Exhibit 99
CEO Views
on 1996 Results and Outlook
McDonald's global foodservice business delivered impressive results in the
first nine months and third quarter of 1996, despite operating results that
were negatively impacted by weak economies in several major countries, an
extremely competitive U.S. environment, severe weather, and difficult
comparisons due to the exceptional performance of many markets in 1995.
Net income per common share increased 12 percent for the nine months and
11 percent for the third quarter.
We are confident about the tremendous growth opportunities available
to McDonald's outside of the United States. This confidence is inspired by
the strong acceptance of McDonald's brand in more and more markets around
the world. On opening day in India last Sunday, 10,000 customers had their
first taste of McDonald's as we opened our first restaurant ever without
hamburgers on the menu in Delhi. We enjoy a significant lead over the
competition outside of the United States and plan to extend this lead
through our Convenience Strategy. Our objective is to grow international
sales at a compound annual rate in the mid- to high-teens and international
operating income at a compound annual rate of about 20 percent as measured
over a five-year period.
It's important to evaluate the strength of our international business
within the context of a longer-term perspective. For example, excluding
the impact of changing foreign currencies and comparing third quarter 1996
to third quarter 1994, international operating income grew 35 percent over
this two-year period. Comparing the first nine months of 1996 to the first
nine months of 1994, the increase in international operating income over
this two-year period was 41 percent, excluding the impact of changing
foreign currencies and a noncash charge related to the adoption of a new
accounting standard. This perspective underscores the success of our
international strategy.
Our U.S. restaurants are operating in a complex, dynamic and difficult
marketplace and recent operating performance has fallen short of our goals.
Yet, we are very optimistic about our long-term opportunities to grow in
the domestic marketplace. To add more strength to this part of our
business, I recently reorganized management to better align staff and line
functions and bring more management firepower where we need it. Our
objective is to grow U.S. sales and operating income at a compound annual
rate in the mid-single digits as measured over a five-year period and we
intend to improve results to achieve this long-term objective.
We will focus on four U.S. initiatives to improve performance:
delivering great food taste, enhancing the quality of service,
strengthening strategic marketing and adding new restaurants. Our recent
introduction of Arch Deluxe, Crispy Chicken Deluxe, Grilled Chicken Deluxe
and Fish Filet Deluxe sandwiches is part of a broader food taste initiative
and we are pleased with the initial response from our customers. The
unique alliance we have formed with Disney is an example of our strategic
marketing initiative which should deliver competitive advantages.
We are confident in our growth strategies and expect 1996 to be
another record-breaking year. We will use our growing cash flow and debt
capacity to fund global expansion, pay dividends, and repurchase stock
under our $2 billion, three-year program.
Sincerely,
/s/ Michael R. Quinlan
-------------------------------------
Michael R. Quinlan
Chairman and Chief Executive Officer, Shareholder
October 18, 1996
Investor Release
FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
10/18/96 Investors: Mary Healy, 630-575-6429
Media: Chuck Ebeling, 630-575-6150
McDONALD'S REPORTS STRONG GLOBAL RESULTS
OAK BROOK, IL -- McDonald's Corporation today announced record results for
the nine months and quarter ended September 30, 1996:
-Net income per common share rose 12 percent for the nine months and
11 percent for the quarter.
-Net income grew 10 percent for the nine months and quarter.
-Total revenues rose 9 and 8 percent for the nine months and quarter.
-Systemwide sales were up 6 and 5 percent for the nine months and quarter.
-Operating income outside of the U.S. contributed 56 percent for the nine
months and 59 percent for the quarter to consolidated operating income.
