McDonald's Corporation

Assumptions

INCREASE IN
REVENUES 2020 2021 2022
Sales by Company-Operated restaurants 5% 10% 15%
Revenues from franchised restaurants 15% 15% 15%

PERCENTAGE OF SALES
OPERATING COSTS AND EXPENSES
Company-operated restaurance expenses
Food and paper 15% 15% 15%
Payroll and employees benefits 15% 14% 13%
Occupancy and other operating expenses 10% 10% 10%
Franchised restaurant-occupancy expenses 8% 8% 8%
Selling, general and administrative expenses 16% 10% 10%

INCREASE/DECREASE IN
Other operating (income) expense, net -1% -1% -1%
Interest expense - net of capitalized interest 6% 6% 6%
Non-Other operating (income) expense, net

PERCENTAGE OF INCOME BEFORE PROVISION FOR INCOME TAX

Provision for income taxes 25% 25% 25%

Accounts and Notes Receivable partially collected every year 100.00 100.00 100.00
Inventories per percentage of Food and Paper 2% 2% 2%
Acquisition of Equipment (10 years UL) with SV of 5% 5,000.00 - -
Additional Depreciation for Equipment (475.00) (475.00) (475.00)
Payment of Income Taxes 5.00 5.00 5.00
Payment of Other Taxes 5.00 5.00 5.00
Increase in Accrued Payroll and other liabilities 5% 5% 5%
Payment of Long-term debt 59.10 59.10 59.10
Payment of Long-term Lease Liability 621.00 621.00 621.00
Increase in Deferred Revenue - initial franchise fee 5% 5% 5%
Increase in Deferred Income tax 5% 5% 5%
Same level of liabilities except for Deferred Revenue - initial franchise
fee and Deferred Income Tax

Payment of Dividend (@4 per share) 2,985.20

Common Share 1660.6
Less: Treasury Shares (914.30)
746.3
notes to assumptions:
 McDonald's Corporation
Income Statement
For the Year Ended 2017 - 2018 and projected 2019 - 2022
(in millions of dollars)

Projected
December 31, 2019 December 31, 2020
REVENUES
Sales by Company-Operated restaurants 9,420.80 9,891.84
Revenues from franchised restaurants 11,655.70 13,404.06
Total Revenue 21,076.50 23,295.90

OPERATING COSTS AND EXPENSES

Company-operated restaurance expenses
Food and paper 2,980.30 3,494.38
Payroll and employees benefits 2,704.40 3,494.38
Occupancy and other operating expenses 2,075.90 2,329.59
Franchised restaurant-occupancy expenses 2,200.60 1,863.67
Selling, general and administrative expenses 2,229.40 3,727.34
Other operating (income) expense, net (183.90) (232.96)
Total Operating Costs and expenses 12,006.70 14,676.41
Operating Income 9,069.80 8,619.48
Interest expense - net of capitalized interest 1,121.90 1,189.21
Nonoperating (income) expense, net (70.20) (74.41)
Income before provision for income taxes 8,018.10 7,504.68
Provision for income taxes 1,992.70 1,876.17
Net Income 6,025.40 5,628.51
n

jected 2019 - 2022

Projected
December 31, 2021 December 31, 2022

10,881.02 12,513.18
15,414.66 17,726.86
26,295.69 30,240.04

3,944.35 4,536.01
3,681.40 3,931.21
2,629.57 3,024.00
2,103.65 2,419.20
2,629.57 3,024.00
(262.96) (302.40)
14,725.58 16,632.02
11,570.10 13,608.02
1,260.57 1,336.20
(78.88) (83.61)
10,388.41 12,355.43
2,597.10 3,088.86
7,791.31 9,266.57
 McDonald's Corporation
Balance Sheet
For the year 2017 - 2018 and projected 2019 - 2022
(in millions of dollars)

PROJECTED
2019 2020
ASSETS
Current Assets
Cash and Cash Equivalent 898.50 1,542.94
Accounts and Notes Receivables 2,224.20 2,124.20
Inventories, at cost, not in excess of market 50.20 69.89
Prepaid expenses and other current assets 385.00 385.00
Total Current Assets 3,557.90 4,122.03

Other assets
Investment in and advances to affiliates 1,270.30 1,270.30
Goodwill 2,677.40 2,677.40
Miscellaneous 2,584.00 2,584.00
Total Other Assets 6,531.70 6,531.70

Property and Equipment

Lease right-of-use asset, net 13,261.20 13,261.20
Property and Equipment, at cost 39,050.90 44,050.90
Accumulated depreciation and amortization (14,890.90) (15,365.90)
Net Property and Equipment 37,421.20 41,946.20

TOTAL ASSETS 47,510.80 52,599.93

LIABILITIES AND SHAREHOLDER'S EQUITY

Current Liabilities
Accounts Payable 988.20 988.20
Lease Liability 621.00 621.00
Income taxes 331.70 326.70
Other taxes 247.50 242.50
Accrued Interest 337.80 337.80
Accrued Payroll and other liabilities 1,035.70 1,087.49
Current maturities of long-term debt 59.10 59.10
Total Current Liabilities 3,621.00 3,662.79

