EX-99.1 2 exhibit991recast.htm SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA Exhibit
Exhibit 99.1

 
MCDONALD'S CORPORATION
 
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
 
INTERNATIONAL OPERATED MARKETS
 
(Unaudited and $ in millions)
 
 
 
 
 
 
 
 
 
 
 
Years Ended December 31
 
Constant Currency Growth Rates for
Years Ended December 31*
 
Summary Operating Results
2018
2017
2016
 
2018
2017
2016
 
 
 
 
 
 
 
 
 
 
     Sales by company-operated restaurants
$
6,667.5

$
6,844.6

$
6,879.2

 
(2.9
)%
(3.0
)%
(3.2
)%
 
     Revenues from franchised restaurants
4,839.2

4,271.3

3,811.4

 
10.6

10.5

8.0

 
Total Revenues
$
11,506.7

$
11,115.9

$
10,690.6


2.3
 %
1.8
 %
0.5
 %
 
 
 
 
 
 
 
 
 
 
Company-operated Restaurant Margins
1,326.5

1,336.0

1,325.5

 
(1.1
)
(1.2
)
(0.2
)
 
Franchised Restaurant Margins
3,828.5

3,364.6

2,978.9

 
11.2

11.3

8.2

 
G&A
640.9

654.3

657.5

 
(3.9
)
(2.3
)
(11.5
)
 
Other Operating (Inc)/Exp, net
 




 
 


 
Impairment and Other Charges (Gains), net
6.1

3.8

45.4

 
 
 
 
 
Remaining Other Operating (Inc)/Exp, net**
(135.2
)
(131.1
)
(99.0
)
 
 
 
 
 
Operating Income
$
4,643.2

$
4,173.6

$
3,700.5

 
9.3
 %
11.0
 %
10.0
 %
 
 
 
 
 
 
 
 
 
 
Other Financial Information
 
 
 
 
 


 
Comparable Sales*
 
 
 
 
6.1
 %
5.6
 %
3.2
 %
 
Comparable Guest Counts*
 
 
 
 
2.8
 %
2.7
 %
0.9
 %
 
 
 
 
 
 
 
 
 
 
Franchised Sales*
$
27,557.1

$
24,385.8

$
21,740.5

 
10.5
 %
10.6
 %
7.9
 %
 
 
 
 
 
 
 
 
 
 
Company-operated Margin %
19.9
%
19.5
%
19.3
%
 
 
 
 
 
Franchised Margin %
79.1
%
78.8
%
78.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
 
 
 
 
Conventional Franchised
8,284

8,037

7,736

 
 
 
 
 
Developmental Licensed
225

172

142

 
 
 
 
 
Foreign Affiliated
—

—

—

 
 
 
 
 
     Total Franchised
8,509

8,209

7,878

 
 
 
 
 
     Company-operated
1,754

1,889

2,060

 
 
 
 
 
Systemwide Restaurants
10,263

10,098

9,938

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
17,302.3

$
16,254.8

$
13,087.9

 
 
 
 
 
Total Capital Expenditures
762.4

808.0

955.8

 
 
 
 
 
Total Depreciation and Amortization
703.9

687.1

663.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Represents a non-GAAP financial measure as used throughout the schedules included in Exhibit 99.1. The definitions that apply to these measures are provided at the end of this exhibit.

** As used throughout the schedule, Remaining Other Operating (Inc)/Exp, net is comprised of the following: Gains on sales of restaurant businesses, Equity in earnings of unconsolidated affiliates, and Asset dispositions and other (income) expense, net.
 
 
 



MCDONALD'S CORPORATION
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
INTERNATIONAL OPERATED MARKETS
(Unaudited and $ in millions)
 
 
 
 
 
 
Three Months Ended
 
March 31,
June 30,
September 30,
December 31,
Summary Operating Results
2018
2018
2018
2018
 
 
 
 
 
     Sales by company-operated restaurants
$
1,658.6

$
1,731.0

$
1,695.4

$
1,582.5

     Revenues from franchised restaurants
1,151.4

1,205.4

1,266.8

1,215.6

Total Revenues
$
2,810.0

$
2,936.4

$
2,962.2

$
2,798.1

 
 
 
 
 
Company-operated Restaurant Margins
293.3

349.0

371.3

312.9

Franchised Restaurant Margins
896.4

955.1

1,015.2

961.8

 
 
 
 
 
Operating Income
$
1,049.1

$
1,189.0

$
1,246.9

$
1,158.2

 
 
 
 
 
Other Financial Information
 
 
 
 
Franchised Sales
$
6,546.3

$
6,880.1

$
7,225.8

$
6,904.9

 
 
 
 
