McDonalds 2003 Annual Report Download - page 5

McDonald’s 2003 page 3
As Chairman, I consider it my responsibility to
cultivate an independent and forward-looking Board.
This means encouraging new ideas and healthy
debate. It also means planning for the future through
wise succession.
McDonald’s strengthened its Board of Directors
in 2003 with the addition of three talented business
leaders—Bob Eckert, Cary McMillan and John Rogers,
Jr.—who bring youth, energy and a fresh perspective
to our Boardroom. Along with the other respected
members of our Board, they provide important over-
sight to the operations and governance of McDonald’s.
I want to take this opportunity to pay tribute to
Don Lubin, Terry Savage and Bob Thurston, three
outstanding outside Directors who are retiring from
the Board this year. They each have played a vital role
in our business, and we sincerely thank them for their
dedicated service to McDonald’s. At the same time,
I look forward to welcoming Anne-Marie Slaughter,
Dean of Princeton University’s Woodrow Wilson
School of Public and International Affairs, to our
Board this year. Her global insights will be a great
asset.
Finally, I want to salute our former Senior
Chairman Fred Turner upon his retirement from
McDonald’s in January of 2004 after 48 years of service.
Fred started as our founder Ray Kroc’s grillman,
became his right-hand man and ultimately Chairman
and CEO himself. Ray created the vision of
McDonald’s, and Fred was the architect who designed
and built the impressive organization we have
become today.
Fred leaves a rich McDonald’s legacy that we
capture in a special article in this report. He has been
our pioneer, our mentor, and our heart and soul. I am
proud he will remain a part of our System as
Honorary Chairman.
In conclusion
We view 2004 as a year of ongoing progress, a year to
continue strengthening McDonald’s foundation for the
future. It is a year that will put us firmly on the path
to sustainable, profitable growth.
Starting in 2005, our goal is annual Systemwide
sales and revenue growth of 3 percent to 5 percent,
annual operating income growth of 6 percent to
7 percent, and annual returns on incremental invested
capital in the high teens. These goals exclude the
impact of foreign currency translation.
We appreciate your support and confidence as
shareholders.
I can assure you, on behalf of everyone at
McDonald’s, we know we have promises to keep. We
will work to fulfill those commitments with energy,
dedication and passion.
Sincerely,
Jim Cantalupo
Chairman and Chief Executive Officer, Shareholder
March 18, 2004
Left to right Charlie Bell, President and Chief Operating Officer;
Jim Cantalupo, Chairman and Chief Executive Officer; and
Jim Skinner, Vice Chairman