Key highlights
Dollars in millions, except Nine months ended September 30
per common share data --------------------------------------
1996 1995 Increase
--------- -------- --------------
- Systemwide sales $23,527.6 $22,179.5 $1,348.1 6%
- Total revenues 7,864.9 7,209.0 655.9 9
- Operating income 2,018.6 1,955.2 63.4 3
- Net income 1,162.6 1,060.5 102.1 10
- Net income per common share 1.63 1.46 .17 12
Quarters ended September 30
-------------------------------------
1996 1995 Increase
--------- -------- --------------
- Systemwide sales $ 8,286.1 $ 7,866.6 $ 419.5 5%
- Total revenues 2,773.8 2,580.1 193.7 8
- Operating income 744.0 722.1 21.9 3
- Net income 440.6 400.1 40.5 10
- Net income per common share .62 .56 .06 11
SUMMARY COMMENTARY
Chairman and Chief Executive Officer Michael R. Quinlan said, "McDonald's
global foodservice business delivered impressive results in the first nine
months and third quarter of 1996, despite operating results that were
negatively impacted by weak economies in several major countries, an extremely
competitive U.S. environment, severe weather, and difficult comparisons due to
the exceptional performance of many markets in 1995. Net income per common
share increased 12 percent for the nine months and 11 percent for the third
quarter.
"We are confident about the tremendous growth opportunities available to
McDonald's outside of the United States. This confidence is inspired by the
strong acceptance of McDonald's brand in more and more markets around the
world. On opening day in India last Sunday, 10,000 customers had their first
taste of McDonald's as we opened our first restaurant ever without hamburgers
on the menu in Delhi. We enjoy a significant lead over the competition
outside of the United States and plan to extend this lead through our
Convenience Strategy. Our objective is to grow international sales at a
compound annual rate in the mid- to high-teens and international operating
income at a compound annual rate of about 20 percent as measured over a five-
year period.
"Our U.S. restaurants are operating in a complex, dynamic and difficult
marketplace and recent operating performance has fallen short of our goals.
Yet, we are very optimistic about our long-term opportunities to grow in the
domestic marketplace. To add more strength to this part of our business, I
recently reorganized management to better align staff and line functions and
bring more management firepower where we need it. Our objective is to grow
U.S. sales and operating income at a compound annual rate in the mid-single
digits as measured over a five-year period and we intend to improve results to
achieve this long-term objective.
"We will focus on four U.S. initiatives to improve performance:
delivering great food taste, enhancing the quality of service, strengthening
strategic marketing and adding new restaurants.
"We are confident in our growth strategies and expect 1996 to be another
record-breaking year. We will use our growing cash flow and debt capacity to
fund global expansion, pay dividends, and repurchase stock under our $2
billion, three-year program."
CONSOLIDATED OPERATING RESULTS
Net income and net income per common share increased 10 and 12 percent for
the nine months, respectively, and 10 and 11 percent for the quarter,
respectively. Excluding the noncash charge for the adoption of SFAS 121, net
income and net income per common share increased 11 and 13 percent for the
nine months, respectively. In the first nine months of 1996, the Company
repurchased about $390 million of its common stock.
Systemwide sales represent sales by Company-operated, franchised and
affiliated restaurants. Total revenues consist of sales by Company-operated
restaurants and fees from restaurants operated by franchisees and affiliates.
These fees are based upon a percent of sales with specified minimum payments.
The increases in sales and revenues for both periods were due to worldwide
expansion, offset in part by negative comparable sales and weaker foreign
currencies.
Systemwide restaurant additions Nine months Quarters
ended September 30 ended September 30
--------------------------------------
1996 1995 1996 1995
----- ---- ---- ----
Traditional restaurants
U.S. 319 326 136 142
Outside of the U.S. 878 568 450 250
Total traditional
restaurant additions 1,197 894 586 392
Satellite restaurants
U.S. 165 389 35 150
Outside of the U.S. 249 170 107 77
Total satellite
restaurant additions 414 559 142 227
Systemwide restaurants
U.S. 484 715 171 292
Outside of the U.S. 1,127 738 557 327
Systemwide
restaurant additions 1,611 1,453 728 619
Traditional restaurants under construction At September 30
---------------
1996 1995
---- ----
U.S. 191 203
Outside of the U.S. 396 313
Total traditional restaurants
under construction 587 516
Consolidated operating margins Nine months Quarters
ended September 30 ended September 30
----------------------------------------
1996 1995 1996 1995
In millions of dollars ---- ---- ---- ----
Company-operated $1,040.7 $ 980.4 $383.5 $363.9
Franchised 1,879.6 1,780.0 666.0 636.5
As a percent of sales/revenues
Company-operated 18.7 19.4 19.5 20.1
Franchised 81.7 82.5 82.4 82.9
Franchised margin dollars comprised about two-thirds of the combined
operating margins, the same as in the prior year. Franchised margins as a
percent of applicable revenues declined for both periods. This decline
reflected negative comparable sales and a higher proportion of leased sites
which have financing costs embedded in rent expense, contrasted with owned
sites whose financing costs are reflected in interest expense. Company-
operated margins as a percent of sales decreased for both periods as food &
paper and payroll costs were relatively flat, while occupancy & other
operating costs increased as a percent of sales.
