Business Strategy
Annual Report 2009
2009 Highlights:
Comparable Sales Growth
3.8%
Earnings Per Share Growth
9%
Total Cash Returned to Shareholders 2007–2009
$
16.6
Billion
To Our Valued Shareholders:
To state the obvious, 2009 was a tumultuous year economically.
Despite this tough environment, McDonald’s delivered another exceptional year of growth, posting strong sales and increased market share around the world. In 2009, global comparable sales increased 3.8 percent, fueled by solid gains in the United States (+2.6 percent), Europe (+5.2 percent), Asia/Pacific, Middle East and Africa (+3.4 percent), Latin America (+5.3 percent) and Canada (+5.8 percent). Earnings per share for the year increased 9 percent to $4.11 (13 percent in constant currencies), while consolidated operating income increased 6 percent (10 percent in constant currencies). We also returned $5.1 billion to shareholders through share repurchases and dividends paid, bringing our three-year cash return total to $16.6 billion—notably at the high end of our stated target of $15 to $17 billion for the years 2007 through 2009. Concerning McDonald’s performance, there are three milestones that I want to recognize: First, our 2009 comparable sales increase marked the sixth consecutive year of positive sales in every geographic segment of our business. Second, our increasingly relevant menu options, combined with clear competitive advantages in convenience and value, enabled us to serve 60 million customers per day last year. This is up 2 million from the prior year and a remarkable 14 million more per day compared to 2002. Third, as a result of these sustained operating results, McDonald’s total stock return for the three-year period ending in 2009 was ranked number one among the 30 blue-chip companies that comprise the Dow Jones Industrial Average. These singular achievements relate directly to our historic decision in 2003 to reinvent McDonald’s by becoming “better, not just bigger.” I say
2009 Highlights:
Comparable Sales Growth
3.8%
Earnings Per Share Growth
9%
Total Cash Returned to Shareholders 2007–2009
$
16.6
Billion
To Our Valued Shareholders:
To state the obvious, 2009 was a tumultuous year economically.
Despite this tough environment, McDonald’s delivered another exceptional year of growth, posting strong sales and increased market share around the world. In 2009, global comparable sales increased 3.8 percent, fueled by solid gains in the United States (+2.6 percent), Europe (+5.2 percent), Asia/Pacific, Middle East and Africa (+3.4 percent), Latin America (+5.3 percent) and Canada (+5.8 percent). Earnings per share for the year increased 9 percent to $4.11 (13 percent in constant currencies), while consolidated operating income increased 6 percent (10 percent in constant currencies). We also returned $5.1 billion to shareholders through share repurchases and dividends paid, bringing our three-year cash return total to $16.6 billion—notably at the high end of our stated target of $15 to $17 billion for the years 2007 through 2009. Concerning McDonald’s performance, there are three milestones that I want to recognize: First, our 2009 comparable sales increase marked the sixth consecutive year of positive sales in every geographic segment of our business. Second, our increasingly relevant menu options, combined with clear competitive advantages in convenience and value, enabled us to serve 60 million customers per day last year. This is up 2 million from the prior year and a remarkable 14 million more per day compared to 2002. Third, as a result of these sustained operating results, McDonald’s total stock return for the three-year period ending in 2009 was ranked number one among the 30 blue-chip companies that comprise the Dow Jones Industrial Average. These singular achievements relate directly to our historic decision in 2003 to reinvent McDonald’s by becoming “better, not just bigger.” I say