<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): January 25, 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) Press Release dated January 25, 1996 - "McDonald's Adds Record
Number of Restaurants and Reports Strong Global Results"
<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
<PAGE>
[LOGO OF MCDONALD'S]
- --------------------------------------------------------------------------------
INVESTOR RELEASE
- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
- --------------------- -----------------------------
01/25/96 Investors: Mary Healy, 708-575-6429
Media: Chuck Ebeling, 708-575-6150
McDONALD'S ADDS RECORD NUMBER OF RESTAURANTS
--------------------------------------------
AND REPORTS STRONG GLOBAL RESULTS
---------------------------------
OAK BROOK, IL -- McDonald's Corporation today announced record results for the
year and fourth quarter ended December 31, 1995:
. McDonald's added 2,430 restaurants -- Systemwide restaurants hit 18,380.
. Net income and net income per common share grew 19 percent for the quarter and
17 percent for the year.
. Systemwide sales neared $30 billion; a 15 percent annual increase.
. Total revenues neared $10 billion and rose 18 percent for the year.
. Operating income increased 16 percent for the year.
. Operations outside of the U.S. contributed 54 percent to consolidated
operating income for the year.
<TABLE>
<CAPTION>
=================================================================
Key highlights Years ended Dec. 31
Dollars in millions, except -----------------------------------
per common share data 1995 1994 Increase
=================================================================
<S> <C> <C> <C> <C>
. Systemwide sales $29,913.9 $25,987.4 $3,926.5 15%
- -----------------------------------------------------------------
. Total revenues 9,794.5 8,320.8 1,473.7 18
- -----------------------------------------------------------------
. Operating income 2,601.3 2,241.2 360.1 16
- -----------------------------------------------------------------
. Net income 1,427.3 1,224.4 202.9 17
- -----------------------------------------------------------------
. Net income per common share 1.97 1.68 .29 17
=================================================================
Fourth quarters ended Dec. 31
-----------------------------------
1995 1994 Increase
=================================================================
. Systemwide sales $7,734.4 $6,964.0 $770.4 11%
- -----------------------------------------------------------------
. Total revenues 2,585.5 2,270.1 315.4 14
- -----------------------------------------------------------------
. Operating income 646.1 575.8 70.3 12
- -----------------------------------------------------------------
. Net income 366.8 308.9 57.9 19
- -----------------------------------------------------------------
. Net income per common share .51 .43 .08 19
=================================================================
</TABLE>
<PAGE>
SUMMARY COMMENTARY
Chairman and Chief Executive Officer Michael R. Quinlan said, "McDonald's has
completed another year of strong global growth and achieved several
milestones. Net income and net income per common share increased 19 percent
for the quarter. Net income increased more than $200 million and 17 percent
for the year, representing the highest annual percent increase since 1988.
Also for the year, Systemwide sales neared $30 billion and increased 15
percent; total revenues neared $10 billion and increased 18 percent; and
operating income exceeded $2.6 billion and increased 16 percent.
"We are excited about the future potential of our Company and our
plans to build value for shareholders. McDonald's is the largest and best-
known global foodservice retailer with more than 18,000 restaurants in 89
countries at December 31, 1995. Yet, even as the market leader, we serve less
than one percent of the world's population on any given day. We will continue
to focus on our convenience, value and execution strategies to strengthen our
leadership position as we pursue our vision to dominate the global foodservice
industry."
McDonald's recently announced plans to repurchase up to $2.2 billion
of common stock within the next three years and to add between 2,500 and 3,200
total restaurants annually, in 1996 and 1997. This expansion plan represents
a significant increase over prior years and is indicative of a low-cost
approach to restaurant development as well as the potential of alliances with
major oil companies and retailers.
Quinlan also said, "We are confident about our growth opportunities
and expect 1996 to be another record-breaking year of growth in sales and
profits driven by accelerating expansion and growing cash flow. These factors
will be balanced by an intensely competitive U.S. operating environment and
difficult comparisons due to exceptional international operating performance
and the benefit of stronger foreign currencies in 1995. Our long-term growth
expectations have not changed. We expect to grow U.S. sales and operating
income at a compound annual rate in the mid-single digits or better as
measured over a five-year period. We expect to grow international sales in
the mid- to high-teens and international operating income at a compound annual
rate of about 20 percent as measured over a five-year period."
-2-
<PAGE>
CONSOLIDATED OPERATING RESULTS
Net income and net income per common share each increased 17 percent for the
year, and 19 percent for the quarter.
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 expansion, stronger foreign
currencies and primarily outside of the U.S., positive comparable sales.
<TABLE>
<CAPTION>
=======================================================================================================
Systemwide restaurant additions Years Quarters
ended Dec. 31 ended Dec. 31
--------------------------------------
1995 1994 1995 1994
=======================================================================================================
<S> <C> <C> <C> <C>
Traditional restaurants
- -------------------------------------------------------------------------------------------------------
U.S. 597 461 271 181
- -------------------------------------------------------------------------------------------------------
Outside of the U.S. 1,007 751 439 359
- -------------------------------------------------------------------------------------------------------
Total traditional restaurant additions 1,604 1,212 710 540
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
Satellite restaurants
- -------------------------------------------------------------------------------------------------------
U.S. 533 380 144 138
- -------------------------------------------------------------------------------------------------------
Outside of the U.S. 293 195 123 54
- -------------------------------------------------------------------------------------------------------
Total satellite restaurant additions 826 575 267 192
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
Systemwide restaurant additions 2,430 1,787 977 732
=======================================================================================================
====================================================================================
Traditional restaurants under construction At Dec. 31
--------------
1995 1994
- ------------------------------------------------------------------------------------
U.S. 84 64
- ------------------------------------------------------------------------------------
Outside of the U.S. 120 132
- ------------------------------------------------------------------------------------
Total traditional restaurants under construction 204 196
====================================================================================
=======================================================================================================
Consolidated operating margins Years Quarters
ended Dec. 31 ended Dec. 31
----------------------------------------
1995 1994 1995 1994
=======================================================================================================
In millions of dollars
=======================================================================================================
Franchised $2,416.1 $2,092.7 $636.1 $565.5
- -------------------------------------------------------------------------------------------------------
Company-operated 1,315.8 1,147.6 335.4 319.1
- -------------------------------------------------------------------------------------------------------
As a percent of sales/revenues
- -------------------------------------------------------------------------------------------------------
Franchised 82.4 82.8 82.3 82.8
- -------------------------------------------------------------------------------------------------------
Company-operated 19.2 19.8 18.5 20.1
=======================================================================================================
</TABLE>
-3-
<PAGE>
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 revenues declined slightly for both periods, reflecting a higher
proportion of leased sites which have financing costs embedded in rent expense,
whereas financing costs for owned sites are reflected in interest expense.
Company-operated margins as a percent of sales declined for both periods. For
the year, food and paper, and occupancy and other operating costs increased,
while payroll costs remained relatively flat as a percent of sales. For the
quarter, food and paper, and payroll costs increased, while occupancy and other
costs decreased slightly as a percent of sales.
The increases in general, administrative and selling expenses were
primarily due to strategic global spending to support the convenience, value and
execution strategies, and stronger foreign currencies.
Other operating transactions relate to franchising and the foodservice
business, the details of which are shown below. The increases occurred because
of greater income from affiliates, principally Japan, partially offset by higher
provisions for property dispositions included in the other category.
<TABLE>
<CAPTION>
================================================================================
Other operating (income) expense--net Years Quarters
ended Dec. 31 ended Dec. 31
-------------------------------------
In millions of dollars 1995 1994 1995 1994
================================================================================
<S> <C> <C> <C> <C>
Gains on sales of restaurant businesses $ (63.9) $(67.1) $(18.9) $(17.7)
- --------------------------------------------------------------------------------
Equity in earnings of unconsolidated
affiliates (96.5) (47.0) (20.6) (6.0)
- --------------------------------------------------------------------------------
Other 54.7 30.2 23.5 23.1
- --------------------------------------------------------------------------------
Other operating (income) expense--net $(105.7) $(83.9) $(16.0) $ (.6)
================================================================================
</TABLE>
The increases in consolidated operating income primarily reflected
higher combined operating margin dollars and stronger foreign currencies,
partially offset by higher general, administrative and selling expenses.
The increases in interest expense were due to higher debt levels and
stronger foreign currencies, partially offset by lower average interest rates.
Nonoperating income (expense) was primarily impacted by higher losses
on investments. It was also impacted by higher charges associated with minority
interests, partially offset by higher interest income and lower translation
losses.
-4-
<PAGE>
The effective income tax rates were 34.2 and 35.1 percent for the
years 1995 and 1994, respectively, and 32.0 and 34.5 percent, respectively, for
the quarters. The Company expects its 1996 effective income tax rate to be in
the range of 32.5 to 33.5 percent, due to lower taxes related to foreign
operations.
U.S. OPERATING RESULTS
Restaurant expansion was primarily responsible for increasing U.S. sales. In
addition, positive comparable sales were achieved for the year through an
emphasis on value and customer satisfaction in the form of Extra Value Meals,
Happy Meals and the three-tier value program. Ongoing programs such as
Operation Mac Attack, and promotions such as Monopoly in May and December
contributed to higher sales in 1995.
<TABLE>
<CAPTION>
=======================================================================
U.S. operating results Years Quarters
ended Dec. 31 ended Dec. 31
-------------------------------------
1995 1994 1995 1994
=======================================================================
<S> <C> <C> <C> <C>
Percent increase
=======================================================================
Sales 6 5 5 5
- -----------------------------------------------------------------------
Revenues 8 6 7 6
- -----------------------------------------------------------------------
Operating income 3 5 4 3
=======================================================================
As a percent of sales/revenues
=======================================================================
Company-operated margins 17.7 19.0 17.3 18.1
- -----------------------------------------------------------------------
Franchised margins 82.6 83.2 82.3 83.1
=======================================================================
</TABLE>
The increases in U.S. operating income were driven by higher franchised
margin dollars resulting from expansion, and for the year, improved comparable
sales. The increases were partially offset by higher general, administrative
and selling expenses, lower gains on sales of restaurant businesses, and for the
year, a slight reduction in Company-operated margin dollars. Company-operated
margin dollars remained relatively flat for the quarter.
The declines in Company-operated margins as a percent of sales primarily
resulted from higher payroll costs due to higher average hourly wages and
increased staffing levels designed to improve customer satisfaction. The
declines in franchised margins as a percent of revenues reflected a higher
proportion of leased sites resulting from accelerated expansion.
-5-
<PAGE>
OPERATING RESULTS OUTSIDE OF THE U.S.
Expansion, stronger foreign currencies and higher comparable sales were
responsible for driving sales outside of the U.S. Comparable sales on a local
currency basis were positive for the fourth quarter and the year.
<TABLE>
<CAPTION>
==================================================================
Operating results Years Quarters
outside of the U.S. ended Dec. 31 ended Dec. 31
---------------------------------
1995 1994 1995 1994
==================================================================
<S> <C> <C> <C> <C>
Percent increase
==================================================================
Sales 27 18 18 26
- ------------------------------------------------------------------
Revenues 28 20 20 31
- ------------------------------------------------------------------
Operating income 30 24 20 39
==================================================================
As a percent of sales/revenues
==================================================================
Company-operated margins 20.2 20.5 19.3 21.6
- ------------------------------------------------------------------
Franchised margins 82.1 82.1 82.2 82.2
==================================================================
</TABLE>
Our Asia/Pacific, Europe/Africa/Middle East and Latin America segments
reported excellent operating results for the year and the following larger
markets had strong sales and profits: Australia, Hong Kong, Japan and Taiwan in
Asia/Pacific; and Austria, England, France, Germany, the Netherlands and Spain
in Europe. In Latin America, Brazil had significant gains in sales and
operating income. Results in Mexico continued to be impacted by the economy and
currency devaluation; however, we continue to believe this market offers long-
term potential. Comparable sales and operating income in Canada were negatively
impacted by slowing consumer spending and a weakening economy in the second half
of 1995.
The increases in operating income outside of the U.S. were driven by
higher combined operating margins resulting from expansion, higher comparable
sales, and stronger foreign currencies, partially offset by higher general,
administrative and selling expenses.
The declines in Company-operated margins as a percent of sales
reflected higher food and paper, and occupancy and other operating costs. These
cost increases for the year were partially offset by a reduction in payroll
costs as a percent of sales. In addition, Brazil's strong 1995 operating
results had a greater impact on the increase in Company-operated margins in the
first half of this year, as Brazil's improved performance began in the second
half of 1994. As a percent of sales, franchised margins remained flat compared
to 1994. The increases in combined operating margin dollars occurred because of
expansion, higher comparable sales and stronger foreign currencies.
-6-
<PAGE>
IMPACT OF FOREIGN CURRENCIES ON REPORTED RESULTS
The Deutsche Mark and French Franc represented the currencies which
significantly contributed to the exchange impact on reported results for both
periods in 1995. The Japanese Yen was also a significant contributor for the
year. If exchange rates had remained at 1994 levels, reported results would
have been as follows:
<TABLE>
<CAPTION>
=========================================================================================
Year ended Dec. 31, 1995
Foreign currency impact ---------------------------------------------------------
Dollars in millions Reported Adjusted Adjustment Reported Adjusted
=========================================================================================
<S> <C> <C> <C> <C> <C>
Systemwide sales $29,913.9 $29,056.6 $857.3 15% 12%
- -----------------------------------------------------------------------------------------
Operating income 2,601.3 2,512.9 88.4 16 12
- -----------------------------------------------------------------------------------------
Net income 1,427.3 1,388.8 38.5 17 13
=========================================================================================
Quarter ended Dec. 31, 1995
---------------------------------------------------------
Reported Adjusted Adjustment Reported Adjusted
=========================================================================================
Systemwide sales $7,734.4 $7,644.4 $90.0 11% 10%
- -----------------------------------------------------------------------------------------
Operating income 646.1 634.3 11.8 12 10
- -----------------------------------------------------------------------------------------
Net income 366.8 362.7 4.1 19 17
=========================================================================================
</TABLE>
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.
-7-
<PAGE>
McDONALD'S CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
<TABLE>
<CAPTION>
Dollars and shares in millions, Years ended Dec. 31
except per common share data --------------------------------------------------
Increase (Decrease)
--------------------
1995 1994 $ %
--------- --------- ------- --
<S> <C> <C> <C> <C>
SYSTEMWIDE SALES $29,913.9 $25,987.4 3,926.5 15
- ------------------------------------------------------------------------------------------------
Revenues
Sales by Company-operated restaurants $ 6,863.5 $ 5,792.6 1,070.9 18
Revenues from franchised restaurants 2,931.0 2,528.2 402.8 16
- ------------------------------------------------------------------------------------------------
TOTAL REVENUES 9,794.5 8,320.8 1,473.7 18
- ------------------------------------------------------------------------------------------------
Operating costs and expenses
Company-operated restaurants 5,547.7 4,645.0 902.7 19
Franchised restaurants--occupancy costs 514.9 435.5 79.4 18
General, administrative and selling expenses 1,236.3 1,083.0 153.3 14
Other operating (income) expense--net (105.7) (83.9) (21.8) 26
- ------------------------------------------------------------------------------------------------
Total operating costs and expenses 7,193.2 6,079.6 1,113.6 18
- ------------------------------------------------------------------------------------------------
OPERATING INCOME 2,601.3 2,241.2 360.1 16
- ------------------------------------------------------------------------------------------------
Interest expense 340.2 305.7 34.5 11
Nonoperating income (expense)--net (92.0) (48.9) (43.1) 88
- ------------------------------------------------------------------------------------------------
Income before provision for income taxes 2,169.1 1,886.6 282.5 15
- ------------------------------------------------------------------------------------------------
Provision for income taxes 741.8 662.2 79.6 12
- ------------------------------------------------------------------------------------------------
NET INCOME $ 1,427.3 $ 1,224.4 202.9 17
================================================================================================
NET INCOME PER COMMON SHARE* $ 1.97 $ 1.68 .29 17
- ------------------------------------------------------------------------------------------------
Weighted average common shares outstanding 701.5 701.8
- ------------------------------------------------------------------------------------------------
Dollars and shares in millions, Years ended Dec. 31
except per common share data ------------------------------------------------
Increase (Decrease)
--------------------
1995 1994 $ %
--------- -------- ----- --
<S> <C> <C> <C> <C>
SYSTEMWIDE SALES $7,734.4 $6,964.0 770.4 11
Revenues
Sales by Company-operated restaurants $1,812.2 $1,586.8 225.4 14
Revenues from franchised restaurants 773.3 683.3 90.0 13
TOTAL REVENUES 2,585.5 2,270.1 315.4 14
Operating costs and expenses
Company-operated restaurants 1,476.8 1,267.7 209.1 16
Franchised restaurants--occupancy costs 137.2 117.8 19.4 16
General, administrative and selling
expenses 341.4 309.4 32.0 10
Other operating (income) expense--net (16.0) (.6) (15.4) NM
Total operating costs and
expenses 1,939.4 1,694.3 245.1 14
OPERATING INCOME 646.1 575.8 70.3 12
Interest expense 87.7 80.1 7.6 9
Nonoperating income (expense)--net (18.8) (24.1) 5.3 (22)
Income before provision for
income taxes 539.6 471.6 68.0 14
Provision for income taxes 172.8 162.7 10.1 6
NET INCOME $ 366.8 $ 308.9 57.9 19
NET INCOME PER COMMON SHARE* $ .51 $ .43 .08 19
Weighted average common shares
outstanding 699.2 696.0
</TABLE>
* Computed using net income reduced by preferred stock dividends (net of tax) of
$40.5 and $47.2 million for the years 1995 and 1994, respectively, and $8.7
and $11.7 million for the fourth quarters of 1995 and 1994, respectively; and
for the year 1995: $3.9 million for the one-time effect of the Company's
offer to exchange its Series E 7.72% Cumulative Preferred Stock for
subordinated debt securities completed on June 30, 1995, and an additional $.4
million for the effect of the Company's repurchase of additional Series E
preferred stock in the third quarter.
NM - Not Meaningful
-8-
<PAGE>
McDONALD'S CORPORATION
FINANCIAL INFORMATION
<TABLE>
<CAPTION>
Years ended Dec. 31
----------------------------------------
Dollars in millions Increase (Decrease)
-------------------
1995 1994 $ %
--------- --------- ------- --
<S> <C> <C> <C> <C>
SYSTEMWIDE SALES
U.S.
- ----
Operated by franchisees $12,474.5 $11,964.4 510.1 4
Operated by the Company 2,725.1 2,550.2 174.9 7
Operated by affiliates 705.6 426.4 279.2 65
--------- --------- ------- --
15,905.2 14,941.0 964.2 6
--------- --------- ------- --
Outside of the U.S.
- -------------------
Operated by franchisees 6,648.1 5,181.8 1,466.3 28
Operated by the Company 4,138.4 3,242.4 896.0 28
Operated by affiliates 3,222.2 2,622.2 600.0 23
--------- --------- ------- --
14,008.7 11,046.4 2,962.3 27
--------- --------- ------- --
$29,913.9 $25,987.4 3,926.5 15
========= ========= ======= ==
By Type
- -------
Operated by franchisees $19,122.6 $17,146.2 1,976.4 12
Operated by the Company 6,863.5 5,792.6 1,070.9 18
Operated by affiliates 3,927.8 3,048.6 879.2 29
--------- --------- ------- --
$29,913.9 $25,987.4 3,926.5 15
========= ========= ======= ==
- ---------------------------------------------------------------------------
TOTAL REVENUES
U.S. $ 4,473.9 $ 4,155.6 318.3 8
Outside of the U.S. 5,320.6 4,165.2 1,155.4 28
--------- --------- ------- --
$ 9,794.5 $ 8,320.8 1,473.7 18
========= ========= ======= ==
- ---------------------------------------------------------------------------
OPERATING INCOME*
U.S. $ 1,252.4 $ 1,216.7 35.7 3
Outside of the U.S. 1,397.1 1,072.1 325.0 30
Corporate G&A (48.2) (47.6) (.6) 1
--------- --------- ------- --
$ 2,601.3 $ 2,241.2 360.1 16
========= ========= ======= ==
</TABLE>
* 1994 operating income has been restated to reflect a more meaningful
allocation of general, administrative and selling expenses between the U.S.
and international segments and now includes an additional corporate category
which is not allocated.
- ---------------------------------------------------------------------------
PERCENT CONTRIBUTION TO COMBINED OPERATING MARGINS
<TABLE>
<CAPTION>
Years ended Dec. 31
-----------------------
1995 1994
------- -------
<S> <C> <C>
Company-operated
- ----------------
U.S. 37 42
Outside of the U.S. 63 58
--- ---
100 100
=== ===
Franchised
- ----------
U.S. 60 64
Outside of the U.S. 40 36
--- ---
100 100
=== ===
- ---------------------------------------------------------------------------
</TABLE>
-9-
<PAGE>
McDONALD'S CORPORATION
RESTAURANT INFORMATION*
<TABLE>
<CAPTION>
At Dec. 31
----------------------------------------
Increase
----------------
1995 1994 # %
------ ---- --- ---
<S> <C> <C> <C> <C>
TRADITIONAL RESTAURANTS
U.S.
Operated by franchisees 8,180 7,849 331 4
Operated by the Company 1,634 1,546 88 6
Operated by affiliates 527 349 178 51
------ ------ ----- ---
10,341 9,744 597 6
------ ------ ----- ---
Outside of the U.S.
Operated by franchisees 3,060 2,609 451 17
Operated by the Company 1,879 1,537 342 22
Operated by affiliates 1,529 1,315 214 16
------ ------ ----- ---
6,468 5,461 1,007 18
------ ------ ----- ---
16,809 15,205 1,604 11
====== ====== ===== ===
By Type
Operated by franchisees 11,240 10,458 782 7
Operated by the Company 3,513 3,083 430 14
Operated by affiliates 2,056 1,664 392 24
------ ------ ----- ---
16,809 15,205 1,604 11
------ ------ ----- ---
- -----------------------------------------------------------------
SATELLITE RESTAURANTS
U.S. 1,027 494 533 108
Outside of the U.S. 544 251 293 117
------ ------ ----- ---
1,571 745 826 111
------ ------ ----- ---
- -----------------------------------------------------------------
SYSTEMWIDE RESTAURANTS
U.S. 11,368 10,238 1,130 11
Outside of the U.S. 7,012 5,712 1,300 23
------ ------ ----- ---
18,380 15,950 2,430 15
====== ====== ===== ===
</TABLE>
_________________________________________________________________
SYSTEMWIDE COUNTRIES 89 79
_________________________________________________________________
TOTAL RESTAURANTS IN MARKETS OUTSIDE OF THE U.S.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Japan 1,482 1,169 313 27
Canada 902 824 78 9
Germany 649 570 79 14
England 578 530 48 9
Australia 530 454 76 17
France 430 353 77 22
Brazil 243 195 48 25
Netherlands 128 110 18 16
Mexico 132 113 19 17
Taiwan 111 85 26 31
Spain 103 82 21 26
Other 1,724 1,227 497 41
------ ------ ----- ---
7,012 5,712 1,300 23
====== ====== ===== ===
</TABLE>
_________________________________________________________________
* 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.
-10-
