2005 Post 200

McDonald's Corp.

1 Kroc Dr.

Oak Brook, Ill. 60523

www.mcdonalds.com

Year founded: 1955

Industry: Hospitality/travel

Post 200 Category: Top Companies Headquartered Outside Region

Revenue: n/a

Net Income/Loss: n/a

Earnings per share: n/a

Dividend: n/a

Stockholder equity: n/a

Auditor: Ernst & Young LLP

Stock: MCD

Assets: n/a

Market capitalization: $39.38 Billion

52-week high: 34.56 3/7/2005

52-week low: 25.05 5/20/2004

Chairman and CEO: Jim Cantalupo

CFO: Matthew Paull

Employees: 438000

Local employees: 32000

Description: McDonald's is the world's largest food chain, operating or franchising more than 30,000 restaurants in 119 countries and serving 47 million customers daily. It also owns Boston Market and is the majority shareholder of Chipotle Mexican Grill. Its regional headquarters is in Bethesda.

Developments: As concerns about nutrition and obesity mount, McDonald's and other fast-food chains have been pressured to diversify their menus. McDonald's has been at the forefront of this effort, introducing premium salads and white-meat chicken strips for adults, and milk and apples for children. Milk sales at McDonald's have more than doubled, and the chain is now one of the nation's largest buyers of apples. Now, the company is planning to roll out fruit salads as well as a line of premium coffees. The latter could end up pitting McDonald's against Starbucks and Dunkin' Donuts. It's also testing deli-style sandwiches to help it compete against such firms as Subway. The menu diversification has helped McDonald's bottom line. Its earnings increased more than 50 percent last year, to $2.3 billion from $1.5 billion the year before. Its annual dividend rose to 55 cents from 40 cents. The company fared less well in some major court cases. In February, a federal appeals court reinstated part of a lawsuit that alleged that the company misled young consumers about the nutritional quality of its products. That same month, it also agreed to pay $8.5 million to settle a lawsuit that accused the company of failing to inform consumers about delays in its plan to reduce the amount of "trans" fat in the cooking oil it uses for its French fries. And a European court ruled that two anti-McDonald's activists convicted of libel in Britain for criticizing the company's animal rights practices, its environmental policies and the nutritional value of its food did not get a fair trial and should be compensated by the British government. The trial lasted more than 300 days, becoming the longest trial in Britain and fueling anti-McDonald's sentiment across Europe. The company's strong financial health came despite the poor health of its top executives, which sparked some major turnover at the head of the company. Charles H. Bell was named chief executive last April, after James R. Cantalupo died of an apparent heart attack. But Bell had to step down in November to fight colorectal cancer; he died two months later. Replacing Bell is James Skinner, a company veteran who spent most of his career in McDonald's overseas operations.

© 2005 The Washington Post Company