Exhibit 99.2
McDonald’s Corporation
Supplemental Information
Quarter Ended March 31, 2005
SUPPLEMENTAL INFORMATION
The purpose of this exhibit is to provide additional information related to McDonald’s Corporation’s results for the first quarter ended March 31, 2005. This exhibit should be read in conjunction with Exhibit 99.1.
Impact of Foreign Currencies on Reported Results
Management reviews and analyzes business results excluding the effect of foreign currency translation and bases certain incentive compensation plans on these results because it believes they better represent the Company’s underlying business trends. Results excluding the effect of foreign currency translation (also referred to as constant currency) are calculated by translating current year results at prior year average exchange rates.
IMPACT OF FOREIGN CURRENCY TRANSLATION ON REPORTED RESULTS
Dollars in millions
| | | | | | | | | | |
|
|
| | | Reported Amount | | Currency Translation
Benefit / (Loss) | |
|
|
| Quarters ended March 31, | | 2005 | | 2004 | | 2005 | |
|
|
Revenues | | $ | 4,802.8 | | $ | 4,399.7 | | $ | 118.9 | |
Combined operating margins* | | | 1,406.9 | | | 1,301.1 | | | 28.9 | |
Selling, general & administrative expenses | | | 520.1 | | | 457.5 | | | (9.2 | ) |
Operating income | | | 909.6 | | | 858.4 | | | 18.3 | |
Net income | | | 727.9 | | | 511.5 | | | 7.8 | |
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|
| * | Excludes non-McDonald’s brands |
| • | | Foreign currency translation had a positive impact on the growth rates of consolidated revenues, operating income and net income for the quarter, primarily due to the strengthening of the Euro, as well as other major currencies. Foreign currency translation had no impact on reported earnings per share due to rounding. |
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Accounting Change
Effective January 1, 2005, the Company adopted SFAS No. 123(R),Share-Based Payment, although not required to do so until 2006. This new accounting standard requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. The Company adopted this accounting treatment prospectively. Prior to the adoption of SFAS 123(R), the Company, like most other U.S. companies, accounted for share-based payments to employees under APB Opinion No. 25,Accounting for Stock Issued to Employees, and related Interpretations. Accordingly, share-based compensation was included as pro forma disclosure in the financial statement footnotes. The Company’s first quarter 2004 pro forma earnings, as reported in Form 10-Q, included $0.03 per share of share-based compensation expense.
In 2005, in connection with its adoption of SFAS 123(R), the Company adjusted the mix of employee long-term incentive compensation by reducing stock options awarded and increasing cash-based incentives and other equity based awards. First quarter 2005 results included pretax expense of $57.4 million (or $0.03 per share) of which $48.1 million related to share-based compensation, stock options and restricted stock units (“RSUs”), and $9.3 million related to the shift of a portion of share-based compensation to primarily cash-based incentive compensation.
Net Income and Diluted Net Income per Common Share
For the quarter, net income and diluted net income per common share increased to $727.9 million and $0.56 per share or 42% and 40%, respectively (41% and 40%, respectively in constant currencies). The 2005 results included a $0.13 per share benefit from a lower effective tax rate as well as $0.03 per share of expense related to the early adoption of SFAS 123(R) and related incremental compensation.
Diluted weighted average shares outstanding for the first quarter increased due to higher weighted average shares outstanding and a more dilutive effect of outstanding stock options.
During the quarter, the Company repurchased $437 million, or 13.5 million shares, of its common stock.
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Revenues
Revenues consist of sales by Company-operated restaurants and fees from restaurants operated by franchisees and affiliates. These fees primarily include rent, service fees and/or royalties that are based on a percent of sales, with specified minimum rent payments.
