McDonald's Reports Global Results

Apr 19, 2001, 01:00 ET from McDonald's Corporation

    OAK BROOK, Ill., April 19 /PRNewswire/ -- McDonald's Corporation
 (NYSE:   MCD) today announced global results for the quarter ended March 31,
 2001.
 
     * Systemwide sales increased 6% for the quarter in constant currencies.
 
     * Sales increased in all segments:  4% in the U.S. and, in constant
       currencies, 11% in Latin America, 4% in Asia/Pacific and 2% in Europe.
 
     * Revenues increased 10% in constant currencies.
 
     * Diluted net income per common share was 29 cents for the quarter,
       30 cents in constant currencies.
 
     * The Company repurchased $452 million of stock during the quarter.
 
      Key highlights - Consolidated
      Dollars in millions, except per common                     Percent
      share data                                           Increase/(Decrease)
                                                              As      Constant
      Quarters ended March 31            2001       2000   Reported  Currency*
      Systemwide sales               $9,649.7   $9,506.7          2          6
      Total revenues                  3,511.7    3,343.8          5         10
      Operating income                  695.2      768.6        (10)        (6)
      Net income                        378.3      450.9        (16)       (12)
      Net income per common
      share - diluted                     .29        .33        (12)        (9)
 
     *  Information on a constant currency basis excludes the effect of
        foreign currency translation on reported results, except for
        hyperinflationary economies, such as Russia, whose functional
        currency is the U.S. Dollar.
 
     SUMMARY COMMENTARY
 
     Chairman and Chief Executive Officer Jack M. Greenberg said, "McDonald's
 reported earnings per share of 29 cents for the quarter, or 30 cents in
 constant currencies.  Given the extremely challenging circumstances we faced
 during the quarter, we were pleased to report a 6% increase in Systemwide
 sales and a 10% increase in revenues in constant currencies.  Challenges
 included difficult comparisons due to strong marketing promotions last year in
 the U.S., Europe and Asia/Pacific, the extra day in 2000 due to leap year,
 consumer concerns regarding European beef in certain markets and weak
 economies in certain areas of the world.
     "Yet, our recent business trends are encouraging.  We are cautiously
 optimistic that results will continue to improve as more and more customers
 respond to our quality, value and variety messages and when weak economies
 strengthen.  Based on our expectation for improved business trends,
 particularly in the second half of the year, we expect 2001 annual earnings
 per share growth in constant currencies to be within our previously stated 6%
 to 10% range.  If exchange rates remain where they are today, 2001 reported
 annual earnings per share will be about 4 cents lower than constant currency
 earnings per share.
     "In the U.S., expansion and positive comparable sales contributed to a
 Systemwide sales increase of 4%, on top of a 5% increase last year.  We
 continued to emphasize food taste and variety with the successful national
 rollout of the Big N' Tasty Sandwich and our New Tastes Menu, which offers
 customers more choice and complements our core menu.
     "In Europe, we are optimistic that lingering concerns about beef will
 continue to lessen as the year progresses.  We continue to proactively educate
 our European customers about McDonald's high food safety and quality
 standards, which lead the industry and provide the benchmark for safe food
 around the world.  We are also promoting menu variety and value and the
 results have been encouraging.  In March, comparable sales trends improved in
 several key European markets.  And in France, our beef sales as a percent of
 our total product sales have increased throughout the quarter.
     "In Asia/Pacific, Systemwide sales increased 4% in constant currencies,
 driven by expansion.  Tough comparisons with successful promotions in 2000 and
 weak economies in several markets negatively impacted the quarter.  However,
 China continued to deliver strong results, and we are pleased that despite
 weakness in Japan's economy, we posted positive comparable sales there for the
 past two months.
     "We remain confident in our business fundamentals and core growth
 opportunities.  We will continue to focus on building comparable sales through
 effective marketing, operations and menu development around the world.  And we
 expect to add approximately 1,500 to 1,600 McDonald's restaurants in 2001.
     "As we have done with previous challenges in our history, we are intent on
 managing through this difficult set of short-term, external challenges and
 emerging stronger than ever.  Our leading competitive position, globally
 recognized brand, experienced local management and worldwide infrastructure
 position us to benefit from the enduring needs and desires of people for
 great-tasting food, value, friendly interaction and convenience.  I am
 confident that McDonald's can deliver solid earnings growth and outstanding
 returns far into the future."
 
     OPERATING RESULTS
     The Company operates in the food service industry and primarily operates
 quick-service restaurant businesses under the McDonald's brand.  To capture
 additional meal occasions, the Company also operates other restaurant
 concepts:  Aroma Cafe, Boston Market, Chipotle Mexican Grill and Donatos
 Pizza.  Collectively these four businesses are referred to as "Other Brands."
 
     Impact of Foreign Currencies on Reported Results
     While changing foreign currencies affect reported results, McDonald's
 lessens exposures, where practical, by financing in local currencies, hedging
 certain foreign-denominated cash flows and by purchasing goods and services in
 local currencies.
     Reported results for the quarter were negatively affected by foreign
 currency translation primarily due to the weaker Euro, British Pound,
 Australian Dollar and Japanese Yen.
 
     Systemwide Sales and Revenues
     Systemwide sales represent sales by Company-operated, franchised and
 affiliated restaurants.  Total revenues include sales by Company-operated
 restaurants and fees from restaurants operated by franchisees and affiliates.
 These fees include rent, service fees and royalties that are based on a
 percent of sales, with specified minimum payments along with initial fees.
 
      Systemwide sales
                                                                 Percent
      Dollars in millions                                  Increase/(Decrease)
                                                              As      Constant
      Quarters ended March 31            2001       2000   Reported  Currency*
      U.S.                           $4,676.5   $4,505.0          4        n/a
      Europe                          2,178.2    2,305.7         (6)         2
      Asia/Pacific                    1,687.5    1,785.6         (5)         4
      Latin America                     455.3      434.1          5         11
      Other**                           652.2      476.3         37         42
      Total Systemwide sales         $9,649.7   $9,506.7          2          6
 
       *  Excluding the effect of foreign currency translation on reported
          results.
      **  Includes Systemwide sales for Other Brands of $225.6 million and
          $47.4 million for first quarter 2001 and 2000, respectively.
     n/a  Not applicable
 
