McDonald's (MCD) 10-Q 2 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2017shares
Document Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	MCD
Entity Registrant Name	MCDONALDS CORP
Entity Central Index Key	63,908
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	797,185,588

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and equivalents	$ 2,671.2	$ 1,223.4
Accounts and notes receivable	1,569	1,474.1
Inventories, at cost, not in excess of market	54.2	58.9
Prepaid expenses and other current assets	495.9	565.2
Assets of businesses held for sale	0	1,527
Total current assets	4,790.3	4,848.6
Other assets
Investments in and advances to affiliates	999.8	725.9
Goodwill	2,373.3	2,336.5
Miscellaneous	2,417.6	1,855.3
Total Other Assets	5,790.7	4,917.7
Property and equipment
Property and equipment, at cost	36,038.9	34,443.4
Accumulated depreciation and amortization	(14,060.3)	(13,185.8)
Net property and equipment	21,978.6	21,257.6
Total assets	32,559.6	31,023.9
Current liabilities
Accounts payable	685.2	756
Dividends payable	797.4	0
Income taxes	347.7	267.2
Other taxes	291.7	266.3
Accrued interest	279.2	247.5
Accrued payroll and other liabilities	1,123.2	1,159.3
Current maturities of long-term debt	215.8	77.2
Liabilities of businesses held for sale	0	694.8
Total current liabilities	3,740.2	3,468.3
Long-term debt	28,402.6	25,878.5
Other long-term liabilities	2,292.3	2,064.3
Deferred income taxes	1,602.1	1,817.1
Shareholders' equity (deficit)
Preferred stock, no par value; authorized—165.0 million shares; issued—none	0	0
Common stock, $.01 par value; authorized—3.5 billion shares; issued—1,660.6 million shares	16.6	16.6
Additional paid-in capital	6,994.1	6,757.9
Retained earnings	47,631.5	46,222.7
Accumulated other comprehensive income (loss)	(2,236.7)	(3,092.9)
Common stock in treasury, at cost; 863.4 and 841.3 million shares	(55,883.1)	(52,108.6)
Total shareholders' equity (deficit)	(3,477.6)	(2,204.3)
Total liabilities and shareholders' equity (deficit)	$ 32,559.6	$ 31,023.9

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheet (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Preferred stock, par value	$ 0	$ 0
Preferred stock, authorized	165,000,000	165,000,000
Preferred stock, issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	3,500,000,000	3,500,000,000
Common stock, issued	1,660,600,000	1,660,600,000
Common stock in treasury, shares	863,400,000	841,300,000

Condensed Consolidated Statemen

Condensed Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues
Sales by Company-operated restaurants	$ 3,064.3	$ 3,972.1	$ 10,045.8	$ 11,642.2
Revenues from franchised restaurants	2,690.3	2,452	7,434.4	6,950.8
Total revenues	5,754.6	6,424.1	17,480.2	18,593
Operating costs and expenses
Company-operated restaurant expenses	2,479.8	3,239.5	8,199.5	9,662.9
Franchised restaurants-occupancy expenses	457.3	437.6	1,325.4	1,283.6
Selling, general & administrative expenses	567	582.9	1,613.7	1,757
Other operating (income) expense, net	(828.9)	26.8	(1,066.9)	114
Total operating costs and expenses	2,675.2	4,286.8	10,071.7	12,817.5
Operating income	3,079.4	2,137.3	7,408.5	5,775.5
Interest expense	236.7	221.4	686.2	663.6
Nonoperating (income) expense, net	23.2	11.4	33.9	(19.2)
Income before provision for income taxes	2,819.5	1,904.5	6,688.4	5,131.1
Provision for income taxes	935.8	629.1	2,194.8	1,638
Net income	$ 1,883.7	$ 1,275.4	$ 4,493.6	$ 3,493.1
Earnings per common share-basic	$ 2.34	$ 1.52	$ 5.54	$ 4.04
Earnings per common share-diluted	2.32	1.50	5.48	4.01
Dividends declared per common share	$ 1.95	$ 0.89	$ 3.83	$ 2.67
Weighted average shares outstanding-basic	805.3	841.4	811.8	864.7
Weighted average shares outstanding-diluted	813.5	847.7	819.4	871.8

