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, 1996
McDONALD'S CORPORATION
(Exact name of Registrant as specified in its Charter)
Delaware 1-5231 36-2361282
(State of Incorporation) (Commission File No.) (IRS Employer
Identification No.)
One McDonald's Plaza
Oak Brook, Illinois 60521
(708) 575-3000
(Address and Phone Number of Principal Executive Offices)
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits
(c) Exhibits
(99.1) Press Release dated July 9, 1996 - "Enrique Hernandez, Jr.
Appointed to McDonald's Board"
(99.2) Press Release dated July 18, 1996 - "McDonald's Reports
Strong Global Results"
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/ Gloria Santona
--------------------------
Gloria Santona
Vice President,
Associate General Counsel
and Secretary
EXHIBIT 99.1
FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
July 9, 1996 Anna Rozenich 708/575-7316
Emma Carrasco 708/575-6468
ENRIQUE HERNANDEZ, JR. APPOINTED TO McDONALD'S BOARD
OAK BROOK, IL -- Michael R. Quinlan, Chairman and Chief Executive
Officer, McDonald's Corporation, announced today the appointment of
Enrique Hernandez, Jr. to the company's Board of Directors.
"Enrique is a strong addition to our Board. He brings us the
benefit of his professional experience and his knowledge of the Hispanic
community. Enrique's experience will be a tremendous asset to McDonald's
as we continue to focus our efforts in satisfying every one of our
customers and extending our global growth," said Quinlan.
Hernandez has been President and Chief Executive Officer of Inter-
Con Security Systems, Inc. since 1986. Inter-Con Systems is an Alhambra,
California-based provider of global facility support services to
government, utilities and industrial customers, employing 11,000 people
worldwide.
In addition to Inter-Con Systems, he is a principal partner and co-
founder of Interspan Communications, a television broadcast company
serving Spanish-speaking audiences. Prior to these endeavors, Hernandez
worked as a corporate litigation attorney for Brobeck, Phleger and
Harrison.
Currently, Hernandez is the vice-chairman of the board of directors
for the Childrens Hospital of Los Angeles. He also serves on the Board
of Directors of Great Western Financial Corporation, the Los Angeles
Convention and Visitors Bureau, the California Healthcare Foundation, and
Pomona College.
Hernandez is a graduate of Harvard University and Harvard Law
School. He and his wife and their five children live in Los Angeles, CA.
EXHIBIT 99.2
Investor Release
FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
07/18/96 Investors: Mary Healy, 708-575-6429
Media: Anna Rozenich, 708-575-7316
McDONALD'S REPORTS STRONG GLOBAL RESULTS
OAK BROOK, IL -- McDonald's Corporation today announced record results
for the six months and quarter ended June 30, 1996:
- Net income per common share rose 12 percent for the six months and
13 percent for the quarter.
- Net income grew 9 percent for the six months and 11 percent for the
quarter.
- Total revenues rose 10 and 8 percent for the six months and quarter.
- Systemwide sales were up 6 and 4 percent for the six months and
quarter.
- Operating income outside of the U.S. contributed 54 percent for the
six months and 53 percent for the quarter to consolidated operating
income.
Key highlights
Dollars in millions, except Six months ended June 30
per common share data 1996 1995 Increase
--------- --------- -----------
Systemwide sales $15,241.5 $14,312.9 $928.6 6%
Total revenues 5,091.1 4,628.9 462.2 10
Operating income 1,274.6 1,233.1 41.5 3
Net income 722.0 660.4 61.6 9
Net income per common share 1.01 .90 .11 12
Quarters ended June 30
1996 1995 Increase
--------- --------- -----------
Systemwide sales $7,932.0 $7,641.3 $290.7 4%
Total revenues 2,665.1 2,467.6 197.5 8
Operating income 712.1 686.4 25.7 4
Net income 420.4 379.7 40.7 11
Net income per common share .59 .52 .07 13
SUMMARY COMMENTARY
Chairman and Chief Executive Officer Michael R. Quinlan said,
"McDonald's global foodservice business delivered impressive results in
the first half of 1996, given weak economies in several countries, a
challenging U.S. operating environment, severe weather, and difficult
comparisons caused by exceptional operating performance and stronger
foreign currencies in 1995. As a global company, we are exposed to
economic weakness and a negative currency impact from time to time.
However, these are short-term issues which do not lessen our enthusiasm
for McDonald's long-term global growth opportunities. In fact, the
success many of our international markets had last year in increasing
comparable sales and market share through value oriented strategies is
one factor that has made current year comparisons difficult.