     On a global basis, the increases in sales and revenues for the quarter
 were primarily due to restaurant expansion and the acquisition of Boston
 Market in the second quarter 2000.  Foreign currency translation had a
 negative effect on the growth rates for both Systemwide sales and revenues for
 the quarter.  On a constant currency basis, revenues increased at a higher
 rate than sales for the quarter, primarily due to the acquisition of Boston
 Market, which are all Company-operated restaurants, and an increase in the
 royalty percent received from our Japanese affiliate, effective
 January 1, 2001.
     U.S. sales increased 4% for the quarter due to expansion and positive
 comparable sales, despite the extra day in 2000 due to leap year.  The
 comparable sales increase was driven by the introduction of the New Tastes
 Menu, which offers customers more variety, the national rollout of the Big N'
 Tasty sandwich and local market initiatives.
     In Europe, constant currency sales increased due to expansion and strong
 performance in the Netherlands and Russia, substantially offset by negative
 comparable sales.  Comparable sales were affected by the decline in consumer
 confidence regarding the European beef supply in certain markets, as well as
 difficult comparisons with strong promotions last year.  Sales trends are
 improving in several markets including France, which had positive comparable
 sales in March.  We are optimistic that the impact from the concerns regarding
 European beef will continue to lessen as the year progresses.
     Expansion, partly offset by negative comparable sales, drove the constant
 currency sales increase in Asia/Pacific.  This segment continued to benefit
 from strong positive comparable sales in China.  However, Asia/Pacific's
 comparable sales growth was negatively affected by a difficult comparison with
 last year's very successful Hello Kitty promotion in several markets and weak
 consumer spending in Australia, due to the goods and services tax introduced
 in July 2000.  We expect comparable sales in Australia to improve in the
 second half of the year as we pass the anniversary of the introduction of the
 tax.
     In Latin America, the constant currency sales increase was due to
 expansion, partly offset by negative comparable sales.  Expansion and positive
 comparable sales in Mexico and Brazil were the primary contributors to the
 increase; however, weak consumer spending continued to negatively affect most
 markets in this segment.
     In the Other segment, the constant currency sales increase was driven by
 the acquisition of Boston Market and positive comparable sales and expansion
 for Canada, Chipotle and Donatos.
 
     Combined Operating Margins
     The following combined operating margin information represents margins for
 McDonald's restaurant business only.
 
      Combined operating margins                              Quarters ended
                                                                 March 31
                                                                2001      2000
      Dollars in millions
      Company-operated                                      $  359.3  $  403.3
      Franchised                                               700.2     709.7
         Combined operating margins                         $1,059.5  $1,113.0
      Percent of sales/revenues
      Company-operated                                         15.0%     16.8%
      Franchised                                               78.1      78.6
 
     Combined operating margin dollars decreased by $13.0 million, or 1%, for
 the quarter, in constant currencies.  The U.S. and Europe segments accounted
 for nearly 80% of the combined margin dollars for the quarter.
     As a percent of sales, Company-operated margins decreased for the quarter.
 Food & paper costs as a percent of sales were flat, while payroll costs and
 occupancy & other operating expenses increased.
     In the U.S., Company-operated margins for the quarter decreased as a
 percent of sales, primarily due to higher labor and energy costs, partly
 offset by lower food & paper costs.  In Europe and Asia/Pacific, the Company-
 operated margin percent decreased primarily due to negative comparable sales
 and higher labor costs.  In addition, Europe experienced higher food costs.
 Latin America's Company-operated margin percent was relatively flat.
     Franchised margins as a percent of applicable revenues in the U.S. were
 relatively flat, while margin percents in Europe and Latin America declined,
 primarily due to negative comparable sales and temporary rent assistance
 provided to franchisees in certain markets.  The franchised margin percent in
 Asia/Pacific increased primarily due to an increase in the royalty percent
 received from our Japanese affiliate.
     Franchised margins as a percent of revenues in all segments were also
 negatively impacted by higher occupancy costs as a result of our strategy to
 lease more sites.  By leasing a higher proportion of new sites, we have
 reduced initial capital requirements.  However, as anticipated, this practice
 reduces franchised margins because the financing costs implicit in the lease
 are included in occupancy expense, whereas for owned sites, financing costs
 are reflected in interest expense.
 
     Selling, General & Administrative Expenses
     Selling, general & administrative expenses increased 5% for the quarter,
 primarily due to the acquisition of Boston Market and spending to support the
 development of Other Brands, partly offset by weaker foreign currencies.
 Excluding Other Brands, selling, general & administrative expenses increased
 1% for the quarter.
 
     Other Operating Income, net
     Equity in earnings of unconsolidated affiliates decreased for the quarter
 primarily due to weaker results in Japan, the increase in Japan's royalty
 expense and a weaker Japanese Yen.  Although the increase in royalty expense
 reduced McDonald's equity in earnings for Japan, it was more than offset by
 the royalty benefit McDonald's received in franchised revenues.  The decrease
 in other expense for the quarter was primarily due to a gain on the sale of
 real estate in Singapore, partly offset by the write-off of certain technology
 costs.
 
      Other operating income, net
      Dollars in millions
      Quarters ended March 31                                   2001      2000
      Gains on sales of restaurant businesses                  $15.3     $15.6
      Equity in earnings of unconsolidated affiliates           11.9      26.4
      Other expense                                             (5.6)    (12.7)
         Total                                                 $21.6     $29.3
 
     Operating Income
     Consolidated operating income for the quarter decreased $43.1 million, or
 6%, in constant currencies.  The constant currency decrease for the quarter
 was due to lower combined operating margin dollars and other operating income,
 and higher selling, general & administrative expenses incurred primarily in
 developing the Other Brands.
 
      Operating income**
                                                                 Percent
      Dollars in millions                                  Increase/(Decrease)
                                                                 As   Constant
      Quarters ended March 31            2001       2000   Reported  Currency*
      U.S.                             $402.7     $388.7          4        n/a
      Europe                            222.8      276.4        (19)      (13)
      Asia/Pacific                      115.5      118.2         (2)        8
      Latin America                      22.3       31.7        (30)      (27)
      Other***                           11.7       20.8        (44)      (38)
      Corporate                         (79.8)     (67.2)       (19)       n/a
       Total operating income          $695.2     $768.6        (10)       (6)
 
       *  Excluding the effect of foreign currency translation on reported
          results.
      **  Segment operating income has been restated for 2000 to break out
          corporate expenses from the other operating segments.
     ***  Includes operating losses for Other Brands of $14.9 million and
          $9.1 million for first quarter 2001 and 2000, respectively.
     n/a  Not applicable
 
     U.S. operating income increased $14.0 million, or 4%, for the quarter.
 The increase was driven by higher combined operating margin dollars and higher
 other operating income, partly offset by higher selling, general and
 administrative expenses.
     Europe's operating income decreased as the decline in consumer confidence
 regarding the safety of the European beef supply continued to negatively
 affect results.
     Operating income in Asia/Pacific increased 8% in constant currencies.
 This segment benefited from a strong performance in China, an increase in the
 royalty percent received from Japan and a gain on the sale of real estate in
 Singapore.
     Latin America's operating income decreased as strong results in Mexico
 were offset by lower franchised margins in countries continuing to experience
 difficult economic conditions.
     In the Other segment, Canada's continued strong performance was offset by
 weak results in several markets in the Middle East & Africa and spending to
 support restaurant development in the Other Brands.
 
