☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||
For the quarterly period ended | September 30, |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the transition period from to |
Delaware | 36-2361282 | ||||||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||||||||
110 North Carpenter Street Chicago, Illinois | 60607 | ||||||||||
Chicago, | Illinois | ||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 par value | MCD | New York Stock Exchange |
Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | |||||||||||
Non-accelerated Filer | ☐ | Smaller Reporting Company | ☐ | |||||||||||
Emerging Growth Company | ☐ | |||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | ||||||||||||||
Page Reference | |||||
Item 1 – Financial Statements | |||||
Item 4 – Controls and Procedures | |||||
Item 1 – Legal Proceedings | |||||
Item 1A – Risk Factors | |||||
Item 6 – Exhibits | |||||
CONDENSED CONSOLIDATED BALANCE SHEET | CONDENSED CONSOLIDATED BALANCE SHEET | CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||
In millions, except per share data | September 30, 2020 | December 31, 2019 | In millions, except per share data | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||
Current assets | Current assets | |||||||||||||||||||||||||
Cash and equivalents | $ | 3,683.8 | $ | 898.5 | Cash and equivalents | $ | 4,305.8 | $ | 3,449.1 | |||||||||||||||||
Accounts and notes receivable | 2,391.8 | 2,224.2 | Accounts and notes receivable | 1,828.5 | 2,110.3 | |||||||||||||||||||||
Inventories, at cost, not in excess of market | 44.2 | 50.2 | Inventories, at cost, not in excess of market | 50.1 | 51.1 | |||||||||||||||||||||
Prepaid expenses and other current assets | 616.3 | 385.0 | Prepaid expenses and other current assets | 611.5 | 632.7 | |||||||||||||||||||||
Total current assets | 6,736.1 | 3,557.9 | Total current assets | 6,795.9 | 6,243.2 | |||||||||||||||||||||
Other assets | Other assets | |||||||||||||||||||||||||
Investments in and advances to affiliates | 1,283.3 | 1,270.3 | Investments in and advances to affiliates | 1,171.4 | 1,297.2 | |||||||||||||||||||||
Goodwill | 2,715.8 | 2,677.4 | Goodwill | 2,744.2 | 2,773.1 | |||||||||||||||||||||
Miscellaneous | 2,469.6 | 2,584.0 | Miscellaneous | 4,057.9 | 3,527.4 | |||||||||||||||||||||
Total other assets | 6,468.7 | 6,531.7 | Total other assets | 7,973.5 | 7,597.7 | |||||||||||||||||||||
Lease right-of-use asset, net | 13,276.2 | 13,261.2 | Lease right-of-use asset, net | 13,528.9 | 13,827.7 | |||||||||||||||||||||
Property and equipment | Property and equipment | |||||||||||||||||||||||||
Property and equipment, at cost | 40,088.6 | 39,050.9 | Property and equipment, at cost | 41,423.7 | 41,476.5 | |||||||||||||||||||||
Accumulated depreciation and amortization | (15,870.3 | ) | (14,890.9 | ) | Accumulated depreciation and amortization | (16,995.0) | (16,518.3) | |||||||||||||||||||
Net property and equipment | 24,218.3 | 24,160.0 | Net property and equipment | 24,428.7 | 24,958.2 | |||||||||||||||||||||
Total assets | $ | 50,699.3 | $ | 47,510.8 | Total assets | $ | 52,727.0 | $ | 52,626.8 | |||||||||||||||||
Liabilities and shareholders’ equity | Liabilities and shareholders’ equity | |||||||||||||||||||||||||
Current liabilities | Current liabilities | |||||||||||||||||||||||||
Accounts payable | 689.0 | 988.2 | Accounts payable | $ | 772.6 | $ | 741.3 | |||||||||||||||||||
Dividends payable | Dividends payable | 1,027.3 | — | |||||||||||||||||||||||
Lease liability | 718.2 | 621.0 | Lease liability | 701.5 | 701.5 | |||||||||||||||||||||
Income taxes | 364.0 | 331.7 | Income taxes | 259.7 | 741.1 | |||||||||||||||||||||
Other taxes | 256.6 | 247.5 | Other taxes | 253.5 | 227.0 | |||||||||||||||||||||
Accrued interest | 340.2 | 337.8 | Accrued interest | 312.2 | 388.4 | |||||||||||||||||||||
Accrued payroll and other liabilities | 1,223.4 | 1,035.7 | Accrued payroll and other liabilities | 1,268.8 | 1,138.3 | |||||||||||||||||||||
Current maturities of long-term debt | 2,688.8 | 59.1 | Current maturities of long-term debt | 500.0 | 2,243.6 | |||||||||||||||||||||
Total current liabilities | 6,280.2 | 3,621.0 | Total current liabilities | 5,095.6 | 6,181.2 | |||||||||||||||||||||
Long-term debt | 35,143.4 | 34,118.1 | Long-term debt | 34,628.0 | 35,196.8 | |||||||||||||||||||||
Long-term lease liability | 12,736.0 | 12,757.8 | Long-term lease liability | 12,986.6 | 13,321.3 | |||||||||||||||||||||
Long-term income taxes | 1,957.3 | 2,265.9 | Long-term income taxes | 1,878.9 | 1,970.7 | |||||||||||||||||||||
Deferred revenues - initial franchise fees | 679.8 | 660.6 | Deferred revenues - initial franchise fees | 720.1 | 702.0 | |||||||||||||||||||||
Other long-term liabilities | 951.5 | 979.6 | Other long-term liabilities | 1,046.6 | 1,054.1 | |||||||||||||||||||||
Deferred income taxes | 1,423.2 | 1,318.1 | Deferred income taxes | 2,046.2 | 2,025.6 | |||||||||||||||||||||
Shareholders’ equity (deficit) | Shareholders’ equity (deficit) | |||||||||||||||||||||||||
Preferred stock, no par value; authorized – 165.0 million shares; issued – none | 0 | 0 | Preferred stock, no par value; authorized – 165.0 million shares; issued – none | — | — | |||||||||||||||||||||
Common stock, $.01 par value; authorized – 3.5 billion shares; issued – 1,660.6 million shares | 16.6 | 16.6 | Common stock, $.01 par value; authorized – 3.5 billion shares; issued – 1,660.6 million shares | 16.6 | 16.6 | |||||||||||||||||||||
Additional paid-in capital | 7,854.7 | 7,653.9 | Additional paid-in capital | 8,125.8 | 7,903.6 | |||||||||||||||||||||
Retained earnings | 53,492.5 | 52,930.5 | Retained earnings | 55,897.7 | 53,908.1 | |||||||||||||||||||||
Accumulated other comprehensive income (loss) | (2,758.8 | ) | (2,482.7 | ) | Accumulated other comprehensive income (loss) | (2,663.2) | (2,586.8) | |||||||||||||||||||
Common stock in treasury, at cost; 915.5 and 914.3 million shares | (67,077.1 | ) | (66,328.6 | ) | ||||||||||||||||||||||
Common stock in treasury, at cost; 913.4 and 915.2 million shares | Common stock in treasury, at cost; 913.4 and 915.2 million shares | (67,051.9) | (67,066.4) | |||||||||||||||||||||||
Total shareholders’ equity (deficit) | (8,472.1 | ) | (8,210.3 | ) | Total shareholders’ equity (deficit) | (5,675.0) | (7,824.9) | |||||||||||||||||||
Total liabilities and shareholders’ equity (deficit) | $ | 50,699.3 | $ | 47,510.8 | Total liabilities and shareholders’ equity (deficit) | $ | 52,727.0 | $ | 52,626.8 |
CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) | |||||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
In millions, except per share data | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Revenues | |||||||||||||||||||
Sales by Company-operated restaurants | $ | 2,286.4 | $ | 2,416.6 | $ | 5,905.9 | $ | 7,057.5 | |||||||||||
Revenues from franchised restaurants | 3,044.8 | 3,014.0 | 7,740.8 | 8,670.0 | |||||||||||||||
Other revenues | 86.9 | 71.7 | 247.3 | 208.7 | |||||||||||||||
Total revenues | 5,418.1 | 5,502.3 | 13,894.0 | 15,936.2 | |||||||||||||||
Operating costs and expenses | |||||||||||||||||||
Company-operated restaurant expenses | 1,876.3 | 1,967.7 | 5,077.5 | 5,821.0 | |||||||||||||||
Franchised restaurants-occupancy expenses | 567.9 | 559.5 | 1,646.6 | 1,637.3 | |||||||||||||||
Other restaurant expenses | 69.2 | 57.5 | 198.0 | 166.2 | |||||||||||||||
Selling, general & administrative expenses | |||||||||||||||||||
Depreciation and amortization | 75.8 | 69.0 | 220.3 | 193.6 | |||||||||||||||
Other | 454.7 | 474.6 | 1,547.0 | 1,382.2 | |||||||||||||||
Other operating (income) expense, net | (152.2 | ) | (35.3 | ) | 23.5 | (41.3 | ) | ||||||||||||
Total operating costs and expenses | 2,891.7 | 3,093.0 | 8,712.9 | 9,159.0 | |||||||||||||||
Operating income | 2,526.4 | 2,409.3 | 5,181.1 | 6,777.2 | |||||||||||||||
Interest expense | 310.1 | 280.6 | 909.2 | 838.9 | |||||||||||||||
Nonoperating (income) expense, net | (0.8 | ) | (23.5 | ) | (38.8 | ) | (53.0 | ) | |||||||||||
Income before provision for income taxes | 2,217.1 | 2,152.2 | 4,310.7 | 5,991.3 | |||||||||||||||
Provision for income taxes | 454.5 | 544.3 | 957.4 | 1,538.1 | |||||||||||||||
Net income | $ | 1,762.6 | $ | 1,607.9 | $ | 3,353.3 | $ | 4,453.2 | |||||||||||
Earnings per common share-basic | $ | 2.37 | $ | 2.13 | $ | 4.50 | $ | 5.85 | |||||||||||
Earnings per common share-diluted | $ | 2.35 | $ | 2.11 | $ | 4.47 | $ | 5.80 | |||||||||||
Dividends declared per common share | $ | 1.25 | $ | 2.41 | $ | 3.75 | $ | 4.73 | |||||||||||
Weighted-average shares outstanding-basic | 744.5 | 756.6 | 744.4 | 761.1 | |||||||||||||||
Weighted-average shares outstanding-diluted | 750.0 | 763.9 | 749.8 | 768.1 |
CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) | |||||||||||||||||||||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
In millions, except per share data | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Sales by Company-operated restaurants | $ | 2,598.4 | $ | 2,286.4 | $ | 7,248.6 | $ | 5,905.9 | |||||||||||||||||||||||||||
Revenues from franchised restaurants | 3,510.2 | 3,044.8 | 9,693.8 | 7,740.8 | |||||||||||||||||||||||||||||||
Other revenues | 92.7 | 86.9 | 271.4 | 247.3 | |||||||||||||||||||||||||||||||
Total revenues | 6,201.3 | 5,418.1 | 17,213.8 | 13,894.0 | |||||||||||||||||||||||||||||||
