Mcd2010 Annual Report

2010 Annual Report

2010 Highlights:

Global Comparable Sales Growth Earnings Per Share Growth Average Number of Customers Served Every Day

5.0 11

%

%

64

Million

To Our Valued Shareholders:

It’s been said the real secret to success is sustaining it … and that’s what McDonald’s did in 2010.

We began the year determined to build on our momentum and strengthen our brand around the world. So with the business environment still challenging — and with many others forced to hold their ground — we pushed ahead. We dug for deeper consumer insights, aligned our strategies, and strengthened the pillars of our business, from our menu and restaurants to our value and convenience. The result was another banner year for McDonald’s. Global comparable sales increased 5% in 2010 — our eighth consecutive year of same store sales growth. Operating income grew 9% and we continued to gain market share around the world. In addition, we returned $5.1 billion to shareholders through share repurchases and dividends paid, and we provided a 27% return to investors for the year, ranking us third among the companies comprising the Dow Jones Industrial Average. Our success remains global, with all areas of the world contributing significantly to our results. In the U.S., comparable sales increased 3.8%, while guest count growth reached all-time highs. A record number of customers visited our restaurants and drive-thrus across the U.S., even as overall dining-out traffic remained flat. Europe grew comparable sales by 4.4% and also increased guest counts— serving 200 million more customers than the year before. Asia/ Pacific, Middle East and Africa continued to make a strong impact to our overall results with higher guest counts and 6% comparable sales growth. We achieved all of this through our Plan to Win, which has served as our strategic blueprint for the past eight years. The plan focuses on the core drivers of our business — People, Products, Place, Price, and...