REVENUES
Dollars in millions
| | | | | | | | | | | |
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| Quarters ended March 31, | | 2005 | | 2004 | | % Inc | | % Inc /
(Dec) Excluding Currency Translation | |
|
|
Company-operated sales | | | | | | | | | | | |
U.S. | | $ | 929.5 | | $ | 875.5 | | 6 | | 6 | |
Europe | | | 1,321.8 | | | 1,191.5 | | 11 | | 6 | |
APMEA* | | | 616.6 | | | 577.1 | | 7 | | 4 | |
Latin America | | | 263.1 | | | 205.6 | | 28 | | 25 | |
Canada | | | 166.3 | | | 162.9 | | 2 | | (5 | ) |
Other** | | | 302.2 | | | 270.4 | | 12 | | 12 | |
Total | | $ | 3,599.5 | | $ | 3,283.0 | | 10 | | 7 | |
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|
Franchised and affiliated revenues | | | | | | | | | | | |
U.S. | | $ | 657.0 | | $ | 614.5 | | 7 | | 7 | |
Europe | | | 395.6 | | | 365.0 | | 8 | | 3 | |
APMEA* | | | 88.5 | | | 80.5 | | 10 | | 7 | |
Latin America | | | 21.0 | | | 19.2 | | 9 | | 9 | |
Canada | | | 39.7 | | | 36.0 | | 10 | | 3 | |
Other** | | | 1.5 | | | 1.5 | | — | | — | |
Total | | $ | 1,203.3 | | $ | 1,116.7 | | 8 | | 6 | |
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Total revenues | | | | | | | | | | | |
U.S. | | $ | 1,586.5 | | $ | 1,490.0 | | 6 | | 6 | |
Europe | | | 1,717.4 | | | 1,556.5 | | 10 | | 5 | |
APMEA* | | | 705.1 | | | 657.6 | | 7 | | 5 | |
Latin America | | | 284.1 | | | 224.8 | | 26 | | 24 | |
Canada | | | 206.0 | | | 198.9 | | 4 | | (4 | ) |
Other** | | | 303.7 | | | 271.9 | | 12 | | 12 | |
Total | | $ | 4,802.8 | | $ | 4,399.7 | | 9 | | 6 | |
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| * | APMEA represents Asia/Pacific, Middle East and Africa |
| ** | Other represents non-McDonald’s brands. |
| • | | Consolidated: Revenues increased 9% (6% in constant currencies), primarily due to positive comparable sales for each month of the quarter. Revenues in 2004 included an extra day due to leap year. |
| • | | U.S.: The increase in revenues was driven by multiple initiatives that are delivering variety, value, choice and convenience to our customers. We remain confident that our combination of initiatives will continue to build on the foundation established and deliver solid results throughout 2005. |
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| • | | Europe: The increase in revenues was due to strong comparable sales in Russia, which is entirely Company-operated, and positive comparable sales in the U.K., Germany and France. Europe’s first quarter revenue performance also reflects a benefit from the change in timing of Easter and related school holidays, from April in 2004 to March in 2005. Revenue growth for the second quarter 2005 will be negatively impacted by this same holiday shift. |
| • | | APMEA: The increase in revenues was primarily due to strong comparable sales in Taiwan and Australia, as well as expansion in China. |
Comparable sales are a key performance indicator used within the retail industry and are reviewed by management to assess business trends for McDonald’s restaurants. Increases or decreases in comparable sales represent the percent change in constant currency sales from the same period in the prior year for all McDonald’s restaurants in operation at least thirteen months.
COMPARABLE SALES – McDONALD’S RESTAURANTS*
| | | | | |
|
| | | % Inc / (Dec) |
| Quarters Ended March 31, | | 2005 | | | 2004 |
|
U.S. | | 5.2 | | | 14.2 |
Europe | | 2.9 | | | 3.5 |
APMEA | | 5.5 | | | 5.0 |
Latin America | | 14.6 | | | 8.8 |
Canada | | (2.7 | ) | | 10.7 |
McDonald’s Restaurants | | 4.6 | | | 9.4 |
|
| * | Excludes non-McDonald’s brands |
The following tables present Systemwide sales growth rates along with franchised and affiliated sales for the quarter. Systemwide sales include sales at all restaurants, whether operated by the Company, by franchisees or by affiliates. While sales by franchisees and affiliates are not recorded as revenues by the Company, management believes the information is important in understanding the Company’s financial performance because these sales are the basis on which the Company calculates and records franchised and affiliated revenues and are indicative of the financial health of our franchisee base.