Operating costs and expenses | |||||||||||||||||||||||||||||||||||
Company-operated restaurant expenses | 2,108.4 | 1,876.3 | 5,947.0 | 5,077.5 | |||||||||||||||||||||||||||||||
Franchised restaurants-occupancy expenses | 592.6 | 567.9 | 1,743.2 | 1,646.6 | |||||||||||||||||||||||||||||||
Other restaurant expenses | 68.9 | 69.2 | 204.4 | 198.0 | |||||||||||||||||||||||||||||||
Selling, general & administrative expenses | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 84.1 | 75.8 | 243.2 | 220.3 | |||||||||||||||||||||||||||||||
Other | 559.6 | 454.7 | 1,622.4 | 1,547.0 | |||||||||||||||||||||||||||||||
Other operating (income) expense, net | (198.8) | (152.2) | (505.3) | 23.5 | |||||||||||||||||||||||||||||||
Total operating costs and expenses | 3,214.8 | 2,891.7 | 9,254.9 | 8,712.9 | |||||||||||||||||||||||||||||||
Operating income | 2,986.5 | 2,526.4 | 7,958.9 | 5,181.1 | |||||||||||||||||||||||||||||||
Interest expense | 293.7 | 310.1 | 890.2 | 909.2 | |||||||||||||||||||||||||||||||
Nonoperating (income) expense, net | 1.4 | (0.8) | 48.6 | (38.8) | |||||||||||||||||||||||||||||||
Income before provision for income taxes | 2,691.4 | 2,217.1 | 7,020.1 | 4,310.7 | |||||||||||||||||||||||||||||||
Provision for income taxes | 541.5 | 454.5 | 1,113.7 | 957.4 | |||||||||||||||||||||||||||||||
Net income | $ | 2,149.9 | $ | 1,762.6 | $ | 5,906.4 | $ | 3,353.3 | |||||||||||||||||||||||||||
Earnings per common share-basic | $ | 2.88 | $ | 2.37 | $ | 7.91 | $ | 4.50 | |||||||||||||||||||||||||||
Earnings per common share-diluted | $ | 2.86 | $ | 2.35 | $ | 7.86 | $ | 4.47 | |||||||||||||||||||||||||||
Dividends declared per common share | $ | 2.67 | $ | 1.25 | $ | 5.25 | $ | 3.75 | |||||||||||||||||||||||||||
Weighted-average shares outstanding-basic | 747.1 | 744.5 | 746.5 | 744.4 | |||||||||||||||||||||||||||||||
Weighted-average shares outstanding-diluted | 752.6 | 750.0 | 751.9 | 749.8 |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) | |||||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Net income | $ | 1,762.6 | $ | 1,607.9 | $ | 3,353.3 | $ | 4,453.2 | |||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||||
Gain (loss) recognized in accumulated other comprehensive income ("AOCI"), including net investment hedges | 56.6 | (179.1 | ) | (202.5 | ) | (108.3 | ) | ||||||||||||
Reclassification of (gain) loss to net income | 9.0 | 0 | 9.0 | 46.8 | |||||||||||||||
Foreign currency translation adjustments-net of tax benefit (expense) of $116.8, ($145.5), $67.6, and ($177.6) | 65.6 | (179.1 | ) | (193.5 | ) | (61.5 | ) | ||||||||||||
Cash flow hedges: | |||||||||||||||||||
Gain (loss) recognized in AOCI | (27.1 | ) | 24.4 | (84.2 | ) | 33.6 | |||||||||||||
Reclassification of (gain) loss to net income | 5.1 | (13.4 | ) | (5.8 | ) | (30.4 | ) | ||||||||||||
Cash flow hedges-net of tax benefit (expense) of $6.6, ($3.3), $27.1, and ($1.0) | (22.0 | ) | 11.0 | (90.0 | ) | 3.2 | |||||||||||||
Defined benefit pension plans: | |||||||||||||||||||
Gain (loss) recognized in AOCI | 0.5 | 0.1 | (2.0 | ) | 0.5 | ||||||||||||||
Reclassification of (gain) loss to net income | 3.4 | 1.5 | 9.4 | 4.2 | |||||||||||||||
Defined benefit pension plans-net of tax benefit (expense) of $0.0, $0.0, $0.5, and $0.0 | 3.9 | 1.6 | 7.4 | 4.7 | |||||||||||||||
Total other comprehensive income (loss), net of tax | 47.5 | (166.5 | ) | (276.1 | ) | (53.6 | ) | ||||||||||||
Comprehensive income (loss) | $ | 1,810.1 | $ | 1,441.4 | $ | 3,077.2 | $ | 4,399.6 |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) | |||||||||||||||||||||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||
Net income | $ | 2,149.9 | $ | 1,762.6 | $ | 5,906.4 | $ | 3,353.3 | |||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||||||||||||||||||||
Gain (loss) recognized in accumulated other comprehensive income ("AOCI"), including net investment hedges | (132.8) | 56.6 | (172.7) | (202.5) | |||||||||||||||||||||||||||||||
Reclassification of (gain) loss to net income | 14.3 | 9.0 | 34.7 | 9.0 | |||||||||||||||||||||||||||||||
Foreign currency translation adjustments-net of tax benefit (expense) of ($66.1), $116.8, ($133.7) and $67.6 | (118.5) | 65.6 | (138.0) | (193.5) | |||||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||||||||
Gain (loss) recognized in AOCI | 26.8 | (27.1) | 48.7 | (84.2) | |||||||||||||||||||||||||||||||
Reclassification of (gain) loss to net income | 4.0 | 5.1 | 32.4 | (5.8) | |||||||||||||||||||||||||||||||
Cash flow hedges-net of tax benefit (expense) of ($9.2), $6.6, ($24.1) and $27.1 | 30.8 | (22.0) | 81.1 | (90.0) | |||||||||||||||||||||||||||||||
Defined benefit pension plans: | |||||||||||||||||||||||||||||||||||
Gain (loss) recognized in AOCI | 0.1 | 0.5 | 0.9 | (2.0) | |||||||||||||||||||||||||||||||
Reclassification of (gain) loss to net income | (4.4) | 3.4 | (20.4) | 9.4 | |||||||||||||||||||||||||||||||
Defined benefit pension plans-net of tax benefit (expense) of $0.0, $0.0, $0.1 and $0.5 | (4.3) | 3.9 | (19.5) | 7.4 | |||||||||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | (92.0) | 47.5 | (76.4) | (276.1) | |||||||||||||||||||||||||||||||
Comprehensive income | $ | 2,057.9 | $ | 1,810.1 | $ | 5,830.0 | $ | 3,077.2 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) | |||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Operating activities | |||||||||||||||||
Net income | $ | 1,762.6 | $ | 1,607.9 | $ | 3,353.3 | $ | 4,453.2 | |||||||||
Adjustments to reconcile to cash provided by operations | |||||||||||||||||
Charges and credits: | |||||||||||||||||
Depreciation and amortization | 440.1 | 413.4 | 1,287.1 | 1,204.3 | |||||||||||||
Deferred income taxes | (38.0 | ) | 78.5 | 196.3 | 190.8 | ||||||||||||
Share-based compensation | 7.3 | 29.6 | 64.0 | 90.1 | |||||||||||||
Other | (56.8 | ) | (64.2 | ) | (25.5 | ) | 2.2 | ||||||||||
Changes in working capital items | 824.3 | 221.5 | (602.8 | ) | 292.2 | ||||||||||||
Cash provided by operations | 2,939.5 | 2,286.7 | 4,272.4 | 6,232.8 | |||||||||||||
Investing activities | |||||||||||||||||
Capital expenditures | (390.2 | ) | (548.7 | ) | (1,177.7 | ) | (1,661.8 | ) | |||||||||
Purchases of restaurant businesses | (6.7 | ) | (41.0 | ) | (50.0 | ) | (434.8 | ) | |||||||||
Sales of restaurant businesses | 8.0 | 49.4 | 35.5 | 249.9 | |||||||||||||
Sales of property | 0.2 | 21.1 | 17.8 | 112.3 | |||||||||||||
Other | 120.8 | (73.6 | ) | (8.5 | ) | (529.7 | ) | ||||||||||
Cash used for investing activities | (267.9 | ) | (592.8 | ) | (1,182.9 | ) | (2,264.1 | ) | |||||||||
Financing activities | |||||||||||||||||
Net short-term borrowings | (993.4 | ) | (600.7 | ) | (885.7 | ) | (105.6 | ) | |||||||||
Long-term financing issuances | 2.8 | 1,975.0 | 5,543.0 | 4,494.8 | |||||||||||||
Long-term financing repayments | (451.5 | ) | (667.9 | ) | (1,414.1 | ) | (2,064.1 | ) | |||||||||
Treasury stock purchases | (0.7 | ) | (1,467.8 | ) | (905.6 | ) | (3,531.3 | ) | |||||||||
Common stock dividends | (930.9 | ) | (876.9 | ) | (2,791.3 | ) | (2,646.7 | ) | |||||||||
Proceeds from stock option exercises | 105.3 | 73.4 | 262.3 | 323.4 | |||||||||||||
Other | (0.1 | ) | (12.7 | ) | (122.0 | ) | (23.5 | ) | |||||||||
Cash used for financing activities | (2,268.5 | ) | (1,577.6 | ) | (313.4 | ) | (3,553.0 | ) | |||||||||
Effect of exchange rates on cash and cash equivalents | 25.0 | (73.5 | ) | 9.2 | (104.4 | ) | |||||||||||
Cash and equivalents increase | 428.1 | 42.8 | 2,785.3 | 311.3 | |||||||||||||
Cash and equivalents at beginning of period | 3,255.7 | 1,134.5 | 898.5 | 866.0 | |||||||||||||
Cash and equivalents at end of period | $ | 3,683.8 | $ | 1,177.3 | $ | 3,683.8 | $ | 1,177.3 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) | |||||||||||||||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Operating activities | |||||||||||||||||||||||||||||
Net income | $ | 2,149.9 | $ | 1,762.6 | $ | 5,906.4 | $ | 3,353.3 | |||||||||||||||||||||
Adjustments to reconcile to cash provided by operations | |||||||||||||||||||||||||||||
Charges and credits: | |||||||||||||||||||||||||||||
Depreciation and amortization | 469.2 | 440.1 | 1,386.5 | 1,287.1 | |||||||||||||||||||||||||
Deferred income taxes | (45.8) | (38.0) | (416.2) | 196.3 | |||||||||||||||||||||||||
Share-based compensation | 34.1 | 7.3 | 97.9 | 64.0 | |||||||||||||||||||||||||
Other | (163.6) | (56.8) | (364.8) | (25.5) | |||||||||||||||||||||||||
Changes in working capital items | 174.0 | 824.3 | (134.8) | (602.8) | |||||||||||||||||||||||||
Cash provided by operations | 2,617.8 | 2,939.5 | 6,475.0 | 4,272.4 | |||||||||||||||||||||||||
Investing activities | |||||||||||||||||||||||||||||
Capital expenditures | (501.5) | (390.2) | (1,352.8) | (1,177.7) | |||||||||||||||||||||||||
Purchases of restaurant businesses | (28.6) | (6.7) | (116.7) | (50.0) | |||||||||||||||||||||||||
Sales of restaurant businesses | 60.1 | 8.0 | 141.9 | 35.5 | |||||||||||||||||||||||||
Sales of property | 41.3 | 0.2 | 97.9 | 17.8 | |||||||||||||||||||||||||
Other | 43.8 | 120.8 | 186.7 | (8.5) | |||||||||||||||||||||||||
Cash used for investing activities | (384.9) | (267.9) | (1,043.0) | (1,182.9) | |||||||||||||||||||||||||
Financing activities | |||||||||||||||||||||||||||||
Net short-term borrowings | (0.3) | (993.4) | 7.6 | (885.7) | |||||||||||||||||||||||||
Long-term financing issuances | — | 2.8 | — | 5,543.0 | |||||||||||||||||||||||||
Long-term financing repayments | (0.4) | (451.5) | (1,739.4) | (1,414.1) | |||||||||||||||||||||||||
Treasury stock purchases | (17.7) | (0.7) | (42.2) | (905.6) | |||||||||||||||||||||||||
Common stock dividends | (963.9) | (930.9) | (2,889.5) | (2,791.3) | |||||||||||||||||||||||||
Proceeds from stock option exercises | 66.6 | 105.3 | 198.6 | 262.3 | |||||||||||||||||||||||||
Other | (11.7) | (0.1) | (32.7) | (122.0) | |||||||||||||||||||||||||
Cash used for financing activities | (927.4) | (2,268.5) | (4,497.6) | (313.4) | |||||||||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | (49.1) | 25.0 | (77.7) | 9.2 | |||||||||||||||||||||||||
Cash and equivalents increase | 1,256.4 | 428.1 | 856.7 | 2,785.3 | |||||||||||||||||||||||||
Cash and equivalents at beginning of period | 3,049.4 | 3,255.7 | 3,449.1 | 898.5 | |||||||||||||||||||||||||
Cash and equivalents at end of period | $ | 4,305.8 | $ | 3,683.8 | $ | 4,305.8 | $ | 3,683.8 |
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) | |||||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||
Common stock issued | Accumulated other comprehensive income (loss) | Common stock in treasury | Total shareholders’ equity (deficit) | ||||||||||||||||||||||||||||||||||
Additional paid-in capital | Retained earnings | Pensions | Cash flow hedges | Foreign currency translation | |||||||||||||||||||||||||||||||||
In millions, except per share data | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 1,660.6 | $ | 16.6 | $ | 7,376.0 | $ | 50,487.0 | $ | (216.6 | ) | $ | 32.4 | $ | (2,425.3 | ) | (893.5 | ) | $ | (61,528.5 | ) | $ | (6,258.4 | ) | ||||||||||||||
Net income | 4,453.2 | 4,453.2 | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 4.7 | 3.2 | (61.5 | ) | (53.6 | ) | |||||||||||||||||||||||||||||||
Comprehensive income | 4,399.6 | ||||||||||||||||||||||||||||||||||||
Common stock cash dividends ($4.73 per share) | (3,580.7 | ) | (3,580.7 | ) | |||||||||||||||||||||||||||||||||
Treasury stock purchases | (17.9 | ) | (3,571.4 | ) | (3,571.4 | ) | |||||||||||||||||||||||||||||||
Share-based compensation | 90.1 | 90.1 | |||||||||||||||||||||||||||||||||||
Stock option exercises and other | 153.6 | 3.9 | 168.0 | 321.6 | |||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 1,660.6 | $ | 16.6 | $ | 7,619.7 | $ | 51,359.5 | $ | (211.9 | ) | $ | 35.6 | $ | (2,486.8 | ) | (907.5 | ) | $ | (64,931.9 | ) | $ | (8,599.2 | ) |
For the nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||
Common stock issued | Accumulated other comprehensive income (loss) | Common stock in treasury | Total shareholders’ equity (deficit) | ||||||||||||||||||||||||||||||||||
Additional paid-in capital | Retained earnings | Pensions | Cash flow hedges | Foreign currency translation | |||||||||||||||||||||||||||||||||
In millions, except per share data | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 1,660.6 | $ | 16.6 | $ | 7,653.9 | $ | 52,930.5 | $ | (243.7 | ) | $ | 12.0 | $ | (2,251.0 | ) | (914.3 | ) | $ | (66,328.6 | ) | $ | (8,210.3 | ) | ||||||||||||||
Net income | 3,353.3 | 3,353.3 | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 7.4 | (90.0 | ) | (193.5 | ) | (276.1 | ) | ||||||||||||||||||||||||||||||
Comprehensive income | 3,077.2 | ||||||||||||||||||||||||||||||||||||
Common stock cash dividends ($3.75 per share) | (2,791.3 | ) | (2,791.3 | ) | |||||||||||||||||||||||||||||||||
Treasury stock purchases | (4.3 | ) | (871.9 | ) | (871.9 | ) | |||||||||||||||||||||||||||||||
Share-based compensation | 64.0 | 64.0 | |||||||||||||||||||||||||||||||||||
Stock option exercises and other | 136.8 | 3.1 | 123.4 | 260.2 | |||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 1,660.6 | $ | 16.6 | $ | 7,854.7 | $ | 53,492.5 | $ | (236.3 | ) | $ | (78.0 | ) | $ | (2,444.5 | ) | (915.5 | ) | $ | (67,077.1 | ) | $ | (8,472.1 | ) |
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | Accumulated other comprehensive income (loss) | Common stock in treasury | Total shareholders’ equity (deficit) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional paid-in capital | Retained earnings | Pensions | Cash flow hedges | Foreign currency translation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions, except per share data | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 1,660.6 | $ | 16.6 | $ | 7,653.9 | $ | 52,930.5 | $ | (243.7) | $ | 12.0 | $ | (2,251.0) | (914.3) | $ | (66,328.6) | $ | (8,210.3) | |||||||||||||||||||||||||||||||||||||||||
Net income | 3,353.3 | 3,353.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 7.4 | (90.0) | (193.5) | (276.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 3,077.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock cash dividends ($3.75 per share) | (2,791.3) | (2,791.3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | (4.3) | (871.9) | (871.9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 64.0 | 64.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises and other | 136.8 | 3.1 | 123.4 | 260.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 1,660.6 | $ | 16.6 | $ | 7,854.7 | $ | 53,492.5 | $ | (236.3) | $ | (78.0) | $ | (2,444.5) | (915.5) | $ | (67,077.1) | $ | (8,472.1) |
For the nine months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | Accumulated other comprehensive income (loss) | Common stock in treasury | Total shareholders’ equity (deficit) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional paid-in capital | Retained earnings | Pensions | Cash flow hedges | Foreign currency translation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions, except per share data | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 1,660.6 | $ | 16.6 | $ | 7,903.6 | $ | 53,908.1 | $ | (287.6) | $ | (111.3) | $ | (2,187.9) | (915.2) | $ | (67,066.4) | $ | (7,824.9) | |||||||||||||||||||||||||||||||||||||||||
Net income | 5,906.4 | 5,906.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (19.5) | 81.1 | (138.0) | (76.4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 5,830.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock cash dividends ($5.25 per share) | (3,916.8) | (3,916.8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | (0.2) | (59.0) | (59.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 97.9 | 97.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises and other | 124.3 | 2.0 | 73.5 | 197.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 1,660.6 | $ | 16.6 | $ | 8,125.8 | $ | 55,897.7 | $ | (307.1) | $ | (30.2) | $ | (2,325.9) | (913.4) | $ | (67,051.9) | $ | (5,675.0) |
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) | CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) | CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the quarter ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the quarter ended September 30, 2020 | For the quarter ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | Accumulated other comprehensive income (loss) | Common stock in treasury | Total shareholders’ equity (deficit) | Common stock issued | Accumulated other comprehensive income (loss) | Common stock in treasury | Total shareholders’ equity (deficit) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional paid-in capital | Retained earnings | Pensions | Cash flow hedges | Foreign currency translation | Additional paid-in capital | Retained earnings | Pensions | Cash flow hedges | Foreign currency translation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions, except per share data | Shares | Amount | Shares | Amount | In millions, except per share data | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 1,660.6 | $ | 16.6 | $ | 7,549.5 | $ | 51,562.5 | $ | (213.5 | ) | $ | 24.6 | $ | (2,307.7 | ) | (901.2 | ) | $ | (63,440.8 | ) | $ | (6,808.8 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | Balance at June 30, 2020 | 1,660.6 | $ | 16.6 | $ | 7,780.0 | $ | 52,660.8 | $ | (240.2) | $ | (56.0) | $ | (2,510.1) | (916.5) | $ | (67,114.2) | $ | (9,463.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 1,607.9 | 1,607.9 | Net income | 1,762.6 | 1,762.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 1.6 | 11.0 | (179.1 | ) | (166.5 | ) | Other comprehensive income (loss), net of tax | 3.9 | (22.0) | 65.6 | 47.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 1,441.4 | Comprehensive income | 1,810.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock cash dividends ($2.41 per share) | (1,810.9 | ) | (1,810.9 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock cash dividends ($1.25 per share) | Common stock cash dividends ($1.25 per share) | (930.9) | (930.9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | (7.1 | ) | (1,524.1 | ) | (1,524.1 | ) | Treasury stock purchases | — | (0.7) | (0.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 29.6 | 29.6 | Share-based compensation | 7.3 | 7.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises and other | 40.6 | 0.8 | 33.0 | 73.6 | Stock option exercises and other | 67.4 | 1.0 | 37.8 | 105.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 1,660.6 | $ | 16.6 | $ | 7,619.7 | $ | 51,359.5 | $ | (211.9 | ) | $ | 35.6 | $ | (2,486.8 | ) | (907.5 | ) | $ | (64,931.9 | ) | $ | (8,599.2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | Balance at September 30, 2020 | 1,660.6 | $ | 16.6 | $ | 7,854.7 | $ | 53,492.5 | $ | (236.3) | $ | (78.0) | $ | (2,444.5) | (915.5) | $ | (67,077.1) | $ | (8,472.1) |
