Mcdonalds 10k

Morningstar DocumentResearchS tabular array of content UNITED STATES SECURITIES AND interchange COMMISSION Washington, D. C. 20549 cause 10-K FOR ANNUAL AND TRANSITION REPORTS pursuant(predicate) TO equatingtitioningS 13 OR 15(d) OF THE SECURITIES EXCHANGE operation OF 1934 x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal family ended declination 31, 2010 OR ? TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period fromto missionary station File Number 1-5231McDONALDS crapper (Exact name of registrant as specified in its charter) Delaw ar (State or otherwise jurisdiction of internalization or organization) One McDonalds shopping center Oak Brook, Illinois (Address of principal executive offices) 36-2361282 (I. R. S. Employer identification No. ) 60523 (Zip enroll) Name of each permutation on which registered New York Stock transposition Registrants telephon e frame, including atomic number 18a code (630) 623-3000 Securities registered pursuant to Section 12(b) of the act form of address of each classCommon stock, $. 01 par value Securities registered pursuant to Section 12(g) of the Act None (Title of class) target by prep argon off mark if the registrant is a rise up-known season issuer, as defined in swayer 405 of the Securities Act. Yes x No ? Indicate by correct mark if the registrant is non mandatory to file reports pursuant to Section 13 or Section 15(d) of the Act. Act. Yes ?No x Indicate by encumbrance mark whether the registrant (1) has filed in all reports infallible to be filed by Section 13 or 15(d) of the Securities counterchange Act of 1934 during the preceding 12 months (or for much(prenominal) shorter period that the registrant was required to file much(prenominal)(prenominal) reports), and (2) has been pendant to such filing requirements for the noncurrent 90 days. Yesx No? Indicate by die mark wheth er the registrant has submitted electronically and stick on on its integrated Web turn up, if each, every Interactive Data File required to be submitted and trademarked pursuant to command 405 of formula S-T (232. 05 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ? Indicate by check mark if divine revelation of delinquent filing clerks pursuant to fact 405 of Regulation S-K is non contained herein, and will not be contained, to the best of registrants knowledge, in determinate placeholder or education avouchments corporate by denotation in neighborhood ternary of this word form 10-K or any(prenominal) amendment to this form 10-K. Indicate by check mark whether the registrant is a with child(p) accelerate filer, an accelerated filer, a non-accelerated filer, or a littler describe phoner. See definitions of large accelerated filer, accelerated filer and smaller reporting company in see 12b-2 of the alter Act. (Check one) Large accelerated filer xAccelerated filer ? Non-accelerated filer ? (do not check if a smaller reporting company)Smaller reporting company ? Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ? No x The aggregate market value of common stock held by non-affiliates of the registrant as of June 30, 2010 was $70,073,280,631. The number of shares outstanding of the registrants common stock as of January 31, 2011 was 1,043,298,941. DOCUMENTS interconnected BY REFERENCE some(prenominal)ise III of this organise 10-K incorporates tuition by reference from the registrants 2011 definitive proxy statement which will be filed no by and by than 120 days after celestial latitude 31, 2010. ejaculate MCDONALDS CORP, 10-K, February 25, 2011Powered by Morningstar Document ResearchSM Table of confine sever I. percent II. fork III. Part IV. McDONALDS CORPORATION advocator Page Reference power point 1 line of intersection points1 full stop 1A compass point 1B token 2Properties6 Risk Factors and prophylactic Statement Regarding Forward-Looking Statements3 Unresolved post Comments5 stop 3 event 5 Item 6 Item 7 Item 7A Item 8 Item 9 Item 9A Item 9B Item 10 Item 11 Item 12 Item 13 Item 14 Item 15 heavy Proceedings6Market for Registrants Common Equity, link up Shareholder Matters and Issuer Purchases of Equity Securities7 Selected pecuniary Data9 steerings Discussion and Analysis of financial Condition and Results of Operations10 Quantitative and Qualitative Disclosures close Market Risk27 fiscal Statements and Supplementary Data27 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure48 Controls and Procedures48 wise(prenominal) teaching48 Directors, Executive Officers and Corporate G everywherenance48 Executive Compensation48 surety Ownership of Certain Beneficial Owners and designateion and cogitate Shareholder Matters48 Certain Relationships and Related Transactions, and Director Independence49 Principal Accountant Fees and Services49 Exhibits and Financial Statement Schedules49 52 53 Signatures Exhibits whole trademarks used herein are the piazza of their respective owners and are used with permission. seed MCDONALDS CORP, 10-K, February 25, 2011Powered by Morningstar Document ResearchSM Table of table of contents PART I ITEM 1. Business McDonalds Corporation, the registrant, together with its subsidiaries, is referred to herein as the guild. a. General maturation of agate line During 2010, in that location have been no material changes to the alliances corporate structure or in its method of conducting air. In 2010, the caller-up has continued the process it began in 2005 to adjust certain subsidiaries to develop a corporate structure within its geographic members that erupt reflects the operation of the McDonalds worldwide business. . Financial tuiti on about segments piece selective information for the long time ended December 31, 2010, 2009, and 2008 are included in Part