 
Company-operated Margin %
17.7
 %
20.2
 %
21.9
 %
19.8
 %
Franchised Margin %
77.8
 %
79.2
 %
80.1
 %
79.1
 %
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
Conventional Franchised
8,063

8,127

8,156

8,284

Developmental Licensed
174

178

211

225

Foreign Affiliated
—

—

—

—

     Total Franchised
8,237

8,305

8,367

8,509

     Company-operated
1,865

1,815

1,790

1,754

Systemwide Restaurants
10,102

10,120

10,157

10,263

 
 
 
 
 
 
Constant Currency Growth Rates for Three Months Ended
 
March 31,
June 30,
September 30,
December 31,
Summary Operating Results
2018
2018
2018
2018
 
 
 
 
 
     Sales by company-operated restaurants
(1.8
)%
(2.6
)%
(3.6
)%
(3.5
)%
     Revenues from franchised restaurants
13.0

9.7

10.2

10.1

Total Revenues
3.7
 %
2.0
 %
1.8
 %
1.9
 %
 
 
 
 
 
Company-operated Restaurant Margins
(2.3
)
(1.9
)
(0.1
)
(0.4
)
Franchised Restaurant Margins
13.9

10.3

10.7

10.4

 
 
 
 
 
Operating Income
10.8
 %
9.6
 %
5.2
 %
12.6
 %
 
 
 
 
 
Other Financial Information
 
 
 
 
Comparable Sales
7.8
 %
5.3
 %
5.7
 %
5.7
 %
Franchised Sales
12.8
 %
9.8
 %
9.9
 %
10.0
 %




MCDONALD'S CORPORATION
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
INTERNATIONAL DEVELOPMENTAL LICENSED MARKETS & CORPORATE
(Unaudited and $ in millions)
 
 
 
 
 
 
 
 
 
 
 
Years Ended December 31,
 
Constant Currency Growth Rates for
Years Ended December 31,
Summary Operating Results
2018
 
2017
 
2016
 
2018
2017
2016
 
 
 
 
 
 
 
 
 
 
     Sales by company-operated restaurants
$
680.5

 
$
2,613.9

 
$
4,673.2

 
(75.6
)%
(43.7
)%
1.0
%
     Revenues from franchised restaurants
1,172.1

 
1,084.2

 
1,005.4

 
10.8

10.2

11.2

Total Revenues
$
1,852.6

 
$
3,698.1

 
$
5,678.6

 
(50.0
)%
(34.1
)%
2.7
%
 
 
 
 
 
 
 
 
 
 
Company-operated Restaurant Margins
23.2

 
450.6

 
653.0

 
(94.8
)
(29.7
)
39.5

Franchised Restaurant Margins
1,140.5

 
1,034.3

 
904.1

 
13.2

17.0

11.6

G&A
967.9

 
952.6

 
985.8

 
1.5

(3.2
)
10.2

Other Operating (Inc)/Exp, net
 
 
 
 
 
 
 
 
 
Impairment and Other Charges (Gains), net
140.5

(1) 
(704.7
)
(2) 
271.8

(3) 
 
 
 
Remaining Other Operating (Inc)/Exp, net
(108.5
)
 
(119.7
)
 
24.2

 
 
 
 
Operating Income
$
163.8

 
$
1,356.7

 
$
275.3

 
(86.1
)%
n/m

n/m

 
 
 
 
 
 
 
 
 
 
Other Financial Information
 
 
 
 
 
 
 
 
 
Comparable Sales
 
 
 
 
 
 
5.6
 %
8.0
 %
9.0
%
Comparable Guest Counts
 
 
 
 
 
 
1.0
 %
2.5
 %
1.3
%
 
 
 
 
 
 
 
 
 
 
Franchised Sales
$
22,717.4

 
$
19,426.0

 
$
15,320.0

 
19.8
 %
31.1
 %
14.2
%
 
 
 
 
 
 
 
 
 
 
Company-operated Margin %
n/m

 
17.2
%
 
14.0
%
 
 
 
 
Franchised Margin %
97.3
%
 
95.4
%
 
89.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
 
 
 
 
 
Conventional Franchised
172

 
180

 
777

 
 
 
 
Developmental Licensed
7,000

 
6,773

 
6,158

 
 
 
 
Foreign Affiliated
6,175

 
5,797

 
3,371

 
 
 
 
     Total Franchised
13,347

 
12,750

 
10,306

 
 
 
 
     Company-operated
331

 
357

 
2,500

 
 
 
 
Systemwide Restaurants
13,678

 
13,107

 
12,806

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
1,025.1

 
$
4,900.3

 
$
5,975.5

 
 
 
 
Total Capital Expenditures
129.4

 
184.5

 
278.6

 
 
 
 
Total Depreciation and Amortization
179.8

 
152.2

 
342.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
n/m Not meaningful

(1) The amount presented relates to non-cash impairment charges.
(2) The amount includes a pre-tax gain of approximately $850 million on the sale of the Company’s businesses in China and
Hong Kong, partly offset by approximately $150 million of restructuring and impairment charges.
(3) The amount presented relates to pre-tax impairment and restructuring charges.




