IR Under the Arches NIRI-Chicago Visit to McDonald’s Mary Kay Shaw Vice President LC11774
Dec 28, 2015
McDonald’s•Well-known global brand– Market cap: $44 billion– 31,000 McDonald’s– 118 countries– 75% franchised– 50 million customers every day
McDonald’s
• Customer-focused Plan to Win– 5 Ps: People, Product, Place, Price & Promotion– Global strategy– Local approach
• IR follows major markets– Constant media attention
• Analysts as experts
IR Mission
Champion the optimum, fair valuation of the Company and our brand within
the investment community.
Operate and be viewed as a “premier” Investor Relations Department
Primary Accountabilities
• Influencing investor perceptions
• Advising management of investors’ perspectives
• Servicing shareholders
• People development
Influencing Perceptions
• 950,000 retail investors hold 20% of stock
• 1,300 institutions hold 80% of stock
• SSA coverage: 18 analysts
Outperform 12
Market perform (or no rating) 6
Influencing Perceptions
• Financial press releases– Monthly sales
– Quarterly earnings release & conference call/webcast
• Remarks
• Management on call/webcast
• Q&A support
– Other releases
Earning Guidance Practice
• Do not provide EPS guidance• Shape expectations through:– Monthly sales and quarterly earnings releases– Provide guidance on
• Restaurant openings & Capex • S,G&A trends • Sensitivity of EPS to changes in comparable
sales and FX• Cash returned to shareholders
• Guidance practice has had no impact on coverage, volatility or liquidity
Analyst Meetings
• Participate in 2 - 4 conferences annually
• Analyst day – Host every 1 to 2 years
• Investor meetings/calls– 90 meetings, 800+ calls
Other Communication Efforts
• McTrip– Tour of operations in international markets
• Summary annual report & financials– Brand communication
• Retail program– Currently evaluating
•Website
Investor Perceptions
• Perception Studies– Periodically shared with management & board
• First Call– Post-event summaries
• Competitive Analysis– YUM, Wendy’s & BK
Servicing Investors
• Transfer Agent (ComputerShare)– Active involvement in Advisory Board and
Corporate Transfer Agent Association
• IR Service Team
• MCDirect Shares – Direct Stock Purchase Plan
– 60% participation level