Long term-debt 34,118.10 34,059.00

Long term lease liability 12,757.80 12,136.80
Lont-term income taxes 2,265.90 2,265.90
Deferred Revenues- initial franchise fee 660.60 693.63
Other Long-term liabilities 979.60 979.60
Deferred Income taxes 1,318.10 1,384.00
Shareholder's Equity (deficit)
Preferred Stock, no par value; authorized - -
Common Stock, $0.01 par value; authorized - 3.5 billion shares;
issued w- 1660.6 million shares 16.60 16.60
Additional paid-in capital 7,653.90 7,653.90
Retained Earnings 52,930.50 58,559.01
Accumulated Other Comprehensive Income (2,482.57) (2,482.70)
Common stock in treasury, at cost: 893.5 and 866.5 million shares (66,328.60) (66,328.60)
Total Shareholder's equity (deficit) (8,210.17) (2,581.79)

TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 47,510.93 52,599.93

2

PROJECTED
2021 2022

9,368.41 15,689.01
2,024.20 1,924.20 notes:
78.89 90.72
385.00 385.00
11,856.49 18,088.93

1,270.30 1,270.30
2,677.40 2,677.40
2,584.00 2,584.00
6,531.70 6,531.70

13,261.20 13,261.20
44,050.90 44,050.90
(15,840.90) (16,315.90)
41,471.20 40,996.20

59,859.39 65,616.83

988.20 988.20
621.00 621.00
321.70 316.70
237.50 232.50
337.80 337.80
1,141.86 1,198.95
59.10 59.10
3,707.16 3,754.25

33,999.90 33,940.80
11,515.80 10,894.80
 2,265.90 2,265.90
728.31 764.73
979.60 979.60
1,453.21 1,525.87

- -

16.60 16.60
7,653.90 7,653.90
66,350.32 72,631.69
(2,482.70) (2,482.70)
(66,328.60) (66,328.60)
5,209.52 11,490.89

59,859.39 65,616.83
 McDonald's Corporation
Consolidated Statement of Cash Flows
For the year 2017 - 2018 and projected 2019 - 2022
(in millions of dollars)

2019 2020
Operating Activities
Net Income 6,025.40 5,628.51
Adjustment to reconcile to cash provided by operations
Charges and Credit
Depreciation and amortization 1,617.90 475.00
Deferred income taxes 149.70 65.90
Share-based compensation 109.60
Net gain on Sale of restaurant business (128.20)
Other 49.20 33.03
Changes in Working Capital items:
Accounts Receivable 27.00 100.00
Inventories, prepaid expenses and other current assets 128.80 (19.69)
Accounts Payable (26.80)
Income taxes 173.40 (5.00)
Other Taxes (5.00)
Other accrued liabilities (3.90) 51.79
Cash provided by operations 8,122.10 6,324.54

Investing activities
Capital Expenditures (2,393.70) (5,000.00)
Purchases of restaurant business (540.90) -
Sales of restaurant businesses 340.80 -
Proceeds from Sales of business in China and Hongkong - -
Sales of property 151.20 -
Other (628.50) -
Cash Provided by (Used for Investing activities) (3,071.10) (5,000.00)

Financing Activities
Net short-term borrowings 799.20 -
Long-term financing issuances 4,499.00 -
Long-term financing repayments (2,061.90) (59.10)
Treasury Stock purchases (4,976.20) (621.00)
Common stock dividends (3,581.90) -
Proceeds from stock option exercises 350.50 -
Other (23.50) -
 Cash used for financing activities (4,994.80) (680.10)
Effect of exchange rates on cash and equivalents (23.70) -

Cash and Cash Equivalents increase (decrease) 32.50 644.44

Change in cash balances of business held for sale - -
Cash and equivalents at beginning of year 866.00 898.50
Cash and equivalents at the end of the year 898.50 1,542.94
- 0.00
2

2021 2022

7,791.31 9,266.57

475.00 475.00
69.20 72.66

34.68 36.42

100.00 100.00
(9.00) (11.83)

(5.00) (5.00)
(5.00) (5.00)
54.37 57.09
8,505.57 9,985.91

- -
- -
- -
- -
- -
- -
- -

- -
- -
(59.10) (59.10)
(621.00) (621.00)
- (2,985.20)
- -
- -
(680.10) (3,665.30)
- -

7,825.47 6,320.61
- -
1,542.94 9,368.41
9,368.41 15,689.01
- -
 McDo
Consolidated Stat
For the year 2017 -
(in m

Common Stock Issued

Shares Amount
Balance as of December 2017 1,660.60 16.60
Net Income
Other Comprehensive income(loss), net of tax

