McDonalds 2014 Annual Report Download - page 3

McDonald’s Corporation 2014 Annual Report
To Our Valued Shareholders:
It is an honour to assume the role of CEO for this iconic global
brand that serves approximately 69 million customers in more
than 100 countries every day. I’m privileged to lead this network
of outstanding franchisees, supplier partners and company
employees, all committed to delivering the very best customer
experience.
By our standards, McDonald’s 2014 financial performance was
disappointing. While we grew systemwide sales by 1%*, global
comparable sales decreased 1% and operating income declined
8%*.
We faced significant challenges – some of which were
anticipated, while others were not. Our 2015 plans address
those challenges as we reset the business: how we think, how
we make decisions and how we organise to put consumers at
the forefront of everything we do. We will hold ourselves more
accountable for tangible results and judge performance by our
ability to drive growth.
Our approach is multi-dimensional, acknowledging the
uniqueness of our individual markets through both near- and
longer-term actions as we strive to become a more contemporary
brand. We will improve the Quality, Service, Cleanliness and
Value that are hallmarks of the McDonald’s brand as we strive to
run better restaurants. At the same time, we are taking bigger,
bolder actions to connect more deeply with consumers and
improve critical aspects of our business – including our menu,
the customer experience and brand trust.
We are strengthening our menu pipeline and localising menu
and marketing efforts to be more locally relevant to consumers
in individual countries and regions. For example, we are giving
customers even greater flexibility to customise their orders as we
roll out platforms like Create Your Taste across Australia and in
parts of the U.S.
* in constant currencies
We are also building on the investment we’ve made in technology
to further modernise the restaurant experience and make
it more convenient and contemporary – within and beyond
the restaurant. That’s why we’re scaling multiple order-point
strategies such as self-order kiosks, mobile order and pay, web
order, delivery and table service. It’s also why we’ve significantly
accelerated efforts to create more personal connections with
consumers under the umbrella of a global digital strategy.
Meanwhile, we remain committed to actions that strengthen
consumers’ trust in McDonald’s. In addition to actively addressing
food quality and perceptions, we are making meaningful progress
toward the goals articulated in our global sustainability framework
introduced in 2014. We also give back to the thousands
of communities worldwide where we and our independent
franchisees operate McDonald’s restaurants.
I’m confident we are taking the right actions to assert McDonald’s
as a modern, progressive burger restaurant; one that delivers
outstanding food and beverages at a great value with the ease
and convenience our customers expect. We will emerge from this
time of transition more responsive to customer expectations and
market conditions and better able to deliver enduring, profitable
growth for our franchisees, suppliers, company and shareholders.
Thank you for your investment. I look forward to McDonald’s next
chapter.
Steve Easterbrook
President and CEO
March 2015