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 9, 1997
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
(630) 623-3000
(Address and Phone Number of Principal Executive Offices)
<PAGE>
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits
(c) Exhibits
(99) Press Release dated July 9, 1997 - ``McDonald's Announces
Reorganization of U.S. Business''
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, Deputy General
Counsel and Secretary
EXHIBIT 99
FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
07/09/97 Investors: Mary Healy, 630-623-6429
Media: Chuck Ebeling, 630-623-6150
Terri Capatosto, 630-623-6109
McDONALD'S ANNOUNCES REORGANIZATION OF U.S. BUSINESS
OAK BROOK, IL -- McDonald's Corporation will substantially
decentralize its United States business by reorganizing into five
geographic divisions, each led by a newly appointed divisional
president and management team. The reorganization, designed to place
management decision-making and accountability closer to the company's
customers, restaurants and franchisees, was announced today by Michael
R. Quinlan, McDonald's chairman and chief executive officer, and Jack
M. Greenberg, vice chairman, McDonald's Corporation, and chairman of
McDonald's U.S. system.
In a meeting of company employees, Quinlan expressed a strong debt
of gratitude to Edward H. Rensi, who announced he is retiring as
president and chief executive officer - McDonald's U.S.A. because of
personal family commitments. ``Ed Rensi has been by my side for more
than 25 years, helping immeasurably to expand McDonald's into the
world's largest foodservice organization and best known brand,''
Quinlan said. ``I am happy to report that he has agreed to stay on as
a consultant to help us finalize the development of our new production
system, which enables us to rely upon his vast operational
expertise.''
Quinlan said that, effective immediately, Greenberg will assume the
title of chairman and chief executive officer of McDonald's USA.
The five new division presidents will report directly to Greenberg.
Named were:
Alan Feldman, 45, President, Northeast Division, 2,210
restaurants.
Debra A. Koenig, 45, President, Southeast Division, 2,820
restaurants.
Kevin Dunn, 44, President, Great Lakes Division, 2,370
restaurants.
John S. Charlesworth, 51, President, Midwest Division, 2,390
restaurants.
Michael Roberts, 46, President, Western Division, 2,310
restaurants.
Division presidents will have full responsibility and accountability
for the performance of their divisions. By September 1, they will
have appointed their divisional management teams -- including
restaurant support operations, development, marketing, financial,
human resources and franchisee relations -- and will be fully
functional. Divisional presidents will decide if and when their teams
will relocate to the field.
``We believe this change is right for our company's future,'' said
Quinlan.
``If you think about the fact that each one of these five divisions,
from a sales standpoint, would qualify as one of the 500 largest
companies in America, you get a sense of the scope of our U.S.
business as well as the management challenge it represents. When Jack
Greenberg was elected chairman of McDonald's USA last October, we
decided there was a clear need to bring more focused management closer
to our restaurants, with the goal of serving our customers better than
ever before. This new structure addresses that need, and I'm
confident we will be a stronger company for it.''
In addition to naming the division presidents, Greenberg also
announced three new additions to his U.S. management team.
Claire Babrowski, 39, was appointed senior vice president of
Restaurant Systems. In that capacity, Babrowski will lead a newly
created function that includes U.S. site development, purchasing,
operations research and development, menu management and training.
``This is a new, cross-functional approach to organizing our
restaurant operations,'' Greenberg said. ``I expect this group to
become a center for innovative thinking, and I believe Claire is
perfectly qualified to lead that effort.''
Greenberg also appointed Patrick Flynn, 55, as executive vice
president of Strategic Planning, and Raymond Mines, 52, as senior vice
president of Franchisee Relations.
``Pat Flynn brings more than 35 years of McDonald's experience to
this important new function, which will consolidate the efforts of
business planning and research, corporate development and new
technology development. In the highly competitive U.S. marketplace,
gathering the right information, and using it wisely, is a critical
component for success. Pat is a talented executive who will get that
job done,'' Greenberg said.
Greenberg continued, "In another critical area, franchisee
relations, Raymond Mines will work with our division presidents to
maintain a sharp focus on the needs and concerns of our
owner/operators. When it is all said and done, McDonald's cannot
succeed unless our franchisees succeed.''
Babrowski, Flynn and Mines join several other staff support
officers -- in marketing, legal, human resources, financial and
communications -- who comprise Greenberg's U.S. management group.
Additionally, Greenberg announced that Noel Kaplan, 58, will take on
the newly created position of senior vice president for Alliance
Relationships, to enhance McDonald's global strategic alliances.
``The statement `line led, staff supported' perfectly summarizes the
overall intent of our reorganization effort,'' Greenberg said. ``We
want the `line' -- which for McDonald's includes our divisional and
regional staffs, owner/operators and restaurant personnel -- to make
decisions on behalf of customers based on field operating needs. The
line ultimately has responsibility and accountability for our business
success. We want `staff' functions to support line decisions and
maximize their impact. This way, everyone has a clear, singular focus
-- customer satisfaction. It should be emphasized that cutting costs
is not an objective of this reorganization. Improved performance
is.''
Greenberg noted that while division presidents will have the
authority to innovate new approaches to meet business objectives, they
must maintain a uniform commitment to the basic principles that have
made McDonald's the best-known brand in the world.
"That means a strict focus on quality, service, cleanliness and
value. It also includes a desire to make decisions in the best
interest of the overall brand, encouraging high levels of personal
accountability, and a sharp sensitivity for local market needs,"
Greenberg said. ``These principles have enabled us to maintain a
remarkably consistent McDonald's brand across different cultures and
languages. And if we can do that in 103 countries, we should have no
problem achieving that same consistency in five U.S. divisions.''
As part of the management realignment, eight Zone Officer positions
based in Oak Brook, to which the company's 40 U.S. operating regions
previously reported, are being eliminated. Those regions will now
report to the appropriate division presidents.
Quinlan also expressed sincere gratitude to Thomas Glasgow,
executive vice president and chief operations officer, and Thomas
Dentice, executive vice president, who are changing their roles in the
company and are expected to become owner/operators in the U.S. system.
``The entire senior management team has been extremely supportive of
the need for this type of change," Quinlan said. "Tom Glasgow and Tom
Dentice have made remarkable contributions to McDonald's. Their
personal and professional commitment helped to pioneer this great
company of ours. That same commitment now serves as a standard of
excellence that others will follow going forward.''
McDonald's is the largest and best-known global foodservice
retailer, with more than 21,000 restaurants in 103 countries. On any
day, even as the market leader, McDonald's serves less than one
percent of the world's population. The Company plans to expand its
leadership position through convenience, superior value and excellent
operations.