"Our Convenience, Value and Execution Strategies create and meet
customers' worldwide demand for quality food, served quickly and
pleasantly, in enjoyable surroundings, for a good value. Our opportunity
can be measured by the fact that on any day, even as the market leader,
we serve less than one percent of the world's population.
"Our Convenience Strategy is on track. As anticipated, this year
we expect to open more than 2,500 restaurants, two-thirds of which will
be in markets outside of the U.S. This represents a new opening about
every three hours and is four times the number of restaurants we added
just four years ago. In competitive markets like the U.S., our plan is
to optimize the returns for the Company and our franchisees, and add net
new sales and profits to our System. Our experience has shown that per
capita visits to McDonald's increase as we increase penetration and that
if we don't take advantage of these opportunities, the competition will.
On the other hand, in many countries there is little competition and we
are virtually creating the quick-service restaurant industry. In these
cases, aggressive expansion enables us to capture a large share of a
rapidly growing market.
"We are confident in our growth strategies and expect 1996 to be
another record-breaking year. We will use our growing cash flow and debt
capacity to fund global expansion, pay dividends, and repurchase stock
under our $2 billion, three-year program."
CONSOLIDATED OPERATING RESULTS
Net income and net income per common share increased 9 and 12 percent for
the six months, respectively, and 11 and 13 percent for the quarter,
respectively. Excluding the noncash charge for the adoption of SFAS 121,
net income and net income per common share increased 11 and 14 percent
for the six months, respectively. In the first six months of 1996, the
Company repurchased about $240 million of its common stock.
Systemwide sales represent sales by Company-operated, franchised and
affiliated restaurants. Total revenues consist of sales by Company-
operated restaurants and fees from restaurants operated by franchisees
and affiliates. These fees are based upon a percent of sales with
specified minimum payments. The increases in sales and revenues were due
to worldwide expansion and for the six months, positive comparable sales
outside of the U.S., partially offset by weaker foreign currencies.
Systemwide restaurant additions Six months Quarters
ended June 30 ended June 30
1996 1995 1996 1995
----- ----- ----- -----
Traditional restaurants
U.S. 183 184 121 133
Outside of the U.S. 428 318 285 204
Total traditional restaurant additions 611 502 406 337
Satellite restaurants
U.S. 130 239 63 130
Outside of the U.S. 142 93 98 64
Total satellite restaurant additions 272 332 161 194
Systemwide restaurants
U.S. 313 423 184 263
Outside of the U.S. 570 411 383 268
Systemwide restaurant additions 883 834 567 531
Traditional restaurants under construction At June 30
1996 1995
---- ----
U.S. 153 130
Outside of the U.S. 389 260
Total traditional restaurants under construction 542 390
Consolidated operating margins Six months Quarters
ended June 30 ended June 30
1996 1995 1996 1995
------- ------ ------- ------
In millions of dollars
Company-operated $ 657.2 $ 616.5 $362.7 $338.1
Franchised 1,213.6 1,143.5 638.6 612.0
As a percent of sales/revenues
Company-operated 18.3 19.0 19.2 19.6
Franchised 81.4 82.3 81.9 82.7
Franchised margin dollars comprised about two-thirds of the combined
operating margins, the same as in the prior year. Franchised margins as
a percent of applicable revenues declined for both periods, reflecting a
higher proportion of leased sites which have financing costs embedded in
rent expense, contrasted with owned sites whose financing costs are
reflected in interest expense. While Company-operated margins as a
percent of sales decreased for both periods, the decrease narrowed in the
second quarter. For the six months, as a percent of sales, food & paper
costs were relatively flat, while payroll costs and occupancy & other
operating costs increased. For the quarter, as a percent of sales, food
& paper costs decreased, while payroll and occupancy & other operating
costs increased.
The increases in general, administrative & selling expenses were
primarily due to strategic global spending to support the Convenience,
Value and Execution Strategies.
The increases in consolidated operating income primarily reflected
higher combined operating margin dollars, partially offset by higher
general, administrative & selling expenses and lower other operating
income which reflected the $16 million noncash charge related to the
adoption of SFAS 121 in the first quarter of 1996.
Other operating (income) expense--net is composed of transactions
related to franchising and the foodservice business, the details of which
are shown in the following chart. The decreases in equity in earnings
occurred primarily because of nonrecurring income items recognized in
both periods of 1995 and a weaker Japanese Yen, partially offset with
stronger operating results from affiliates. The increases in other
expenses reflected the $16 million noncash charge related to the adoption
of SFAS 121 recorded in the first quarter of 1996 and increased
provisions for property dispositions in the second quarter of 1996.