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income	$ 1,883.7	$ 1,275.4	$ 4,493.6	$ 3,493.1
Foreign currency translation adjustments:
Gain (loss) recognized in accumulated other comprehensive income (AOCI), including net investment hedges	247.3	50.7	780.6	255
Reclassification of (gain) loss to net income	4.9	0	109.3	18.3
Foreign currency translation adjustments-net of tax benefit (expense) of $104.0, $30.4, $376.4, and $(66.9).	252.2	50.7	889.9	273.3
Cash flow hedges:
Gain (loss) recognized in AOCI	(14.5)	(1.3)	(44.8)	(8.4)
Reclassification of (gain) loss to net income	9.1	1.8	3.2	(10.2)
Cash flow hedges-net of tax benefit (expense) of $3.1, $(0.1), 23.5, and $10.6.	(5.4)	0.5	(41.6)	(18.6)
Defined benefit pension plans:
Gain (loss) recognized in AOCI	0	(0.1)	(0.3)	(0.9)
Reclassification of (gain) loss to net income	2.9	1.1	8.2	3.4
Defined benefit pension plans-net of tax benefit (expense) $0.0, $0.1, $(0.5), and $0.1.	2.9	1	7.9	2.5
Total other comprehensive income (loss), net of tax	249.7	52.2	856.2	257.2
Comprehensive income (loss)	$ 2,133.4	$ 1,327.6	$ 5,349.8	$ 3,750.3

Consolidated Statement of Comp6

Consolidated Statement of Comprehensive Income (parentheticals) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other comprehensive income (loss), foreign currency translation adjustment, tax	$ 104	$ 30.4	$ 376.4	$ (66.9)
Other comprehensive income (loss), derivatives qualifying as hedges, tax	3.1	(0.1)	23.5	10.6
Other comprehensive income (loss), pension and other postretirement benefit plans, tax	$ 0	$ 0.1	$ (0.5)	$ 0.1

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Operating activities
Net income	$ 1,883.7	$ 1,275.4	$ 4,493.6	$ 3,493.1
Charges and credits:
Depreciation and amortization	355.8	370.6	1,020.6	1,137.6
Deferred income taxes	225.1	(216)	375.6	(374.7)
Share-based compensation	39.5	34.3	83.5	102.1
Net gain on sale of restaurant businesses	(902)	(69.1)	(1,065.2)	(208.1)
Other	(42.3)	72	(67.8)	397.2
Changes in working capital items	124.7	783.9	(398.4)	697.5
Cash provided by operations	1,684.5	2,251.1	4,441.9	5,244.7
Investing activities
Capital expenditures	(416.9)	(405.3)	(1,213.3)	(1,149.6)
Purchases of restaurant businesses	(20.8)	(38.3)	(38.9)	(75.3)
Sales of restaurant businesses	1.9	125.4	851.8	441.4
Proceeds from sale of businesses in China and Hong Kong	1,597	0	1,597	0
Sales of property	59.2	16.8	153.3	55.2
Other	(45.7)	(49.7)	(183.9)	(82.4)
Cash provided by (used for) investing activities	1,174.7	(351.1)	1,166	(810.7)
Financing activities
Net short-term borrowings	(55.8)	(80)	(834.3)	(742.9)
Long-term financing issuances	0.4	0.6	2,530.5	3,372.7
Long-term financing repayments	(3.6)	(5.7)	(407.1)	(819.6)
Treasury stock purchases	(2,081.7)	(1,969.8)	(3,937.4)	(9,662.2)
Common stock dividends	(755.3)	(745.1)	(2,287.4)	(2,285.2)
Proceeds from stock option exercises	82.5	36.1	373.1	249.9
Other	3.5	(11.8)	(1.1)	(3.9)
Cash used for financing activities	(2,810)	(2,775.7)	(4,563.7)	(9,891.2)
Effect of exchange rates on cash and cash equivalents	76.2	14.4	229.6	38.4
Cash and equivalents increase (decrease)	125.4	(861.3)	1,273.8	(5,418.8)
Change in cash balances of businesses held for sale	153.4	0	174	0
Cash and equivalents at beginning of period	2,392.4	3,128	1,223.4	7,685.5
Cash and equivalents at end of period	$ 2,671.2	$ 2,266.7	$ 2,671.2	$ 2,266.7

