McDonalds 2003 Annual Report Download - page 7

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We changed the course
of McDonald’s business
dramatically in 2003
by refocusing on the
disciplines of operations
excellence and marketing
leadership—the hallmarks
of customer satisfaction.
McDonald’s performance
in 2003 was a direct
result of our efforts to
satisfy our customers,
align our System and exercise finan-
cial discipline.
Our entire System was unified by
McDonald’s Plan to Win—a clear set
of actions involving the Company, our
franchisees and our suppliers.
This Plan is aimed at making
McDonald’s our customers’ favorite
place and way to eat by implementing
the key drivers of an exceptional cus-
tomer experience—people, products,
price, place and promotion.
It’s about having well-trained,
friendly people working in our
restaurants and the right products at
a range of affordable prices. It’s also
about showcasing our restaurants as
places that are clean, contemporary
and welcoming, as well as creating
promotions and marketing activities
that resonate with key customer
groups.
McDonald’s Plan to Win was
designed to support our strategy of
growing sales at existing restaurants,
rather than growing simply by open-
ing more restaurants. Implementation
of the Plan enabled us to align our
human and financial resources with
our strategy for growth, and eliminate
activities that were not focused on our
customers or our restaurants.
Delivering results
McDonald’s financial results in
2003 demonstrate that the Plan
to Win is the right roadmap to
direct our System’s efforts.
Systemwide sales increased
11 percent, or 5 percent excluding
currency translation.
Comparable sales increased
2.4 percent worldwide, our strongest
performance since 1995.
Total revenues increased 11 percent
to $17 billion, or 6 percent excluding
currency translation.
Restaurant margin trends improved
significantly as 2003 progressed.
Net income was $1.5 billion or
$1.15 per share, compared with
$893 million or $0.70 per share in
2002.
Plan to Win built strong foundation in 2003
McDonald’s 2003 page 5
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