For the quarter ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | Accumulated other comprehensive income (loss) | Common stock in treasury | Total shareholders’ equity (deficit) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional paid-in capital | Retained earnings | Pensions | Cash flow hedges | Foreign currency translation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions, except per share data | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 1,660.6 | $ | 16.6 | $ | 8,046.0 | $ | 55,739.0 | $ | (302.8) | $ | (61.0) | $ | (2,207.4) | (913.8) | $ | (67,038.4) | $ | (5,808.0) | |||||||||||||||||||||||||||||||||||||||||
Net income | 2,149.9 | 2,149.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (4.3) | 30.8 | (118.5) | (92.0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 2,057.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock cash dividends ($2.67 per share) | (1,991.2) | (1,991.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | (0.1) | (34.5) | (34.5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 34.1 | 34.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises and other | 45.7 | 0.5 | 21.0 | 66.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 1,660.6 | $ | 16.6 | $ | 8,125.8 | $ | 55,897.7 | $ | (307.1) | $ | (30.2) | $ | (2,325.9) | (913.4) | $ | (67,051.9) | $ | (5,675.0) |
For the quarter ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||
Common stock issued | Accumulated other comprehensive income (loss) | Common stock in treasury | Total shareholders’ equity (deficit) | ||||||||||||||||||||||||||||||||||
Additional paid-in capital | Retained earnings | Pensions | Cash flow hedges | Foreign currency translation | |||||||||||||||||||||||||||||||||
In millions, except per share data | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 1,660.6 | $ | 16.6 | $ | 7,780.0 | $ | 52,660.8 | $ | (240.2 | ) | $ | (56.0 | ) | $ | (2,510.1 | ) | (916.5 | ) | $ | (67,114.2 | ) | $ | (9,463.1 | ) | |||||||||||||
Net income | 1,762.6 | 1,762.6 | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 3.9 | (22.0 | ) | 65.6 | 47.5 | ||||||||||||||||||||||||||||||||
Comprehensive income | 1,810.1 | ||||||||||||||||||||||||||||||||||||
Common stock cash dividends ($1.25 per share) | (930.9 | ) | (930.9 | ) | |||||||||||||||||||||||||||||||||
Treasury stock purchases | 0 | (0.7 | ) | (0.7 | ) | ||||||||||||||||||||||||||||||||
Share-based compensation | 7.3 | 7.3 | |||||||||||||||||||||||||||||||||||
Stock option exercises and other | 67.4 | 1.0 | 37.8 | 105.2 | |||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 1,660.6 | $ | 16.6 | $ | 7,854.7 | $ | 53,492.5 | $ | (236.3 | ) | $ | (78.0 | ) | $ | (2,444.5 | ) | (915.5 | ) | $ | (67,077.1 | ) | $ | (8,472.1 | ) |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
Restaurants at September 30, | 2020 | 2019 | |||
Conventional franchised | 21,781 | 21,758 | |||
Developmental licensed | 7,660 | 7,473 | |||
Foreign affiliated | 6,997 | 6,432 | |||
Total Franchised | 36,438 | 35,663 | |||
Company-operated | 2,658 | 2,635 | |||
Total Systemwide restaurants | 39,096 | 38,298 |
Restaurants at September 30, | 2021 | 2020 | |||||||||
Conventional franchised | 21,552 | 21,781 | |||||||||
Developmental licensed | 7,795 | 7,660 | |||||||||
Foreign affiliated | 7,639 | 6,997 | |||||||||
Total Franchised | 36,986 | 36,438 | |||||||||
Company-operated | 2,690 | 2,658 | |||||||||
Total Systemwide restaurants | 39,676 | 39,096 |
Derivative Assets | Derivative Liabilities | ||||||||||||||||||
In millions | Balance Sheet Classification | September 30, 2020 | December 31, 2019 | Balance Sheet Classification | September 30, 2020 | December 31, 2019 | |||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||
Foreign currency | Prepaid expenses and other current assets | $ | 2.1 | $ | 10.0 | Accrued payroll and other liabilities | $ | (25.8 | ) | $ | (5.2 | ) | |||||||
Interest rate | Prepaid expenses and other current assets | Accrued payroll and other liabilities | |||||||||||||||||
Foreign currency | Miscellaneous other assets | 15.0 | 9.5 | Other long-term liabilities | (6.3 | ) | (1.2 | ) | |||||||||||
Interest rate | Miscellaneous other assets | 37.9 | 12.1 | Other long-term liabilities | |||||||||||||||
Total derivatives designated as hedging instruments | $ | 55.0 | $ | 31.6 | $ | (32.1 | ) | $ | (6.4 | ) | |||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Equity | Prepaid expenses and other current assets | $ | 190.2 | $ | 1.6 | Accrued payroll and other liabilities | $ | (5.6 | ) | $ | (0.1 | ) | |||||||
Foreign currency | Prepaid expenses and other current assets | 0 | 12.4 | Accrued payroll and other liabilities | (6.9 | ) | (4.8 | ) | |||||||||||
Equity | Miscellaneous other assets | 0 | 179.1 | ||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 190.2 | $ | 193.1 | $ | (12.5 | ) | $ | (4.9 | ) | |||||||||
Total derivatives | $ | 245.2 | $ | 224.7 | $ | (44.6 | ) | $ | (11.3 | ) |
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||||||||||
In millions | Balance Sheet Classification | September 30, 2021 | December 31, 2020 | Balance Sheet Classification | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||||||||||||
Foreign currency | Prepaid expenses and other current assets | $ | 40.1 | $ | — | Accrued payroll and other liabilities | $ | (7.2) | $ | (64.5) | |||||||||||||||||||||||||
Interest rate | Prepaid expenses and other current assets | 2.1 | — | Accrued payroll and other liabilities | — | — | |||||||||||||||||||||||||||||
Foreign currency | Miscellaneous other assets | 25.3 | 5.6 | Other long-term liabilities | (0.1) | (15.0) | |||||||||||||||||||||||||||||
Interest rate | Miscellaneous other assets | 18.0 | 35.8 | Other long-term liabilities | (0.2) | — | |||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 85.5 | $ | 41.4 | $ | (7.5) | $ | (79.5) | |||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||||||||
Equity | Prepaid expenses and other current assets | $ | — | $ | 185.6 | Accrued payroll and other liabilities | $ | (2.5) | $ | (8.6) | |||||||||||||||||||||||||
Foreign currency | Prepaid expenses and other current assets | 1.0 | — | Accrued payroll and other liabilities | — | (9.4) | |||||||||||||||||||||||||||||
Equity | Miscellaneous other assets | 197.6 | — | ||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 198.6 | $ | 185.6 | $ | (2.5) | $ | (18.0) | |||||||||||||||||||||||||||
Total derivatives | $ | 284.1 | $ | 227.0 | $ | (10.0) | $ | (97.5) |
Location of Gain or Loss Recognized in Income on Derivative | Gain (Loss) Recognized in AOCI | Gain (Loss) Reclassified into Income from AOCI | Gain (Loss) Recognized in Income on Derivative | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency | Nonoperating income/expense | $ | 63.1 | $ | (18.8) | $ | (37.4) | $ | 11.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | Interest expense | — | (90.8) | (4.7) | (3.8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedges | $ | 63.1 | $ | (109.6) | $ | (42.1) | $ | 7.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency denominated debt | Nonoperating income/expense | $ | 574.3 | $ | (396.8) | $ | 47.1 | $ | 17.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency derivatives | Nonoperating income/expense | 31.4 | 2.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency derivatives(1) | Interest expense | $ | 11.0 | $ | 11.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment hedges | $ | 605.7 | $ | (394.7) | $ | 47.1 | $ | 17.6 | $ | 11.0 | $ | 11.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency | Nonoperating income/expense | $ | 10.4 | $ | (17.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Selling, general & administrative expenses | 54.4 | 27.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Other operating income/expense, net | (7.8) | (5.6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Undesignated derivatives | $ | 57.0 | $ | 4.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1)The amount of gain (loss) recognized in income related to components excluded from effectiveness testing. |
Location of Gain or Loss Recognized in Income on Derivative | Gain (Loss) Recognized in AOCI | Gain (Loss) Reclassified into Income from AOCI | Gain (Loss) Recognized in Income on Derivative | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Foreign currency | Nonoperating income/expense | $ | (18.8 | ) | $ | 43.5 | $ | 11.3 | $ | 40.3 | |||||||||||||||
Interest rate | Interest expense | (90.8 | ) | (3.8 | ) | (1.0 | ) | ||||||||||||||||||
Cash flow hedges | $ | (109.6 | ) | $ | 43.5 | $ | 7.5 | $ | 39.3 | ||||||||||||||||
Foreign currency denominated debt | Nonoperating income/expense | $ | (396.8 | ) | $ | 766.6 | $ | 17.6 | |||||||||||||||||
Foreign currency derivatives | Nonoperating income/expense | 2.1 | 11.9 | ||||||||||||||||||||||
Foreign currency derivatives(1) | Interest expense | $ | 11.0 | $ | 8.0 | ||||||||||||||||||||
Net investment hedges | $ | (394.7 | ) | $ | 778.5 | $ | 17.6 | $ | 11.0 | $ | 8.0 | ||||||||||||||
Foreign currency | Nonoperating income/expense | $ | (17.2 | ) | $ | 5.2 | |||||||||||||||||||
Equity | Selling, general & administrative expenses | 27.2 | 70.5 | ||||||||||||||||||||||
Equity | Other operating income/expense, net | (5.6 | ) | ||||||||||||||||||||||
