McDonalds 2015 Annual Report Download - page 5

McDonald's Corporation 2015 Annual Report 3
Number of employees
The Company’s number of employees worldwide, including
Company-operated restaurant employees, was approximately
420,000 as of year-end 2015.
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 13 through 29 and Segment and geographic information in
Part II, Item 8, page 44 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 future events and circumstances and their effects upon
revenues, expenses and business opportunities. Generally
speaking, any statement in this report not based upon historical
fact is a forward-looking statement. Forward-looking statements
can also be identified by the use of forward-looking words, such as
“may,” “will,” “expect,” “believe” and “plan” or similar expressions.
In particular, statements regarding our plans, strategies, prospects
and expectations regarding our business and industry are forward-
looking statements. They reflect our expectations, are not
guarantees of performance and speak only as of the date of this
report. Except as required by law, 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, including those that are reflected in the following
considerations and factors, as well as elsewhere in our filings with
the SEC. If any of these considerations or risks materialize, our
expectations may change and our performance may be adversely
affected.
If we do not successfully design and execute our business
strategies, we may not be able to increase revenues or
market share.
To drive future results, our business strategies must be
effective in achieving market share gains while at the same time
delivering operating income growth. 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 to our
customers 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 delayed or 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.
The implementation of our turnaround plan may intensify the
risks we face and may not be successful in driving improved
performance.
Our turnaround plan includes restructuring market segments,
optimizing restaurant ownership mix through accelerated
refranchising, delivering cost savings and enhancing financial
value through increased leverage. Implementing those actions will
intensify the existing risks we face in our business, including risks
associated with franchising and risks associated with our credit
ratings. Further, if those actions are not successful, take longer to
complete than initially projected, or are not executed effectively,
our business operations, financial results and results of operations
could be adversely affected.
We face intense competition in our markets, which could hurt
our business.
We compete primarily in the “informal eating out” (IEO)
segment, which is highly competitive. 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 competitors, which may have a short- or long-term
impact on our results.
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