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in the Company’s December 31, 2016 Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. The results for the quarter and nine months ended September 30, 2017

Sale of McDonald's Businesses i

Sale of McDonald's Businesses in China and Hong Kong Sale of McDonald's Businesses in China and Hong Kong	9 Months Ended
	Sep. 30, 2017
Sale of McDonald's Businesses in China and Hong Kong [Abstract]
Sale of McDonald's Businesses in China and Hong Kong	Sale of McDonald's Businesses in China and Hong Kong As previously announced, the Company completed the sale of its businesses in China and Hong Kong on July 31, 2017, comprising over 2,700 restaurants. The Company recorded a pre-tax gain of approximately $850 million reflecting the difference between $1.6 billion of cash proceeds and the net book value of the businesses. The gain also includes an increase to fair value of the retained 20% ownership in the entity that is operating the business subsequent to the transaction. Based on the December 2016 approval of the sale by the Company’s Board of Directors, the Company concluded that the China and Hong Kong businesses were “Held for Sale” as of December 31, 2016. In accordance with the requirements of ASC 360 “Property, Plant and Equipment," the Company ceased recording depreciation expense with respect to the assets of both markets effective January 1, 2017, and reflected total assets and liabilities related to these businesses as held for sale on the December 31, 2016, condensed consolidated balance sheet.

Restaurant Information

Restaurant Information	9 Months Ended
	Sep. 30, 2017
Disclosure Restaurant Information By Ownership Type [Abstract]
Restaurant Information	Restaurant Information The following table presents restaurant information by ownership type: Restaurants at September 30, 2017 2016 Conventional franchised 21,214 21,456 Developmental licensed 6,824 5,742 Foreign affiliated 5,708 3,361 Total Franchised 33,746 30,559 Company-operated 3,230 6,056 Systemwide restaurants 36,976 36,615

Per Common Share Information

Per Common Share Information	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Per Common Share Information	Per Common Share Information Diluted earnings per common share is calculated using net income divided by diluted weighted-average shares. Diluted weighted-average shares include weighted-average shares outstanding plus the dilutive effect of share-based compensation, calculated using the treasury stock method, of 8.2 million shares and 6.3 million shares for the quarters 2017 and 2016 , respectively, and 7.6 million shares and 7.1 million shares for the nine months 2017 and 2016 , respectively. Stock options that would have been antidilutive, and therefore were not included in the calculation of diluted weighted-average shares, totaled 0.1 million shares and 4.2 million shares for the quarters 2017 and 2016 , respectively, and 0.7 million shares and 1.2 million shares for the nine months 2017 and 2016 , respectively. In September 2017, McDonald's Board of Directors declared a fourth quarter dividend of $1.01 per share of common stock, resulting in $797.4 million

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company measures certain financial assets and liabilities at fair value. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The Company did not have any significant changes to the valuation techniques used to measure fair value as described in the Company's December 31, 2016 Annual Report on Form 10-K. At September 30, 2017 , the fair value of the Company’s debt obligations was estimated at $30.7 billion , compared to a carrying amount of $28.6 billion

