McDonalds 2007 Annual Report Download - page 5

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I am pleased to report that 2007 was another year of strong
financial performance and growth.
Comparable sales increased 6.8 percent, marking our fifth
consecutive year of comparable sales growth.
Revenues for the year reached a record high at $22.8 billion,
with full-year operating income growth of 19 percent in constant
currencies, excluding the impact of the Latin America
developmental license transaction.
Notably, each area of the world contributed to our sales and
profit performance. This across-the-board success was
coordinated by an exceptional operating team led by Ralph
Alvarez, our President and Chief Operating Officer, and the four
area of the world Presidents who report to him – Jose Armario
in Latin America, Tim Fenton in Asia/Pacific, Middle East and
Africa, Denis Hennequin in Europe and Don Thompson in the
United States.
If leadership displays a certain character over time, at McDonald’s
today we are clearly defined by our System’s alignment toward
enhancing the customer experience at our 31,000 restaurants
around the world through a relentless focus on our Plan to Win.
In a company with the local footprint and global reach of
McDonald’s, this is a genuine achievement. When you consider
the incredible number of moving parts that comprise the
McDonald’s System, you can begin to appreciate the focus
and discipline required to keep all elements of our System –
franchisees, suppliers and company employees – working
together effectively on behalf of our customers worldwide.
This achievement was delivered by all three legs of our System …
committed franchisees who embraced our Plan to Win and
made the necessary investments in their restaurants and their
people to provide a better experience for our customers …
suppliers who consistently delivered high quality ingredients
at the best prices possible … and company people worldwide
who made smart, customer-focused decisions around new
products, new technologies and other restaurant innovations
that propelled our business forward.
In the world of business, most CEOs talk about teamwork. In the
world of McDonald’s, I talk about “Systemwork” – a strategically
aligned effort, by a remarkably diverse group of people, which
in 2007 resulted in exceptional operating performance.
One important by-product of this alignment is our increased
emphasis on collaborating throughout our System for
the benefit of our customers and, ultimately, our shareholders.
Throughout 2007, we shared best practices … research and
development … new product successes … in sum, the benefits
of the experiences gained from running 31,000 restaurants.
When I look ahead to the next several years, I’m confident
this alignment and collaboration will be a distinct
competitive advantage.
Like no other restaurant brand, McDonald’s has the size,
brand strength and capacity that provide unparalleled scope
and opportunity to facilitate growth efficiently.
Jim Skinner, Chief Executive Officer (seated, right) and
Ralph Alvarez, President and Chief Operating Officer (left)
Fellow Shareholders: