/td>\n | \n Years Ended December 31,<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n\n
<\/td>\n | \n Net Income<\/span><\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n | \n Earnings per share – diluted<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n\n
<\/td>\n | \n 2023<\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 2022<\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n | \n Inc\/ (Dec)<\/span><\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n | \n Inc\/ (Dec) <\/span><\/b><\/span><\/p>\nExcluding <\/span><\/b><\/span><\/p>\nCurrency <\/span><\/b><\/span><\/p>\nTranslation<\/span><\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n | \n 2023<\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 2022<\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n | \n Inc\/ (Dec)<\/span><\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n | \n Inc\/ (Dec) <\/span><\/b><\/span><\/p>\nExcluding <\/span><\/b><\/span><\/p>\nCurrency <\/span><\/b><\/span><\/p>\nTranslation<\/span><\/b><\/span><\/p>\n<\/td>\n |
<\/td>\n<\/tr>\n | \n| \n GAAP<\/span><\/p>\n<\/td>\n | \n $ 8,468.8<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $ 6,177.4<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 37<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 37<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $\u00a0\u00a0 11.56<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $\u00a0\u00a0\u00a0\u00a0 8.33<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 39<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 38<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n (Gains)\/charges<\/span><\/p>\n<\/td>\n | \n 273.7<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 770.7<\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n | \n 0.38<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 1.04<\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n<\/tr>\n | \n| \n Tax Settlement<\/span><\/p>\n<\/td>\n | \n \u2014<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 537.2<\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n | \n \u2014<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 0.73<\/span><\/p>\n<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n |
<\/td>\n<\/tr>\n | \n| \n Non-GAAP<\/span><\/p>\n<\/td>\n | \n $ 8,742.5<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $ 7,485.3<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 17<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 16<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $\u00a0\u00a0 11.94<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n $\u00a0\u00a0 10.10<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 18<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n |
<\/td>\n | \n 18<\/span><\/p>\n<\/td>\n | \n %<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n4<\/p>\n THE FOLLOWING DEFINITIONS APPLY TO THESE TERMS AS USED THROUGHOUT THIS RELEASE<\/b><\/p>\n Constant currency<\/u> results exclude the effects of foreign currency translation and are 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, impairment and other charges and gains, as well as material regulatory and other income tax impacts, and bases incentive compensation plans on these results because the Company believes this better represents underlying business trends.<\/p>\n Comparable sales and comparable guest counts<\/u> are compared to the same period in the prior year and represent sales and transactions, respectively, 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, natural disasters, pandemics and acts of war, terrorism or other hostilities. Restaurants in Russia<\/span> were treated as permanently closed as of April 1, 2022<\/span> and therefore excluded from the calculation of comparable sales and comparable guest counts beginning in the second quarter of 2022. Comparable sales exclude the impact of currency translation and the sales of any market considered hyperinflationary (generally identified as those markets whose cumulative inflation rate over a three-year period exceeds 100%), which management believes more accurately reflects the underlying business trends. Beginning in the first quarter of 2023, McDonald’s excluded results from Argentina<\/span> and Lebanon<\/span> in the calculation of comparable sales due to hyperinflation (Venezuela<\/span> continues to be excluded). Comparable sales are driven by changes in guest counts and average check, the latter of which is affected by changes in pricing and product mix.<\/p>\nSystemwide sales<\/u> include sales at all restaurants, whether operated by the Company or by franchisees. Systemwide sales to loyalty members is comprised of all sales to customers who self-identify as a loyalty member when transacting with both Company-operated and franchised restaurants. Systemwide sales to loyalty members are measured across approximately 50 markets with loyalty programs globally. Full year Systemwide sales to loyalty members represents an annual aggregation of quarterly sales to loyalty members active in the last 90 days. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company’s financial performance because these sales are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base. The Company’s revenues consist of sales by Company-operated restaurants and fees from franchised restaurants operated by conventional franchisees, developmental licensees and affiliates. Changes in Systemwide sales are primarily driven by comparable sales and net restaurant unit expansion.\u00a0<\/p>\n Free cash flow<\/u>, defined as cash provided by operations less capital expenditures, and free cash flow conversion rate, defined as free cash flow divided by net income, are measures reviewed by management in order to evaluate the Company’s ability to convert net profits into cash resources, after reinvesting in the core business, that can be used to pursue opportunities to enhance shareholder value.<\/p>\n RELATED COMMUNICATIONS<\/b><\/p>\n This press release should be read in conjunction with Exhibit 99.2 to the Company’s Form 8-K filing for supplemental information related to the Company’s results for the quarter and year ended December\u00a031, 2023.<\/p>\n McDonald’s Corporation will broadcast its investor earnings conference call live over the Internet at 7:30 a.m. (Central Time)<\/span> on February\u00a05, 2024. A link to the live webcast will be available at www.investor.mcdonalds.com<\/a><\/u>. There will also be an archived webcast available for a limited time thereafter.<\/p>\nUPCOMING COMMUNICATIONS <\/b><\/p>\n For important news and information regarding McDonald’s, including the timing of future investor conferences and earnings calls, visit the Investor Relations section of the Company’s Internet home page at www.investor.mcdonalds.com<\/a><\/u>. McDonald’s uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information.<\/p>\nABOUT McDONALD’S<\/b><\/p>\n McDonald’s is the world’s leading global foodservice retailer with over 40,000 locations in over 100 countries. Approximately 95% of McDonald’s restaurants worldwide are owned and operated by independent local business owners.<\/p>\n FORWARD-LOOKING STATEMENTS <\/b><\/p>\n 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. Factors that could cause actual results to differ materially from expectations are detailed in the Company’s filings with the Securities and Exchange Commission, including the risk factors discussed in Exhibit 99.2 to the Company’s Form 8-K filing on February 5, 2024<\/span>. The Company undertakes no obligation to update such forward-looking statements, except as may otherwise be required by law.<\/p>\n5<\/p>\n \n \n \n \n\n\n| \n McDONALD’S CORPORATION<\/b><\/span><\/p>\n
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