Financial Instruments and Hedgi

Financial Instruments and Hedging Activities	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Financial Instruments and Hedging Activities	Financial Instruments and Hedging Activities The Company is exposed to global market risks, including the effect of changes in interest rates and foreign currency fluctuations. The Company uses foreign currency denominated debt and derivative instruments to mitigate the impact of these changes. The Company does not hold or issue derivatives for trading purposes. The following table presents the fair values of derivative instruments included on the condensed consolidated balance sheet: Derivative Assets Derivative Liabilities In millions September 30, December 31, September 30, December 31, Total derivatives designated as hedging instruments $ 11.0 $ 36.9 $ (42.7 ) $ (3.7 ) Total derivatives not designated as hedging instruments 152.6 144.4 (12.0 ) (1.9 ) Total derivatives $ 163.6 $ 181.3 $ (54.7 ) $ (5.6 ) The following table presents the pre-tax amounts from derivative instruments affecting income and other comprehensive income (“OCI”) for the nine months ended September 30, 2017 and 2016 , respectively: Gain (Loss) Recognized in Accumulated OCI Gain (Loss) Reclassified into Income from Accumulated OCI Gain (Loss) Recognized in Income on Derivative In millions 2017 2016 2017 2016 2017 2016 Cash Flow Hedges $ (70.1 ) $ (13.6 ) $ (5.0 ) $ 15.6 Net Investment Hedges $ (1,393.5 ) $ (96.5 ) $ 8.6 $ (18.3 ) Undesignated derivatives $ 40.3 $ (4.1 ) • Fair Value Hedges The Company enters into fair value hedges that convert a portion of its fixed-rate debt into floating-rate debt by use of interest rate swaps. At September 30, 2017 , $2.3 billion of the Company's outstanding fixed-rate debt was effectively converted. For the nine months ended September 30, 2017 , the Company recognized a $1.0 million loss on fair value interest rate swaps, which was exactly offset by a corresponding gain in the fair value of the hedged debt instruments. • Cash Flow Hedges The Company enters into cash flow hedges to reduce the exposure to variability in certain expected future cash flows. To protect against the reduction in value of forecasted foreign currency cash flows (such as royalties denominated in foreign currencies), the Company uses foreign currency forwards to hedge a portion of anticipated exposures. The hedges cover the next 18 months for certain exposures and are denominated in various currencies. As of September 30, 2017 , the Company had derivatives outstanding with an equivalent notional amount of $791.5 million that hedged a portion of forecasted foreign currency denominated royalties. Based on market conditions at September 30, 2017 , the $18.7 million in cumulative cash flow hedging losses , after tax, is not expected to have a significant effect on earnings over the next 12 months. • Net Investment Hedges The Company primarily uses foreign currency denominated debt (third party and intercompany) and foreign currency forwards to hedge its investments in certain foreign subsidiaries and affiliates. Realized and unrealized translation adjustments from these hedges are included in shareholders' equity in the foreign currency translation component of OCI and offset translation adjustments on the underlying net assets of foreign subsidiaries and affiliates, which also are recorded in OCI. As of September 30, 2017 , $10.1 billion of the Company's third party foreign currency denominated debt, $3.8 billion of intercompany foreign currency denominated debt and $897.5 million of derivatives were designated to hedge investments in certain foreign subsidiaries and affiliates. • Credit Risk The Company is exposed to credit-related losses in the event of non-performance by its derivative counterparties. The Company did not have significant exposure to any individual counterparty at September 30, 2017 and has master agreements that contain netting arrangements. For financial reporting purposes, the Company presents gross derivative balances in the financial statements and supplementary data, including for counterparties subject to netting arrangements. Some of these agreements also require each party to post collateral if credit ratings fall below, or aggregate exposures exceed, certain contractual limits. At September 30, 2017

