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Jim Skinner
Vice Chairman and CEO
3-Year Compound Annual Total Return
(2008–2010)
S&P 500
DJIA
12.7%MCD
-1.6%
-2.9%
Operating Income
(In billions)
$6.4
$6.8
$7.5
’08
’09
’10
To Our Valued Shareholders:
It’s been said the real secret to
success is sustaining it … and
that’s what McDonald’s did in .
We began the year determined to build on our momentum
and strengthen our brand around the world. So with the
business environment still challenging — and with many
others forced to hold their ground — we pushed ahead.
We dug for deeper consumer insights, aligned our strate-
gies, and strengthened the pillars of our business, from our
menu and restaurants to our value and convenience.
The result was another banner year for McDonald’s. Global
comparable sales increased 5% in 2010 — our eighth
consecutive year of same store sales growth. Operating
income grew 9% and we continued to gain market share
around the world. In addition, we returned $5.1 billion to
shareholders through share repurchases and dividends
paid, and we provided a 27% return to investors for the
year, ranking us third among the companies comprising the
Dow Jones Industrial Average.
Our success remains global, with all areas of the world
contributing significantly to our results. In the U.S., comparable
sales increased 3.8%, while guest count growth reached
all-time highs. A record number of customers visited our
restaurants and drive-thrus across the U.S., even as overall
dining-out traffic remained flat. Europe grew comparable
sales by 4.4% and also increased guest counts — serving
200 million more customers than the year before. Asia/
Pacific, Middle East and Africa continued to make a strong
impact to our overall results with higher guest counts and
6% comparable sales growth.
We achieved all of this through our Plan to Win, which has
served as our strategic blueprint for the past eight years. The
plan focuses on the core drivers of our business — People,
Products, Place, Price, and Promotion, or the five “P’s.” I often
say the opportunity within each “P” is enormous — and we
intend to go after it. To that end, we continue to focus on the
right priorities to keep our brand relevant and meet the evolv-
ing needs of our customers. This approach has served us
remarkably well and will continue to do so in 2011 and beyond.
McDonald’s Corporation Annual Report 2010 1