McDonalds 2008 Annual Report Download - page 22

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Stock performance graph
At least annually, we consider which companies comprise a readily identifiable investment peer group. McDonald’s is included in pub-
lished restaurant indices; however, unlike most other companies included in these indices, which have no or limited international
operations, McDonald’s does business in more than 100 countries and a substantial portion of our revenues and income is generated
outside the U.S. In addition, because of our size, McDonald’s inclusion in those indices tends to skew the results. Therefore, we believe
that such a comparison is not meaningful.
Our market capitalization, trading volume and importance in an industry that is vital to the U.S. economy have resulted in McDonald’s
inclusion in the Dow Jones Industrial Average (DJIA) since 1985. Like McDonald’s, many DJIA companies generate meaningful rev-
enues and income outside the U.S. and some manage global brands. Thus, we believe that the use of the DJIA companies as the group
for comparison purposes is appropriate.
The following performance graph shows McDonald’s cumulative total shareholder returns (i.e., price appreciation and reinvestment of
dividends) relative to the Standard & Poor’s 500 Stock Index (S&P 500 Index) and to the DJIA companies for the five-year period ended
December 31, 2008. The graph assumes that the value of an investment in McDonald’s common stock, the S&P 500 Index and the DJIA
companies (including McDonald’s) was $100 at December 31, 2003. For the DJIA companies, returns are weighted for market capital-
ization as of the beginning of each period indicated. These returns may vary from those of the Dow Jones Industrial Average Index, which
is not weighted by market capitalization, and may be composed of different companies during the period under consideration.
50
100
150
200
250
$300
‘07 ‘0
8
‘06‘05‘04Dec ‘03
DJIA companies
S&P 500 Index
McDonald’s
Source: Standard & Poor’s Compustat
Comparison of cumulative five-year total return
281259190141131100
90142135116111100
95139128107106100
20 McDonald’s Corporation Annual Report 2008