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Income Statement for Mcdonalds McDonald s 11 year Summary DOLLARS

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									McDonald's 11-year Summary

DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA                   2003       2002       2001       2000       1999       1998        1997       1996       1995       1994          1993

Company-operated sales                                   $ 12,795     11,500     11,041     10,467      9,512      8,895       8,136      7,571      6,863      5,793          5,157
Franchised and affiliated revenues                       $ 4,345       3,906      3,829      3,776      3,747      3,526       3,273      3,116      2,932      2,528          2,251
Total revenues                                           $ 17,140     15,406     14,870     14,243     13,259     12,421      11,409     10,687      9,795      8,321          7,408
Operating income (1) (2) (3) (4)                         $ 2,832       2,113      2,697      3,330      3,320      2,762       2,808      2,633      2,601      2,241          1,984
Income before taxes and cumulative effect of
accounting changes (1) (2) (3) (4)                       $   2,346     1,662      2,330      2,882       2,884      2,307      2,407      2,251      2,169      1,887          1,676
Net income (1) (2) (3) (4) (5) (6)                       $   1,471       893      1,637      1,977       1,948      1,550      1,642      1,573      1,427      1,224          1,083
Cash provided by operations                              $   3,269     2,890      2,688      2,751       3,009      2,766      2,442      2,461      2,296      1,926          1,680
Capital expenditures                                     $   1,307     2,004      1,906      1,945       1,868      1,879      2,111      2,375      2,064      1,539          1,317
Treasury stock purchases                                 $     439       687      1,090      2,002         933      1,162        765        605        321        500            628
Financial position at year end:
  Total assets                                           $ 25,525     23,971     22,535     21,684     20,983     19,784      18,242     17,386     15,415     13,592      12,035
  Total debt                                             $ 9,731       9,979      8,918      8,474      7,252      7,043       6,463      5,523      4,836      4,351       3,713
  Total shareholders' equity                             $ 11,982     10,281      9,488      9,204      9,639      9,465       8,852      8,718      7,861      6,885       6,274
  Shares outstanding in millions                            1,262      1,268      1,281      1,305      1,351      1,356       1,371      1,389      1,400      1,387       1,415
Per common share:
  Net income–basic (1) (2) (3) (4) (5) (6)               $ 1.16          .70       1.27       1.49       1.44       1.14        1.17       1.11        .99        .84         .73
  Net income–diluted (1) (2) (3) (4) (5) (6)             $ 1.15          .70       1.25       1.46       1.39       1.10        1.15       1.08        .97        .82         .71
  Dividends declared                                     $    .40        .24        .23         .22       .20        .18         .16        .15        .13        .12         .11
  Market price at year end                               $ 24.83       16.08      26.47      34.00      40.31      38.41       23.88      22.69      22.56      14.63       14.25
Company-operated restaurants                                8,959      9,000      8,378      7,652      6,059      5,433       4,887      4,294      3,783      3,216       2,733
Franchised restaurants                                     18,132     17,864     17,395     16,795     15,949     15,086      14,197     13,374     12,186     10,944       9,918
Affiliated restaurants                                      4,038      4,244      4,320      4,260      4,301      3,994       3,844      3,216      2,330      1,739       1,476
   Total Systemwide restaurants                            31,129     31,108     30,093     28,707     26,309     24,513      22,928     20,884     18,299     15,899      14,127
Franchised and affiliated sales (7)                      $ 33,137     30,026     29,590     29,714     28,979     27,084      25,502     24,241     23,051     20,194      18,430
(1) The 2003 results include pretax charges (substantially all non-cash) of $408 million ($323 million after tax or $0.25 per share) primarily related to the disposition of
     certain non-McDonald’s brands and asset/goodwill impairment.
(2) The 2002 results include pretax charges of $853 million ($700 million after tax or $0.55 per share) primarily related to restructuring certain international markets
     and eliminating positions, restaurant closings/asset impairment and the write-off of technology costs. (The cash portion of these charges was approximately
     $100 million after tax.)
(3) The 2001 results include pretax operating charges of $378 million primarily related to the U.S. business reorganization and other global change initiatives, and
     restaurant closings/asset impairment as well as net pretax nonoperating income of $125 million primarily related to a gain on the initial public offering of
     McDonald’s Japan, for a total pretax expense of $253 million ($143 million after tax or $0.11 per share). (The cash portion of this net expense was
     approximately $100 million after tax.) Net income also reflects an effective tax rate of 29.8 percent, primarily due to the benefit of tax law changes
     in certain international markets ($147 million).
