Rich FLOERSCH

RichFLOERSCHRichFLOERSCHExecutive Vice President and Chief Human Resources Officer

The History of McDonald’sThe History of McDonald’s

1955 1960 1970

Late 1950s -1960s - The Beginning•Ray Kroc buys McDonald’s business• Franchising Opportunities Abound & HU

Introduced• IPO 1965 - 13 Stock Splits Since 1966

•U.S. Focus

•Common Operating Platform and Menu

• Leverage Franchisee Ideas

•Creation of Ronald McDonald House

1970s Standardized Business

1980 1990 2000

2002 & 2003 Sweeping Organizational Changes

1990s Business Environment Changed;McDonald’s Stalled• Took Our Eyes Off

Our Fries

•Opened Too Many Restaurants

•Distracted By Other Brands (Chipotle, Boston Market, etc.)

1980s & 1990s Explosive Growth• International Expansion/118 markets•Darling of Wall Street

•Cover of BusinessWeek

“Hamburger Hell”

• Staff Reductions

• Stock Price Drops to $12.38 (high $47)

•CEO Change

•Call to Action Plan to Win

The History of McDonald’sThe History of McDonald’s

McDonald’s TodayMcDonald’s Today

2003 2010

2003-2010 McDonald’s Revitalization• 29 consecutive quarters of positive comp sales• Stock price reaches all-time high of $76• CEO tragedies• 2009 Chief Executive Magazine CEO of the Year• Food and beverage focus

32,000 Restaurants

32,000 Restaurants

117 Countries

117 Countries

14,000 U.S. Restaurants

14,000 U.S. Restaurants

80% Franchised

80% Franchised

Revitalization RecipeRevitalization Recipe

Plan to Win and Alignment

Customer Focus and Brand Contemporization

Family-Based and High Performance Culture

Innovation and Execution

Talent Management and Leadership Development