<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 18, 1994
McDONALD'S CORPORATION
(Exact name of Registrant as specified in its Charter)
Delaware 1-5231 36-2361282
(State or other (Commission (IRS Employer
jurisdiction File Number) Identification No.)
of incorporation)
One McDonald's Plaza, Oak Brook, Illinois 60521
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (708) 575-3000
Not applicable
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
On July 18, 1994, McDonald's Corporation ("Company") reached an
agreement in principle with Discovery Zone, Inc. ("Discovery Zone"),
pursuant to which Discovery Zone will acquire all of the outstanding
capital stock of Leaps & Bounds, Inc., a wholly-owned subsidiary of the
Company, in exchange for 5,500,000 shares (subject to adjustment, in
certain circumstances) of Discovery Zone. This transaction is further
described in a Press Release attached hereto as Exhibit 99 and
incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(c) Exhibits
(99) Press Release dated July 18, 1994 -- "Leaps and Bounds
Merges with Discovery Zone; McDonald's, Blockbuster and
Discovery Zone Join Forces in Family Entertainment."
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
McDONALD'S CORPORATION
(Registrant)
By: /s/ Jack M. Greenberg
----------------------
Vice Chairman and
Chief Financial Officer
Date: July 20, 1994
<PAGE>
Exhibit Index
Exhibit Sequential
No. Description of Exhibit Page Number
(99) Press Release dated July 18, 5
1994 -- "Leaps and Bounds
Merges with Discovery Zone;
McDonald's, Blockbuster and
Discovery Zone Join Forces
in Family Entertainment"
<PAGE>
EXHIBIT (99)
FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
07/18/94 Blockbuster Entertainment -
Gregory K. Fairbanks, Sr. V.P. 305/832-3000
Discovery Zone -
Robert Mitchum, Sr. V.P. 312/616-3809
McDonald's Corp. -
Chuck Ebeling, Media 708/575-6150
Patty Paul, Investor 708/575-3499
LEAPS AND BOUNDS MERGES WITH DISCOVERY ZONE;
McDONALD'S, BLOCKBUSTER AND DISCOVERY ZONE JOIN FORCES
IN FAMILY ENTERTAINMENT
CHICAGO, IL -- Discovery Zone, Inc. (NASDAQ: ZONE) and McDonald's
Corporation (NYSE: MCD) today announced that they have reached an
agreement in principle by which Discovery Zone will acquire all of the
outstanding capital stock of Leaps & Bounds, Inc., a wholly-owned
subsidiary of McDonald's. Discovery Zone will issue to McDonald's
5,500,000 shares of Discovery Zone common stock for the acquisition,
which shares will be subject to restrictions on resale and to adjustment
under certain circumstances customary in transactions of this type.
Further terms of the transaction were not disclosed. Leaps & Bounds
owns and operates 49 children's indoor entertainment and fitness
facilities and related real estate across the United States.
Discovery Zone also reported that Blockbuster Entertainment
Corporation (NYSE: BV) reached an agreement in principle to exercise
its option to increase its equity interest in Discovery Zone to 50.1
percent. Blockbuster currently owns approximately 20 percent of
Discovery Zone's common stock. Blockbuster will acquire most of the
additional shares of Discovery Zone from DKB Investments, L.P., which is
currently Discovery Zone's largest stockholder.
Separately, Discovery Zone and Blockbuster announced that they have
reached an agreement in principle whereby Discovery Zone will acquire
all of the franchised Discovery Zone FunCenters and territories
currently owned by Blockbuster. Discovery Zone will issue to
Blockbuster 4,500,000 shares of Discovery Zone common stock for the
acquisition, which shares will be subject to adjustment under certain
circumstances customary in transactions of this type. Blockbuster
currently owns and operates 57 FunCenters.
Donald F. Flynn, Discovery Zone's Chairman and CEO, said, "Today
marks the beginning of a cooperative venture among Discovery Zone,
Blockbuster and McDonald's that results in a winning combination in
children's entertainment. The merger of the two pioneers in the
industry -- Discovery Zone and Leaps & Bounds -- combined with the ideas
and resources of McDonald's and Blockbuster, will produce a formidable
company of enormous value to our customers and our stockholders.
<PAGE>
"Blockbuster was an early supporter of our concept, and has been an
outstanding partner in developing it. The exercise of their option is
further evidence of that support. Our acquisition of their FunCenters
and territories allows us to more efficiently develop our business and
combine our resources.
"We welcome McDonald's as an equity investor in Discovery Zone, and
we look forward to a mutually beneficial relationship."
Michael R. Quinlan, Chairman and CEO of McDonald's Corporation,
said, "Combining Leaps & Bounds with Discovery Zone allows McDonald's to
share in the future growth of this dynamic industry, while also enabling
us to stay sharply focused on our global foodservice business."
Quinlan added that he expects the transaction to have an
insignificant impact on 1994 financial results.
H. Wayne Huizenga, Chairman and Chief Executive Officer of
Blockbuster, commented that "the combination of Discovery Zone and
Leaps & Bounds creates a preeminent children's entertainment company.
Out-of-home entertainment for children is a rapidly expanding industry
both domestically and internationally. Our increased ownership of
Discovery Zone will enable us to capitalize on these growth
opportunities while at the same time realizing the benefits of cross-
promoting these businesses with our video and music stores."
Consummation of all three transactions is expected to occur in
August 1994 and is subject to customary closing conditions, including
expiration of the waiting period under the Hart-Scott-Rodino Act.
# # #