(4) The 1998 results include pretax charges of $322 million ($219 million after tax or $0.16 per share) consisting of $162 million of Made For You costs and
     $160 million related to a home office productivity initiative.
(5) The 2003 results include a $37 million after-tax charge ($0.03 per share) to reflect the cumulative effect of the adoption of SFAS No. 143 “Accounting for Asset
     Retirement Obligations,” which requires legal obligations associated with the retirement of long-lived assets to be recognized at their fair value at the time the
     obligations are incurred.
(6) The 2002 results include a $99 million after-tax charge ($0.08 per share–basic and $0.07 per share–diluted) to reflect the cumulative effect of the adoption of
     SFAS No. 142 “Goodwill and Other Intangible Assets,” which eliminates the amortization of goodwill and instead subjects it to annual impairment tests.
     Adjusted for the nonamortization provisions of SFAS No. 142, net income per common share would have been $0.02 higher in 2001 and 2000 and $0.01 higher
     in 1996-1999.
(7) While franchised and affiliated sales are not recorded as revenues by the Company, management believes they are important in understanding the Company's
    financial performance because these sales are the basis on which the Company calculates and records franchised and affiliated revenues and
    are indicative of the financial health of the franchisee base.
                                                                                11-Year Summary
Mcdonald's Financial Statement Analysis Project - Appendix A
Statement of Income                                                                                                                                              Industry Norm         Competitor
                                                                                                                        % Chg        Common-Size   Common-Size   Restaurants        Wendy's, beta = .36
IN MILLIONS, EXCEPT PER SHARE DATA          Year ended December 31                   2003              2002           2002 to 2003      2003          2002         SIC 5812      2003 $       2003 Common-Size
REVENUES
Sales by Company-operated restaurants                                            $   12,795.4      $   11,499.6             11.3%         74.7%        74.6%                        2534               80.5%
Revenues from franchised and affiliated restaurants                                   4,345.1           3,906.1             11.2%         25.3%        25.4%                         615               19.5%
    Total revenues                                                                   17,140.5          15,405.7             11.3%        100.0%       100.0%                        3149              100.0%
OPERATING COSTS AND EXPENSES
Company-operated restaurant expenses
  Food & paper                                                                        4,314.8           3,917.4             10.1%         25.2%         25.4%
  Payroll & employee benefits                                                         3,411.4           3,078.2             10.8%         19.9%         20.0%
  Occupancy & other operating expenses                                                3,279.8           2,911.0             12.7%         19.1%         18.9%
Franchised restaurants – occupancy expenses                                             937.7             840.1             11.6%          5.5%          5.5%
Selling, general & administrative expenses                                            1,833.0           1,712.8              7.0%         10.7%         11.1%                        261                  8.3%
Other operating expense, net                                                            531.6             833.3            -36.2%          3.1%          5.4%
    Total operating costs and expenses                                               14,308.3          13,292.8              7.6%         83.5%         86.3%                       2730                86.7%
Operating income                                                                      2,832.2           2,112.9             34.0%         16.5%         13.7%       12.71%           419                13.3%
Interest expense–net of capitalized interest of $7.8, $14.3 and $15.2                   388.0             374.1              3.7%          2.3%          2.4%                        -46                -1.5%
McDonald's Japan IPO gain                                                                                                                  0.0%          0.0%
Nonoperating expense, net                                                                   97.8           76.7             27.5%          0.6%          0.5%
Interest Income                                                                                                                                                                           5               0.2%
Income before provision for income taxes and
cumulative effect of accounting changes                                               2,346.4           1,662.1             41.2%         13.7%         10.8%       11.30%           378                12.0%
Provision for income taxes                                                              838.2             670.0             25.1%          4.9%          4.3%                        142                 4.5%
Income before cumulative effect of accounting changes                                 1,508.2             992.1             52.0%          8.8%          6.4%                        236                 7.5%

