McDonald's Global Sales Drive Second Quarter Earnings Up 15%

"McDonald's second quarter reflects strong top-line and bottom-line results with each area of the world generating higher comparable sales, traffic and profits," said Chief Executive Officer Jim Skinner. "This performance demonstrates the popular appeal of McDonald's relevant menu choices. We're delivering great tasting food to our 60 million customers around the world every day with the outstanding value and unmatched convenience they expect from McDonald's."

The Company reported the following highlights for the quarter:

• Global comparable sales increased 4.8%, with the U.S. up 3.7%, Europe up 5.2% and Asia/Pacific, Middle East and Africa up 4.6%
• Consolidated operating income increased 10%
• Diluted earnings per share were $1.13, up 15%
• Returned $1.6 billion to shareholders through share repurchases and dividends

In addition, the Company announced the following:

• On July 22, McDonald's Board of Directors declared a quarterly cash dividend of $0.55 per share of common stock, payable on September 16, 2010 to shareholders of record at the close of business on September 1, 2010

McDonald's U.S. continued to deliver results by maintaining its commitment to high-quality food at a great value – a top priority for today's consumer. For the second quarter, U.S. operating income rose 7% as sales were driven by the beverage line-up, featuring the popular new Frappes and value-based beverages, as well as classic core menu favorites and the everyday affordability of the Dollar Menu.

McDonald's Europe generated strong comparable sales for the second quarter against robust prior year results. France, Russia and the U.K. fueled Europe's 9% (14% in constant currencies) operating income increase. Upgrading the customer experience with contemporary and inviting decors, signature menu options and unique marketing promotions contributed to Europe's second quarter performance.

Asia/Pacific, Middle East and Africa's (APMEA) second quarter results reflect broad-based strength across the segment. Australia and China led the segment's 19% (9% in constant currencies) quarterly operating income increase as everyday affordability, daypart expansion and core menu extensions continue to give customers even more reasons to visit McDonald's in APMEA.

Jim Skinner concluded, "What makes McDonald's unique is the distinctive experience we're creating for our customers through menu innovation, restaurant reimaging and operations excellence. I am pleased with our second quarter performance and confident in our ability to continue to deliver solid results. As we begin the third quarter, our momentum continues with July global comparable sales trending in-line with or better than second quarter sales."



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