     INTEREST, NONOPERATING EXPENSE AND INCOME TAXES
     Higher interest expense for the quarter was primarily due to higher
 average debt levels, partly offset by weaker foreign currencies.  The higher
 average debt levels were a result of the Company using its available credit
 capacity to repurchase shares of common stock.  We expect the rate of increase
 in interest expense to moderate throughout the year.
     Nonoperating expense increased for the quarter primarily due to the
 write-off of a financing receivable from a Latin American supplier and
 minority interest expense related to the sale of real estate in Singapore.
     The effective income tax rate was 32.0% for the first quarter in both 2001
 and 2000, and is expected to be about 32.0% for the year.
 
     WEIGHTED AVERAGE SHARES
     Weighted average shares outstanding for the quarter were lower compared
 with the prior year due to shares repurchased.  In addition, outstanding stock
 options had a less dilutive effect than in the prior year.  The Company
 repurchased $452 million or 14.4 million shares of its common stock in the
 first quarter.
 
     FORWARD-LOOKING STATEMENTS
     Certain forward-looking statements are included in this release.  They use
 such words as "may," "will," "expect," "believe," "plan" and other similar
 terminology.  These statements reflect management's current expectations
 regarding future events and operating performance and speak only as of the
 date of this release.  These forward-looking statements involve a number of
 risks and uncertainties.  The following are some of the factors that could
 cause actual results to differ materially from those expressed in or
 underlying our forward-looking statements: the effectiveness of operating
 initiatives and advertising and promotional efforts, the effects of the Euro
 conversion, as well as changes in: global and local business and economic
 conditions; currency exchange and interest rates; food, labor and other
 operating costs; political or economic instability in local markets;
 competition; consumer preferences, spending patterns and demographic trends;
 legislation and governmental regulation; and accounting policies and
 practices.  The foregoing list of important factors is not exclusive.
     The Company undertakes no obligation to publicly update or revise any
 forward-looking statements, whether as a result of new information, future
 events or otherwise.
 
     FIRST QUARTER CONFERENCE CALL
     In conjunction with its First Quarter earnings release, McDonald's
 Corporation will broadcast its conference call with members of management live
 over the Internet on Thursday, April 19, 2001 at 10:00 a.m. Central Time.
 Interested parties are invited to listen by logging on to
 http://www.mcdonalds.com/corporate/investor and clicking "Investor Webcasts"
 under "Latest News".
 
 
                              McDONALD'S CORPORATION
                    CONDENSED CONSOLIDATED STATEMENT OF INCOME
 
     Dollars and shares in millions, except per common share data
     --------------------------------------------------------------------
                                                                Inc/(Dec)
     Quarters ended March 31,           2001         2000         $     %
     --------------------------------------------------------------------
     SYSTEMWIDE SALES               $9,649.7     $9,506.7     143.0     2
     Revenues
     Sales by Company-operated
      restaurants                    2,614.2      2,439.9     174.3     7
     Revenues from franchised
      and affiliated restaurants       897.5        903.9      (6.4)   (1)
 
     TOTAL REVENUES                  3,511.7      3,343.8     167.9     5
 
     Operating costs and expenses
     Company-operated
      restaurants                    2,243.4      2,033.1     210.3    10
     Franchised restaurants
      --occupancy costs                196.9        193.8       3.1     2
     Selling, general &
      administrative expenses          397.8        377.6      20.2     5
     Other operating
      income, net                      (21.6)       (29.3)      7.7   n/m
     Total operating costs
      and expenses                   2,816.5      2,575.2     241.3     9
 
     OPERATING INCOME                  695.2        768.6     (73.4)  (10)
 
     Interest expense                  120.9        100.4      20.5    20
 
     Nonoperating expense               18.3          5.5      12.8   n/m
 
     Income before provision
      for income taxes                 556.0        662.7    (106.7)  (16)
 
     Provision for
      income taxes                     177.7        211.8     (34.1)  (16)
 
     NET INCOME                     $  378.3     $  450.9     (72.6)  (16)
 
     NET INCOME PER
      COMMON SHARE                  $   0.29     $   0.34     (0.05)  (15)
 
     NET INCOME PER
      COMMON SHARE-DILUTED          $   0.29     $   0.33     (0.04)  (12)
 
     Weighted average
      common shares outstanding      1,300.7      1,343.4
 
     Weighted average
      common shares outstanding
      -diluted                       1,325.3      1,383.8
 
     n/m  Not meaningful
 
 
                           McDONALD'S CORPORATION SYSTEMWIDE SALES
 
     Dollars in millions
     ------------------------------------------------------------------------
                                                            % Inc/(Dec)
                                                              As     Constant
     Quarters ended March 31,        2001        2000   Reported    Currency*
     ------------------------------------------------------------------------
     U.S.
     Operated by franchisees     $3,666.4    $3,526.0          4
     Operated by the Company        745.8       701.9          6
     Operated by affiliates         264.3       277.1         (5)
                                  4,676.5     4,505.0          4          n/a
 
     Europe
     Operated by franchisees      1,211.3     1,269.3         (5)
     Operated by the Company        860.5       917.5         (6)
     Operated by affiliates         106.4       118.9        (11)
                                  2,178.2     2,305.7         (6)           2
 
     Asia/Pacific
     Operated by franchisees        417.4       465.3        (10)
     Operated by the Company        447.8       471.2         (5)
     Operated by affiliates         822.3       849.1         (3)
                                  1,687.5     1,785.6         (5)           4
 
     Latin America
     Operated by franchisees        232.2       224.6          3
     Operated by the Company        214.9       178.8         20
     Operated by affiliates           8.2        30.7        (73)
                                    455.3       434.1          5           11
 
     Other**
     Operated by franchisees        297.5       293.5          1
     Operated by the Company        345.2       170.5        102
     Operated by affiliates           9.5        12.3        (23)
                                    652.2       476.3         37           42
 
     Systemwide
     Operated by franchisees      5,824.8     5,778.7          1
     Operated by the Company      2,614.2     2,439.9          7
     Operated by affiliates       1,210.7     1,288.1         (6)
                                 $9,649.7    $9,506.7          2            6
 
       *  Excluding the effect of foreign currency translation on reported
          results.
      **  The Other segment includes $225.6 million of sales in 2001 and
          $47.4 million in 2000 related to Other Brands.
     n/a  Not applicable
 