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Segment Information	Segment Information The Company franchises and operates McDonald’s restaurants in the global restaurant industry. The following reporting segments reflect how management reviews and evaluates operating performance. • U.S. - the Company's largest segment. • International Lead Markets - established markets including Australia, Canada, France, Germany, the U.K. and related markets. • High Growth Markets - markets the Company believes have relatively higher restaurant expansion and franchising potential including China, Italy, Korea, Poland, Russia, Spain, Switzerland, the Netherlands and related markets. • Foundational Markets & Corporate - the remaining markets in the McDonald's system, each of which the Company believes has the potential to operate under a largely franchised model. Corporate activities are also reported within this segment. The following table presents the Company’s revenues and operating income by segment: Quarters Ended Nine Months Ended September 30, September 30, In millions 2017 2016 2017 2016 Revenues U.S. $ 2,023.3 $ 2,072.5 $ 6,000.7 $ 6,215.2 International Lead Markets 1,970.5 1,881.2 5,427.2 5,452.5 High Growth Markets 1,322.1 1,651.3 4,538.5 4,644.1 Foundational Markets & Corporate 438.7 819.1 1,513.8 2,281.2 Total revenues $ 5,754.6 $ 6,424.1 $ 17,480.2 $ 18,593.0 Operating Income U.S. $ 1,034.6 $ 977.5 $ 3,055.4 $ 2,836.6 International Lead Markets 913.6 754.1 2,356.2 2,127.2 High Growth Markets 1,073.8 320.1 1,724.0 814.7 Foundational Markets & Corporate 57.4 85.6 272.9 (3.0 ) Total operating income $ 3,079.4 $ 2,137.3 $ 7,408.5 $ 5,775.5

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards Intangibles In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, an impairment charge will be recorded based on the excess of a reporting unit's carrying amount over its fair value. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company does not expect an impact to the consolidated financial statements from the adoption of ASU 2017-04. Income Taxes In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” The goal of this update is to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017, including interim periods within those annual reporting periods. The Company anticipates ASU 2016-16 will have a material impact on the consolidated balance sheet, primarily resulting in additional deferred tax assets and a related reduction in prepaid assets, but little to no impact on the consolidated statements of income and cash flows. Lease Accounting In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company anticipates ASU 2016-02 will have a material impact on the consolidated balance sheet. The impact of ASU 2016-02 is non-cash in nature, as such, it will not affect the Company’s cash flows. The Company is currently evaluating the impact of ASU 2016-02 on the consolidated statement of income. Revenue Recognition In May 2014, the FASB issued guidance codified in Accounting Standards Codification ("ASC") 606, "Revenue Recognition - Revenue from Contracts with Customers," which amends the guidance in former ASC 605, "Revenue Recognition." The core principle of the standard is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration expected to be received for those goods or services. The standard also calls for additional disclosures around the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company will adopt the standard effective January 1, 2018. The standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption ("modified retrospective method"). The Company currently expects to apply the modified retrospective method upon adoption. The Company does not believe the standard will impact its recognition of revenue from Company-operated restaurants or its recognition of royalties from restaurants operated by franchisees or licensed to affiliates and developmental licensees, which are based on a percent of sales. While we continue to assess the potential impacts to other less significant revenue transactions, we currently expect the standard will change the way initial fees from franchisees for new restaurant openings or new franchise terms are recognized. The Company's current accounting policy is to recognize initial franchise fees when a new restaurant opens or at the start of a new franchise term. In accordance with the new guidance, the initial franchise services are not distinct from the continuing rights or services offered during the term of the franchise agreement, and will therefore be treated as a single performance obligation. As such, initial fees received will likely be recognized over the franchise term. Although the standard will impact the manner in which we record revenue from initial fees, we do not anticipate this impact to be material to the Company’s consolidated statement of income. The cumulative catch-up adjustment to be recorded as deferred revenue upon adoption is expected to be approximately 2%

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsThe Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. There were no subsequent events that required recognition or disclosure.