Cumulative effect of accounting changes, net of tax benefits of $9.4 and $17.6          (36.8)           (98.6)            -62.7%         -0.2%         -0.6%
Net income                                                                       $    1,471.4 $          893.5              64.7%          8.6%          5.8%         7.24%          236                  7.5%
Per common share–basic:
Income before cumulative effect of accounting changes                            $          1.19 $             .78          52.6%
Cumulative effect of accounting changes                                                     (.03)             (.08)        -62.5%
Net Income                                                                       $          1.16 $             .70          65.7%                                                    2.07
Per common share–diluted:
Income before cumulative effect of accounting changes                            $       1.18 $             .77             53.2%
Cumulative effect of accounting changes                                                  (.03)             (.07)           -57.1%
Net Income                                                                       $       1.15 $             .70             64.3%                                                   2.05
Dividends per common share                                                       $        .40 $             .24             66.7%                                                   0.24
Weighted-average shares outstanding–basic                                             1,269.8           1,273.1             -0.3%                                                 113.87
Weighted-average shares outstanding–diluted                                           1,276.5           1,281.5             -0.4%                                                 115.02

  Brenda's NOTES for Revision 5:

  FORMATTING: I've also reduced some column widths and font sizes to get where I can fit the data on one page and hopefully print it on one page in this landscape format. I've also added
  horizontal subtotal lines for readability.

  IDEAS TO BEGIN YOUR ANALYSIS WITH: With the calculations finalized, I can look at each line item to look for talking points (areas of interest/concern). Here is an example of some of
  the comments I could make, just looking at this Income Statement:
  "Total revenues were up 11.3% in 2003 over 2002. Revenue percent increases were nearly identical between the company-operated restaurants which provide 74.6% of McDonald's
  revenue and the franchised and affiliated restaurants which provide 25.3% of McDonald's revenue. While total revenue went up by 11.3% during 2003, net income went up by 65.7%. What
  caused this? Operating costs and expenses, which are 83.5% of every revenue dollar, went up by only 7.6% -- allowing Operating Income to increase by 34%. (narrative note: If one (or
  more) expense item overshadowed others by either its common-size percentage or its percentage change, you would want to talk about it. You would want to add rationale for any big
  changes or one time events from your reading of industry and company data) McDonald's leads the industry in Profit Margin (Common-sized Net Income) -- earning net income of 8.6 cents
  on every revenue dollar -- compared to an industry average of 7.24% and Wendy's profit margin of 7.5%. (narrative note: I could add more in here, but you get the idea....)"
Mcdonald's Financial Statement Analysis Project - Appendix A
Balance Sheet                                                                                                                                   Industry Norm          Competitor
                                                                                                         % Chg        Common-Size Common-Size   Restaurants        Wendy's, beta = .36
IN MILLIONS, EXCEPT PER SHARE DATA              Year ended December 31       2003             2002     2002 to 2003      2003       2002          SIC 5812      2003 $   2003 Common-Size
ASSETS
Current assets
Cash and equivalents                                                     $     492.8   $      330.4         49.2%           1.9%       1.4%                         171             5.4%
Accounts and notes receivable                                                  734.5          855.3        -14.1%           2.9%       3.6%                         124             3.9%
Inventories, at cost, not in excess of market                                  129.4          111.7         15.8%           0.5%       0.5%                          54             1.7%
Prepaid expenses and other current assets                                      528.7          418.0         26.5%           2.1%       1.7%
    Total current assets                                                     1,885.4        1,715.4          9.9%           7.4%       7.2%                         463            14.6%
Other assets
Investments in and advances to affiliates                                    1,089.6        1,037.7          5.0%          4.3%        4.3%                          18             0.6%
Goodwill, net                                                                1,665.1        1,558.5          6.8%          6.5%        6.5%                         321            10.1%
Miscellaneous                                                                  960.3        1,075.5        -10.7%          3.8%        4.5%                         209             6.6%
    Total other assets                                                       3,715.0        3,671.7          1.2%         14.6%       15.3%
Property and equipment
Property and equipment, at cost                                            28,740.2        26,218.6          9.6%        112.6%     109.4%
Accumulated depreciation and amortization                                  (8,815.5)       (7,635.2)        15.5%        -34.5%     -31.9%
    Net property and equipment                                             19,924.7        18,583.4          7.2%         78.1%      77.5%                         2154           68.1%
Total assets                                                             $ 25,525.1 $      23,970.5          6.5%        100.0%     100.0%                         3164          100.0%

