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McDonald’s Corporation 2013 Annual Report | 51
At least annually, we consider which companies comprise a
readily identiable investment peer group. McDonald’s is included
in published 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 revenues 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 ve-year
period ended December 31, 2013. 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, 2008. For the DJIA companies, returns
are weighted for market capitalization 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.
$0
$50
$100
$150
$200
$250
Stock Performance Graph
Source: Capital IQ, a Standard & Poor’s business
Comparison of Cumulative
Five Year Total Return
Dec ’08 Dec ’09 Dec ’10 Dec ’11 Dec ’12 Dec ’13
McDonald’s Corporation 100 104 132 178 161 183
S&P 500 Index 100 126 146 149 172 228
Dow Jones Industrials 100 123 140 152 167 217