Undesignated derivatives | $ | 4.4 | $ | 75.7 | |||||||||||||||||||||
(1)The amount of gain (loss) recognized in income related to components excluded from effectiveness testing. |
Quarters Ended | Nine Months Ended | Quarters Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | In millions | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
Rents | $ | 1,961.7 | $ | 1,935.9 | $ | 4,944.8 | $ | 5,582.1 | Rents | $ | 2,254.1 | $ | 1,961.7 | $ | 6,205.9 | $ | 4,944.8 | |||||||||||||||||||||
Royalties | 1,071.3 | 1,067.6 | 2,762.1 | 3,056.1 | Royalties | 1,243.1 | 1,071.3 | 3,449.6 | 2,762.1 | |||||||||||||||||||||||||||||
Initial fees | 11.8 | 10.5 | 33.9 | 31.8 | Initial fees | 13.0 | 11.8 | 38.3 | 33.9 | |||||||||||||||||||||||||||||
Revenues from franchised restaurants | $ | 3,044.8 | $ | 3,014.0 | $ | 7,740.8 | $ | 8,670.0 | Revenues from franchised restaurants | $ | 3,510.2 | $ | 3,044.8 | $ | 9,693.8 | $ | 7,740.8 |
Quarters Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
U.S. | $ | 2,260.7 | $ | 2,094.2 | $ | 6,615.0 | $ | 5,723.8 | |||||||||||||||
International Operated Markets | 3,372.7 | 2,845.9 | 9,007.6 | 6,862.7 | |||||||||||||||||||
International Developmental Licensed Markets & Corporate | 567.9 | 478.0 | 1,591.2 | 1,307.5 | |||||||||||||||||||
Total revenues | $ | 6,201.3 | $ | 5,418.1 | $ | 17,213.8 | $ | 13,894.0 | |||||||||||||||
Operating Income | |||||||||||||||||||||||
U.S. | $ | 1,254.9 | $ | 1,078.3 | $ | 3,647.9 | $ | 2,705.9 | |||||||||||||||
International Operated Markets | 1,519.6 | 1,197.9 | 3,745.4 | 2,311.8 | |||||||||||||||||||
International Developmental Licensed Markets & Corporate * | 212.0 | 250.2 | 565.6 | 163.4 | |||||||||||||||||||
Total operating income | $ | 2,986.5 | $ | 2,526.4 | $ | 7,958.9 | $ | 5,181.1 |
Quarters Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||
Revenues | |||||||||||||||
U.S. | $ | 2,094.2 | $ | 2,028.5 | $ | 5,723.8 | $ | 5,959.9 | |||||||
International Operated Markets | 2,845.9 | 2,986.2 | 6,862.7 | 8,573.4 | |||||||||||
International Developmental Licensed Markets & Corporate | 478.0 | 487.6 | 1,307.5 | 1,402.9 | |||||||||||
Total revenues | $ | 5,418.1 | $ | 5,502.3 | $ | 13,894.0 | $ | 15,936.2 | |||||||
Operating Income | |||||||||||||||
U.S. | $ | 1,078.3 | $ | 1,038.7 | $ | 2,705.9 | $ | 3,039.4 | |||||||
International Operated Markets | 1,197.9 | 1,284.0 | 2,311.8 | 3,550.8 | |||||||||||
International Developmental Licensed Markets & Corporate * | 250.2 | 86.6 | 163.4 | 187.0 | |||||||||||
Total operating income | $ | 2,526.4 | $ | 2,409.3 | $ | 5,181.1 | $ | 6,777.2 |
•Purpose to feed and foster communities; •Mission to create delicious feel-good moments for everyone; and •Core Values that define who we are and how we run our business. |
•Maximize our Marketing by investing in new, culturally relevant approaches, such as our Famous Orders platform, to effectively communicate the story of our brand, food and purpose. This focuses on enhancing digital capabilities that provide a more personal connection with customers. The Company is also committed to a marketing strategy that highlights value at every tier of the menu, as affordability remains a cornerstone of the McDonald’s brand. •Commit to the Core by tapping into customer demand for the familiar and focusing on serving delicious burgers, chicken and coffee. The Company is prioritizing chicken and beef offerings, as we expect they represent the largest growth opportunities. The Company recognizes there is significant opportunity to expand its chicken offerings by leveraging line extensions of customer favorites, such as the new Crispy Chicken Sandwich that launched in the U.S. in February 2021. The Company is also implementing a series of operational and formulation changes designed to improve upon the great taste of our burgers. We also see a significant opportunity with coffee, and markets are leveraging the McCafé brand, experience, value and quality to drive long-term growth. •Double Down on the 3D's: Digital, Delivery and Drive Thru by leveraging competitive strengths and building a powerful digital experience growth engine that provides a fast, easy experience for our customers. To unlock further growth, the Company is continuing to accelerate technology innovation so that, however customers choose to interact with McDonald’s, they can enjoy a fast, easy experience that meets their needs. In the first nine months of 2021, Systemwide sales from digital channels (which are comprised of the mobile app, delivery and kiosk) were about $13 billion, or over 20% of Systemwide sales in our top six markets. • ◦Digital: The Company’s digital experience growth engine, “MyMcDonald’s,” is transforming its offerings across drive thru, takeaway, delivery, curbside pick-up and dine-in with digital enhancements. Through the digital tools across these platforms, customers can receive tailored offers, participate in a loyalty program and order and receive McDonald's food through the channel of their choice. The Company already has successful loyalty programs in many markets around the world. The Company launched its loyalty program, “MyMcDonald’s Rewards,” in the U.S. and Germany in the third quarter of 2021 and expects to complete the roll-out of loyalty programs across its top six markets in the first half of 2022. Since its launch in July, the U.S. loyalty program has enrolled 21 million members, with over 15 million active loyalty members earning rewards. ◦Delivery: Over the past three years, the Company has expanded the number of McDonald’s restaurants offering delivery to over 32,000, or approximately 80% of its restaurants, and delivery sales have grown significantly. The Company is building on this progress and enhancing the delivery experience for customers by adding the ability to order on the McDonald’s app and optimizing operations with a focus on speed and accuracy. ◦Drive Thru: The Company has drive thru locations in over 25,000 restaurants globally, including nearly 95% of the over 13,000 locations in the U.S. This channel remains of heightened importance, and we expect that it will become even more critical to meet customers’ demand for flexibility and choice. The Company is building on its drive thru advantage, as the vast majority of new restaurant openings in the U.S. and International Operated Markets will include a drive thru. 16 |
•Constant currency results exclude the effects of foreign currency translation and are 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 material regulatory and other income tax impacts, and bases incentive compensation plans on these results because the Company believes this better represents underlying business trends. |
CONSOLIDATED OPERATING RESULTS | |||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||
Dollars in millions, except per share data | September 30, 2020 | September 30, 2020 | |||||||||||||
Amount | Increase/ (Decrease) | Amount | Increase/ (Decrease) | ||||||||||||
Revenues | |||||||||||||||
Sales by Company-operated restaurants | $ | 2,286.4 | (5 | )% | $ | 5,905.9 | (16 | )% | |||||||
Revenues from franchised restaurants | 3,044.8 | 1 | 7,740.8 | (11 | ) | ||||||||||
Other revenues | 86.9 | 21 | 247.3 | 18 | |||||||||||
Total revenues | 5,418.1 | (2 | ) | 13,894.0 | (13 | ) | |||||||||
Operating costs and expenses | |||||||||||||||
Company-operated restaurant expenses | 1,876.3 | (5 | ) | 5,077.5 | (13 | ) | |||||||||
Franchised restaurants-occupancy expenses | 567.9 | 2 | 1,646.6 | 1 | |||||||||||
Other restaurant expenses | 69.2 | 20 | 198.0 | 19 | |||||||||||
Selling, general & administrative expenses | |||||||||||||||
Depreciation and amortization | 75.8 | 10 | 220.3 | 14 | |||||||||||
Other | 454.7 | (4 | ) | 1,547.0 | 12 | ||||||||||
Other operating (income) expense, net | (152.2 | ) | n/m | 23.5 | n/m | ||||||||||
Total operating costs and expenses | 2,891.7 | (7 | ) | 8,712.9 | (5 | ) | |||||||||
Operating income | 2,526.4 | 5 | 5,181.1 | (24 | ) | ||||||||||
Interest expense | 310.1 | 10 | 909.2 | 8 | |||||||||||
Nonoperating (income) expense, net | (0.8 | ) | 97 | (38.8 | ) | 27 | |||||||||
Income before provision for income taxes | 2,217.1 | 3 | 4,310.7 | (28 | ) | ||||||||||
Provision for income taxes | 454.5 | (16 | ) | 957.4 | (38 | ) | |||||||||
Net income | $ | 1,762.6 | 10 | % | $ | 3,353.3 | (25 | )% | |||||||
Earnings per common share-basic | $ | 2.37 | 11 | % | $ | 4.50 | (23 | )% | |||||||
Earnings per common share-diluted | $ | 2.35 | 11 | % | $ | 4.47 | (23 | )% |
CONSOLIDATED OPERATING RESULTS | |||||||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||||||||||||||
Dollars in millions, except per share data | September 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||
Amount | Increase/ (Decrease) | Amount | Increase/ (Decrease) | ||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Sales by Company-operated restaurants | $ | 2,598.4 | 14 | % | $ | 7,248.6 | 23 | % | |||||||||||||||||||||
Revenues from franchised restaurants | 3,510.2 | 15 | 9,693.8 | 25 | |||||||||||||||||||||||||
Other revenues | 92.7 | 7 | 271.4 | 10 | |||||||||||||||||||||||||
Total revenues | 6,201.3 | 14 | 17,213.8 | 24 | |||||||||||||||||||||||||
Operating costs and expenses | |||||||||||||||||||||||||||||
Company-operated restaurant expenses | 2,108.4 | 12 | 5,947.0 | 17 | |||||||||||||||||||||||||
