IR Under the Arches

NIRI-Chicago

Visit to McDonald’sMary Kay Shaw

Vice President

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McDonald’s•Well-known global brand– Market cap: $44 billion– 31,000 McDonald’s– 118 countries– 75% franchised– 50 million customers every day

2005 Revenues $20.5 Billion

Europe35%

Other6%

Canada5%

Latin America6%

APMEA14%

U.S.34%

McDonald’s

• Customer-focused Plan to Win– 5 Ps: People, Product, Place, Price & Promotion– Global strategy– Local approach

• IR follows major markets– Constant media attention

• Analysts as experts

IR Mission

Champion the optimum, fair valuation of the Company and our brand within

the investment community.

Operate and be viewed as a “premier” Investor Relations Department

Primary Accountabilities

• Influencing investor perceptions

• Advising management of investors’ perspectives

• Servicing shareholders

• People development

Influencing Perceptions

• 950,000 retail investors hold 20% of stock

• 1,300 institutions hold 80% of stock

• SSA coverage: 18 analysts

Outperform 12

Market perform (or no rating) 6

Influencing Perceptions

• Financial press releases– Monthly sales

– Quarterly earnings release & conference call/webcast

• Remarks

• Management on call/webcast

• Q&A support

– Other releases

Earning Guidance Practice

• Do not provide EPS guidance• Shape expectations through:– Monthly sales and quarterly earnings releases– Provide guidance on

• Restaurant openings & Capex • S,G&A trends • Sensitivity of EPS to changes in comparable

sales and FX• Cash returned to shareholders

• Guidance practice has had no impact on coverage, volatility or liquidity

Analyst Meetings

• Participate in 2 - 4 conferences annually

• Analyst day – Host every 1 to 2 years

• Investor meetings/calls– 90 meetings, 800+ calls

Other Communication Efforts

• McTrip– Tour of operations in international markets

• Summary annual report & financials– Brand communication

• Retail program– Currently evaluating

•Website

Targeting

• Targeting– Style

– Holdings

– Investment potential

• Market surveillance

Investor Perceptions

• Perception Studies– Periodically shared with management & board

• First Call– Post-event summaries

• Competitive Analysis– YUM, Wendy’s & BK

Servicing Investors

• Transfer Agent (ComputerShare)– Active involvement in Advisory Board and

Corporate Transfer Agent Association

• IR Service Team

• MCDirect Shares – Direct Stock Purchase Plan

– 60% participation level

Management Perspective on IR

Matthew Paull

CFO

IR Under the Arches

Q&A

Join Us for the Networking Mixer

The Lodge

Prairie Lobby(across street – up the hill – in front lobby)