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SYSTEMWIDE SALES PERCENT INCREASE / (DECREASE)
Quarter ended March 31, 2005
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| | | % Inc | | % Inc / (Dec) Excluding
Currency Translation | |
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|
U.S. | | 6 | | 6 | |
Europe | | 10 | | 4 | |
APMEA | | 10 | | 7 | |
Latin America | | 19 | | 16 | |
Canada | | 6 | | (2 | ) |
Other | | 12 | | 12 | |
Total sales | | 8 | | 6 | |
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FRANCHISED AND AFFILIATED SALES
Dollars in millions
| | | | | | | | | | |
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| Quarters ended March 31, | | 2005 | | 2004 | | % Inc | | % Inc / (Dec) Excluding Currency Translation |
|
U.S. | | $ | 4,966.1 | | $ | 4,687.1 | | 6 | | 6 |
Europe | | | 2,282.3 | | | 2,094.2 | | 9 | | 4 |
APMEA* | | | 1,545.3 | | | 1,395.1 | | 11 | | 8 |
Latin America | | | 158.6 | | | 149.8 | | 6 | | 4 |
Canada | | | 287.4 | | | 266.4 | | 8 | | — |
Other | | | 4.5 | | | 3.0 | | 50 | | 50 |
Total franchised and affiliated sales** | | $ | 9,244.2 | | $ | 8,595.6 | | 8 | | 6 |
|
| * | Included $779.0 million and $691.9 million in 2005 and 2004, respectively, of affiliated sales, primarily related to Japan. |
| ** | Included $1,295.1 million and $1,181.5 million in 2005 and 2004, respectively, of affiliated sales, primarily related to the U.S. and Japan. |
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Operating Margins
COMPANY-OPERATED AND FRANCHISED RESTAURANT MARGINS – McDONALD’S RESTAURANTS
Dollars in millions
| | | | | | | | | | | | | |
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|
| | | Percent
| | Amount
| | % Inc/
(Dec) | |
| Quarters ended March 31, | | 2005 | | 2004 | | 2005 | | 2004 | |
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|
Company-operated | | | | | | | | | | | | | |
U.S. | | 17.9 | | 18.2 | | $ | 166.4 | | $ | 159.5 | | 4 | |
Europe | | 13.5 | | 14.4 | | | 178.9 | | | 171.1 | | 5 | |
APMEA | | 10.9 | | 10.7 | | | 66.9 | | | 62.0 | | 8 | |
Latin America | | 12.0 | | 8.0 | | | 31.5 | | | 16.5 | | 91 | |
Canada | | 11.0 | | 14.1 | | | 18.3 | | | 23.0 | | (20 | ) |
Total | | 14.0 | | 14.3 | | $ | 462.0 | | $ | 432.1 | | 7 | |
| | | | | |
Franchised | | | | | | | | | | | | | |
U.S. | | 80.2 | | 79.3 | | $ | 527.0 | | $ | 487.2 | | 8 | |
Europe | | 75.5 | | 75.0 | | | 298.8 | | | 273.7 | | 9 | |
APMEA | | 85.7 | | 85.7 | | | 75.8 | | | 69.0 | | 10 | |
Latin America | | 64.7 | | 60.9 | | | 13.6 | | | 11.7 | | 16 | |
Canada | | 74.8 | | 76.1 | | | 29.7 | | | 27.4 | | 8 | |
Total | | 78.6 | | 77.9 | | $ | 944.9 | | $ | 869.0 | | 9 | |
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| • | | Combined: Operating margin dollars increased $105.8 million or 8% for the quarter (6% in constant currencies). The U.S. and Europe segments accounted for almost 85% of the combined margin dollars in both years and approximately 75% of the increase. |
| • | | U.S.: Company-operated margin percent decreased for the quarter due to higher commodity costs, higher labor-related costs, partly due to increased staffing levels as well as increased compensation for store managers, and increased rent expense. This was partly offset by positive comparable sales. Commodity cost pressures are expected to continue, with the impact lessening in the second half of the year. |
| • | | Europe: The Company-operated margin percent decreased partly due to higher beef costs across the segment, and brand building marketing and promotional initiatives in the U.K. and Germany. This was partly offset by positive comparable sales. Beef cost pressures are expected to lessen in the second half of the year. |
| • | | APMEA: The Company-operated margin percent increased due to improved performance in China and Hong Kong, partly offset by poor results in South Korea. |
The following table presents margin components as a percent of sales:
