McDonalds 2014 Annual Report Download - page 9

McDonald’s Corporation 2014 Annual Report 3
d. Financial information about geographic areas
Financial information about geographic areas is incorporated
herein by reference to Management’s discussion and analysis of
financial condition and results of operations in Part II, Item 7,
pages 12 through 28 and Segment and geographic information in
Part II, Item 8, page 42 of this Form 10-K.
e. Available information
The Company is subject to the informational requirements of the
Securities Exchange Act of 1934 ("Exchange Act"). The Company
therefore files periodic reports, proxy statements and other
information with the U.S. Securities and Exchange Commission
("SEC"). Such reports may be obtained by visiting the Public
Reference Room of the SEC at 100 F Street, NE, Washington, DC
20549, or by calling the SEC at (800) SEC-0330. In addition, the
SEC maintains an Internet site (www.sec.gov) that contains
reports, proxy and information statements and other information.
Financial and other information can also be accessed on the
investor section of the Company’s website at
www.aboutmcdonalds.com. The Company makes available, free
of charge, copies of its annual report on Form 10-K, quarterly
reports on Form 10-Q, current reports on Form 8-K, and
amendments to those reports filed or furnished pursuant to
Section 13(a) or 15(d) of the Exchange Act as soon as reasonably
practicable after filing such material electronically or otherwise
furnishing it to the SEC. Copies of financial and other information
are also available free of charge by calling [phone] or by
sending a request to McDonald’s Corporation Shareholder
Services, Department 720, One McDonald’s Plaza, Oak Brook,
Illinois 60523.
Also posted on McDonald’s website are the Company’s
Corporate Governance Principles; the charters for each of the
Committees of the Board of Directors, including the Audit
Committee, Compensation Committee and Governance
Committee; the Code of Conduct for the Board of Directors; and
the Company’s Standards of Business Conduct, which applies to
all officers and employees. Copies of these documents are also
available free of charge by calling [phone] or by sending a
request to McDonald’s Corporation Shareholder Services,
Department 720, One McDonald’s Plaza, Oak Brook, Illinois
60523.
Information on the Company’s website is not incorporated into
this Form 10-K or the Company’s other securities filings and is not
a part of them.
ITEM 1A. Risk Factors and Cautionary
Statement Regarding Forward-Looking
Statements
The information in this report includes forward-looking statements
about our plans and future performance, including those under
Outlook. These statements use such words as “may,” “will,”
“expect,” “believe” and “plan.” They reflect our expectations and
speak only as of the date of this report. We do not undertake to
update them. Our expectations (or the underlying assumptions)
may change or not be realized, and you should not rely unduly on
forward-looking statements. Our business results are subject to a
variety of risks that are reflected in the following considerations
and factors that we believe are most likely to affect our
performance.
If we do not successfully design and execute our global
growth strategies, we may not be able to increase revenues
or market share.
To drive future results, our global growth strategies must be
effective in achieving market share gains while at the same time
delivering operating income growth. Our strategies are aligned
around the four strategic growth priorities that represent our
greatest opportunities to drive results-serving our customers’
favorite food and drinks, creating memorable experiences, offering
unparalleled convenience, and being a more trusted brand. We
focus our System on execution across all of our strategies through
a common, integrated approach to people, products, place, price
and promotion. Whether we successfully execute these strategies
depends mainly on our System’s ability to:
Continue to innovate and differentiate in all aspects of the
McDonald’s experience in a way that balances value with
profitability;
Reinvest in our restaurants and identify and develop
restaurant sites consistent with our System’s plans for net
growth of System-wide restaurants;
• Provide clean and friendly environments that deliver a
consistent McDonald's experience and demonstrate high
service levels;
• Drive restaurant improvements that achieve optimal capacity,
particularly during peak mealtime hours; and
• Manage the complexity of our restaurant operations.
If we are unsuccessful in executing our strategies, or if our
strategies do not yield the desired results, our business, financial
condition and results of operations may suffer.
We face intense competition in our markets, which could hurt
our business.
We compete primarily in the IEO segment, which is highly
competitive. In some of our major markets, IEO segments have
remained stagnant in recent periods, have experienced only
modest growth or have declined. As a result, we are facing
sustained, intense competition from both traditional and other
competitors, which include many non-traditional market
participants such as convenience stores and coffee shops. In
addition, in recent periods we have experienced emerging and
growing competition from the fast casual category of restaurants.
We expect our environment to continue to be highly competitive
and in any particular reporting period our results may be impacted
by new actions of our competition, which may have a short- or
long-term impact.
We compete on the basis of product choice, quality,
affordability, service and location. In particular, we believe our
ability to compete successfully in the current market environment
depends on our ability to improve existing products, develop new
products, price our products appropriately, manage the complexity
of our restaurant operations and respond effectively to our
competitors’ actions. Recognizing these dependencies, we have
intensified our focus in recent periods on strategies to achieve
these goals and we will likely continue to modify existing strategies
and implement new strategies in the future. There can be no
assurance these strategies will be effective, and some strategies
may be effective at improving some metrics while adversely
affecting other metrics.
If we do not anticipate and address evolving consumer
preferences, our business could suffer.
Our continued success depends on our System’s ability to
anticipate and respond effectively to continuously shifting
consumer demographics, trends in food sourcing, food preparation
and consumer preferences in the IEO segment. We must
continuously adapt to deliver a relevant experience for our
customers amidst a highly competitive, value-driven operating
environment. Over the last year, we have implemented initiatives
to address these shifts at a more aggressive pace. There is no
assurance that such initiatives will be successful and, if they are
not, our financial results could be adversely impacted.