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable                                                         $     577.4   $      635.8        -9.2%           2.3%        2.7%                         160             5.1%
Income taxes                                                                    71.5           16.3       338.7%           0.3%        0.1%
Other taxes                                                                    222.0          191.8        15.7%           0.9%        0.8%
Accrued interest                                                               193.1          199.4        -3.2%           0.8%        0.8%
Accrued restructuring and restaurant closing costs                             115.7          328.5       -64.8%           0.5%        1.4%
Accrued payroll and other liabilities                                          918.1          774.7        18.5%           3.6%        3.2%
Current maturities of long-term debt                                           388.0          275.8        40.7%           1.5%        1.2%                          51             1.6%
    Total current liabilities                                                2,485.8        2,422.3         2.6%           9.7%       10.1%
Long-term debt                                                               9,342.5        9,703.6        -3.7%          36.6%       40.5%                         693            21.9%
Other long-term liabilities and minority interests                             699.8          560.0        25.0%           2.7%        2.3%
Deferred income taxes                                                        1,015.1        1,003.7         1.1%           4.0%        4.2%                         184             5.8%
Shareholders' equity
Preferred stock, no par value; authorized–165.0 million shares;
issued–none
Common stock, $.01 par value; authorized–3.5 billion shares;
issued–1,660.6 million shares                                                  16.6            16.6          0.0%          0.1%        0.1%                        11.7             0.4%
Additional paid-in capital                                                  1,837.5         1,747.3          5.2%          7.2%        7.3%                         54              1.7%
Unearned ESOP compensation                                                    (90.5)          (98.4)        -8.0%         -0.4%       -0.4%
Retained earnings                                                          20,172.3        19,204.4          5.0%         79.0%       80.1%                        1703           53.8%
Accumulated other comprehensive income (loss)                                (635.5)       (1,601.3)       -60.3%         -2.5%       -6.7%                          46            1.5%
Common stock in treasury, at cost; 398.7 and 392.4 million shares          (9,318.5)       (8,987.7)         3.7%        -36.5%      -37.5%                         -57           -1.8%
    Total shareholders' equity                                             11,981.9        10,280.9         16.5%         46.9%       42.9%                        1816           57.4%
Total liabilities and shareholders' equity                               $ 25,525.1 $      23,970.5          6.5%        100.0%      100.0%                        3164          100.0%


Brenda's NOTES for Revision 4:

See Income Statement and RATIOS page for notes.
Mcdonald's Financial Statement Analysis Project - Appendix B
McDonald's Ratios - 2003 and 2002
                                                                                                                                    Industry Norm      2001 Competitor
                                                                               2003           2003          2002           2002     Restaurants      Wendy's, beta = .36
Ratio                                           Formula                     Formula w/ #      Result     Formula w/ #      Result     SIC 5812       Formula   Results

Current Ratio                               Current Assets                  $     1,885.4        0.76    $     1,715.4       0.71        0.945 YR      na           0.87 YR
                                           Current Liabilities              $     2,485.8                $     2,422.3

Quick Ratio                            Current Assets - Inventory          $1855.4 - $129.4      0.71   $1,715.4 - $99.3     0.66        0.572 YR      na           0.56 YR
                                           Current Liabilities              $     2,485.8                $     2,422.3

Inventory Turnover                               Sales                      $    17,140.5      132.5     $     15,406       137.9        41.05 YR      na          39.05 YR
                                               Inventory                    $       129.4                $      111.7
Days Sales Outstanding
(DSO)                                         Receivables                   $       734.5        15.4    $        855        20.0
                                              Sales / 360                  $17,140.5 / 360              $15,406 / 360

Receivables Turnover                             Sales                      $    17,140.5        23.3    $     15,406        18.0        36.18 YR      na          29.83 YR
(Same data as DSO, but matches
Yahoo/Reuters)                                Receivables                   $       734.5                $      855.3

Fixed Asset Turnover                             Sales                      $    17,140.5        0.73    $     15,406         0.7
                                             Fixed Assets                   $      23,640                $     22,255

Total Asset Turnover                             Sales                      $    17,140.5        0.67    $     15,406         0.6          1.25 YR     na           1.11 YR
                                              Total Assets                  $      25,525                $     23,971

Debt Ratio                                     Total Debt                   $      13,543      53.1%     $     13,690      57.1%       38.35% YR       na        29.58% YR
                                              Total Assets                  $      25,525                $     23,971

Long Term Debt to Equity                     Total LT Debt                  $      11,057        0.92    $     11,267        1.10          0.62 Y      na           0.39 YR
(Matches Yahoo/Reuters)                    Common Equity                    $      11,982                $     10,281

Times Interest Earned (TIE)                      EBIT                       $       2,832        7.30    $      2,113         5.6          9.88 YR     na           9.14 YR
(aka Interest Coverage)                    Interest Charges                 $         388                $        374

Fixed Charge Coverage
(FCC)                                  EBIT + Lease Payments               na
                                 Int. + Lease Pay. + (Sink. Fund) /(1-T)   na

Profit Margin                                 Net Income                    $       1,471       8.6%     $        894       5.8%         7.24% YR      na         7.50% YR
                                                 Sales                      $    17,140.5                $     15,406

