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): April 22, 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)
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Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits
(c) Exhibits
The Exhibits listed below and attached hereto are hereby filed
in connection with the Registrant's Registration Statement on
Form S-3 (File No. 33-00001).
(99.3) Insert to MCDirect Shares Brochure.
(99.4) MCDirect Shares Brochure.
<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/ Gloria Santona
--------------------------
Gloria Santona
Vice President,
Associate General Counsel
and Secretary
EXHIBIT 99.3
MCDIRECT SHARES
1995 PERFORMANCE AT A GLANCE
1995 Highlights
- $29.9 billion in Systemwide sales
- $2.6 billion in operating income
- over $1.4 billion in net income
- an asset base over $15.4 billion
Pie charts depicting
1990 1995
Outside Outside
Total U.S. the U.S. Total U.S. the U.S.
Systemwide sales $18.8 $12.3 $6.5 $29.9 $15.9 $14.0
in billions of
dollars
Operating income* $ 1.6 $ 1.0 $ .6 $ 2.6 $ 1.2 $ 1.4
in billions of
dollars
Assets** $10.7 $ 5.9 $4.6 $15.4 $ 7.0 $ 8.2
in billions of
dollars
Restaurants 11,803 8,576 3,227 18,380 11,368 7,012
*Graph excludes Corporate G&A expense of $48 and $26 million in 1995
and 1990, respectively.
**Graph excludes Corporate assets of $169 and $176 million in 1995
and 1990, respectively.
COMPOUND ANNUAL TOTAL RETURN TO INVESTORS
for the ten-year period ended December 31, 1995
A bar chart depicting compound annual total return to investors for the
period ending December 31, 1995 for the following:
McDonald's Common Stock 18.4%
Dow Jones Industrial Average 16.4
Standard & Poor's 500 14.9
Wilshire 5000 14.2
Lehman Brothers Government/Corporate Bond Index 9.6
Donoghue Money Fund 5.7
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MARKET PRICE PER COMMON SHARE
in dollars
A line graph depicting McDonald's quarterly stock price range and price
at quarter end for:
High Low End
1991, First Quarter 17.688 13.063 17.375
Second Quarter 18 15.625 16.438
Third Quarter 17.938 15 17.5
Fourth Quarter 19.9375 16.438 19
1992, First Quarter 22.5 19.188 19.938
Second Quarter 23.75 19.688 23
Third Quarter 23.625 20.563 22.188
Fourth Quarter 25.188 20.438 24.375
1993, First Quarter 27.125 23.375 26.375
Second Quarter 26.75 22.75 24.5
Third Quarter 27.75 24.125 25.875
Fourth Quarter 29.5 25.625 28.5
1994, First Quarter 31.25 27.25 28.375
Second Quarter 31.375 27.625 28.875
Third Quarter 29.75 25.625 26.375
Fourth Quarter 29.875 25.875 29.25
1995, First Quarter 35.75 28.625 34.125
Second Quarter 39.25 33.75 39.125
Third Quarter 41.5 35.875 38.25
Fourth Quarter 48 37.75 45.125
COMPOUND ANNUAL GROWTH RATES
for the ten-year period ended December 31, 1995
Systemwide sales 10.5%
U.S. 6.0
Outside of the U.S. 20.6
Total revenues 10.2
Operating income 11.1
U.S. 5.2
Outside of the U.S. 23.8
Corporate 11.6
Net income 12.7
Net income per common share 13.6
Cash provided by operations 10.9
Total assets 11.8
Total shareholders' equity 13.4
Total return to investors on common stock 18.4
These results are not indicative of future performance, which is
dependent upon a variety of factors.