Other operating (income) expense--net Six months Quarters
ended June 30 ended June 30
In millions of dollars 1996 1995 1996 1995
------ ------ ------ ------
Gains on sales of restaurant
businesses $(42.3) $(28.4) $(33.3) $(16.5)
Equity in earnings of unconsolidated
affiliates (34.4) (47.7) (15.9) (28.5)
Other 35.4 22.2 12.1 3.3
Other operating (income) expense--net $(41.3) $(53.9) $(37.1) $(41.7)
The increase in interest expense for the six months was due to
higher debt levels, partially offset by lower average interest rates and
weaker foreign currencies. For the quarter, interest expense decreased
as higher debt levels were completely offset by lower average interest
rates and weaker foreign currencies.
Nonoperating income (expense) was impacted by lower losses
associated with the Company's investment in Discovery Zone common stock,
as the carrying value of this investment was reduced to zero in the first
quarter of 1996. Nonoperating income (expense) also reflected
translation gains in 1996 compared to translation losses in 1995.
The effective income tax rate was 33.0 percent for the first six
months of 1996, compared to 35.3 percent for the first six months of 1995
and 34.2 percent for the year 1995. The 1996 decrease was primarily due
to lower taxes related to foreign operations. For the year, the Company
expects the effective tax rate to be in the range of 32.5 to 33.5
percent.
U.S. OPERATING RESULTS
Restaurant expansion was responsible for increasing U.S. sales as we
added 1,020 restaurants in the last 12 months. Comparable U.S. sales
were negative for both periods reflecting an extremely challenging U.S.
operating environment, difficult comparisons and severe weather. The
U.S. business continued its emphasis on value and customer satisfaction
in the form of Extra Value Meals, Happy Meals and the three-tier value
program as well as promotional games like Deluxe Monopoly in June. In
addition, the introduction of Arch Deluxe in May benefited U.S. sales in
the second quarter.
U.S. operating results Six months Quarters
ended June 30 ended June 30
1996 1995 1996 1995
----- ----- ----- -----
Percent increase
Sales 3 8 3 9
Revenues 4 9 4 9
Operating income (1) 3 0 3
As a percent of sales/revenues
Company-operated margins 16.8 17.6 18.3 18.7
Franchised margins 81.5 82.8 82.4 83.2
U.S. operating income decreased slightly for the six months and
increased modestly, less than one percent, for the quarter. This
performance reflected a slight decline in Company-operated margin dollars
for the six months and a slight increase in Company-operated margin
dollars for the quarter, and for both periods, higher franchised margin
dollars, higher general, administrative & selling expenses and higher
other operating expenses.
The declines in Company-operated margins as a percent of sales for
both periods primarily resulted from higher payroll and occupancy & other
operating expenses, partially offset by lower food & paper costs. The
declines in franchised margins as a percent of revenues were primarily
due to increased rent expense reflecting a higher proportion of leased
sites resulting from accelerated expansion.
OPERATING RESULTS OUTSIDE OF THE U.S.
Expansion and higher year-to-date comparable sales were responsible for
sales increases outside of the U.S., offset in part by weaker foreign
currencies.
Operating results Six months Quarters
outside of the U.S. ended June 30 ended June 30
1996 1995 1996 1995
---- ---- ---- ----
Percent increase
Sales 10 34 5 37
Revenues 15 34 11 35
Operating income 8 41 7 44
As a percent of sales/revenues
Company-operated margins 19.2 20.1 19.8 20.2
Franchised margins 81.1 81.5 81.2 82.0
The difference between the percentage increase in sales and revenues
for both periods is primarily due to the weakening Japanese Yen that had
a greater effect on sales versus revenues and the higher growth rate in
Company-operated versus franchised restaurants. If exchange rates had
remained at 1995 levels, sales outside of the U.S. would have increased
15 and 12 percent for the six months and quarter, respectively.
Of the fifteen largest international markets, the following had
strong sales and operating income for both periods of 1996: Australia,
Japan and Hong Kong in Asia/Pacific; England in Europe; and Brazil in
Latin America. Results in Mexico continued to be weak due to its adverse
economy and currency devaluation; however, we continue to believe this
market offers long-term potential and are encouraged by indications that
the economy and currency are becoming more stable. Our business in
Canada continued to be negatively impacted by the weak economy.