COMPANY-OPERATED COSTS AND MARGINS AS A PERCENT OF SALES – McDONALD’S RESTAURANTS
| | | | |
|
| Quarters ended March 31, | | 2005 | | 2004 |
|
Food & paper | | 34.1 | | 33.8 |
Payroll & employee benefits | | 26.6 | | 26.6 |
Occupancy & other operating expenses | | 25.3 | | 25.3 |
Total expenses | | 86.0 | | 85.7 |
Company-operated margins | | 14.0 | | 14.3 |
|
| • | | Franchised: The consolidated Franchised margin percent increased for the quarter primarily due to positive comparable sales in the U.S. and Europe, but reflected higher occupancy costs, due in part to an increased proportion of leased sites. |
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Selling, General & Administrative Expenses
| • | | Selling, general & administrative expenses increased 14% for the quarter (12% in constant currencies). The share-based and related incremental compensation expense due to the early adoption of SFAS 123(R) accounted for substantially all of the constant currency increase. Selling, general & administrative expenses as a percent of revenues were 10.8% in the first quarter 2005 compared with 10.4% in first quarter 2004 and as a percent of Systemwide sales were 4.0% for 2005 compared with 3.9% for 2004. The share-based and related incremental compensation expense increased these ratios 1.1 percentage points and 0.4 percentage points, respectively, in 2005. |
Other Operating (Income) Expense, Net
OTHER OPERATING (INCOME) EXPENSE, NET
Dollars in millions
| | | | | | | | |
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| Quarters ended March 31, | | 2005 | | | 2004 | |
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Gains on sales of restaurant businesses | | $ | (10.4 | ) | | $ | (15.9 | ) |
Equity in earnings of unconsolidated affiliates | | | (16.4 | ) | | | (10.9 | ) |
Impairment and other charges (credits) | | | (18.7 | ) | | | — | |
Other expense | | | 52.5 | | | | 36.8 | |
Total | | $ | 7.0 | | | $ | 10.0 | |
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| • | | Equity in earnings of unconsolidated affiliates increased for the quarter primarily due to positive results in the U.S. and improved performance from our Japanese affiliate. |
| • | | Impairment and other charges (credits) included a favorable adjustment to certain restructuring and other liabilities established in 2001 and 2002 due to lower than originally anticipated employee-related and lease termination costs. |
| • | | Other expense for 2005 reflected a $24.1 million charge related to a supply chain arrangement in Europe. |
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Operating Income
OPERATING INCOME
Dollars in millions
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| Quarters ended March 31, | | 2005* | | | 2004 | | | % Inc / (Dec) | | | % Inc / (Dec)
Excluding
Currency
Translation | | | 2004 Pro
Forma
Operating
Income** | | | Pro Forma
% Inc /
(Dec) Excluding Currency Translation | |
|
|
U.S. | | $ | 539.4 | | | $ | 516.8 | | | 4 | | | 4 | | | $ | 496.5 | | | 9 | |
Europe | | | 308.2 | | | | 321.6 | | | (4 | ) | | (9 | ) | | | 307.6 | | | (5 | ) |
APMEA | | | 92.8 | | | | 90.0 | | | 3 | | | 2 | | | | 83.6 | | | 9 | |
Latin America | | | 8.7 | | | | (1.8 | ) | | n/m | | | n/m | | | | (4.3 | ) | | n/m | |
Canada | | | 29.4 | | | | 33.3 | | | (12 | ) | | (18 | ) | | | 30.7 | | | (11 | ) |
Other | | | 2.4 | | | | 0.7 | | | n/m | | | n/m | | | | (1.1 | ) | | n/m | |
Corporate | | | (71.3 | ) | | | (102.2 | ) | | 30 | | | 30 | | | | (123.6 | ) | | 42 | |
Total operating income | | $ | 909.6 | | | $ | 858.4 | | | 6 | | | 4 | | | | 789.4 | | | 13 | |
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| * | For the quarter ended March 31, 2005, segments reflected the following share-based and related incremental compensation expense (in millions): U.S.-$15.8; Europe-$12.8; APMEA-$5.8; Latin America-$2.0; Canada-$2.1; Other-$0.5; |
Corporate-$18.4.