 
                           McDONALD'S CORPORATION TOTAL REVENUES
 
     Dollars in millions
     ----------------------------------------------------------------------
                                                          % Inc/(Dec)
                                                            As     Constant
     Quarters ended March 31,       2001        2000  Reported    Currency*
     ----------------------------------------------------------------------
       U.S.                     $1,270.4    $1,209.6         5          n/a
       Europe                    1,094.9     1,171.0        (6)           1
       Asia/Pacific                510.2       526.6        (3)           5
       Latin America               254.6       228.9        11           18
       Other**                     381.6       207.7        84           89
                                $3,511.7    $3,343.8         5           10
 
       *  Excluding the effect of foreign currency translation on reported
          results.
      **  The Other segment includes $216.1 million of revenues in 2001 and
          $37.3 million in 2000 related to Other Brands.
     n/a  Not applicable
 
 
                           McDONALD'S CORPORATION OPERATING MARGINS
 
     OPERATING MARGINS - McDONALD'S RESTAURANT BUSINESS**
     ------------------------------------------------------------------------
                                                              Inc/(Dec)
     Quarters ended       Percent            Amount           As     Constant
      March 31,        2001    2000      2001      2000 Reported    Currency*
     ------------------------------------------------------------------------
     Company-operated
     U.S.              16.3%   16.8%   $121.8    $117.6        4          n/a
     Europe            14.7    17.6     126.7     161.1      (21)         (15)
     Asia/Pacific      14.9    17.9      66.7      84.2      (21)         (14)
     Latin America     12.7    12.6      27.3      22.5       21           26
     Other             13.0    13.4      16.8      17.9       (6)           -
       Total           15.0%   16.8%   $359.3    $403.3      (11)          (7)
 
     Franchised
     U.S.              79.0%   79.1%   $414.6    $401.7        3          n/a
     Europe            75.4    77.3     176.8     196.0      (10)          (3)
     Asia/Pacific      86.2    82.7      53.8      45.8       17           33
     Latin America     68.5    75.6      27.2      37.9      (28)         (25)
     Other             77.2    76.9      27.8      28.3       (2)           3
       Total           78.1%   78.6%   $700.2    $709.7       (1)           2
 
 
     COMPANY-OPERATED MARGINS AS A PERCENT OF SALES -
     McDONALD'S RESTAURANT BUSINESS**
     -------------------------------------------------------------------------
     Quarters ended March 31   2001         2000
     ------------------------------------------------------------------------
     Food & paper              34.3         34.3
     Payroll & employee
       benefits                26.1         25.3
     Occupancy & other
       operating expenses      24.6         23.6
          Total expenses       85.0         83.2
     Company-operated margins  15.0         16.8
 
       *  Excluding the effect of foreign currency translation on reported
          results.
      **  Operating margin information relates to McDonald's restaurant
          business and excludes Other Brands.
     n/a  Not applicable
 
 
                           McDONALD'S CORPORATION RESTAURANT INFORMATION
 
     SYSTEMWIDE RESTAURANTS
     -----------------------------------------------------------------------
     At March 31,                           2001       2000**      Inc/(Dec)
     -----------------------------------------------------------------------
       U.S.*                              12,811     12,624             187
       Europe
         Germany                           1,093      1,012              81
         England                             968        879              89
         France                              861        801              60
         Italy                               299        246              53
         Spain                               280        230              50
         Sweden                              228        205              23
         Netherlands                         206        203               3
         Poland                              183        165              18
         Other                             1,392      1,270             122
         Total Europe                      5,510      5,011             499
       Asia/Pacific
         Japan*                            3,619      3,278             341
         Australia                           704        682              22
         China                               341        258              83
         Taiwan                              339        321              18
         South Korea                         255        184              71
         Philippines                         236        222              14
         Hong Kong                           180        165              15
         Other                               650        594              56
         Total Asia/Pacific                6,324      5,704             620
       Latin America
         Brazil                              554        467              87
         Argentina                           214        190              24
         Mexico                              207        174              33
         Other                               573        492              81
         Total Latin America               1,548      1,323             225
       Other
         Canada*                           1,162      1,116              46
         Other McDonald's                    516        447              69
         Other Brands***                   1,034        237             797
         Total Other                       2,712      1,800             912
     Systemwide restaurants               28,905     26,462           2,443
 
     Countries                               120        119               1
 
       * Includes satellites at March 31, 2001: U.S. 978; Japan 1,672;
         Canada 285.  At March 31, 2000: U.S. 1,029; Japan 1,344;
         Canada 255.
      ** Adjusted to exclude 534 (494 in Brazil) dessert-only kiosks from the
         restaurant counts at March 31, 2000.
     *** Restaurants at March 31, 2001: Aroma Cafe 42; Boston Market 702;
         Chipotle Mexican Grill 124; Donatos Pizza 166.  At March 31, 2000:
         Aroma Cafe 33; Chipotle Mexican Grill 56; Donatos Pizza 148.
 
 
                           McDONALD'S CORPORATION RESTAURANT INFORMATION
 
     RESTAURANT ADDITIONS
     ------------------------------------------------------------------------
     Quarters ended March 31                  2001         2000*
     ------------------------------------------------------------------------
       U.S.                                      7           (5)
       Europe                                   50           68
       Asia/Pacific                             64           50
       Latin America                            38           24
       Other McDonald's                         13           (5)
       Other Brands                             26           21
        Systemwide additions                   198          153
 
     * Adjusted by 37 in 2000 to exclude dessert-only kiosks.
 
 
     SYSTEMWIDE RESTAURANTS
     -----------------------------------------------------------------------
     At March 31,                            2001         2000*    Inc/(Dec)
     -----------------------------------------------------------------------
     U.S.
     Operated by franchisees               10,148        9,974          174
     Operated by the Company                1,897        1,841           56
     Operated by affiliates                   766          809          (43)
                                           12,811       12,624          187
     Europe
     Operated by franchisees                3,116        2,775          341
     Operated by the Company                2,162        2,019          143
     Operated by affiliates                   232          217           15
                                            5,510        5,011          499
     Asia/Pacific
     Operated by franchisees                1,659        1,508          151
     Operated by the Company                1,523        1,323          200
     Operated by affiliates                 3,142        2,873          269
                                            6,324        5,704          620
     Latin America
     Operated by franchisees                  738          674           64
     Operated by the Company                  778          550          228
     Operated by affiliates                    32           99          (67)
                                            1,548        1,323          225
     Other
     Operated by franchisees                1,142        1,093           49
     Operated by the Company                1,454          622          832
     Operated by affiliates                   116           85           31
                                            2,712        1,800          912
     Systemwide
     Operated by franchisees               16,803       16,024          779
     Operated by the Company                7,814        6,355        1,459
     Operated by affiliates                 4,288        4,083          205
                                           28,905       26,462        2,443
 
     * Adjusted by 534 in 2000 to exclude dessert-only kiosks.
 