Restaurant Information (Tables)

Restaurant Information (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure Restaurant Information By Ownership Type [Abstract]
Restaurant Information by Ownership Type	The following table presents restaurant information by ownership type: Restaurants at September 30, 2017 2016 Conventional franchised 21,214 21,456 Developmental licensed 6,824 5,742 Foreign affiliated 5,708 3,361 Total Franchised 33,746 30,559 Company-operated 3,230 6,056 Systemwide restaurants 36,976 36,615

Financial Instruments and Hed18

Financial Instruments and Hedging Activities (Tables)	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Values of Derivative Instruments Included on Consolidated Balance Sheet	The following table presents the fair values of derivative instruments included on the condensed consolidated balance sheet: Derivative Assets Derivative Liabilities In millions September 30, December 31, September 30, December 31, Total derivatives designated as hedging instruments $ 11.0 $ 36.9 $ (42.7 ) $ (3.7 ) Total derivatives not designated as hedging instruments 152.6 144.4 (12.0 ) (1.9 ) Total derivatives $ 163.6 $ 181.3 $ (54.7 ) $ (5.6 )
Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income	The following table presents the pre-tax amounts from derivative instruments affecting income and other comprehensive income (“OCI”) for the nine months ended September 30, 2017 and 2016 , respectively: Gain (Loss) Recognized in Accumulated OCI Gain (Loss) Reclassified into Income from Accumulated OCI Gain (Loss) Recognized in Income on Derivative In millions 2017 2016 2017 2016 2017 2016 Cash Flow Hedges $ (70.1 ) $ (13.6 ) $ (5.0 ) $ 15.6 Net Investment Hedges $ (1,393.5 ) $ (96.5 ) $ 8.6 $ (18.3 ) Undesignated derivatives $ 40.3 $ (4.1 )

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Revenues and Operating Income by Geographic Segment	The following table presents the Company’s revenues and operating income by segment: Quarters Ended Nine Months Ended September 30, September 30, In millions 2017 2016 2017 2016 Revenues U.S. $ 2,023.3 $ 2,072.5 $ 6,000.7 $ 6,215.2 International Lead Markets 1,970.5 1,881.2 5,427.2 5,452.5 High Growth Markets 1,322.1 1,651.3 4,538.5 4,644.1 Foundational Markets & Corporate 438.7 819.1 1,513.8 2,281.2 Total revenues $ 5,754.6 $ 6,424.1 $ 17,480.2 $ 18,593.0 Operating Income U.S. $ 1,034.6 $ 977.5 $ 3,055.4 $ 2,836.6 International Lead Markets 913.6 754.1 2,356.2 2,127.2 High Growth Markets 1,073.8 320.1 1,724.0 814.7 Foundational Markets & Corporate 57.4 85.6 272.9 (3.0 ) Total operating income $ 3,079.4 $ 2,137.3 $ 7,408.5 $ 5,775.5

Sale of McDonald's Businesses20

Sale of McDonald's Businesses in China and Hong Kong (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)Restaurant	Sep. 30, 2016Restaurant
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of Restaurants | Restaurant	36,976	36,615
China and Hong Kong [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $	$ 850
Number of Restaurants | Restaurant	2,700
Disposal Group, Including Discontinued Operation, Consideration | $	$ 1,600
Ownership percentage to be retained	20.00%

Restaurant Information by Owner

Restaurant Information by Ownership Type (Detail) - Restaurant	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Number of Restaurants	36,976	36,615
Franchised
Segment Reporting Information [Line Items]
Number of Restaurants	33,746	30,559
Franchised | Conventional franchised
Segment Reporting Information [Line Items]
Number of Restaurants	21,214	21,456
Franchised | Developmental licensed
Segment Reporting Information [Line Items]
Number of Restaurants	6,824	5,742
Franchised | Affiliated
Segment Reporting Information [Line Items]
Number of Restaurants	5,708	3,361
Company-operated
Segment Reporting Information [Line Items]
Number of Restaurants	3,230	6,056