Payout Ratio                                Cash Dividends                  $        0.40      34.8%     $        0.24     34.3%       14.02% YR       na        11.63% YR
                                              Net Income                    $        1.15                $        0.70
Mcdonald's Financial Statement Analysis Project - Appendix B
McDonald's Ratios - 2003 and 2002
                                                                                                                                     Industry Norm         2001 Competitor
                                                                     2003              2003               2002              2002      Restaurants        Wendy's, beta = .36
Ratio                                    Formula                  Formula w/ #         Result          Formula w/ #         Result     SIC 5812          Formula   Results
Basic Earning Power (BEP)                  EBIT                  $       2,832           0.11          $     2,113             0.1
                                       Total Assets              $     25,525                          $    23,971

Return on Assets (ROA)                  Net Income               $        1,471         5.8%           $        894          3.7%         8.49% YR          na        8.28% YR
                                       Total Assets              $       25,525                        $     23,971

Return on Equity (ROE)                  Net Income               $        1,471        12.3%           $        894          8.7%        20.19% Y           na       14.94% Y
                                      Common Equity              $       11,982                        $     10,281

Internal Growth Rate                     ROA X b               $5.8% x (1 - 34.8%)      3.9%        $3.7% x (1 - 34.8%)      2.5%          7.9% C                       7.9% C
                                        1 - ROA x b           1 - 5.8% x (1 - 34.8%)               1 - 3.7% x (1 - 34.8%)

Sustainable Growth Rate                  ROE X b              $12.3% x (1 - 34.8%)      8.7%        $8.7% x (1 - 34.8%)      6.1%         21.0% C                     15.2% C
                                        1 - ROE x b          1 - 12.3% x (1 - 34.8%)               1 - 8.7% x (1 - 34.8%)

Price Earnings (PE)               Market Price per Share                 $24.83         21.59                $16.08           23.0         27.73 Y          na         20.65 YR
                                    Earnings per Share           $         1.15                        $       0.70
                                  OR
                                   Market Capitalization
                                        Net Income

Market/Book (M/B)                 Market Price Per Share                 $24.83           2.6                $16.08            2.0          4.41 Y          na          2.77 YR
                                   Book Value Per Share                     9.39                                8.02

NOTES:
 Market price per share was close of market on December 31. For 2003, was $24.83. For 2002, was$16.08.
  Source of most of these industry/competitor ratios is Yahoo! Finance (marked with 'Y') and the Reuters link off of Yahoo (marked with 'YR') or calculated ("C").
EXTRA NOTES just about the creation of this document:
 I've used several methods to display and calculate the ratios. I've added names for some fields and referenced others. - Use your favorite spreadsheet techniques!
 You do NOT need to split your statements between spreadsheet worksheets. Do it any way you understand.
  DSO may be high because numerator references McDonald's combined "Total Accounts and Notes Receivable" not just "Accounts Receivable"
  FCC - Without access to more internal data, we can't calculate FCC
  Debt Ratio Industry calculated based on Yahoo!Fiannce & Reuters "debt to equity" ratio = 0.622 -- meaning Debt = 0.622 whenever Equity = 100,
                                so Assets = Debt + Equity = 1.622
McDonald's 11-year Summary
                                      2003
DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA %Chg                        Norm        2002 %Chg        Norm        2001 %Chg        Norm         2000 %Chg       Norm         1999