     FOR ACCESS TO CONFERENCE CALL:
     When: 10:00 a.m. Central Time,
     Thursday, April 19, 2001
     Where: http://www.mcdonalds.com
 
 

SOURCE McDonald's Corporation
    OAK BROOK, Ill., April 19 /PRNewswire/ -- McDonald's Corporation
 (NYSE:   MCD) today announced global results for the quarter ended March 31,
 2001.
 
     * Systemwide sales increased 6% for the quarter in constant currencies.
 
     * Sales increased in all segments:  4% in the U.S. and, in constant
       currencies, 11% in Latin America, 4% in Asia/Pacific and 2% in Europe.
 
     * Revenues increased 10% in constant currencies.
 
     * Diluted net income per common share was 29 cents for the quarter,
       30 cents in constant currencies.
 
     * The Company repurchased $452 million of stock during the quarter.
 
      Key highlights - Consolidated
      Dollars in millions, except per common                     Percent
      share data                                           Increase/(Decrease)
                                                              As      Constant
      Quarters ended March 31            2001       2000   Reported  Currency*
      Systemwide sales               $9,649.7   $9,506.7          2          6
      Total revenues                  3,511.7    3,343.8          5         10
      Operating income                  695.2      768.6        (10)        (6)
      Net income                        378.3      450.9        (16)       (12)
      Net income per common
      share - diluted                     .29        .33        (12)        (9)
 
     *  Information on a constant currency basis excludes the effect of
        foreign currency translation on reported results, except for
        hyperinflationary economies, such as Russia, whose functional
        currency is the U.S. Dollar.
 
     SUMMARY COMMENTARY
 
     Chairman and Chief Executive Officer Jack M. Greenberg said, "McDonald's
 reported earnings per share of 29 cents for the quarter, or 30 cents in
 constant currencies.  Given the extremely challenging circumstances we faced
 during the quarter, we were pleased to report a 6% increase in Systemwide
 sales and a 10% increase in revenues in constant currencies.  Challenges
 included difficult comparisons due to strong marketing promotions last year in
 the U.S., Europe and Asia/Pacific, the extra day in 2000 due to leap year,
 consumer concerns regarding European beef in certain markets and weak
 economies in certain areas of the world.
     "Yet, our recent business trends are encouraging.  We are cautiously
 optimistic that results will continue to improve as more and more customers
 respond to our quality, value and variety messages and when weak economies
 strengthen.  Based on our expectation for improved business trends,
 particularly in the second half of the year, we expect 2001 annual earnings
 per share growth in constant currencies to be within our previously stated 6%
 to 10% range.  If exchange rates remain where they are today, 2001 reported
 annual earnings per share will be about 4 cents lower than constant currency
 earnings per share.
     "In the U.S., expansion and positive comparable sales contributed to a
 Systemwide sales increase of 4%, on top of a 5% increase last year.  We
 continued to emphasize food taste and variety with the successful national
 rollout of the Big N' Tasty Sandwich and our New Tastes Menu, which offers
 customers more choice and complements our core menu.
     "In Europe, we are optimistic that lingering concerns about beef will
 continue to lessen as the year progresses.  We continue to proactively educate
 our European customers about McDonald's high food safety and quality
 standards, which lead the industry and provide the benchmark for safe food
 around the world.  We are also promoting menu variety and value and the
 results have been encouraging.  In March, comparable sales trends improved in
 several key European markets.  And in France, our beef sales as a percent of
 our total product sales have increased throughout the quarter.
     "In Asia/Pacific, Systemwide sales increased 4% in constant currencies,
 driven by expansion.  Tough comparisons with successful promotions in 2000 and
 weak economies in several markets negatively impacted the quarter.  However,
 China continued to deliver strong results, and we are pleased that despite
 weakness in Japan's economy, we posted positive comparable sales there for the
 past two months.
     "We remain confident in our business fundamentals and core growth
 opportunities.  We will continue to focus on building comparable sales through
 effective marketing, operations and menu development around the world.  And we
 expect to add approximately 1,500 to 1,600 McDonald's restaurants in 2001.
     "As we have done with previous challenges in our history, we are intent on
 managing through this difficult set of short-term, external challenges and
 emerging stronger than ever.  Our leading competitive position, globally
 recognized brand, experienced local management and worldwide infrastructure
 position us to benefit from the enduring needs and desires of people for
 great-tasting food, value, friendly interaction and convenience.  I am
 confident that McDonald's can deliver solid earnings growth and outstanding
 returns far into the future."
 
     OPERATING RESULTS
     The Company operates in the food service industry and primarily operates
 quick-service restaurant businesses under the McDonald's brand.  To capture
 additional meal occasions, the Company also operates other restaurant
 concepts:  Aroma Cafe, Boston Market, Chipotle Mexican Grill and Donatos
 Pizza.  Collectively these four businesses are referred to as "Other Brands."
 
     Impact of Foreign Currencies on Reported Results
     While changing foreign currencies affect reported results, McDonald's
 lessens exposures, where practical, by financing in local currencies, hedging
 certain foreign-denominated cash flows and by purchasing goods and services in
 local currencies.
     Reported results for the quarter were negatively affected by foreign
 currency translation primarily due to the weaker Euro, British Pound,
 Australian Dollar and Japanese Yen.
 
     Systemwide Sales and Revenues
     Systemwide sales represent sales by Company-operated, franchised and
 affiliated restaurants.  Total revenues include sales by Company-operated
 restaurants and fees from restaurants operated by franchisees and affiliates.
 These fees include rent, service fees and royalties that are based on a
 percent of sales, with specified minimum payments along with initial fees.
 
      Systemwide sales
                                                                 Percent
      Dollars in millions                                  Increase/(Decrease)
                                                              As      Constant
      Quarters ended March 31            2001       2000   Reported  Currency*
      U.S.                           $4,676.5   $4,505.0          4        n/a
      Europe                          2,178.2    2,305.7         (6)         2
      Asia/Pacific                    1,687.5    1,785.6         (5)         4
      Latin America                     455.3      434.1          5         11
      Other**                           652.2      476.3         37         42
      Total Systemwide sales         $9,649.7   $9,506.7          2          6
 
       *  Excluding the effect of foreign currency translation on reported
          results.
      **  Includes Systemwide sales for Other Brands of $225.6 million and
          $47.4 million for first quarter 2001 and 2000, respectively.
     n/a  Not applicable
 