The increases in operating income outside of the U.S. were driven by
higher combined operating margin dollars resulting from expansion and
positive year-to-date comparable sales, partially offset by weaker
foreign currencies, higher general, administrative & selling expenses and
for the six months, lower other operating income. Excluding the impact
of weaker foreign currencies and the $16 million noncash charge for the
adoption of the accounting standard for asset impairment for restaurant
sites in Mexico recorded in the first quarter of 1996, operating income
outside of the U.S. increased 13 percent for the six months and 11
percent for the quarter.
While Company-operated margins as a percent of sales declined for
both periods, the decrease narrowed in the second quarter. For the six
months, all costs increased, while for the quarter, food & paper costs
were flat, payroll costs increased and occupancy & other operating costs
decreased. Brazil and Taiwan contributed the most to the decline in
Company-operated margins as a percent of sales due to higher payroll
costs in both markets and higher food & paper costs in Taiwan. These
higher costs reflected strategic pricing concessions which resulted in
strong comparable sales and substantial market share gains. Margin
trends in both markets are improving.
While franchised margins as a percent of sales decreased for both
periods, the current levels are reflective of historical trends.
IMPACT OF FOREIGN CURRENCIES ON REPORTED RESULTS
While changing foreign currencies impact reported results, McDonald's
lessens short-term cash exposures by primarily purchasing goods and
services in local currencies, financing in local currencies and hedging
foreign-denominated cash flows.
The weakening of the Japanese Yen and Deutsche Mark were the primary
foreign currency changes impacting 1996 results. If exchange rates had
remained at 1995 levels, results would have been as follows:
Foreign currency impact
on international results
Six months ended June 30, 1996
Dollars in millions Reported Adjusted Adjustment Reported Adjusted
-------- -------- ---------- -------- --------
Sales $7,239.9 $7,552.9 $(313.0) 10% 15%
Operating income 691.5 708.6 (17.1) 8 10
Quarter ended June 30, 1996
Reported Adjusted Adjustment Reported Adjusted
-------- -------- ---------- -------- --------
Sales $3,653.2 $3,913.1 $(259.9) 5% 12%
Operating income 377.3 393.5 (16.2) 7 11
Foreign currency impact
on worldwide results Six months ended June 30, 1996
Dollars in millions Reported Adjusted Adjustment Reported Adjusted
-------- -------- ---------- -------- --------
Systemwide sales $15,241.5 $15,554.5 $(313.0) 6% 9%
Operating income 1,274.6 1,291.7 (17.1) 3 5
Net income 722.0 726.1 (4.1) 9 10
Quarter ended June 30, 1996
Reported Adjusted Adjustment Reported Adjusted
-------- -------- ---------- -------- --------
Systemwide sales $7,932.0 $8,191.9 $(259.9) 4% 7%
Operating income 712.1 728.3 (16.2) 4 6
Net income 420.4 424.4 (4.0) 11 12
NEW ACCOUNTING STANDARD
The Company adopted Statement of Financial Accounting Standard 121,
Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed of, in the first quarter 1996. This statement
requires impairment losses be recognized for long-lived assets, whether
these assets are held for disposal or continue to be used in operations,
when indicators of impairment are present and the fair value of assets
are estimated to be less than carrying amounts. The fair value of assets
was based on projected future cash flows. The adoption of this standard
resulted in a $16 million noncash pre-tax charge in other operating
(income) expense, equivalent to 2 cents per common share, related to
restaurant sites in Mexico.
