McDonalds 2011 Annual Report Download - page 3

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’09 $6.8
’10 $7.5
’11 $8.5
I am proud to say that’s what McDonald’s continues to do. Our
determination and pursuit of excellence drive our success in any
operating environment.
As this Annual Report indicates, 2011 was another strong year for
McDonald’s. Global comparable sales increased 5.6%, our ninth
consecutive year of same store sales growth. Operating income grew
10% in constant currencies and we continued to extend our market
share lead around the world. In addition, we returned $6 billion to
shareholders through share repurchases and dividends paid, and we
delivered a 35% total return to investors, making us the top performing
company in the Dow Jones Industrial Average for 2011.
Today, McDonald’s is serving a record number of guests — nearly
68 million people every day. Our menus are more extensive, diverse,
and relevant than any time in our history. We are elevating our brand
experience in entirely new ways, from digital ordering to delivery to
newly reimaged restaurants. And we are strengthening our commitment
to both the communities we serve and the larger world around us.
In short, McDonald’s is positively touching more lives and meeting the
needs of more people in more ways than we ever have.
Our success continues to be truly global, with all areas of the world
contributing. Some highlights include the U.S. adding more than 350
million customer visits in 2011, Europe continuing to grow and now
generating about 40% of our overall revenue, and Asia/Pacific, Middle
East, and Africa doubling its income contribution to our business over
the past six years. Such balanced growth highlights our deepening
connection with customers everywhere, as well as the underlying
strength of our business in today’s ever increasing global economy.
Our performance is driven by two key factors. The first is our ongoing
commitment to the Plan to Win, which has served as our operations
roadmap for the past nine years. The plan focuses on the core drivers
of our business — People, Products, Place, Price, and Promotion, or the
five “P’s.” It keeps us disciplined around building our brand holistically
and enhancing the customer experience across our entire business —
from our menu and service to our value and convenience. For us, success
continues to be about listening to customers and getting better at all
the things — large and small — that matter most to them.
McDonald’s Corporation 2011 Annual Report | 1
To Our Valued Shareholders:
Albert Einstein once remarked that “In the middle of
difficulty lies opportunity.” I believe he was telling us
that even in the toughest environments, hard work
and continuous improvement can pay off.
S&P 500 14.1%
DJIA 14.9%
MCD 21.1%
3-Year Compound Annual Total Return
(2009-2011)
Jim Skinner,
Vice Chairman and CEO
Don Thompson,
President and COO
Operating Income (In billions)