Franchised restaurants-occupancy expenses | 592.6 | 4 | 1,743.2 | 6 | |||||||||||||||||||||||||
Other restaurant expenses | 68.9 | 0 | 204.4 | 3 | |||||||||||||||||||||||||
Selling, general & administrative expenses | |||||||||||||||||||||||||||||
Depreciation and amortization | 84.1 | 11 | 243.2 | 10 | |||||||||||||||||||||||||
Other | 559.6 | 23 | 1,622.4 | 5 | |||||||||||||||||||||||||
Other operating (income) expense, net | (198.8) | (31) | (505.3) | n/m | |||||||||||||||||||||||||
Total operating costs and expenses | 3,214.8 | 11 | 9,254.9 | 6 | |||||||||||||||||||||||||
Operating income | 2,986.5 | 18 | 7,958.9 | 54 | |||||||||||||||||||||||||
Interest expense | 293.7 | (5) | 890.2 | (2) | |||||||||||||||||||||||||
Nonoperating (income) expense, net | 1.4 | n/m | 48.6 | n/m | |||||||||||||||||||||||||
Income before provision for income taxes | 2,691.4 | 21 | 7,020.1 | 63 | |||||||||||||||||||||||||
Provision for income taxes | 541.5 | 19 | 1,113.7 | 16 | |||||||||||||||||||||||||
Net income | $ | 2,149.9 | 22 | % | $ | 5,906.4 | 76 | % | |||||||||||||||||||||
Earnings per common share-basic | $ | 2.88 | 22 | % | $ | 7.91 | 76 | % | |||||||||||||||||||||
Earnings per common share-diluted | $ | 2.86 | 22 | % | $ | 7.86 | 76 | % |
IMPACT OF FOREIGN CURRENCY TRANSLATION | ||||||||||||||||||||||||||
Dollars in millions, except per share data | ||||||||||||||||||||||||||
Currency Translation Benefit/ (Cost) | ||||||||||||||||||||||||||
Quarters Ended September 30, | 2021 | 2020 | 2021 | |||||||||||||||||||||||
Revenues | $ | 6,201.3 | $ | 5,418.1 | $ | 87.9 | ||||||||||||||||||||
Company-operated margins | 490.0 | 410.1 | 8.4 | |||||||||||||||||||||||
Franchised margins | 2,917.6 | 2,476.9 | 37.6 | |||||||||||||||||||||||
Selling, general & administrative expenses | 643.7 | 530.5 | (4.2) | |||||||||||||||||||||||
Operating income | 2,986.5 | 2,526.4 | 38.6 | |||||||||||||||||||||||
Net income | 2,149.9 | 1,762.6 | 24.3 | |||||||||||||||||||||||
Earnings per share-diluted | $ | 2.86 | $ | 2.35 | $ | 0.04 | ||||||||||||||||||||
Currency Translation Benefit/ (Cost) | ||||||||||||||||||||||||||
Nine Months Ended September 30, | 2021 | 2020 | 2021 | |||||||||||||||||||||||
Revenues | $ | 17,213.8 | $ | 13,894.0 | $ | 521.9 | ||||||||||||||||||||
Company-operated margins | 1,301.6 | 828.4 | 43.9 | |||||||||||||||||||||||
Franchised margins | 7,950.6 | 6,094.2 | 246.7 | |||||||||||||||||||||||
Selling, general & administrative expenses | 1,865.6 | 1,767.3 | (30.9) | |||||||||||||||||||||||
Operating income | 7,958.9 | 5,181.1 | 255.4 | |||||||||||||||||||||||
Net income | 5,906.4 | 3,353.3 | 167.6 | |||||||||||||||||||||||
Earnings per share-diluted | $ | 7.86 | $ | 4.47 | $ | 0.23 |
IMPACT OF FOREIGN CURRENCY TRANSLATION | ||||||||||||||
Dollars in millions, except per share data | ||||||||||||||
Currency Translation Benefit/ (Cost) | ||||||||||||||
Quarters Ended September 30, | 2020 | 2019 | 2020 | |||||||||||
Revenues | $ | 5,418.1 | $ | 5,502.3 | $ | 30.7 | ||||||||
Company-operated margins | 410.1 | 448.9 | 1.9 | |||||||||||
Franchised margins | 2,476.9 | 2,454.5 | 36.9 | |||||||||||
Selling, general & administrative expenses | 530.5 | 543.6 | (4.0 | ) | ||||||||||
Operating income | 2,526.4 | 2,409.3 | 34.4 | |||||||||||
Net income | 1,762.6 | 1,607.9 | 23.5 | |||||||||||
Earnings per share-diluted | $ | 2.35 | $ | 2.11 | $ | 0.03 | ||||||||
Currency Translation Benefit/ (Cost) | ||||||||||||||
Nine Months Ended September 30, | 2020 | 2019 | 2020 | |||||||||||
Revenues | $ | 13,894.0 | $ | 15,936.2 | $ | (126.6 | ) | |||||||
Company-operated margins | 828.4 | 1,236.5 | (3.0 | ) | ||||||||||
Franchised margins | 6,094.2 | 7,032.7 | (19.4 | ) | ||||||||||
Selling, general & administrative expenses | 1,767.3 | 1,575.8 | 4.6 | |||||||||||
Operating income | 5,181.1 | 6,777.2 | (18.4 | ) | ||||||||||
Net income | 3,353.3 | 4,453.2 | 0.2 | |||||||||||
Earnings per share-diluted | $ | 4.47 | $ | 5.80 | $ | 0.00 |
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | 2021 | 2020 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | ||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP earnings per share-diluted | $ | 2.86 | $ | 2.35 | 22 | % | 20 | % | $ | 7.86 | $ | 4.47 | 76 | % | 71 | % | |||||||||||||||||||||||||||||||||||||||||||
Strategic gains | (0.10) | (0.13) | (0.33) | (0.12) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefits | — | — | (0.48) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP earnings per share-diluted | $ | 2.76 | $ | 2.22 | 24 | % | 23 | % | $ | 7.05 | $ | 4.35 | 62 | % | 57 | % | |||||||||||||||||||||||||||||||||||||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2020 | 2019 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | 2020 | 2019 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | ||||||||||||||||||||||
GAAP earnings per share-diluted | $ | 2.35 | $ | 2.11 | 11 | % | 10 | % | $ | 4.47 | $ | 5.80 | (23 | ) | % | (23 | ) | % | |||||||||||
Strategic charges | (0.13 | ) | — | (0.12 | ) | 0.07 | |||||||||||||||||||||||
Non-GAAP earnings per share-diluted | $ | 2.22 | $ | 2.11 | 5 | % | 4 | % | $ | 4.35 | $ | 5.87 | (26 | ) | % | (26 | ) | % |
REVENUES | |||||||||||
Dollars in millions | |||||||||||
Quarters Ended September 30, | 2020 | 2019 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | |||||||
Company-operated sales | |||||||||||
U.S. | $ | 625.9 | $ | 624.8 | 0 | % | 0 | % | |||
International Operated Markets | 1,499.2 | 1,639.7 | (9 | ) | (7 | ) | |||||
International Developmental Licensed Markets & Corporate | 161.3 | 152.1 | 6 | 5 | |||||||
Total | $ | 2,286.4 | $ | 2,416.6 | (5 | )% | (5 | )% | |||
Franchised revenues | |||||||||||
U.S. | $ | 1,425.6 | $ | 1,365.6 | 4 | % | 4 | % | |||
International Operated Markets | 1,318.1 | 1,326.2 | (1 | ) | (5 | ) | |||||
International Developmental Licensed Markets & Corporate | 301.1 | 322.2 | (7 | ) | (5 | ) | |||||
Total | $ | 3,044.8 | $ | 3,014.0 | 1 | % | (1 | )% | |||
Total Company-operated sales and Franchised revenues | |||||||||||
U.S. | $ | 2,051.5 | $ | 1,990.4 | 3 | % | 3 | % | |||
International Operated Markets | 2,817.3 | 2,965.9 | (5 | ) | (6 | ) | |||||
International Developmental Licensed Markets & Corporate | 462.4 | 474.3 | (3 | ) | (1 | ) | |||||
Total | $ | 5,331.2 | $ | 5,430.6 | (2 | )% | (2 | )% | |||
Total Other revenues | $ | 86.9 | $ | 71.7 | 21 | % | 20 | % | |||
Total Revenues | $ | 5,418.1 | $ | 5,502.3 | (2 | )% | (2 | )% | |||
Nine Months Ended September 30, | 2020 | 2019 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | |||||||
Company-operated sales | |||||||||||
U.S. | $ | 1,756.9 | $ | 1,857.2 | (5 | )% | (5 | )% | |||
International Operated Markets | 3,687.3 | 4,749.5 | (22 | ) | (21 | ) | |||||
International Developmental Licensed Markets & Corporate | 461.7 | 450.8 | 2 | 6 | |||||||
Total | $ | 5,905.9 | $ | 7,057.5 | (16 | )% | (15 | )% | |||
Franchised revenues | |||||||||||
U.S. | $ | 3,841.5 | $ | 3,987.0 | (4 | )% | (4 | )% | |||
International Operated Markets | 3,098.6 | 3,763.7 | (18 | ) | (18 | ) | |||||
International Developmental Licensed Markets & Corporate | 800.7 | 919.3 | (13 | ) | (10 | ) | |||||
Total | $ | 7,740.8 | $ | 8,670.0 | (11 | )% | (10 | )% | |||
Total Company-operated sales and Franchised revenues | |||||||||||
U.S. | $ | 5,598.4 | $ | 5,844.2 | (4 | )% | (4 | )% | |||
International Operated Markets | 6,785.9 | 8,513.2 | (20 | ) | (19 | ) | |||||
International Developmental Licensed Markets & Corporate | 1,262.4 | 1,370.1 | (8 | ) | (5 | ) | |||||
Total | $ | 13,646.7 | $ | 15,727.5 | (13 | )% | (12 | )% | |||
Total Other revenues | $ | 247.3 | $ | 208.7 | 18 | % | 19 | % | |||
Total Revenues | $ | 13,894.0 | $ | 15,936.2 | (13 | )% | (12 | )% |
REVENUES | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Quarters Ended September 30, | 2021 | 2020 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | |||||||||||||
Company-operated sales | |||||||||||||||||
U.S. | $ | 655.5 | $ | 625.9 | 5 | % | 5 | % | |||||||||
International Operated Markets | 1,754.0 | 1,499.2 | 17 | 15 | |||||||||||||
International Developmental Licensed Markets & Corporate | 188.9 | 161.3 | 17 | 14 | |||||||||||||
Total | $ | 2,598.4 | $ | 2,286.4 | 14 | % | 12 | % | |||||||||
Franchised revenues | |||||||||||||||||
U.S. | $ | 1,562.7 | $ | 1,425.6 | 10 | % | 10 | % | |||||||||
International Operated Markets | 1,586.1 | 1,318.1 | 20 | 17 | |||||||||||||
International Developmental Licensed Markets & Corporate | 361.4 | 301.1 | 20 | 19 | |||||||||||||
Total | $ | 3,510.2 | $ | 3,044.8 | 15 | % | 14 | % | |||||||||
Total Company-operated sales and Franchised revenues | |||||||||||||||||
U.S. | $ | 2,218.2 | $ | 2,051.5 | 8 | % | 8 | % | |||||||||
International Operated Markets | 3,340.1 | 2,817.3 | 19 | 16 | |||||||||||||
International Developmental Licensed Markets & Corporate | 550.3 | 462.4 | 19 | 17 | |||||||||||||
Total | $ | 6,108.6 | $ | 5,331.2 | 15 | % | 13 | % | |||||||||
Total Other revenues | $ | 92.7 | $ | 86.9 | 7 | % | 5 | % | |||||||||
Total Revenues | $ | 6,201.3 | $ | 5,418.1 | 14 | % | 13 | % | |||||||||
Nine Months Ended September 30, | 2021 | 2020 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | |||||||||||||
Company-operated sales | |||||||||||||||||