McDONALD'S CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
Dollars and shares in millions,
except per common share data
Six months ended June 30
-------------------------------------
Increase(Decrease)
------------------
1996 1995 $ %
-------- -------- -------- --------
SYSTEMWIDE SALES $15,241.5 $14.312.9 928.6 6
-------------------------------------------------------------------
Revenues
Sales by Company-operated
restaurants $ 3,599.6 $ 3,239.4 360.2 11
Revenues from franchised
restaurants 1,491.5 1,389.5 102.0 7
-------------------------------------------------------------------
TOTAL REVENUES 5,091.1 4,628.9 462.2 10
-------------------------------------------------------------------
Operating costs and expenses
Company-operated restaurants 2,942.4 2,622.9 319.5 12
Franchised restaurants--
occupancy costs 277.9 246.0 31.9 13
General, administrative and
selling expenses 637.5 580.8 56.7 10
Other operating (income)
expense--net(1) (41.3) (53.9) 12.6 (23)
-------------------------------------------------------------------
Total operating costs and
expenses(1) 3,816.5 3,395.8 420.7 12
-------------------------------------------------------------------
OPERATING INCOME(1) 1,274.6 1,233.1 41.5 3
-------------------------------------------------------------------
Interest expense 167.6 166.4 1.2 1
Nonoperating income
(expense)--net (29.4) (46.7) 17.3 (37)
-------------------------------------------------------------------
Income before provision
for income taxes(1) 1,077.6 1,020.0 57.6 6
-------------------------------------------------------------------
Provision for income taxes 355.6 359.6 (4.0) (1)
-------------------------------------------------------------------
NET INCOME(1) $ 722.0 $ 660.4 61.6 9
-------------------------------------------------------------------
-------------------------------------------------------------------
NET INCOME PER COMMON
SHARE(1)(2) $ 1.01 $ .90 .11 12
-------------------------------------------------------------------
Weighted average common
shares outstanding(3) 699.8 700.2
-------------------------------------------------------------------
Dollars and shares in millions,
except per common share data
Quarters ended June 30
-------------------------------------
Increase(Decrease)
------------------
1996 1995 $ %
-------- -------- -------- --------
SYSTEMWIDE SALES $7,932.0 $7,641.3 290.7 4
---------------------------------------------------------------------
Revenues
Sales by Company-operated
restaurants $1,885.8 $1,727.8 158.0 9
Revenues from franchised
restaurants 779.3 739.8 39.5 5
---------------------------------------------------------------------
TOTAL REVENUES 2,665.1 2,467.6 197.5 8
---------------------------------------------------------------------
Operating costs and expenses
Company-operated restaurants 1,523.1 1,389.7 133.4 10
Franchised restaurants--
occupancy costs 140.7 127.8 12.9 10
General, administrative and
selling expenses 326.3 305.4 20.9 7
Other operating (income)
expense--net(1) (37.1) (41.7) 4.6 (11)
---------------------------------------------------------------------
Total operating costs and
expenses(1) 1,953.0 1,781.2 171.8 10
---------------------------------------------------------------------
OPERATING INCOME(1) 712.1 686.4 25.7 4
---------------------------------------------------------------------
Interest expense 82.8 85.4 (2.6) (3)
Nonoperating income
(expense)--net (3.8) (16.1) 12.3 (76)
---------------------------------------------------------------------
Income before provision
for income taxes(1) 625.5 584.9 40.6 7
---------------------------------------------------------------------
Provision for income taxes 205.1 205.2 (0.1) 0
---------------------------------------------------------------------
NET INCOME(1) $ 420.4 $ 379.7 40.7 11
---------------------------------------------------------------------
---------------------------------------------------------------------
NET INCOME PER COMMON
SHARE(1)(2) $ .59 $ .52 .07 13
---------------------------------------------------------------------
Weighted average common
shares outstanding(3) 699.1 700.1
---------------------------------------------------------------------
(1) Including the noncash charge related to the adoption of SFAS 121.
(2) Computed using net income reduced by preferred stock dividends (net
of tax) of $13.8 and $23.8 million for the six months ended June 30,
1996 and 1995, respectively, and $6.9 and $11.9 million for the
second quarters of 1996 and 1995, respectively; and in both 1995
periods, $3.9 million for the one-time effect of the exchange of
preferred stock for debt completed in June.
(3) During 1995, shares of Series B and C Preferred Stock were
converted into 8.7 million common shares.
McDONALD'S CORPORATION
FINANCIAL INFORMATION
Dollars in millions Six months ended June 30
-------------------------------------
Increase(Decrease)
------------------
1996 1995 $ %
--------- --------- -------- --------
SYSTEMWIDE SALES
U.S.
----
Operated by franchisees $ 6,190.1 $ 6,093.6 96.5 2
Operated by the Company 1,381.5 1,333.6 47.9 4
Operated by affiliates 430.0 323.7 106.3 33
--------- --------- ----- --
8,001.6 7,750.9 250.7 3
--------- --------- ----- --
Outside of the U.S.