     On a global basis, the increases in sales and revenues for the quarter
 were primarily due to restaurant expansion and the acquisition of Boston
 Market in the second quarter 2000.  Foreign currency translation had a
 negative effect on the growth rates for both Systemwide sales and revenues for
 the quarter.  On a constant currency basis, revenues increased at a higher
 rate than sales for the quarter, primarily due to the acquisition of Boston
 Market, which are all Company-operated restaurants, and an increase in the
 royalty percent received from our Japanese affiliate, effective
 January 1, 2001.
     U.S. sales increased 4% for the quarter due to expansion and positive
 comparable sales, despite the extra day in 2000 due to leap year.  The
 comparable sales increase was driven by the introduction of the New Tastes
 Menu, which offers customers more variety, the national rollout of the Big N'
 Tasty sandwich and local market initiatives.
     In Europe, constant currency sales increased due to expansion and strong
 performance in the Netherlands and Russia, substantially offset by negative
 comparable sales.  Comparable sales were affected by the decline in consumer
 confidence regarding the European beef supply in certain markets, as well as
 difficult comparisons with strong promotions last year.  Sales trends are
 improving in several markets including France, which had positive comparable
 sales in March.  We are optimistic that the impact from the concerns regarding
 European beef will continue to lessen as the year progresses.
     Expansion, partly offset by negative comparable sales, drove the constant
 currency sales increase in Asia/Pacific.  This segment continued to benefit
 from strong positive comparable sales in China.  However, Asia/Pacific's
 comparable sales growth was negatively affected by a difficult comparison with
 last year's very successful Hello Kitty promotion in several markets and weak
 consumer spending in Australia, due to the goods and services tax introduced
 in July 2000.  We expect comparable sales in Australia to improve in the
 second half of the year as we pass the anniversary of the introduction of the
 tax.
     In Latin America, the constant currency sales increase was due to
 expansion, partly offset by negative comparable sales.  Expansion and positive
 comparable sales in Mexico and Brazil were the primary contributors to the
 increase; however, weak consumer spending continued to negatively affect most
 markets in this segment.
     In the Other segment, the constant currency sales increase was driven by
 the acquisition of Boston Market and positive comparable sales and expansion
 for Canada, Chipotle and Donatos.
 
     Combined Operating Margins
     The following combined operating margin information represents margins for
 McDonald's restaurant business only.
 
      Combined operating margins                              Quarters ended
                                                                 March 31
                                                                2001      2000
      Dollars in millions
      Company-operated                                      $  359.3  $  403.3
      Franchised                                               700.2     709.7
         Combined operating margins                         $1,059.5  $1,113.0
      Percent of sales/revenues
      Company-operated                                         15.0%     16.8%
      Franchised                                               78.1      78.6
 
     Combined operating margin dollars decreased by $13.0 million, or 1%, for
 the quarter, in constant currencies.  The U.S. and Europe segments accounted
 for nearly 80% of the combined margin dollars for the quarter.
     As a percent of sales, Company-operated margins decreased for the quarter.
 Food & paper costs as a percent of sales were flat, while payroll costs and
 occupancy & other operating expenses increased.
     In the U.S., Company-operated margins for the quarter decreased as a
 percent of sales, primarily due to higher labor and energy costs, partly
 offset by lower food & paper costs.  In Europe and Asia/Pacific, the Company-
 operated margin percent decreased primarily due to negative comparable sales
 and higher labor costs.  In addition, Europe experienced higher food costs.
 Latin America's Company-operated margin percent was relatively flat.
     Franchised margins as a percent of applicable revenues in the U.S. were
 relatively flat, while margin percents in Europe and Latin America declined,
 primarily due to negative comparable sales and temporary rent assistance
 provided to franchisees in certain markets.  The franchised margin percent in
 Asia/Pacific increased primarily due to an increase in the royalty percent
 received from our Japanese affiliate.
     Franchised margins as a percent of revenues in all segments were also
 negatively impacted by higher occupancy costs as a result of our strategy to
 lease more sites.  By leasing a higher proportion of new sites, we have
 reduced initial capital requirements.  However, as anticipated, this practice
 reduces franchised margins because the financing costs implicit in the lease
 are included in occupancy expense, whereas for owned sites, financing costs
 are reflected in interest expense.
 
     Selling, General & Administrative Expenses
     Selling, general & administrative expenses increased 5% for the quarter,
 primarily due to the acquisition of Boston Market and spending to support the
 development of Other Brands, partly offset by weaker foreign currencies.
 Excluding Other Brands, selling, general & administrative expenses increased
 1% for the quarter.
 
     Other Operating Income, net
     Equity in earnings of unconsolidated affiliates decreased for the quarter
 primarily due to weaker results in Japan, the increase in Japan's royalty
 expense and a weaker Japanese Yen.  Although the increase in royalty expense
 reduced McDonald's equity in earnings for Japan, it was more than offset by
 the royalty benefit McDonald's received in franchised revenues.  The decrease
 in other expense for the quarter was primarily due to a gain on the sale of
 real estate in Singapore, partly offset by the write-off of certain technology
 costs.
 
      Other operating income, net
      Dollars in millions
      Quarters ended March 31                                   2001      2000
      Gains on sales of restaurant businesses                  $15.3     $15.6
      Equity in earnings of unconsolidated affiliates           11.9      26.4
      Other expense                                             (5.6)    (12.7)
         Total                                                 $21.6     $29.3
 
     Operating Income
     Consolidated operating income for the quarter decreased $43.1 million, or
 6%, in constant currencies.  The constant currency decrease for the quarter
 was due to lower combined operating margin dollars and other operating income,
 and higher selling, general & administrative expenses incurred primarily in
 developing the Other Brands.
 
      Operating income**
                                                                 Percent
      Dollars in millions                                  Increase/(Decrease)
                                                                 As   Constant
      Quarters ended March 31            2001       2000   Reported  Currency*
      U.S.                             $402.7     $388.7          4        n/a
      Europe                            222.8      276.4        (19)      (13)
      Asia/Pacific                      115.5      118.2         (2)        8
      Latin America                      22.3       31.7        (30)      (27)
      Other***                           11.7       20.8        (44)      (38)
      Corporate                         (79.8)     (67.2)       (19)       n/a
       Total operating income          $695.2     $768.6        (10)       (6)
 
       *  Excluding the effect of foreign currency translation on reported
          results.
      **  Segment operating income has been restated for 2000 to break out
          corporate expenses from the other operating segments.
     ***  Includes operating losses for Other Brands of $14.9 million and
          $9.1 million for first quarter 2001 and 2000, respectively.
     n/a  Not applicable
 
     U.S. operating income increased $14.0 million, or 4%, for the quarter.
 The increase was driven by higher combined operating margin dollars and higher
 other operating income, partly offset by higher selling, general and
 administrative expenses.
     Europe's operating income decreased as the decline in consumer confidence
 regarding the safety of the European beef supply continued to negatively
 affect results.
     Operating income in Asia/Pacific increased 8% in constant currencies.
 This segment benefited from a strong performance in China, an increase in the
 royalty percent received from Japan and a gain on the sale of real estate in
 Singapore.
     Latin America's operating income decreased as strong results in Mexico
 were offset by lower franchised margins in countries continuing to experience
 difficult economic conditions.
     In the Other segment, Canada's continued strong performance was offset by
 weak results in several markets in the Middle East & Africa and spending to
 support restaurant development in the Other Brands.
 
