12 Months Ended

Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions Dec. 31, Dec. 31,
2018 2017
REVENUES
Sales by Company-operated restaurants $ 10,012.7 $ 12,718.9
Revenues from franchised restaurants 11,012.5 10,101.5
Total revenues 21,025.2 22,820.4
OPERATING COSTS AND EXPENSES
Food & paper 3,153.8 4,033.5
Payroll & employee benefits 2,937.9 3,528.5
Occupancy & other operating expenses 2,174.2 2,847.6
Franchised restaurants-occupancy expenses 1,973.3 1,790
Selling, general & administrative expenses 2,200.2 2,231.3
Other operating (income) expense, net (236.8) (1,163.2)
Total operating costs and expenses 12,202.6 13,267.7
Operating income 8,822.6 9,552.7
Interest expense-net of capitalized interest of $5.6, $5.3 and $7.1 981.2 921.3
Nonoperating (income) expense, net 25.3 57.9
Income before provision for income taxes 7,816.1 8,573.5
Provision for income taxes 1,891.8 3,381.2
Net income $ 5,924.3 $ 5,192.3
Earnings per common share–basic $ 7.61 $ 6.43
Earnings per common share–diluted 7.54 6.37
Dividends declared per common share $ 4.19 $ 3.83
Weighted-average shares outstanding–basic 778.2 807.4
Weighted-average shares outstanding–diluted 785.6 815.5
Months Ended
Dec. 31,
2016

$ 15,295
9,326.9
24,621.9

4,896.9
4,134.2
3,667.7
1,718.4
2,384.5
75.7
16,877.4
7,744.5
884.8
(6.3)
6,866
2,179.5
$ 4,686.5
$ 5.49
5.44
$ 3.61
854.4
861.2
 12 Months Ended
Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions Dec. 31, Dec. 31,
2017 2016
REVENUES
Sales by Company-operated restaurants $ 12,718.9 $ 15,295
Revenues from franchised restaurants 10,101.5 9,326.9
Total revenues 22,820.4 24,621.9
OPERATING COSTS AND EXPENSES
Food & paper 4,033.5 4,896.9
Payroll & employee benefits 3,528.5 4,134.2
Occupancy & other operating expenses 2,847.6 3,667.7
Franchised restaurants-occupancy expenses 1,790 1,718.4
Selling, general & administrative expenses 2,231.3 2,384.5
Other operating (income) expense, net (1,163.2) 75.7
Total operating costs and expenses 13,267.7 16,877.4
Operating income 9,552.7 7,744.5
Interest expense-net of capitalized interest of $5.3, $7.1 and $9.4 921.3 884.8
Nonoperating (income) expense, net 57.9 (6.3)
Income before provision for income taxes 8,573.5 6,866
Provision for income taxes 3,381.2 2,179.5
Net income $ 5,192.3 $ 4,686.5
Earnings per common share–basic $ 6.43 $ 5.49
Earnings per common share–diluted 6.37 5.44
Dividends declared per common share $ 3.83 $ 3.61
Weighted-average shares outstanding–basic 807.4 854.4
Weighted-average shares outstanding–diluted 815.5 861.2
Months Ended
Dec. 31,
2015

$ 16,488.3
8,924.7
25,413

5,552.2
4,400
4,024.7
1,646.9
2,434.3
209.4
18,267.5
7,145.5
638.3
(48.5)
6,555.7
2,026.4
$ 4,529.3
$ 4.82
4.80
$ 3.44
939.4
944.6
 12 Months Ended
Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions Dec. 31, Dec. 31,
2016 2015
REVENUES
Sales by Company-operated restaurants $ 15,295 $ 16,488.3
Revenues from franchised restaurants 9,326.9 8,924.7
Total revenues 24,621.9 25,413
OPERATING COSTS AND EXPENSES
Food & paper 4,896.9 5,552.2
Payroll & employee benefits 4,134.2 4,400
Occupancy & other operating expenses 3,667.7 4,024.7
Franchised restaurants-occupancy expenses 1,718.4 1,646.9
Selling, general & administrative expenses 2,384.5 2,434.3
Other operating (income) expense, net 75.7 209.4
Total operating costs and expenses 16,877.4 18,267.5
Operating income 7,744.5 7,145.5
Interest expense-net of capitalized interest of $7.1, $9.4 and $14.7 884.8 638.3
Nonoperating (income) expense, net (6.3) (48.5)
Income before provision for income taxes 6,866 6,555.7
Provision for income taxes 2,179.5 2,026.4
Net income $ 4,686.5 $ 4,529.3
Earnings per common share–basic $ 5.49 $ 4.82
Earnings per common share–diluted 5.44 4.80
Dividends declared per common share $ 3.61 $ 3.44
Weighted-average shares outstanding–basic 854.4 939.4
Weighted-average shares outstanding–diluted 861.2 944.6
Months Ended
Dec. 31,
2014