-------------------
Operated by franchisees 3,435.2 3,111.8 323.4 10
Operated by the Company 2,218.1 1,905.8 312.3 16
Operated by affiliates 1,586.6 1,544.4 42.2 3
--------- --------- ----- --
7,239.9 6,562.0 677.9 10
--------- --------- ----- --
$15,241.5 $14,312.9 928.6 6
--------- --------- ----- --
--------- --------- ----- --
By Type
-------
Operated by franchisees $ 9,625.3 $ 9,205.4 419.9 5
Operated by the Company 3,599.6 3,239.4 360.2 11
Operated by affiliates 2,016.6 1,868.1 148.5 8
--------- --------- ----- --
$15,241.5 $14,312.9 928.6 6
--------- --------- ----- --
--------- --------- ----- --
----------------------------------------------------------------
TOTAL REVENUES
U.S. $ 2,264.0 $ 2,174.5 89.5 4
Outside of the U.S. 2,827.1 2,454.4 372.7 15
--------- --------- ----- --
$ 5,091.1 $ 4,628.9 462.2 10
--------- --------- ----- --
--------- --------- ----- --
----------------------------------------------------------------
OPERATING INCOME
U.S. $ 605.2 $ 614.2 (9.0) (1)
Outside of the U.S.* 691.5 641.3 50.2 8
Corporate G&A (22.1) (22.4) 0.3 1
--------- --------- ----- --
$ 1,274.6 $ 1,233.1 41.5 3
--------- --------- ----- --
--------- --------- ----- --
*Excluding the impact of weaker foreign currencies and the $16 million
noncash charge related to the adoption of SFAS 121, operating income
outside of the U.S. increased 13 percent.
----------------------------------------------------------------
PERCENT CONTRIBUTION TO COMBINED OPERATING MARGINS
Six months
ended June 30
--------------------
1996 1995
--------- ---------
Company-operated
----------------
U.S. 35 38
Outside of the U.S. 65 62
--- ---
100 100
--- ---
--- ---
Franchised
----------
U.S. 59 61
Outside of the U.S. 41 39
--- ---
100 100
--- ---
--- ---
----------------------------------------------------------------
McDONALD'S CORPORATION
RESTAURANT INFORMATION*
At June 30
--------------------------------
Increase
----------------
1996 1995 # %
------ ------ ------- -------
TRADITIONAL RESTAURANTS
U.S.
----
Operated by franchisees 8,282 7,902 380 5
Operated by the Company 1,643 1,598 45 3
Operated by affiliates 599 428 171 40
------ ------ ------ ---
10,524 9,928 596 6
------ ------ ------ ---
Outside of the U.S.
-------------------
Operated by franchisees 3,251 2,770 481 17
Operated by the Company 2,061 1,642 419 26
Operated by affiliates 1,584 1,367 217 16
------ ------ ----- ---
6,896 5,779 1,117 19
------ ------ ----- ---
17,420 15,707 1,713 11
------ ------ ----- ---
------ ------ ----- ---
By Type
-------
Operated by franchisees 11,533 10,672 861 8
Operated by the Company 3,704 3,240 464 14
Operated by affiliates 2,183 1,795 388 22
------ ------ ----- ---
17,420 15,707 1,713 11
------ ------ ----- ---
--------------------------------------------------------------------
SATELLITE RESTAURANTS
U.S. 1,157 733 424 58
Outside of the U.S. 686 344 342 99
------ ------ ----- ---
1,843 1,077 766 71
------ ------ ----- ---
---------------------------------------------------------------------
SYSTEMWIDE RESTAURANTS
U.S. 11,681 10,661 1,020 10
Outside of the U.S. 7,582 6,123 1,459 24
------ ------ ----- ---
19,263 16,784 2,479 15
------ ------ ----- ---
------ ------ ----- ---
--------------------------------------------------------------------
SYSTEMWIDE COUNTRIES 94 81
--------------------------------------------------------------------
TOTAL RESTAURANTS IN MARKETS OUTSIDE OF THE U.S.
Japan 1,670 1,263 407 32
Canada 939 846 93 11
Germany 672 612 60 10
England 604 532 72 14
Australia 551 474 77 16
France 458 377 81 21
Brazil 260 210 50 24
Netherlands 135 117 18 15
Taiwan 131 93 38 41
Mexico 120 123 (3) (2)
Sweden 112 93 19 20
Hong Kong 107 87 20 23
New Zealand 106 85 21 25
Spain 103 87 16 18
Austria 73 58 15 26
Other 1,541 1,066 475 45
------ ------ ----- ---
7,582 6,123 1,459 24
------ ------ ----- ---
------ ------ ----- ---
*The Company, its franchisees and affiliates operate traditional and
satellite restaurants. Satellite restaurants generally offer a
simplified menu and are smaller in size and sales volume compared to
traditional restaurants.