| ** | Calculated by subtracting 2004 pro forma share-based expense from 2004 reported operating income. Share-based expense as reported in the Company’s first quarter 2004 Form 10-Q was $44.2 million after tax, of which $1.4 million of expense related to RSUs was included in net income. The remaining $42.8 million after tax ($69.0 million pretax) was disclosed in a footnote, as required, for pro forma purposes. For comparability purposes to 2005 results subsequent to adopting SFAS 123(R), the 2004 operating income was adjusted for this pro forma expense as follows, by segment (in millions): U.S.-$20.3; Europe-$14.0; APMEA-$6.4; Latin America-$2.5; Canada-$2.6; Other-$1.8; Corporate-$21.4. |
The following discussion on Operating Income relates to Pro Forma % Inc/(Dec) Excluding Currency Translation in the table above:
| | • | | U.S.: Results increased primarily due to higher combined operating margin dollars, partly offset by higher selling, general & administrative expenses, which included certain information technology expenses previously recorded in the Corporate segment. |
| | • | | Europe: Results included the supply chain charge of $24.1 million which negatively impacted the growth rate by approximately 8 percentage points. In addition, strong results in France were offset by weak results in Germany. |
| | • | | APMEA: The segment’s increase was primarily due to positive results in China as well as stronger performance in Japan, Hong Kong and Taiwan, partly offset by poor performance in South Korea. |
| | • | | Corporate: Results in 2005 benefited from the favorable adjustment to certain liabilities established in 2001 and 2002 previously discussed in the “Other Operating (Income) Expense, Net” section, certain information technology expenses that were shifted to the U.S. segment, and lower incentive-based compensation. |
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INTEREST, NONOPERATING (INCOME) EXPENSE AND INCOME TAXES
| | • | | Interest expense decreased for the quarter due to lower average debt levels, partly offset by higher average interest rates and stronger foreign currencies. |
| | • | | In 2005, nonoperating (income) expense included higher interest income and lower foreign currency translation losses. |
| | • | | The effective income tax rate was 12.3% for first quarter 2005 compared with 32.5% in 2004. The lower effective income tax rate in 2005 included a benefit of $178.8 million primarily due to a favorable audit settlement in late March of the Company’s 2000-2002 U.S. tax returns. |
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OUTLOOK
The information provided below is as of April 2005.
| | • | | McDonald’s expects net restaurant additions to add slightly more than one percentage point to sales growth in 2005 (in constant currencies). Most of this anticipated growth will result from restaurants opened in 2004. In 2005, McDonald’s expects to open about 550 traditional McDonald’s restaurants and 150 satellite restaurants and close about 225 traditional restaurants and 125 satellite restaurants. |
| | • | | McDonald’s does not provide specific guidance on changes in comparable sales. However, as a perspective, assuming no change in cost structure, a one percentage point increase in U.S. comparable sales would increase annual earnings per share by about 2 cents. Similarly, an increase of one percentage point in Europe’s comparable sales would increase annual earnings per share by about 1.5 cents. |
| | • | | McDonald’s expects full year 2005 selling, general & administrative expenses to increase about 10% in constant currencies compared with 2004 primarily due to the early adoption of SFAS 123(R). |
