Annual Report of Mcdonald's

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Annual Report

2011

McDonald’s
Corporation

Highlights

2011

1

#

in the

Global
Comparable Sales
Growth

5.6

%

Earnings
Per Share
Growth

11

%*

* in constant currencies

2011 Total
Shareholder
Return

DOW 30

34.7

%

To Our Valued Shareholders:
Albert Einstein once remarked that “In the middle of
difficulty lies opportunity.” I believe he was telling us
that even in the toughest environments, hard work
and continuous improvement can pay off.

I am proud to say that’s what McDonald’s continues to do. Our determination and pursuit of excellence drive our success in any operating environment.
As this Annual Report indicates, 2011 was another strong year for McDonald’s. Global comparable sales increased 5.6%, our ninth consecutive year of same store sales growth. Operating income grew 10% in constant currencies and we continued to extend our market share lead around the world. In addition, we returned $6 billion to shareholders through share repurchases and dividends paid, and we delivered a 35% total return to investors, making us the top performing company in the Dow Jones Industrial Average for 2011.

Today, McDonald’s is serving a record number of guests — nearly 6 8 million people every day. Our menus are more extensive, diverse, and relevant than any time in our history. We are elevating our brand experience in entirely new ways, from digital ordering to delivery to newly reimaged restaurants. And we are strengthening our commitment to both the communities we serve and the larger world around us. In short, McDonald’s is positively touching more lives and meeting the needs of more people in more ways than we ever have.

Our success continues to be truly global, with all areas of the world contributing. Some highlights include the U.S. adding more than 350 million customer visits in 2011, Europe continuing to grow and now generating about 40% of our overall revenue, and Asia/Pacific, Middle East, and Africa doubling its income contribution to our business over the past six years. Such balanced growth highlights our deepening connection with customers everywhere, as well as the underlying strength of our business in today’s ever increasing global economy. Our performance is driven by two key factors. The first is our ongoing commitment to the Plan to Win, which has served as our operations roadmap for the past nine years. The plan focuses on the core drivers of our business — People, Products, Place, Price, and Promotion, or the five “P’s.” It keeps us disciplined around building our brand holistically and enhancing the customer experience across our entire business — from our menu and service to our value and convenience. For us, success continues to be about listening to customers and getting better at all the things — large and small — that matter most to them.

Jim Skinner,
Vice Chairman and CEO

Don Thompson,
President and COO

Operating Income (In billions)

’09

$ 6.8
$ 7.5

’10
’11
’09

$ 8.5

$ 6.8
$ 7.5

’10

$ 8.5

’11
S&P 500

14.1%

3-Year Compound Annual Total Return
14.9%
DJIA
(2009-2011)

MCD500
S&P
DJIA

21.1%

14.1%
14.9%

MCD

21.1%
30.1%

’09
’10

31.0%

’11
’09

31.6%
30.1%

’10

31.0%
31.6%

’11
’09
’10
’11
’09

$ 4.11
$ 4.58
$ 4.11

$ 5.27

$ 4.58
’10
McDonald’s Corporation 2011 Annual Report | 1

’11

$ 5.27

The second is the collaboration of our System partners. From our worldclass franchisees, who are dedicated to running great restaurants and being leaders in their communities; to our unparalleled global suppliers, who provide us with safe and high quality products each and every day; to our talented company employees led by President and Chief Operating Officer Don Thompson and our exceptional global leadership team. And, of course, our restaurant managers and crew — the 1.7 million men and women who work to deliver the best experience every day...
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