Per Common Share Information (A

Per Common Share Information (Additional Information) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Earnings Per Share [Abstract]
Dilutive effect of share-based compensation	8.2	6.3	7.6	7.1
Stock options that were not included in diluted weighted-average shares	0.1	4.2	0.7	1.2
Dividends Payable, Amount Per Share	$ 1.01		$ 1.01
Dividends payable	$ 797.4		$ 797.4		$ 0

Fair Value Measurements (Additi

Fair Value Measurements (Additional Information) (Detail) $ in Billions	Sep. 30, 2017USD ($)
Fair Value Measurements [Line Items]
Debt obligations, carrying amount	$ 28.6
Level 2
Fair Value Measurements [Line Items]
Debt obligations, fair value	$ 30.7

Financial Instruments and Hed24

Financial Instruments and Hedging Activities (Fair Values of Derivative Instruments Included on Consolidated Balance Sheet) (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Asset Derivatives Fair Value	$ 163.6	$ 181.3
Liability Derivatives Fair Value	(54.7)	(5.6)
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Asset Derivatives Fair Value	11	36.9
Liability Derivatives Fair Value	(42.7)	(3.7)
Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Asset Derivatives Fair Value	152.6	144.4
Liability Derivatives Fair Value	$ (12)	$ (1.9)

(Derivatives Pretax Amounts Aff

(Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income) (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Derivatives in Cash Flow Hedging Relationships
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion)	$ (5)	$ 15.6
Gain (Loss) Recognized in Accumulated OCI (Effective Portion)	(70.1)	(13.6)
Net Investment Hedging Relationships
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion)	8.6	(18.3)
Gain (Loss) Recognized in Accumulated OCI (Effective Portion)	(1,393.5)	(96.5)
Derivatives Not Designated as Hedging Instruments
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion)	$ 40.3	$ (4.1)

(Financial Instruments and Hedg

(Financial Instruments and Hedging Activities - Additional Information) (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Cumulative deferred hedging gain (loss), after tax, included in accumulated other comprehensive income	$ 18.7
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, notional amount	2,300
Intercompany Debt [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Foreign currency denominated debt designated to hedge investments in certain foreign subsidiaries and affiliates	3,800
Debt [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Foreign currency denominated debt designated to hedge investments in certain foreign subsidiaries and affiliates	10,100
Interest Rate Risk [Member] | Fair Value Hedging [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative instruments, gain (loss) recognized in income, net	$ 1
Royalty Arrangement [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Period covered by hedge	18 months
Derivative [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, notional amount	$ 791.5
Net Investment Hedging [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, notional amount	$ 897.5

Segment Information (Segment an

Segment Information (Segment and Geographic Information) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Total revenues	$ 5,754.6	$ 6,424.1	$ 17,480.2	$ 18,593
Operating Income	3,079.4	2,137.3	7,408.5	5,775.5
U.S.
Segment Reporting Information [Line Items]
Total revenues	2,023.3	2,072.5	6,000.7	6,215.2
Operating Income	1,034.6	977.5	3,055.4	2,836.6
International Lead Markets
Segment Reporting Information [Line Items]
Total revenues	1,970.5	1,881.2	5,427.2	5,452.5
Operating Income	913.6	754.1	2,356.2	2,127.2
High Growth Markets
Segment Reporting Information [Line Items]
Total revenues	1,322.1	1,651.3	4,538.5	4,644.1
Operating Income	1,073.8	320.1	1,724	814.7
Foundational Markets and Corporate
Segment Reporting Information [Line Items]
Total revenues	438.7	819.1	1,513.8	2,281.2
Operating Income	$ 57.4	$ 85.6	$ 272.9	$ (3)

Recently Issued Accounting St28

Recently Issued Accounting Standards Franchise fee expected cumulative catch-up adjustment (Details)	Sep. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Franchise fees expected cumulative catch-up adjustment	2.00%