Company-operated sales                            $ 12,795    11.3%     74.6%    11,500     4.2%     74.6%    11,041     5.5%     74.3%   10,467     10.0% 73.5%        9,512
Franchised and affiliated revenues                $ 4,345     11.2%     25.4%     3,906     2.0%     25.4%     3,829     1.4%     25.7%    3,776      0.8% 26.5%        3,747
Total revenues                                    $ 17,140    11.3% 100.0%       15,406     3.6% 100.0%       14,870     4.4% 100.0%      14,243      7.4% 100.0%      13,259
                          (1) (2) (3) (4)
Operating income                                  $ 2,832     34.0%     16.5%     2,113    -21.7%    13.7%     2,697    -19.0%    18.1%    3,330      0.3% 23.4%        3,320
Income before taxes and cumulative
effect of accounting changes (1) (2) (3)                      41.2%     13.7%              -28.7%    10.8%              -19.2%    15.7%              -0.1%     20.2%
(4)
                                                  $   2,346                       1,662                        2,330                          2,882                        2,884
              (1) (2) (3) (4) (5) (6)
Net income                                        $   1,471   64.7%      8.6%       893    -45.4%     5.8%     1,637    -17.2%    11.0%       1,977   1.5%     13.9%       1,948
Cash provided by operations                       $   3,269   13.1%               2,890     7.5%               2,688     -2.3%                2,751  -8.6%                 3,009
Capital expenditures                              $   1,307   -34.8%              2,004     5.1%               1,906     -2.0%                1,945   4.1%                 1,868
Treasury stock purchases                          $     439   -36.1%                687    -37.0%              1,090    -45.6%                2,002 114.6%                   933
Financial position at year end:
  Total assets                                    $ 25,525     6.5% 100.0%       23,971     6.4% 100.0%       22,535     3.9% 100.0%      21,684      3.3% 100.0%      20,983
  Total debt                                      $ 9,731      -2.5%    38.1%     9,979    11.9%     41.6%     8,918     5.2%     39.6%    8,474     16.9% 39.1%        7,252
  Total shareholders' equity                      $ 11,982    16.5%     46.9%    10,281     8.4%     42.9%     9,488     3.1%     42.1%    9,204     -4.5% 42.4%        9,639
  Shares outstanding in millions                     1,262     -0.5%              1,268     -1.0%              1,281     -1.9%             1,305     -3.4%              1,351
Per common share:
  Net income–basic (1) (2) (3) (4) (5) (6)        $   1.16    65.7%                 .70    -44.9%               1.27    -14.8%                1.49    3.5%                  1.44
  Net income–diluted (1) (2) (3) (4) (5) (6)      $   1.15    64.3%                 .70    -44.0%               1.25    -14.4%                1.46    5.0%                  1.39
  Average Net Income - 10 year diluted                8.5%
  Average Net Income - 5 year diluted                 7.5%
  Dividends declared                              $     .40   66.7%                  .24    4.3%                  .23    4.5%                 .22    10.0%                 .20
  Dividend Payout Ratio                           $     .35                     $    .34                     $    .18                     $   .15                      $   .14
  Market price at year end                        $ 24.83     54.4%               16.08    -39.3%              26.47    -22.1%             34.00     -15.7%             40.31
Company-operated restaurants                         8,959     -0.5%              9,000     7.4%               8,378     9.5%              7,652      26.3%             6,059
Franchised restaurants                              18,132     1.5%              17,864     2.7%              17,395     3.6%             16,795       5.3%            15,949
Affiliated restaurants                               4,038     -4.9%              4,244     -1.8%              4,320     1.4%              4,260      -1.0%             4,301
   Total Systemwide restaurants                     31,129     0.1%              31,108     3.4%              30,093     4.8%             28,707       9.1%            26,309
                                            (7)
Franchised and affiliated sales                   $ 33,137    10.4%              30,026     1.5%              29,590     -0.4%            29,714       2.5%            28,979
(1) The 2003 results include pretax charges (substantially all non-cash) of $408 million ($323 million after tax or $0.25 per share) primarily related to the disposition of
    certain non-McDonald’s brands and asset/goodwill impairment.
(2) The 2002 results include pretax charges of $853 million ($700 million after tax or $0.55 per share) primarily related to restructuring certain international markets
    and eliminating positions, restaurant closings/asset impairment and the write-off of technology costs. (The cash portion of these charges was approximately
    $100 million after tax.)
(3) The 2001 results include pretax operating charges of $378 million primarily related to the U.S. business reorganization and other global change initiatives, and
    restaurant closings/asset impairment as well as net pretax nonoperating income of $125 million primarily related to a gain on the initial public offering of
    McDonald’s Japan, for a total pretax expense of $253 million ($143 million after tax or $0.11 per share). (The cash portion of this net expense was
    approximately $100 million after tax.) Net income also reflects an effective tax rate of 29.8 percent, primarily due to the benefit of tax law changes
    in certain international markets ($147 million).
                                                                 11-Year Summary with B's Calcs
(4) The 1998 results include pretax charges of $322 million ($219 million after tax or $0.16 per share) consisting of $162 million of Made For You costs and
     $160 million related to a home office productivity initiative.
(5) The 2003 results include a $37 million after-tax charge ($0.03 per share) to reflect the cumulative effect of the adoption of SFAS No. 143 “Accounting for Asset
     Retirement Obligations,” which requires legal obligations associated with the retirement of long-lived assets to be recognized at their fair value at the time the
     obligations are incurred.
(6) The 2002 results include a $99 million after-tax charge ($0.08 per share–basic and $0.07 per share–diluted) to reflect the cumulative effect of the adoption of
     SFAS No. 142 “Goodwill and Other Intangible Assets,” which eliminates the amortization of goodwill and instead subjects it to annual impairment tests.
     Adjusted for the nonamortization provisions of SFAS No. 142, net income per common share would have been $0.02 higher in 2001 and 2000 and $0.01 higher
     in 1996-1999.
(7) While franchised and affiliated sales are not recorded as revenues by the Company, management believes they are important in understanding the Company's
    financial performance because these sales are the basis on which the Company calculates and records franchised and affiliated revenues and
    are indicative of the financial health of the franchisee base.