U.S. | $ | 1,942.0 | $ | 1,756.9 | 11 | % | 11 | % | |||||||||
International Operated Markets | 4,769.0 | 3,687.3 | 29 | 25 | |||||||||||||
International Developmental Licensed Markets & Corporate | 537.6 | 461.7 | 16 | 10 | |||||||||||||
Total | $ | 7,248.6 | $ | 5,905.9 | 23 | % | 19 | % | |||||||||
Franchised revenues | |||||||||||||||||
U.S. | $ | 4,550.9 | $ | 3,841.5 | 18 | % | 18 | % | |||||||||
International Operated Markets | 4,141.0 | 3,098.6 | 34 | 24 | |||||||||||||
International Developmental Licensed Markets & Corporate | 1,001.9 | 800.7 | 25 | 23 | |||||||||||||
Total | $ | 9,693.8 | $ | 7,740.8 | 25 | % | 21 | % | |||||||||
Total Company-operated sales and Franchised revenues | |||||||||||||||||
U.S. | $ | 6,492.9 | $ | 5,598.4 | 16 | % | 16 | % | |||||||||
International Operated Markets | 8,910.0 | 6,785.9 | 31 | 24 | |||||||||||||
International Developmental Licensed Markets & Corporate | 1,539.5 | 1,262.4 | 22 | 18 | |||||||||||||
Total | $ | 16,942.4 | $ | 13,646.7 | 24 | % | 20 | % | |||||||||
Total Other revenues | $ | 271.4 | $ | 247.3 | 10 | % | 7 | % | |||||||||
Total Revenues | $ | 17,213.8 | $ | 13,894.0 | 24 | % | 20 | % |
Increase/(Decrease) | |||||||||||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
U.S. | 9.6 | % | 4.6 | % | 16.1 | % | (1.4) | % | |||||||||
International Operated Markets | 13.9 | (4.4) | 23.6 | (17.6) | |||||||||||||
International Developmental Licensed Markets & Corporate | 16.7 | (10.1) | 17.5 | (12.9) | |||||||||||||
Total | 12.7 | % | (2.2) | % | 18.8 | % | (9.9) | % |
Increase/(Decrease) | |||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||
2020 | 2019 | 2020 | 2019 | ||||||
U.S. | 4.6 | % | 4.8 | % | (1.4 | )% | 5.0 | % | |
International Operated Markets | (4.4 | ) | 5.6 | (17.6 | ) | 6.1 | |||
International Developmental Licensed Markets & Corporate | (10.1 | ) | 8.1 | (12.9 | ) | 7.3 | |||
Total | (2.2 | )% | 5.9 | % | (9.9 | )% | 5.9 | % |
SYSTEMWIDE SALES* | |||||||||||||||||||||||
Quarter Ended September 30, 2021 | Nine Months Ended September 30, 2021 | ||||||||||||||||||||||
Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | ||||||||||||||||||||
U.S. | 9 | % | 9 | % | 16 | % | 16 | % | |||||||||||||||
International Operated Markets | 19 | 16 | 34 | 26 | |||||||||||||||||||
International Developmental Licensed Markets & Corporate | 21 | 21 | 24 | 21 | |||||||||||||||||||
Total | 16 | % | 14 | % | 24 | % | 20 | % |
Quarter Ended September 30, 2020 | Nine Months Ended September 30, | ||||||||||
Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | ||||||||
U.S. | 4 | % | 4 | % | (1 | )% | (1 | )% | |||
International Operated Markets | 0 | (3 | ) | (17 | ) | (16 | ) | ||||
International Developmental Licensed Markets & Corporate | (9 | ) | (7 | ) | (13 | ) | (10 | ) | |||
Total | 0 | % | (1 | )% | (10 | )% | (9 | )% |
FRANCHISED SALES | ||||||||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||||||||
Quarters Ended September 30, | 2021 | 2020 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | ||||||||||||||||||||||
U.S. | $ | 11,155.0 | $ | 10,180.3 | 10 | % | 10 | % | ||||||||||||||||||
International Operated Markets | 9,212.8 | 7,700.5 | 20 | 16 | ||||||||||||||||||||||
International Developmental Licensed Markets & Corporate | 6,981.9 | 5,748.7 | 21 | 21 | ||||||||||||||||||||||
Total | $ | 27,349.7 | $ | 23,629.5 | 16 | % | 15 | % | ||||||||||||||||||
Ownership type | ||||||||||||||||||||||||||
Conventional franchised | $ | 20,199.7 | $ | 17,775.7 | 14 | % | 12 | % | ||||||||||||||||||
Developmental licensed | 4,078.8 | 3,126.4 | 30 | 30 | ||||||||||||||||||||||
Foreign affiliated | 3,071.2 | 2,727.4 | 13 | 12 | ||||||||||||||||||||||
Total | $ | 27,349.7 | $ | 23,629.5 | 16 | % | 15 | % | ||||||||||||||||||
Nine Months Ended September 30, | 2021 | 2020 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | ||||||||||||||||||||||
U.S. | $ | 32,419.7 | $ | 27,943.9 | 16 | % | 16 | % | ||||||||||||||||||
International Operated Markets | 24,444.4 | 18,078.1 | 35 | 26 | ||||||||||||||||||||||
International Developmental Licensed Markets & Corporate | 19,296.1 | 15,577.4 | 24 | 21 | ||||||||||||||||||||||
Total | $ | 76,160.2 | $ | 61,599.4 | 24 | % | 20 | % | ||||||||||||||||||
Ownership type | ||||||||||||||||||||||||||
Conventional franchised | $ | 56,535.9 | $ | 45,813.2 | 23 | % | 20 | % | ||||||||||||||||||
Developmental licensed | 10,924.2 | 8,411.3 | 30 | 28 | ||||||||||||||||||||||
Foreign affiliated | 8,700.1 | 7,374.9 | 18 | 15 | ||||||||||||||||||||||
Total | $ | 76,160.2 | $ | 61,599.4 | 24 | % | 20 | % |
FRANCHISED SALES | ||||||||||||||
Dollars in millions | ||||||||||||||
Quarters Ended September 30, | 2020 | 2019 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | ||||||||||
U.S. | $ | 10,180.3 | $ | 9,721.7 | 5 | % | 5 | % | ||||||
International Operated Markets | 7,700.5 | 7,569.1 | 2 | (2 | ) | |||||||||
International Developmental Licensed Markets & Corporate | 5,748.7 | 6,325.8 | (9 | ) | (8 | ) | ||||||||
Total | $ | 23,629.5 | $ | 23,616.6 | 0 | % | (1 | )% | ||||||
Ownership type | ||||||||||||||
Conventional franchised | $ | 17,775.7 | $ | 17,172.5 | 4 | % | 2 | % | ||||||
Developmental licensed | 3,126.4 | 3,769.3 | (17 | ) | (14 | ) | ||||||||
Foreign affiliated | 2,727.4 | 2,674.8 | 2 | 1 | ||||||||||
Total | $ | 23,629.5 | $ | 23,616.6 | 0 | % | (1 | )% | ||||||
Nine Months Ended September 30, | 2020 | 2019 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | ||||||||||
U.S. | $ | 27,943.9 | $ | 28,283.0 | (1 | )% | (1 | )% | ||||||
International Operated Markets | 18,078.1 | 21,430.3 | (16 | ) | (16 | ) | ||||||||
International Developmental Licensed Markets & Corporate | 15,577.4 | 17,889.4 | (13 | ) | (11 | ) | ||||||||
Total | $ | 61,599.4 | $ | 67,602.7 | (9 | )% | (8 | )% | ||||||
Ownership type | ||||||||||||||
Conventional franchised | $ | 45,813.2 | $ | 49,448.8 | (7 | )% | (7 | )% | ||||||
Developmental licensed | 8,411.3 | 10,648.9 | (21 | ) | (17 | ) | ||||||||
Foreign affiliated | 7,374.9 | 7,505.0 | (2 | ) | (2 | ) | ||||||||
Total | $ | 61,599.4 | $ | 67,602.7 | (9 | )% | (8 | )% |
RESTAURANT MARGINS | |||||||||||||
Dollars in millions | |||||||||||||
Amount | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | |||||||||||
Quarters Ended September 30, | 2020 | 2019 | |||||||||||
Franchised | |||||||||||||
U.S. | $ | 1,122.1 | $ | 1,076.2 | 4 | % | 4 | % | |||||
International Operated Markets | 1,059.9 | 1,063.1 | 0 | (4 | ) | ||||||||
International Developmental Licensed Markets & Corporate | 294.9 | 315.2 | (6 | ) | (5 | ) | |||||||
Total | $ | 2,476.9 | $ | 2,454.5 | 1 | % | (1 | )% | |||||
Company-operated | |||||||||||||
U.S. | $ | 118.7 | $ | 97.8 | 21 | % | 21 | % | |||||
International Operated Markets | 289.5 | 348.8 | (17 | ) | (18 | ) | |||||||
International Developmental Licensed Markets & Corporate | n/m | n/m | n/m | n/m | |||||||||
Total | $ | 410.1 | $ | 448.9 | (9 | )% | (9 | )% | |||||
Total restaurant margins | |||||||||||||
U.S. | $ | 1,240.8 | $ | 1,174.0 | 6 | % | 6 | % | |||||
International Operated Markets | 1,349.4 | 1,411.9 | (4 | ) | (8 | ) | |||||||
International Developmental Licensed Markets & Corporate | n/m | n/m | n/m | n/m | |||||||||
Total | $ | 2,887.0 | $ | 2,903.4 | (1 | )% | (2 | )% | |||||
Amount | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | |||||||||||
Nine Months Ended September 30, | 2020 | 2019 | |||||||||||
Franchised | |||||||||||||
U.S. | $ | 2,966.1 | $ | 3,148.9 | (6 | )% | (6 | )% | |||||
International Operated Markets | 2,345.7 | 2,986.6 | (21 | ) | (22 | ) | |||||||
International Developmental Licensed Markets & Corporate | 782.4 | 897.2 | (13 | ) | (10 | ) | |||||||
Total | $ | 6,094.2 | $ | 7,032.7 | (13 | )% | (13 | )% | |||||
Company-operated | |||||||||||||
U.S. | $ | 282.5 | $ | 284.8 | (1 | )% | (1 | )% | |||||
International Operated Markets | 544.3 | 946.2 | (42 | ) | (42 | ) | |||||||
International Developmental Licensed Markets & Corporate | n/m | n/m | n/m | n/m | |||||||||
Total | $ | 828.4 | $ | 1,236.5 | (33 | )% | (33 | )% | |||||
Total restaurant margins | |||||||||||||
U.S. | $ | 3,248.6 | $ | 3,433.7 | (5 | )% | (5 | )% | |||||
International Operated Markets | 2,890.0 | 3,932.8 | (27 | ) | (27 | ) | |||||||
International Developmental Licensed Markets & Corporate | n/m | n/m | n/m | n/m | |||||||||
Total | $ | 6,922.6 | $ | 8,269.2 | (16 | )% | (16 | )% |
RESTAURANT MARGINS | |||||||||||||||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||||||||||||||
Amount | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | |||||||||||||||||||||||||||||||||
Quarters Ended September 30, | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Franchised | |||||||||||||||||||||||||||||||||||
U.S. | $ | 1,260.1 | $ | 1,122.1 | 12 | % | 12 | % | |||||||||||||||||||||||||||
International Operated Markets | 1,302.4 | 1,059.9 | 23 | 20 | |||||||||||||||||||||||||||||||
International Developmental Licensed Markets & Corporate | 355.1 | 294.9 | 21 | 20 | |||||||||||||||||||||||||||||||
Total | $ | 2,917.6 | $ | 2,476.9 | 18 | % | 16 | % | |||||||||||||||||||||||||||
Company-operated | |||||||||||||||||||||||||||||||||||
U.S. | $ | 126.6 | $ | 118.7 | 7 | % | 7 | % | |||||||||||||||||||||||||||
International Operated Markets | 355.5 | 289.5 | 23 | 20 | |||||||||||||||||||||||||||||||
International Developmental Licensed Markets & Corporate | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||