MCDONALD'S CORPORATION
SCHEDULE OF SEGMENT SUMMARY FINANCIAL INFORMATION AND OTHER DATA
INTERNATIONAL DEVELOPMENTAL LICENSED MARKETS & CORPORATE
(Unaudited and $ in millions)
 
 
 
 
 
 
Three Months Ended
 
March 31,
June 30,
September 30,
December 31,
Summary Operating Results
2018
2018
2018
2018
 
 
 
 
 
     Sales by company-operated restaurants
$
168.3

$
167.1

$
178.3

$
166.8

     Revenues from franchised restaurants
293.3

289.2

298.9

290.7

Total Revenues
$
461.6

$
456.3

$
477.2

$
457.5

 
 
 
 
 
Company-operated Restaurant Margins
(0.8
)
4.3

10.5

9.2

Franchised Restaurant Margins
285.3

281.3

290.9

283.0

 
 
 
 
 
Operating Income
$
96.0

$
74.1

$
109.0

$
(115.3
)
 
 
 
 
 
Other Financial Information
 
 
 
 
Franchised Sales
$
5,703.1

$
5,630.2

$
5,789.2

$
5,594.9

 
 
 
 
 
Company-operated Margin %
n/m

n/m

n/m

n/m

Franchised Margin %
97.3
 %
97.2
 %
97.3
 %
97.4
%
 
 
 
 
 
Systemwide Restaurants:
 
 
 
 
Conventional Franchised
176

176

175

172

Developmental Licensed
6,798

6,835

6,892

7,000

Foreign Affiliated
5,882

5,973

6,056

6,175

     Total Franchised
12,856

12,984

13,123

13,347

     Company-operated
336

330

329

331

Systemwide Restaurants
13,192

13,314

13,452

13,678

 
 
 
 
 
 
Constant Currency Growth Rates for Three Months Ended
 
March 31,
June 30,
September 30,
December 31,
Summary Operating Results
2018
2018
2018
2018
 
 
 
 
 
     Sales by company-operated restaurants
(85.0
)%
(83.9
)%
(58.6
)%
7.7
%
     Revenues from franchised restaurants
10.0

18.0

9.5

6.7

Total Revenues
(66.0
)%
(63.6
)%
(31.3
)%
7.0
%
 
 
 
 
 
Company-operated Restaurant Margins
n/m

n/m

n/m

n/m

Franchised Restaurant Margins
16.4

20.8

10.4

6.9

 
 
 
 
 
Operating Income
(63.1
)%
(60.7
)%
(84.6
)%
n/m

 
 
 
 
 
Other Financial Information
 
 
 
 
Comparable Sales
7.0
 %
4.6
 %
5.1
 %
5.9
%
Franchised Sales
35.3
 %
28.4
 %
13.7
 %
7.4
%
 
 
 
 
 
n/m Not meaningful




THE FOLLOWING DEFINITIONS APPLY TO THESE TERMS AS USED THROUGHOUT EXHIBIT 99.1

•
Information in constant currency is calculated by translating current year results at prior year average exchange rates. Management reviews and analyzes business results excluding the effect of foreign currency translation, impairment and other strategic charges and gains, as well as adjustments to the provisional amounts recorded in December 2017 under the Tax Cuts and Jobs Act, and bases incentive compensation plans on these results, because the Company believes this better represents underlying business trends.


•
Comparable sales represent sales at all restaurants and comparable guest counts represent the number of transactions at all restaurants, whether operated by the Company or by franchisees, in operation at least thirteen months including those temporarily closed. Some of the reasons restaurants may be temporarily closed include reimaging or remodeling, rebuilding, road construction and natural disasters. Beginning in 2017, the Company excluded sales from markets identified as hyper-inflationary (currently, only Venezuela) from the comparable sales calculation as the Company believes this more accurately reflects the underlying business trends. There was no significant impact related to 2016. Management generally identifies hyper-inflationary markets as those markets whose cumulative inflation rate over a three-year period exceeds 100%. Management believes that these exclusions more accurately reflect the underlying business trends. Comparable sales are driven by changes in guest counts and average check, which is affected by changes in pricing and product mix. Typically, pricing has a greater impact on average check than product mix. Management reviews the increase or decrease in comparable sales and comparable guest counts compared with the same period in the prior year to assess business trends.


•
While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company's financial performance, because these sales are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base.