                                                                  11-Year Summary with B's Calcs
          %Chg        Norm        1998 %Chg        Norm        1997 %Chg        Norm        1996 %Chg       Norm        1995 %Chg        Norm        1994 %Chg        Norm         1993

              6.9%     71.7%     8,895     9.3%     71.6%     8,136     7.5%     71.3%     7,571    10.3%    70.8%     6,863    18.5%     70.1%     5,793    12.3%     69.6%       5,157
              6.3%     28.3%     3,526     7.7%     28.4%     3,273     5.0%     28.7%     3,116    6.3%     29.2%     2,932    16.0%     29.9%     2,528    12.3%     30.4%       2,251
              6.7% 100.0%       12,421     8.9% 100.0%       11,409     6.8% 100.0%       10,687    9.1% 100.0%        9,795    17.7% 100.0%        8,321    12.3% 100.0%          7,408
           20.2%       25.0%     2,762     -1.6%    22.2%     2,808     6.6%     24.6%     2,633    1.2%     24.6%     2,601    16.1%     26.6%     2,241    13.0%     26.9%       1,984

           25.0%       21.8%               -4.2%    18.6%               6.9%     21.1%              3.8%     21.1%              14.9%     22.1%              12.6%     22.7%
                                 2,307                        2,407                        2,251                       2,169                        1,887                          1,676
           25.7%       14.7%     1,550     -5.6%    12.5%     1,642     4.4%     14.4%     1,573    10.2%    14.7%     1,427    16.6%     14.6%     1,224    13.0%     14.7%       1,083
              8.8%               2,766    13.3%               2,442     -0.8%              2,461    7.2%               2,296    19.2%               1,926    14.6%                 1,680
              -0.6%              1,879    -11.0%              2,111    -11.1%              2,375    15.1%              2,064    34.1%               1,539    16.9%                 1,317
           -19.7%                1,162    51.9%                 765    26.4%                 605    88.5%                321    -35.8%                500    -20.4%                  628

              6.1% 100.0%       19,784     8.5% 100.0%       18,242     4.9% 100.0%       17,386    12.8% 100.0%      15,415    13.4% 100.0%       13,592    12.9% 100.0%      12,035
              3.0%     34.6%     7,043     9.0%     35.6%     6,463    17.0%     35.4%     5,523    14.2%    31.8%     4,836    11.1%     31.4%     4,351    17.2%     32.0%    3,713
              1.8%     45.9%     9,465     6.9%     47.8%     8,852     1.5%     48.5%     8,718    10.9%    50.1%     7,861    14.2%     51.0%     6,885     9.7%     50.7%    6,274
              -0.4%              1,356     -1.1%              1,371     -1.3%              1,389    -0.7%              1,400     0.9%               1,387     -1.9%             1,415

           26.3%                  1.14     -2.6%               1.17     5.4%                1.11    12.1%                .99    17.9%                 .84    15.1%                   .73
           26.4%                  1.10     -4.3%               1.15     6.5%                1.08    11.3%                .97    18.3%                 .82    15.5%                   .71



           11.1%                    .18   12.5%                  .16    6.7%                  .15   15.4%                 .13    8.3%                  .12    9.1%                 .11
                               $    .16                     $    .14                     $    .14                    $    .13                     $    .15                     $   .15
              4.9%               38.41    60.8%               23.88     5.2%               22.69    0.6%               22.56    54.2%               14.63     2.7%              14.25
           11.5%                 5,433    11.2%               4,887    13.8%               4,294    13.5%              3,783    17.6%               3,216    17.7%              2,733
              5.7%              15,086     6.3%              14,197     6.2%              13,374    9.7%              12,186    11.3%              10,944    10.3%              9,918
              7.7%               3,994     3.9%               3,844    19.5%               3,216    38.0%              2,330    34.0%               1,739    17.8%              1,476
              7.3%              24,513     6.9%              22,928     9.8%              20,884    14.1%             18,299    15.1%              15,899    12.5%             14,127
              7.0%              27,084     6.2%              25,502     5.2%              24,241    5.2%              23,051    14.1%              20,194     9.6%             18,430
 osition of