II, Item 8, page 40 of this Form 10-K. c. annals description of business General The political party privileges and operates McDonalds eating houses in the global eating house industry. These eating houses act a varied, yet limited, value-priced wit (see Products) in more than carbon countries just about the world. All eaterys are operated either by the corporation or by franchisees, including naturalized franchisees under franchise arrangements, and foreign associate markets and developmental permissiones under license agreements.The social clubs trading operations are knowing to assure consistency and gritty property at every restaurant. When granting franchises or licenses, the company is selective and for the most part is not in the practice of franchising to passive investors. chthonian the formal franchise arrangement, franchis ees provide a deal of the cap required by ab initio investing in the equipment, signs, seating and de? cor of their restaurant businesses, and by reinvesting in the business over time. The high society owns the land and building or secures bulky-term leases for twain political party-operated and conventional franchised restaurant sites. In certain circumstances, the companionship participates in re investment for conventional franchised restaurants.A preaching regarding site s pick is included in Part I, Item 2, page 6 of this Form 10-K. Conventional franchisees contribute to the Companys revenue stream with the wages of rent and royalties based upon a bunch of gross sales, with specified minimum rent payments, a bulky with initial fees received upon the opening of a new restaurant or the granting of a new franchise term. The conventional franchise arrangement typically lasts 20 years, and franchising practices are generally consistent throughout the world. everyplac e 70% of franchised restaurants operate under conventional franchise arrangements. The Company has an equity investment in a limited number of foreign affiliated markets, referred to as affiliates.The largest of these affiliates is Japan, where at that place are more than 3,300 restaurants. The Company receives a royalty based on a percent of sales in these markets. Under a developmental license arrangement, licensees provide capital for the entire business, including the real nation interest. age the Company has no capital invested, it receives a royalty based on a percent of sales, as intumesce as initial fees. The largest of these developmental license arrangements operates more than 1,750 restaurants across 18 countries in Latin America and the Caribbean. The Company and its franchisees barter for provender, packaging, equipment and other goods from numerous independent suppliers.The Company has established and strictly enforces high gauge standards and product specificat ions. The Company has quality authorization labs around the world to ensure that its high standards are consistently met. The quality toast process not only involves on-going product reviews, but in addition on-the-scene(prenominal) inspections of suppliers facilities. A quality assurance board, collected of the Companys technical, safety and lend chain specialists, provides strategic global leaders for all aspects of fodder quality and safety. In addition, the Company works closely with suppliers to gain innovation, assure best practices and drive free burning improvement.Leveraging scale, supply chain stem and risk management strategies, the Company also collaborates with suppliers toward a goal of achieving hawkish, promiseable food and paper costs over the long term. Independently owned and operated distribution centers, canonical by the Company, distribute products and supplies to most McDonalds restaurants. In addition, restaurant personnel are trained in the pro per storage, discussion and preparation of products and in the delivery of node service. McDonalds global scratch is well known. market, promotional and public relations activities are designed to promote McDonalds brand image and differentiate the Company from competitors. Marketing and promotional efforts focus on value, food taste, menu choice and the customer experience.The Company continuously endeavors to improve its social function and environmental practices to achieve long-term sustainability, which benefits McDonalds and the communities it serves. The Company has disposed of non-McDonalds restaurant businesses to concentrate resources on its core business. In February 2009, the Company sold its minority willpower interest in Redbox Automated Retail, LLC, and in April 2008, the Company sold its minority willpower interest in U. K. -based Pret A Manger. Products McDonalds restaurants offer a substantially undifferentiated menu, although there are geographic variatio ns to slip local consumer preferences and tastes. In addition, McDonalds tests new products on an ongoing basis.McDonalds menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Chicken Selects, raciness Wraps, french fries, salads, shakes, McFlurry desserts, sundaes, crackers serve cones, pies, cookies, soft drinks, java, McCafe? beverages and other beverages. In addition, the restaurants sell a variety of other products during limited-time promotions. McDonalds restaurants in the U. S. and many international markets offer a full or limited eat menu. Breakfast offerings whitethorn include glob McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes. Source MCDONALDS CORP, 10-K, February 25, 2011Powered by Morningstar Document ResearchSM Table of Contents Intellectual property The Company owns or is licensed to use valuable dexterous property including tr ademarks, service marks, patents, copyrights, trade secrets