Comprehensive Income
Adoption of ASC 606
Adoption of ASC 2016-16
Common stock cash dividends ($4.19 per share)
Treasury stock purchases
Share-based compensation
Stock option exercises and other (including tax benefits of $0.0)
Balance at December 31, 2018 1,660.60 16.60
Net Income
Other Comprehensive income(loss), net of tax
Comprehensive Income
Adoption of ASC 606
Adoption of ASC 2016-16
Common stock cash dividends ($4.19 per share)
Treasury stock purchases
Share-based compensation
Stock option exercises and other (including tax benefits of $0.0)
Balance at December 31, 2019 1,660.60 16.60
Net Income
Other Comprehensive income(loss), net of tax
Comprehensive Income
Stock option exercises and other (including tax benefits of $0.0)
Balance at December 31, 2020 1,660.60 16.60
Net Income
Other Comprehensive income(loss), net of tax
Comprehensive Income
Balance at December 31, 2021 1,660.60 16.60
Net Income
Other Comprehensive income(loss), net of tax
Comprehensive Income
Common stock cash dividends ($4 per share)
Balance at December 31, 2022 1,660.60 16.60
-
 McDonald's Corporation
Consolidated Statement of Shareholder's Equity
For the year 2017 - 2018 and projected 2019 - 2022
(in millions of dollars)

Accumulated other Comprehensive Income

Additional paid-in capital Retained Earnings Pensions Cash flow hedgesForeign Currency translation
Err:509 Err:509 (190.20) (16.50) (1,971.70)
Err:509
(26.40) 48.90 (453.60)

(450.20)
(57.00)
(3,255.90)

125.10
178.50

Err:509 Err:509 (216.60) 32.40 (2,425.30)

6,025.40
(27.10) (20.40) 174.30

(3,581.90)

109.60
168.30
Err:509 Err:509 (243.70) 12.00 (2,251.00)
5,628.51

Err:509 Err:509 (243.70) 12.00 (2,251.00)

7,791.31

Err:509 Err:509 (243.70) 12.00 (2,251.00)

9,266.57
 (2,985.20)
Err:509 Err:509 (243.70) 12.00 (2,251.00)
Err:509 Err:509
Treasury Stock Issued Total Shareholder's
Shares Amount Equity
(866.50) Err:509 Err:509
Err:509
(431.10)
Err:509
(450.20)
(57.00)
(3,255.90)
(32.20) (5,247.50) (5,247.50)
125.10
5.20 223.40 401.90
-
(893.50) Err:509 Err:509
6,025.40
126.80
-
-
-
(3,581.90)
(25.00) (4,980.50) (4,980.50)
109.60
4.20 180.40 348.70
(914.30) Err:509 Err:509
5,628.51
-
-
-
(914.30) Err:509 Err:509
7,791.31
-
-
(914.30) Err:509 Err:509
9,266.57
-
-
 (2,985.20)
(914.30) Err:509 Err:509
 McDonald's Corp
FINANCIAL RA

Liquidity Ratio 2019

Current Asset 3557.90
Current Ratio Current Liabilities 3621.00 0.98
Cash or Cash Equivalent 898.50
Cash Ratio Current Liabilities 3621.00 0.25
Quick Assets 3122.70
Acid-Test Ratio Current Liabilities 3621.00 0.86

Leverage Ratios 2019

Total Liabilities 55,721.10
Debt Ratio Total Assets 47,510.80 1.17
Total Liabilities 55,721.10
Debt to Equity Ratio Total Equity (8,210.17) 6.79

Asset Utilization Ratio 2019

Net Sales 21,076.50
Asset Turn-over Ratio Average Total Asset 47,510.80 0.44
Profit After Tax 6,025.40
Return on Asset Average Total Asset 47,510.80 0.13

Profitability Ratio 2019

Gross Profit 9069.80
Gross Profit Margin Ratio Net Sales 21076.50 0.43
Net Profit After Tax 6025.40
Net Profit Margin Ratio Net Sales 21076.50 0.29
McDonald's Corporation
FINANCIAL RATIOS

VALUES
2020 2021 2022
4122.03 11856.49 18088.93
3662.79 1.13 3707.16 3.20 3754.25
1542.94 9368.41 15689.01
3662.79 0.42 3707.16 2.53 3754.25
3667.14 11392.61 17613.21
3662.79 1.00 3707.16 3.07 3754.25

2020 2021 2022

55,181.72 54,649.88 54,125.94
52,599.93 1.05 59,859.39 0.91 65,616.83
55,181.72 54,649.88 54,125.94
(2,581.79) 21.37 5,209.52 10.49 11,490.89

2020 2021 2022

23,295.90 26,295.69 30,240.04
50,055.36 0.47 56,229.66 0.47 62,738.11
5,628.51 7,791.31 9,266.57
50,055.36 0.11 56,229.66 0.14 62,738.11

2020 2021 2022

8619.48 11570.10 13608.02
23295.90 0.37 26295.69 0.44 30240.04
5628.51 7791.31 9266.57
23295.90 0.24 26295.69 0.30 30240.04
2022

4.82

4.18

4.69

2022

0.82

4.71

2022

0.48

0.15

2022

0.45

0.31