     INTEREST, NONOPERATING EXPENSE AND INCOME TAXES
     Higher interest expense for the quarter was primarily due to higher
 average debt levels, partly offset by weaker foreign currencies.  The higher
 average debt levels were a result of the Company using its available credit
 capacity to repurchase shares of common stock.  We expect the rate of increase
 in interest expense to moderate throughout the year.
     Nonoperating expense increased for the quarter primarily due to the
 write-off of a financing receivable from a Latin American supplier and
 minority interest expense related to the sale of real estate in Singapore.
     The effective income tax rate was 32.0% for the first quarter in both 2001
 and 2000, and is expected to be about 32.0% for the year.
 
     WEIGHTED AVERAGE SHARES
     Weighted average shares outstanding for the quarter were lower compared
 with the prior year due to shares repurchased.  In addition, outstanding stock
 options had a less dilutive effect than in the prior year.  The Company
 repurchased $452 million or 14.4 million shares of its common stock in the
 first quarter.
 
     FORWARD-LOOKING STATEMENTS
     Certain forward-looking statements are included in this release.  They use
 such words as "may," "will," "expect," "believe," "plan" and other similar
 terminology.  These statements reflect management's current expectations
 regarding future events and operating performance and speak only as of the
 date of this release.  These forward-looking statements involve a number of
 risks and uncertainties.  The following are some of the factors that could
 cause actual results to differ materially from those expressed in or
 underlying our forward-looking statements: the effectiveness of operating
 initiatives and advertising and promotional efforts, the effects of the Euro
 conversion, as well as changes in: global and local business and economic
 conditions; currency exchange and interest rates; food, labor and other
 operating costs; political or economic instability in local markets;
 competition; consumer preferences, spending patterns and demographic trends;
 legislation and governmental regulation; and accounting policies and
 practices.  The foregoing list of important factors is not exclusive.
     The Company undertakes no obligation to publicly update or revise any
 forward-looking statements, whether as a result of new information, future
 events or otherwise.
 
     FIRST QUARTER CONFERENCE CALL
     In conjunction with its First Quarter earnings release, McDonald's
 Corporation will broadcast its conference call with members of management live
 over the Internet on Thursday, April 19, 2001 at 10:00 a.m. Central Time.
 Interested parties are invited to listen by logging on to
 http://www.mcdonalds.com/corporate/investor and clicking "Investor Webcasts"
 under "Latest News".
 
 
                              McDONALD'S CORPORATION
                    CONDENSED CONSOLIDATED STATEMENT OF INCOME
 
     Dollars and shares in millions, except per common share data
     --------------------------------------------------------------------
                                                                Inc/(Dec)
     Quarters ended March 31,           2001         2000         $     %
     --------------------------------------------------------------------
     SYSTEMWIDE SALES               $9,649.7     $9,506.7     143.0     2
     Revenues
     Sales by Company-operated
      restaurants                    2,614.2      2,439.9     174.3     7
     Revenues from franchised
      and affiliated restaurants       897.5        903.9      (6.4)   (1)
 
     TOTAL REVENUES                  3,511.7      3,343.8     167.9     5
 
     Operating costs and expenses
     Company-operated
      restaurants                    2,243.4      2,033.1     210.3    10
     Franchised restaurants
      --occupancy costs                196.9        193.8       3.1     2
     Selling, general &
      administrative expenses          397.8        377.6      20.2     5
     Other operating
      income, net                      (21.6)       (29.3)      7.7   n/m
     Total operating costs
      and expenses                   2,816.5      2,575.2     241.3     9
 
     OPERATING INCOME                  695.2        768.6     (73.4)  (10)
 
     Interest expense                  120.9        100.4      20.5    20
 
     Nonoperating expense               18.3          5.5      12.8   n/m
 
     Income before provision
      for income taxes                 556.0        662.7    (106.7)  (16)
 
     Provision for
      income taxes                     177.7        211.8     (34.1)  (16)
 
     NET INCOME                     $  378.3     $  450.9     (72.6)  (16)
 
     NET INCOME PER
      COMMON SHARE                  $   0.29     $   0.34     (0.05)  (15)
 
     NET INCOME PER
      COMMON SHARE-DILUTED          $   0.29     $   0.33     (0.04)  (12)
 
     Weighted average
      common shares outstanding      1,300.7      1,343.4
 
     Weighted average
      common shares outstanding
      -diluted                       1,325.3      1,383.8
 
     n/m  Not meaningful
 
 
                           McDONALD'S CORPORATION SYSTEMWIDE SALES
 
     Dollars in millions
     ------------------------------------------------------------------------
                                                            % Inc/(Dec)
                                                              As     Constant
     Quarters ended March 31,        2001        2000   Reported    Currency*
     ------------------------------------------------------------------------
     U.S.
     Operated by franchisees     $3,666.4    $3,526.0          4
     Operated by the Company        745.8       701.9          6
     Operated by affiliates         264.3       277.1         (5)
                                  4,676.5     4,505.0          4          n/a
 
     Europe
     Operated by franchisees      1,211.3     1,269.3         (5)
     Operated by the Company        860.5       917.5         (6)
     Operated by affiliates         106.4       118.9        (11)
                                  2,178.2     2,305.7         (6)           2
 
     Asia/Pacific
     Operated by franchisees        417.4       465.3        (10)
     Operated by the Company        447.8       471.2         (5)
     Operated by affiliates         822.3       849.1         (3)
                                  1,687.5     1,785.6         (5)           4
 
     Latin America
     Operated by franchisees        232.2       224.6          3
     Operated by the Company        214.9       178.8         20
     Operated by affiliates           8.2        30.7        (73)
                                    455.3       434.1          5           11
 
     Other**
     Operated by franchisees        297.5       293.5          1
     Operated by the Company        345.2       170.5        102
     Operated by affiliates           9.5        12.3        (23)
                                    652.2       476.3         37           42
 
     Systemwide
     Operated by franchisees      5,824.8     5,778.7          1
     Operated by the Company      2,614.2     2,439.9          7
     Operated by affiliates       1,210.7     1,288.1         (6)
                                 $9,649.7    $9,506.7          2            6
 
       *  Excluding the effect of foreign currency translation on reported
          results.
      **  The Other segment includes $225.6 million of sales in 2001 and
          $47.4 million in 2000 related to Other Brands.
     n/a  Not applicable
 
 
                           McDONALD'S CORPORATION TOTAL REVENUES
 
     Dollars in millions
     ----------------------------------------------------------------------
                                                          % Inc/(Dec)
                                                            As     Constant
     Quarters ended March 31,       2001        2000  Reported    Currency*
     ----------------------------------------------------------------------
       U.S.                     $1,270.4    $1,209.6         5          n/a
       Europe                    1,094.9     1,171.0        (6)           1
       Asia/Pacific                510.2       526.6        (3)           5
       Latin America               254.6       228.9        11           18
       Other**                     381.6       207.7        84           89
                                $3,511.7    $3,343.8         5           10
 