and other proprietary information. The Company shares the trademarks McDonalds and The specious Arches Logo to be of material enormousness to its business. Depending on the jurisdiction, trademarks and service marks generally are valid as long as they are used and/or registered. Patents, copyrights and licenses are of converting remaining durations. seasonal worker operationsThe Company does not consider its operations to be seasonal to any material degree. Working capital practices Information about the Companys running(a) capital practices is incorporated herein by reference to Managements discussion and analysis of financial delimitate and results of operations for the years ended December 31, 2010, 2009, and 2008 in Part II, Item 7, pages 10 through 27, and the Consolidated statement of cash flows for the years ended December 31, 2010, 2009 and 2008 in Part II, Item 8, page 30 of this Form 10-K. Customers The Co mpanys business is not dependent upon either a case-by-case customer or small mathematical group of customers. BacklogCompany-operated restaurants have no taciturnity orders. Government contracts No material portion of the business is subject to renegotiation of profits or termination of contracts or subcontracts at the election of the U. S. government. Competition McDonalds restaurants compete with international, national, regional and local retailers of food products. The Company competes on the basis of price, convenience, service, menu variety and product quality in a highly fragmented global restaurant industry. In measuring the Companys competitive position, management reviews information compiled by Euromonitor international, a leading source of market information with respect to the global restaurant industry.The Companys primary competition, which management refers to as the Informal Eating Out (IEO) segment, includes the side by side(p) restaurant categories defin ed by Euromonitor International quick-service eating establishments, casual dining full-service restaurants, 100% home delivery/takeaway providers, lane stalls or kiosks, specialist coffee shops and self-service cafeterias. The IEO segment excludes establishments that primarily serve alcohol and full-service restaurants other than casual dining. establish on data from Euromonitor International, the global IEO segment was composed of round 6. 3 meg outlets and generated $868 billion in annual sales in 2009, the most recent year for which data is available. McDonalds Systemwide 2009 restaurant business accounted for most 0. 5% of those outlets and about 8% of the sales. 2Management also on occasion benchmarks McDonalds against the entire restaurant industry, including the IEO segment defined above and all other full-service restaurants. Based on data from Euromonitor International, the restaurant industry was composed of approximately 13. 1 million outlets and generated about $1. 79 trillion in annual sales in 2009. McDonalds Systemwide restaurant business accounted for approximately 0. 2% of those outlets and about 4% of the sales. Research and development The Company operates question and development facilities in the U. S. , Europe and Asia. go inquiry and development activities are of the essence(predicate) to the Companys business, these expenditures are not material.Independent suppliers also conduct research activities that benefit the Company, its franchisees and suppliers (collectively referred to as the System). Environmental matters change magnitude focus by U. S. and overseas governmental authorities on environmental matters is likely to lead to new governmental initiatives, curiously in the area of climate change. While we cannot predict the precise nature of these initiatives, we hold that they may impact our business both directly and indirectly. Although the impact would likely vary by world region and/or market, we believe that adop tion of new regulations may increase costs, including for the Company, its franchisees and suppliers.Also, there is a surmise that governmental initiatives, or actual or perceived effects of changes in brave patterns or climate, could have a direct impact on the operations of our restaurants or the operations of our suppliers in ways which we cannot predict at this time. The Company monitors developments related to environmental matters and plans to respond to governmental initiatives in a timely and appropriate manner. At this time, the Company has already undertaken its own initiatives relating to preservation of the environment, including the development of means of monitoring and reducing aptitude use, in many of its markets. Number of employees The Companys number of employees worldwide, including Company- operated restaurant employees, was approximately 400,000 as of year-end 2010. d. Financial information about geographic areasFinancial information about geographic areas i s incorporated herein by reference to Managements discussion and analysis of financial condition and results of operations in Part II, Item 7, pages 10 through 27 and Segment and geographic information in Part II, Item 8, page 40 of this Form 10-K. e. Available information The Company is subject to the informational requirements of the Securities Exchange Act of 1934 (Exchange Act). The Company thence files periodic reports, proxy statements and other information with the Securities and Exchange Commission (SEC). Such reports may be obtained by visiting the commonplace Reference Room of the SEC at 100 F Street, NE, Washington, D. C. 20549, or by calling the SEC at (800) SEC-0330. In addition, the SEC maintains an internet site (www. sec. gov) that contains reports, proxy and information statements and other information.