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MCDIRECT SHARES
1995 FINANCIAL SUMMARY 1995 1994 1993 1992 1991
(Dollars rounded to millions, except per common share data and average
restaurant sales)
Systemwide sales $29,914 25,987 23,587 21,885 19,928
U.S. $15,905 14,941 14,186 13,243 12,519
Outside of the U.S. $14,009 11,046 9,401 8,642 7,409
Systemwide sales by type
Operated by franchisees $19,123 17,146 15,756 14,474 12,959
Operations by the Company $ 6,863 5,793 5,157 5,103 4,908
Operated by affiliates $ 3,928 3,048 2,674 2,308 2,061
Average sales by Systemwide
restaurants open at least
one year, in thousands $ 1,844 1,800 1,768 1,733 1,658
Revenues from franchised
restaurants $ 2,931 2,528 2,251 2,031 1,787
Total revenues $ 9,795 8,321 7,408 7,133 6,695
Operating income $ 2,601 2,241 1,984 1,862 1,679
Income before provision
for income taxes $ 2,169 1,887 1,676 1,448 1,299
Net income $ 1,427 1,224 1,083 959 860
Cash provided by operations $ 2,296 1,926 1,680 1,426 1,423
Financial position at year end
Net property and equipment $12,811 11,328 10,081 9,597 9,559
Total assets $15,415 13,592 12,035 11,681 11,349
Long-term debt $ 4,258 2,935 3,489 3,176 4,267
Total shareholders' equity $ 7,861 6,885 6,274 5,892 4,835
Per common share
Net income $ 1.97 1.68 1.45 1.30 1.17
Dividend declared $ .26 .23 .21 .20 .18
Total shareholders' equity
at year end $ 10.72 9.20 8.12 7.39 6.73
Market price at year end $45 1/8 29 1/4 28 1/2 24 3/8 19
Restaurants at year end
Systemwide restaurants 18,380 15,950 14,163 13,093 12,418
U.S. 11,368 10,238 9,397 8,959 8,764
Outside of the U.S. 7,012 5,712 4,766 4,134 3,654
Traditional restaurants 16,809 15,205 13,993 13,093 12,418
Operated by franchisees 11,240 10,458 9,832 9,237 8,735
Operated by the Company 3,513 3,083 2,699 2,551 2,547
Operated by affiliates 2,056 1,664 1,462 1,305 1,136
U.S. 10,341 9,744 9,283 8,959 8,764
Outside of the U.S. 6,468 5,461 4,710 4,134 3,654
Number of countries at year end 89 79 70 65 59
The information contained in this Summary as of March, 1996 and
highlights some of the aspects of the Company's business, but is not a
complete description of the Company, its activities or its prospects.
This Summary should be read in conjunction with the accompanying Prospectus
and the documents incorporated by reference therein.
EXHIBIT 99.4
MCDirect Shares
Payroll Deduction Changes
In 1995, we changed the stock purchase plans...
Today, more than ever, delivering QSC & V to our customers is critical to
our success. It's something each member of the McDonald's System must do.
In Investor Relations, we faced the challenge of providing Quality Service
to our shareholders while managing the ever-increasing cost of doing so.
We could have managed our costs by simply eliminating the stock purchase
programs. We didn't want to do that. McDonald's values and encourages
individual and System ownership of its stock. Instead, we designed a plan
to meet the needs of individual investors and McDonald's. However, we
knew, regardless of how we designed the new program, we wouldn't satisfy
everyone.
MCDirect Shares is a direct stock purchase plan for long-term investors
who are committed to building their McDonald's share ownership over time.
We listened to your concerns about the new plan...
You told us the minimum payroll deduction investment was too high. You
said it discourages crew and managers from investing regularly. You told
us this feature hampers your ability to hire and retain quality employees.
We're taking action...
Effective May 1, 1996, we are lowering the minimum payroll deduction to
$20 per investment. And, for a limited time only, we are waiving the
investment fee. From May 1, 1996 through April 30, 1997, employees
participating in MCDirect Shares through payroll deduction will be not
assessed the 50 cent per transaction fee.
McDonald's means opportunity...
You already know McDonald's is a great place to work and grow. But do
you know how to use MCDirect Shares to help attract and retain quality
employees? Please contact Investor Relations at (708)-575-7428 to learn
more.
