McDonalds 2012 Annual Report Download - page 4

24-Hour Accessibility | USA | Canada
Don Thompson, President and CEO & Tim Fenton, COO
2 | McDonald’s Corporation 2012 Annual Report *
in constant currencies
To Our Valued Shareholders:
Our founder, Ray Kroc, made a statement about how we operate
our business that is as relevant today as it was 60 years ago: “Take
calculated risks. Act boldly and thoughtfully. Be an agile company.”
2012 was a testament to our resilient business model, the talented
and aligned System of McDonald’s franchisees, supplier partners
and company employees, and our broad experience in every type
of operating environment. We grew global comparable sales 3.1%
and Systemwide sales 5%* . We increased operating income 4%*
and diluted earnings per share 5%* . And, we returned $5.5 billion
to shareholders through dividends and share repurchases.
We grew market share despite the flat to declining trend in
the informal eating-out industry. The key: our ability to remain
focused on our Plan to Win and our three global growth priorities
to optimize our menu, modernize the customer experience and
broaden accessibility to Brand McDonald’s. Most importantly,
we’re doing it with franchisees, suppliers, company employees,
managers and crew who are proud to be affiliated with us, and
with a talented and diverse Board of Directors who provide sage
guidance and strong corporate governance as we work together
to deliver shareholder value.
Every day, 69 million customers visit our restaurants because we
offer great-tasting food, exceptional service, and a clean, modern
and engaging restaurant experience – all at a reasonable price.
We continued to build our business through our menu focus by
encouraging markets to learn from each other and scale proven
solutions. New products like McWraps from Poland or our McCafé
specialty beverages that originated in Australia complement
classic favorites – like the Big Mac, our Quarter Pounder with
Cheese, our Egg McMuffin and our World Famous Fries – to
give our customers compelling reasons to visit.
We also made significant progress toward becoming more
modern and relevant. Nearly 60% of our restaurant interiors
around the world have been re-imaged, and we expect to reach
50% with our exteriors by 2015. And, we continued evolving
how we talk with our customers through our creative, digital
and social media efforts.
In our journey to be accessible whenever and wherever our
customers want McDonald’s, we added 1,439 new restaurants
in established markets including the U.S., France, Germany and
Australia … as well as in emerging markets like China, Brazil, India
and Russia. We also grew delivery in APMEA and evolved our
value offers to always have something for our customers with
Value Lunch in China, P’tit Prix in France, our Loose Change
Menu in Australia and our Dollar Menu in the U.S., to name a few.
$7.5
’10
$8.5
’11
$8.6
’12
Operating Income (in billions)
10.9%
10.3%
15.7%
S&P 500
DJIA
MCD
3-Year Compound Annual Total Return
(2010-20 12)