Total | $ | 490.0 | $ | 410.1 | 19 | % | 17 | % | |||||||||||||||||||||||||||
Total restaurant margins | |||||||||||||||||||||||||||||||||||
U.S. | $ | 1,386.7 | $ | 1,240.8 | 12 | % | 12 | % | |||||||||||||||||||||||||||
International Operated Markets | 1,657.9 | 1,349.4 | 23 | 20 | |||||||||||||||||||||||||||||||
International Developmental Licensed Markets & Corporate | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||
Total | $ | 3,407.6 | $ | 2,887.0 | 18 | % | 16 | % | |||||||||||||||||||||||||||
Amount | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Franchised | |||||||||||||||||||||||||||||||||||
U.S. | $ | 3,667.0 | $ | 2,966.1 | 24 | % | 24 | % | |||||||||||||||||||||||||||
International Operated Markets | 3,300.5 | 2,345.7 | 41 | 31 | |||||||||||||||||||||||||||||||
International Developmental Licensed Markets & Corporate | 983.1 | 782.4 | 26 | 23 | |||||||||||||||||||||||||||||||
Total | $ | 7,950.6 | $ | 6,094.2 | 30 | % | 26 | % | |||||||||||||||||||||||||||
Company-operated | |||||||||||||||||||||||||||||||||||
U.S. | $ | 399.8 | $ | 282.5 | 42 | % | 42 | % | |||||||||||||||||||||||||||
International Operated Markets | 885.6 | 544.3 | 63 | 55 | |||||||||||||||||||||||||||||||
International Developmental Licensed Markets & Corporate | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||
Total | $ | 1,301.6 | $ | 828.4 | 57 | % | 52 | % | |||||||||||||||||||||||||||
Total restaurant margins | |||||||||||||||||||||||||||||||||||
U.S. | $ | 4,066.8 | $ | 3,248.6 | 25 | % | 25 | % | |||||||||||||||||||||||||||
International Operated Markets | 4,186.1 | 2,890.0 | 45 | 36 | |||||||||||||||||||||||||||||||
International Developmental Licensed Markets & Corporate | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||
Total | $ | 9,252.2 | $ | 6,922.6 | 34 | % | 29 | % |
•Selling, general and administrative expenses increased $113.2 million or 21% (21% in constant currencies) for the quarter and $98.3 million or 6%(4% in constant currencies) for the nine months. Both periods reflected an increase in incentive-based compensation expense driven by stronger than planned operating results and higher costs for investments in restaurant technology. Results for the nine months benefited from the comparison to incremental marketing contributions in the prior year. • |
OTHER OPERATING (INCOME) EXPENSE, NET | |||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Gains on sales of restaurant businesses | $ | (37.8) | $ | (0.7) | $ | (82.5) | $ | (3.5) | |||||||||||||||
Equity in earnings of unconsolidated affiliates | (49.0) | (48.7) | (126.9) | (67.9) | |||||||||||||||||||
Asset dispositions and other (income) expense, net | (5.6) | 35.9 | 43.5 | 220.3 | |||||||||||||||||||
Impairment and other charges (gains), net | (106.4) | (138.7) | (339.4) | (125.4) | |||||||||||||||||||
Total | $ | (198.8) | $ | (152.2) | $ | (505.3) | $ | 23.5 |
OTHER OPERATING (INCOME) EXPENSE, NET | |||||||||||||||
Dollars in millions | |||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Gains on sales of restaurant businesses | $ | (0.7 | ) | $ | (17.4 | ) | $ | (3.5 | ) | $ | (90.4 | ) | |||
Equity in earnings of unconsolidated affiliates | (48.7 | ) | (42.8 | ) | (67.9 | ) | (112.0 | ) | |||||||
Asset dispositions and other (income) expense, net | 35.9 | 23.3 | 220.3 | 80.9 | |||||||||||
Impairment and other charges, net | (138.7 | ) | 1.6 | (125.4 | ) | 80.2 | |||||||||
Total | $ | (152.2 | ) | $ | (35.3 | ) | $ | 23.5 | $ | (41.3 | ) |
OPERATING INCOME | ||||||||||||||||||||||||||||||||||||
OPERATING INCOME & OPERATING MARGIN | OPERATING INCOME & OPERATING MARGIN | |||||||||||||||||||||||||||||||||||
Dollars in millions | Dollars in millions | Dollars in millions | ||||||||||||||||||||||||||||||||||
Quarters Ended September 30, | 2020 | 2019 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | Quarters Ended September 30, | 2021 | 2020 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | |||||||||||||||||||||||||||
U.S. | $ | 1,078.3 | $ | 1,038.7 | 4 | % | 4 | % | U.S. | $ | 1,254.9 | $ | 1,078.3 | 16 | % | 16 | % | |||||||||||||||||||
International Operated Markets | 1,197.9 | 1,284.0 | (7 | ) | (10 | ) | International Operated Markets | 1,519.6 | 1,197.9 | 27 | 24 | |||||||||||||||||||||||||
International Developmental Licensed Markets & Corporate | 250.2 | 86.6 | n/m | n/m | International Developmental Licensed Markets & Corporate | 212.0 | 250.2 | (15) | (15) | |||||||||||||||||||||||||||
Total | $ | 2,526.4 | $ | 2,409.3 | 5 | % | 3 | % | Total | $ | 2,986.5 | $ | 2,526.4 | 18 | % | 17 | % | |||||||||||||||||||
Nine Months Ended September 30, | 2020 | 2019 | Inc/ (Dec) | Increase Excluding Currency Translation | Nine Months Ended September 30, | 2021 | 2020 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | |||||||||||||||||||||||||||
U.S. | $ | 2,705.9 | $ | 3,039.4 | (11 | )% | (11 | )% | U.S. | $ | 3,647.9 | $ | 2,705.9 | 35 | % | 35 | % | |||||||||||||||||||
International Operated Markets | 2,311.8 | 3,550.8 | (35 | ) | (35 | ) | International Operated Markets | 3,745.4 | 2,311.8 | 62 | 51 | |||||||||||||||||||||||||
International Developmental Licensed Markets & Corporate | 163.4 | 187.0 | (13 | )% | 0 | % | International Developmental Licensed Markets & Corporate | 565.6 | 163.4 | n/m | n/m | |||||||||||||||||||||||||
Total | $ | 5,181.1 | $ | 6,777.2 | (24 | )% | (23 | )% | Total | $ | 7,958.9 | $ | 5,181.1 | 54 | % | 49 | % | |||||||||||||||||||
Operating margin | 37.3 | % | 42.5 | % | Operating margin | 46.2 | % | 37.3 | % | |||||||||||||||||||||||||||
Non-GAAP operating Margin | 36.4 | % | 43.0 | % | ||||||||||||||||||||||||||||||||
Non-GAAP operating margin | Non-GAAP operating margin | 44.3 | % | 36.4 | % | |||||||||||||||||||||||||||||||
•Operating Income: Operating income |
NONOPERATING (INCOME) EXPENSE, NET | |||||||||||||||
Dollars in millions | |||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Interest income | $ | (3.4 | ) | $ | (8.9 | ) | $ | (13.8 | ) | $ | (29.6 | ) | |||
Foreign currency and hedging activity | 0.6 | (18.8 | ) | (17.8 | ) | (38.5 | ) | ||||||||
Other expense, net | 2.0 | 4.2 | (7.2 | ) | 15.1 | ||||||||||
Total | $ | (0.8 | ) | $ | (23.5 | ) | $ | (38.8 | ) | $ | (53.0 | ) |
NONOPERATING (INCOME) EXPENSE, NET | |||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Interest income | $ | (2.3) | $ | (3.4) | $ | (6.5) | $ | (13.8) | |||||||||||||||
Foreign currency and hedging activity | 2.9 | 0.6 | 42.3 | (17.8) | |||||||||||||||||||
Other expense, net | 0.8 | 2.0 | 12.8 | (7.2) | |||||||||||||||||||
Total | $ | 1.4 | $ | (0.8) | $ | 48.6 | $ | (38.8) |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) | |||||||||||||||||||
July 1-31, 2021 | 2,342 | $ | 235.09 | 2,342 | $ | 14,100,858,509 | |||||||||||||||||
August 1-31, 2021 | 1,975 | 235.99 | 1,975 | 14,100,392,435 | |||||||||||||||||||
September 1-30, 2021 | 137,112 | 244.17 | 137,112 | 14,066,913,634 | |||||||||||||||||||
Total | 141,429 | $ | 243.91 | 141,429 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||
July 1-31, 2020 | 1,896 | $ | 192.40 | 1,896 | $ | 14,128,474,585 | ||||||||
August 1-31, 2020 | 1,802 | 207.27 | 1,802 | 14,128,101,079 | ||||||||||
September 1-30, 2020 | 261 | 205.33 | 261 | 14,128,047,489 | ||||||||||
Total | 3,959 | $ | 200.02 | 3,959 |
Item 6. Exhibits | |||||||||||||||||
Exhibit Number | Description | ||||||||||||||||
(3) | Articles of incorporation; bylaws | ||||||||||||||||
(a) | |||||||||||||||||
(b) | |||||||||||||||||
(4) | Instruments defining the rights of security holders, including | ||||||||||||||||
(a) | |||||||||||||||||
(b) | |||||||||||||||||
(10) | Material | ||||||||||||||||
(a) | |||||||||||||||||
(b) | |||||||||||||||||
(i) | |||||||||||||||||
(c) | |||||||||||||||||
(d) | |||||||||||||||||
(i) | |||||||||||||||||
(ii) | |||||||||||||||||
(e) | |||||||||||||||||
(i) | |||||||||||||||||
(ii) | |||||||||||||||||
(f) | |||||||||||||||||
(g) | |||||||||||||||||
(h) | |||||||||||||||||
(i) |
(k) | ||||||||||||||||||
(l) | ||||||||||||||||||
(m) | ||||||||||||||||||
(u) | ||||||||||||||||||
(v) | ||||||||||||||||||
(31.1) | ||||||||||||||||||
(31.2) | ||||||||||||||||||
(32.1) | ||||||||||||||||||
(32.2) | ||||||||||||||||||
(101.INS) | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||||||
(101.SCH) | Inline XBRL Taxonomy Extension Schema Document. | |||||||||||||||||
(101.CAL) | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||||||||||||
(101.DEF) | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||||||||||||
(101.LAB) | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||||||||||||
(101.PRE) | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||||||||||||
(104) | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | ||||||||||||||||
* | Other instruments defining the rights of holders of long-term debt of the registrant, and all of its subsidiaries for which consolidated financial statements are required to be filed and which are not required to be registered with the Commission, are not included herein as the securities authorized | ||||
** | Denotes compensatory plan. |
McDONALD’S CORPORATION (Registrant) | ||||||||||||||
/s/ Kevin M. Ozan | ||||||||||||||
Date: | November | Kevin M. Ozan | ||||||||||||
Corporate Executive Vice President and Chief Financial Officer |