$ 18,169.3
9,272
27,441.3

6,129.7
4,756
4,402.6
1,697.3
2,487.9
18.6
19,492.1
7,949.2
576.4
0.8
7,372
2,614.2
$ 4,757.8
$ 4.85
4.82
$ 3.28
980.5
986.3
 Dec. 31, Dec. 31,
Consolidated Balance Sheet - USD ($) $ in Millions 2018 2017
Current assets
Cash and equivalents $ 866 $ 2,463.8
Accounts and notes receivable 2,441.5 1,976.2
Inventories, at cost, not in excess of market 51.1 58.8
Prepaid expenses and other current assets 694.6 828.4
Total current assets 4,053.2 5,327.2
Other assets
Investments in and advances to affiliates 1,202.8 1,085.7
Goodwill 2,331.5 2,379.7
Miscellaneous 2,381 2,562.8
Total other assets 5,915.3 6,028.2
Property and equipment
Property and equipment, at cost 37,193.6 36,626.4
Accumulated depreciation and amortization (14,350.9) (14,178.1)
Net property and equipment 22,842.7 22,448.3
Total assets 32,811.2 33,803.7
Current liabilities
Accounts payable 1,207.9 924.8
Income taxes 228.3 265.8
Other taxes 253.7 275.4
Accrued interest 297 278.4
Accrued payroll and other liabilities 986.6 1,146.2
Total current liabilities 2,973.5 2,890.6
Long-term debt 31,075.3 29,536.4
Long-term income taxes 2,081.2 2,370.9
Deferred revenues - initial franchise fees 627.8 0
Other long-term liabilities 1,096.3 1,154.4
Deferred income taxes 1,215.5 1,119.4
Shareholders' equity (deficit)
Preferred stock, no par value; authorized – 165.0 0 0
million shares; issued – none
Common stock, $.01 par value; authorized – 3.5 billion 16.6 16.6
shares; issued – 1,660.6 million shares
Additional paid-in capital 7,376 7,072.4
Retained earnings 50,487 48,325.8
Accumulated other comprehensive income (2,609.5) (2,178.4)
Common stock in treasury, at cost; 893.5 and 866.5 (61,528.5) (56,504.4)
million shares
Total shareholders' equity (deficit) (6,258.4) (3,268)
Total liabilities and shareholders' equity (deficit) $ 32,811.2 $ 33,803.7
 12 Months Ended

Consolidated Statement of Cash Flows $ in Millions Dec. 31, Dec. 31, Dec. 31,
2018USD 2017USD 2016USD
($) ($) ($)
Operating activities
Net income $ 5,924.3 $ 5,192.3 $ 4,686.5
Charges and credits:
Depreciation and amortization 1,482 1,363.4 1,516.5
Deferred income taxes 102.6 (36.4) (538.6)
Share-based compensation 125.1 117.5 131.3
Net gain on sale of restaurant businesses (308.8) (1,155.8) (310.7)
Other 114.2 1,050.7 407.6
Changes in working capital items:
Accounts receivable (479.4) (340.7) (159)
Inventories, prepaid expenses and other current assets (1.9) (37.3) 28.1

Accounts payable 129.4 (59.7) 89.8

Income taxes (33.4) (396.4) 169.7
Other accrued liabilities (87.4) (146.4) 38.4
Cash provided by operations 6,966.7 5,551.2 6,059.6
Investing activities
Capital expenditures (2,741.7) (1,853.7) (1,821.1)
Purchases of restaurant businesses (101.7) (77) (109.5)
Sales of restaurant businesses 530.8 974.8 975.6
Proceeds from sale of businesses in China and Hong Kong 0 1,597 0

Sales of property 160.4 166.8 82.9

Other (302.9) (245.9) (109.5)
Cash provided by (used for) investing activities (2,455.1) 562 (981.6)
Financing activities
Net short-term borrowings 95.9 (1,050.3) (286.2)
Long-term financing issuances 3,794.5 4,727.5 3,779.5
Long-term financing repayments (1,759.6) (1,649.4) (822.9)
Treasury stock purchases (5,207.7) (4,685.7) (11,171)
Common stock dividends (3,255.9) (3,089.2) (3,058.2)
Proceeds from stock option exercises 403.2 456.8 299.4
Other (20) (20.5) (3)
Cash used for financing activities (5,949.6) (5,310.8) (11,262.4)
Effect of exchange rates on cash and equivalents (159.8) 264 (103.7)
Cash and equivalents increase (decrease) (1,597.8) 1,066.4 (6,288.1)
Change in cash balances of businesses held for sale 0 174 (174)
Cash and equivalents at beginning of year 2,463.8 1,223.4 7,685.5
Cash and equivalents at end of year 866 2,463.8 1,223.4
Supplemental cash flow disclosures
Interest paid 959.6 885.2 873.5
Income taxes paid $ 1,734.4 $ 2,786.3 $ 2,387.5
 McDONALD’S CORPORATIO
NYSE: MCD
$ in Millions
Given
A0 $ 32,811,200
S0 $ 21,025,200
L0 $ 32,811.2
NI(2018) $ 5,924.3 Sales Forecast & Growth Rate
D(2018) $ 3,255,900 Year Sales Growth rate
G -8% 2014 $ 27,441,300 N/A
2015 $ 25,413,000 -7%
Calculated 2016 $ 24,621,900 -3%
A0/S0 1.5605654167 2017 $ 22,820,400 -7%
S1 $ 19,343,184 2018 $ 21,025,200 -8%
Change in S $ (1,682,016) 2019 $ 19,636,920
L0/S0 0.0015605654
M 0%
1-Payout ratio -54858% What if Analysis by Goal Seek (SUSTAINABLE GROWTH RATE)
Set Cell $ 367,707
To Value 0
By Changing Cell (g) -8%
Result -9%

Sensibity Analysis Growth Rate

2015 2016 2017 2018 2019
AFN $ 367,707 -7% -3% -7% -8% -10%
Retention 10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
LD’S CORPORATION
NYSE: MCD

AFN = (A0/S0)*Change in S - (L0/S0)*Ch- M*S1(1-Payout Ratio)

= $ (2,624,896) - $ (2,625) - $ (2,989,978)
= $ 367,707

BLE GROWTH RATE)