       *  Excluding the effect of foreign currency translation on reported
          results.
      **  The Other segment includes $216.1 million of revenues in 2001 and
          $37.3 million in 2000 related to Other Brands.
     n/a  Not applicable
 
 
                           McDONALD'S CORPORATION OPERATING MARGINS
 
     OPERATING MARGINS - McDONALD'S RESTAURANT BUSINESS**
     ------------------------------------------------------------------------
                                                              Inc/(Dec)
     Quarters ended       Percent            Amount           As     Constant
      March 31,        2001    2000      2001      2000 Reported    Currency*
     ------------------------------------------------------------------------
     Company-operated
     U.S.              16.3%   16.8%   $121.8    $117.6        4          n/a
     Europe            14.7    17.6     126.7     161.1      (21)         (15)
     Asia/Pacific      14.9    17.9      66.7      84.2      (21)         (14)
     Latin America     12.7    12.6      27.3      22.5       21           26
     Other             13.0    13.4      16.8      17.9       (6)           -
       Total           15.0%   16.8%   $359.3    $403.3      (11)          (7)
 
     Franchised
     U.S.              79.0%   79.1%   $414.6    $401.7        3          n/a
     Europe            75.4    77.3     176.8     196.0      (10)          (3)
     Asia/Pacific      86.2    82.7      53.8      45.8       17           33
     Latin America     68.5    75.6      27.2      37.9      (28)         (25)
     Other             77.2    76.9      27.8      28.3       (2)           3
       Total           78.1%   78.6%   $700.2    $709.7       (1)           2
 
 
     COMPANY-OPERATED MARGINS AS A PERCENT OF SALES -
     McDONALD'S RESTAURANT BUSINESS**
     -------------------------------------------------------------------------
     Quarters ended March 31   2001         2000
     ------------------------------------------------------------------------
     Food & paper              34.3         34.3
     Payroll & employee
       benefits                26.1         25.3
     Occupancy & other
       operating expenses      24.6         23.6
          Total expenses       85.0         83.2
     Company-operated margins  15.0         16.8
 
       *  Excluding the effect of foreign currency translation on reported
          results.
      **  Operating margin information relates to McDonald's restaurant
          business and excludes Other Brands.
     n/a  Not applicable
 
 
                           McDONALD'S CORPORATION RESTAURANT INFORMATION
 
     SYSTEMWIDE RESTAURANTS
     -----------------------------------------------------------------------
     At March 31,                           2001       2000**      Inc/(Dec)
     -----------------------------------------------------------------------
       U.S.*                              12,811     12,624             187
       Europe
         Germany                           1,093      1,012              81
         England                             968        879              89
         France                              861        801              60
         Italy                               299        246              53
         Spain                               280        230              50
         Sweden                              228        205              23
         Netherlands                         206        203               3
         Poland                              183        165              18
         Other                             1,392      1,270             122
         Total Europe                      5,510      5,011             499
       Asia/Pacific
         Japan*                            3,619      3,278             341
         Australia                           704        682              22
         China                               341        258              83
         Taiwan                              339        321              18
         South Korea                         255        184              71
         Philippines                         236        222              14
         Hong Kong                           180        165              15
         Other                               650        594              56
         Total Asia/Pacific                6,324      5,704             620
       Latin America
         Brazil                              554        467              87
         Argentina                           214        190              24
         Mexico                              207        174              33
         Other                               573        492              81
         Total Latin America               1,548      1,323             225
       Other
         Canada*                           1,162      1,116              46
         Other McDonald's                    516        447              69
         Other Brands***                   1,034        237             797
         Total Other                       2,712      1,800             912
     Systemwide restaurants               28,905     26,462           2,443
 
     Countries                               120        119               1
 
       * Includes satellites at March 31, 2001: U.S. 978; Japan 1,672;
         Canada 285.  At March 31, 2000: U.S. 1,029; Japan 1,344;
         Canada 255.
      ** Adjusted to exclude 534 (494 in Brazil) dessert-only kiosks from the
         restaurant counts at March 31, 2000.
     *** Restaurants at March 31, 2001: Aroma Cafe 42; Boston Market 702;
         Chipotle Mexican Grill 124; Donatos Pizza 166.  At March 31, 2000:
         Aroma Cafe 33; Chipotle Mexican Grill 56; Donatos Pizza 148.
 
 
                           McDONALD'S CORPORATION RESTAURANT INFORMATION
 
     RESTAURANT ADDITIONS
     ------------------------------------------------------------------------
     Quarters ended March 31                  2001         2000*
     ------------------------------------------------------------------------
       U.S.                                      7           (5)
       Europe                                   50           68
       Asia/Pacific                             64           50
       Latin America                            38           24
       Other McDonald's                         13           (5)
       Other Brands                             26           21
        Systemwide additions                   198          153
 
     * Adjusted by 37 in 2000 to exclude dessert-only kiosks.
 
 
     SYSTEMWIDE RESTAURANTS
     -----------------------------------------------------------------------
     At March 31,                            2001         2000*    Inc/(Dec)
     -----------------------------------------------------------------------
     U.S.
     Operated by franchisees               10,148        9,974          174
     Operated by the Company                1,897        1,841           56
     Operated by affiliates                   766          809          (43)
                                           12,811       12,624          187
     Europe
     Operated by franchisees                3,116        2,775          341
     Operated by the Company                2,162        2,019          143
     Operated by affiliates                   232          217           15
                                            5,510        5,011          499
     Asia/Pacific
     Operated by franchisees                1,659        1,508          151
     Operated by the Company                1,523        1,323          200
     Operated by affiliates                 3,142        2,873          269
                                            6,324        5,704          620
     Latin America
     Operated by franchisees                  738          674           64
     Operated by the Company                  778          550          228
     Operated by affiliates                    32           99          (67)
                                            1,548        1,323          225
     Other
     Operated by franchisees                1,142        1,093           49
     Operated by the Company                1,454          622          832
     Operated by affiliates                   116           85           31
                                            2,712        1,800          912
     Systemwide
     Operated by franchisees               16,803       16,024          779
     Operated by the Company                7,814        6,355        1,459
     Operated by affiliates                 4,288        4,083          205
                                           28,905       26,462        2,443
 
     * Adjusted by 534 in 2000 to exclude dessert-only kiosks.
 
     FOR ACCESS TO CONFERENCE CALL:
     When: 10:00 a.m. Central Time,
     Thursday, April 19, 2001
     Where: http://www.mcdonalds.com
 
 SOURCE  McDonald's Corporation