| | • | | A significant part of McDonald’s operating income is from outside the U.S., and about 70% of total debt is denominated in foreign currencies. Accordingly, earnings are affected by changes in foreign currency exchange rates, particularly the Euro and the British Pound. If the Euro and the British Pound both move 10% in the same direction (compared with 2004 average rates), McDonald’s annual earnings per share would change about 6 cents to 7 cents. |
| | • | | For 2005, the Company expects its net debt principal repayments to be approximately $600 million to $800 million. The Company expects interest expense to remain relatively flat compared with 2004, based on current interest and foreign currency exchange rates. This guidance does not take into account any actions that might be taken under the American Jobs Creation Act of 2004. |
| | • | | McDonald’s expects the effective income tax rate for the full year 2005 to be approximately 29% to 30%, although this does not take into account any actions that might be taken under the American Jobs Creation Act of 2004. |
| | • | | McDonald’s expects capital expenditures for 2005 to be approximately $1.7 billion, reflecting higher investment in existing restaurants and stronger foreign currencies compared with 2004. |
| | • | | McDonald’s expects to return at least $1.3 billion to shareholders through dividends and share repurchases in 2005. The Company repurchased $437 million, or 13.5 million shares, of its common stock during the first quarter. |
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McDONALD’S CORPORATION
PRELIMINARY CONSOLIDATED BALANCE SHEET
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| Dollars in millions | | March 31, 2005 | | | December 31, 2004 | |
|
|
ASSETS | | | | | | | | |
Current assets | | | | | | | | |
Cash and equivalents | | $ | 1,356.5 | | | $ | 1,379.8 | |
Accounts and notes receivable | | | 686.3 | | | | 745.5 | |
Inventories | | | 137.7 | | | | 147.5 | |
Prepaid expenses and other current assets | | | 617.0 | | | | 585.0 | |
Total current assets | | | 2,797.5 | | | | 2,857.8 | |
| | |
Other assets | | | | | | | | |
Investment in and advances to affiliates | | | 1,136.6 | | | | 1,109.9 | |
Goodwill, net | | | 1,815.8 | | | | 1,828.3 | |
Miscellaneous | | | 1,301.2 | | | | 1,338.4 | |
Total other assets | | | 4,253.6 | | | | 4,276.6 | |
| | |
Property and equipment | | | | | | | | |
Property and equipment, at cost | | | 30,042.8 | | | | 30,507.8 | |
Accumulated depreciation and amortization | | | (9,859.9 | ) | | | (9,804.7 | ) |
Net property and equipment | | | 20,182.9 | | | | 20,703.1 | |
Total assets | | $ | 27,234.0 | | | $ | 27,837.5 | |
| | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
Current liabilities | | | | | | | | |
Accounts payable | | $ | 495.4 | | | $ | 714.3 | |
Income taxes | | | 201.5 | | | | 331.3 | |
Other taxes | | | 243.2 | | | | 245.1 | |
Accrued interest | | | 169.2 | | | | 179.4 | |
Accrued payroll and other liabilities | | | 1,056.3 | | | | 1,188.2 | |
Current maturities of long-term debt | | | 503.6 | | | | 862.2 | |
Total current liabilities | | | 2,669.2 | | | | 3,520.5 | |
| | |
Long-term debt | | | 8,155.2 | | | | 8,357.3 | |
Other long-term liabilities | | | 926.3 | | | | 976.7 | |
Deferred income taxes | | | 845.7 | | | | 781.5 | |
| | |
Shareholders’ equity | | | | | | | | |
Common stock | | | 16.6 | | | | 16.6 | |
Additional paid-in capital | | | 2,391.4 | | | | 2,186.0 | |
Unearned ESOP compensation | | | (83.2 | ) | | | (82.8 | ) |
Retained earnings | | | 22,484.0 | | | | 21,755.8 | |
Accumulated other comprehensive income (loss) | | | (301.9 | ) | | | (96.0 | ) |
Common stock in treasury | | | (9,869.3 | ) | | | (9,578.1 | ) |
Total shareholders’ equity | | | 14,637.6 | | | | 14,201.5 | |