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                                                                                 11-Year Summary with B's Calcs
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          11-Year Summary with B's Calcs
McDonald's Systemwide Restaurants
(at year-end 2003 and 1998)                      2003     1998

Total                                           31,129   24,513

United States                                   13,609   12,472

Canada                                           1,339    1,085

Europe                                           6,186    4,421
Andorra                                              3        2
Austria                                            161      121
Azerbaijan                                           2        0
Belarus                                              6        5
Belgium                                             56       62
Bulgaria                                            19       13
Croatia                                             16       12
Czech Republic                                      70       48
Denmark                                             84       87
England                                          1,061      810
Estonia                                              7        6
Finland                                             87       90
France                                           1,008      708
Georgia                                              2        0
Germany                                          1,244      931
Gibraltar                                            1        0
Greece                                              59       38
Hungary                                             85       66
Iceland                                              3        2
Ireland                                             68       47
Isle of Man                                          1        1
Italy                                              326      201
Jersey                                               1        1
Latvia                                               6        6
Liechtenstein                                        1        1
Lithuania                                            6        6
Luxembourg                                           7        4
Macedonia                                            3        2
Malta                                                8        7
Mauritius                                            1        0
Moldova                                              3        1
Monaco                                               1        1
Morocco                                             18        0
Netherlands                                        224      187
Northern Ireland                                    25       17
Norway                                              65       48
Poland                                             205      130
Portugal                                           112       60
Reunion Island                                       6        3
Romania                                             50       35
Russia                                             109       45
San Marino                                           1        0
Scotland                                            91       64
Slovakia                                            16        7
Slovenia                                            17       11
Spain                                              336      188
Sweden                                             243      177
Switzerland                                        141      101
Ukraine                                             52       19
Wales                                               56       35
Yugoslavia                                          13       15

                       Restaurants by Country
McDonald's Systemwide Restaurants
(at year-end 2003 and 1998)                       2003    1998
Asia/Pacific, Middle East & Africa               7,475   5,417
American Samoa                                       1       0
Australia                                          729     666
Bahrain                                              9       5
Brunei                                               1       1
China                                              576     220
Cyprus                                              14       5
Egypt                                               41      28
Fiji                                                 3       2
Guam                                                 8       6
Hong Kong                                          215     152
India                                               54      15
Indonesia                                          107      67
Israel                                             107      65
Japan                                            3,773   2,852
Jordan                                               6       4
Korea                                              344     131
Kuwait                                              40      21
Lebanon                                              9       2
Macau                                               10      10
Malaysia                                           156     121
Morocco                                              0       7
New Caledonia                                        2       1
New Zealand                                        146     145
Oman                                                 5       2
Pakistan                                            18       3
Philippines                                        241     194
Qatar                                                8       4
Saipan                                               2       2
Saudi Arabia                                        76      33
Singapore                                          125     108
South Africa                                        89      58
Sri Lanka                                            3       1
Tahiti                                               3       1
Taiwan                                             346     292
Thailand                                            99      64
Turkey                                              80     113
United Arab Emirates                                28      15
Western Samoa                                        1       1

Latin America                                    1,578   1,100
Argentina                                          189     152
Aruba                                                2       2
Bahamas                                              4       3
Bolivia                                              0       5
Brazil                                             549     387
Chile                                               69      42
Colombia                                            26      18
Costa Rica                                          26      22
Cuba (U.S. Navy Base)                                1       1
Curacao                                              4       4
Dominican Republic                                   9       9
Ecuador                                             10       5
El Salvador                                          7       1
French Guyana                                        2       0
Guadeloupe                                           7       5
Guatemala                                           40      27
Honduras                                             6       5


                        Restaurants by Country
McDonald's Systemwide Restaurants
(at year-end 2003 and 1998)                     2003   1998
Jamaica                                            9     11
Martinique                                         7      5
Mexico                                           281    144
Nicaragua                                          4      3
Panama                                            31     21
Paraguay                                           6      7
Peru                                              17      7
Puerto Rico (USA)                                113    114
St. Maarten                                        1      1
Suriname                                           1      1
Trinidad/Tobago                                    0      4
Uruguay                                           22     23
Venezuela                                        129     65
Virgin Islands                                     6      6

Partner Brands                                  942     18
  Boston Market                                 637      0
  Chipolte                                      305     18




                       Restaurants by Country

								
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