McDonalds 2001 Annual Report Download - page 4

From many different perspectives, 2001 was
one tough year.
It was a year in which the strength and
resolve of the United States was tested. It
was a year in which the resourcefulness of
many of the world’s best-known companies,
including McDonald’s, was tested.
Clearly, I am disappointed in McDonald’s
global business performance. I also am
deeply concerned about the erosion in total
shareholder value that has occurred as a
result.
Our 2001 performance was hampered by
the strong U.S. dollar and weak economies in
many countries in which
we operate. And obviously,
the tragic events of
September 11 have had
an impact.
Additionally, despite
McDonald’s outstanding
quality and safety record,
our business suffered from
consumer concerns about
beef safety in Europe
and Japan. Fortunately,
this negative impact was
significantly less on our
business than on other
companies selling beef in
these markets, because so
many customers knew they could trust our
high standards.
Let me state the obvious: we can and must do
better than the 4 percent constant currency
sales increase we generated in 2001. We must
deliver the kinds of growth in sales and profits
that can make a positive difference in the
value of your investment in McDonald’s.
The reality is there will always be challenges.
It is our job to manage through the challenges
by leveraging our strengths to overcome
them. We often tell our children, “With chal-
lenges come opportunities.” The same is true
for businesses. So, more than ever before,
McDonald’s must adapt and evolve to seize
opportunities as they unfold.
Over the years, three core strengths have
driven our business success. They differenti-
ate McDonald’s from other companies, are
not easily imitated and can be leveraged to
create a significant benefit for consumers and
shareholders. We intend to build on these
strengths to return our business to double-
digit growth.
The first is our ability to forge bonds of trust
with customers throughout the world. People
know they can enjoy the same great taste of
a Big Mac whether they are at a McDonald’s
in Paris, France, or Paris, Texas. They also
know that they can rely on McDonald’s high-
quality and safety standards.
The second strength is our expertise in find-
ing, negotiating, building and managing a
complex network of real estate locations. This
is evidenced by the fact that we operate more
Dear shareholder:
Last year, McDonald’s served
46 million customers a day,
an increase of more than 1 million
customers a day compared
with 2000.
2
Our goal for 2002
is to leverage
our powerful
strengths to
improve
performance
and ensure that
our foundation
for growth is
rock solid.