Total liabilities and shareholders’ equity | | $ | 27,234.0 | | | $ | 27,837.5 | |
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|
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RESTAURANT INFORMATION
SYSTEMWIDE RESTAURANTS
| | | | | | | |
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|
| At March 31, | | 2005 | | 2004 | | Inc / (Dec) | |
|
|
U.S* | | 13,664 | | 13,614 | | 50 | |
| | | |
Europe | | | | | | | |
Germany* | | 1,262 | | 1,243 | | 19 | |
United Kingdom | | 1,250 | | 1,235 | | 15 | |
France | | 1,038 | | 1,010 | | 28 | |
Spain | | 342 | | 333 | | 9 | |
Italy | | 329 | | 324 | | 5 | |
Other | | 2,071 | | 2,041 | | 30 | |
Total Europe | | 6,292 | | 6,186 | | 106 | |
| | | |
APMEA | | | | | | | |
Japan* | | 3,759 | | 3,753 | | 6 | |
Australia | | 730 | | 727 | | 3 | |
China | | 657 | | 581 | | 76 | |
Taiwan | | 346 | | 346 | | — | |
South Korea | | 335 | | 343 | | (8 | ) |
Other | | 1,741 | | 1,706 | | 35 | |
Total APMEA | | 7,568 | | 7,456 | | 112 | |
| | | |
Latin America | | | | | | | |
Brazil | | 549 | | 549 | | — | |
Mexico | | 305 | | 285 | | 20 | |
Other | | 754 | | 747 | | 7 | |
Total Latin America | | 1,608 | | 1,581 | | 27 | |
| | | |
Canada* | | 1,376 | | 1,346 | | 30 | |
| | | |
Other | | 1,085 | | 971 | | 114 | |
| | | |
Systemwide restaurants | | 31,593 | | 31,154 | | 439 | |
| | | |
Countries | | 119 | | 119 | | — | |
|
|
| * | At March 31, 2005 reflected the following satellites: U.S. 1,334; Germany 107; Japan 1,777; Canada 391. At March 31, 2004: U.S. 1,320; Germany 91; Japan 1,796; Canada 361. |
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SYSTEMWIDE RESTAURANTS BY TYPE
| | | | | | | |
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| At March 31, | | 2005 | | 2004 | | Inc / (Dec) | |
|
|
U.S. | | | | | | | |
Operated by franchisees | | 10,946 | | 10,903 | | 43 | |
Operated by the Company | | 2,028 | | 2,005 | | 23 | |
Operated by affiliates | | 690 | | 706 | | (16 | ) |
| | | 13,664 | | 13,614 | | 50 | |
Europe | | | | | | | |
Operated by franchisees | | 3,649 | | 3,611 | | 38 | |
Operated by the Company | | 2,366 | | 2,302 | | 64 | |
Operated by affiliates | | 277 | | 273 | | 4 | |
| | | 6,292 | | 6,186 | | 106 | |
APMEA | | | | | | | |
Operated by franchisees | | 2,421 | | 2,284 | | 137 | |
Operated by the Company | | 2,124 | | 2,241 | | (117 | ) |
Operated by affiliates | | 3,023 | | 2,931 | | 92 | |
| | | 7,568 | | 7,456 | | 112 | |
Latin America | | | | | | | |
Operated by franchisees | | 480 | | 570 | | (90 | ) |
Operated by the Company | | 1,100 | | 990 | | 110 | |
Operated by affiliates | | 28 | | 21 | | 7 | |
| | | 1,608 | | 1,581 | | 27 | |
Canada | | | | | | | |
Operated by franchisees | | 810 | | 768 | | 42 | |
Operated by the Company | | 473 | | 486 | | (13 | ) |
Operated by affiliates | | 93 | | 92 | | 1 | |
| | | 1,376 | | 1,346 | | 30 | |
Other | | | | | | | |
Operated by franchisees | | 34 | | 13 | | 21 | |
Operated by the Company | | 1,051 | | 958 | | 93 | |
| | | 1,085 | | 971 | | 114 | |
Systemwide | | | | | | | |
Operated by franchisees | | 18,340 | | 18,149 | | 191 | |
Operated by the Company | | 9,142 | | 8,982 | | 160 | |
Operated by affiliates | | 4,111 | | 4,023 | | 88 | |
| | | 31,593 | | 31,154 | | 439 | |
|
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FORWARD-LOOKING STATEMENTS
This report contains certain forward-looking statements, which reflect management’s expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. A list of the factors that could cause actual results to differ materially from those expressed in, or underlying, our forward-looking statements is detailed in the Company’s filings with the Securities and Exchange Commission, such as its annual and quarterly reports.
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