The increases in general, administrative & selling expenses were
primarily due to strategic global spending to support the Convenience, Value
and Execution Strategies including new country development and new U.S. food
taste initiatives.
The increases in consolidated operating income primarily reflected higher
combined operating margin dollars, partially offset by higher general,
administrative & selling expenses and lower other operating income for the
nine months.
Other operating (income) expense--net is composed of transactions related
to franchising and the foodservice business, the details of which are shown in
the following chart. The decrease in equity in earnings for the nine months
occurred primarily because of nonrecurring income items recognized in 1995,
partially offset by stronger operating results from affiliates. A weaker
Japanese Yen contributed to the decreases for both periods. The increase in
other expenses for the nine months reflected the $16 million noncash charge
related to the adoption of SFAS 121 recorded in the first quarter of 1996 and
increased provisions for property dispositions. The decrease in other expenses
for the quarter reflected lower provisions for property dispositions.
Other operating (income) expense--net Nine months Quarters
ended September 30 ended September 30
--------------------------------------
1996 1995 1996 1995
In millions of dollars ---- ---- ---- ----
Gains on sales of restaurant businesses $(57.1) $(45.0) $(14.8) $(16.6)
Equity in earnings of unconsolidated
affiliates (60.8) (75.9) (26.4) (28.2)
Other 34.2 31.2 (1.2) 9.0
Other operating (income) expense--net $(83.7) $(89.7) $(42.4) $(35.8)
The decreases in interest expense were due to lower average interest
rates and weaker foreign currencies, partially offset by higher debt levels.
Nonoperating income (expense) was impacted by lower losses associated
with the Company's investment in Discovery Zone common stock, as the carrying
value of this investment was reduced to zero in the first quarter of 1996.
Nonoperating income (expense) also reflected translation gains in 1996
compared to translation losses in 1995.
The effective income tax rate was 32.7 percent for the first nine months
of 1996, compared to 34.9 percent for the first nine months of 1995 and 34.2
percent for the year 1995. The 1996 decrease was primarily due to lower taxes
related to foreign operations. For the year, the Company expects the
effective tax rate to be about 32.5 percent.
U.S. OPERATING RESULTS
Restaurant expansion was responsible for increasing U.S. sales as we added 899
restaurants in the last 12 months. Comparable U.S. sales were negative for
both periods reflecting an extremely competitive U.S. operating environment,
and at times, difficult comparisons and severe weather. The U.S. business
continued its emphasis on value and customer satisfaction in the form of Extra
Value Meals, Happy Meals and the three-tier value program as well as through
promotions like "When the U.S. Wins, You Win" in July and Walt Disney World
25th Anniversary collector glasses in September.
U.S. operating results Nine months Quarters
ended September 30 ended September 30
--------------------------------------
1996 1995 1996 1995
---- ---- ---- ----
Percent increase/(decrease)
Sales 3 7 2 5
Revenues 3 8 1 6
Operating income (3) 3 (5) 2
As a percent of sales/revenues
Company-operated margins 16.8 17.8 16.8 18.3
Franchised margins 81.7 82.7 82.1 82.6
The decreases in U.S. operating income for both periods reflected lower
Company-operated margin dollars and higher general, administrative & selling
expenses, partially offset by higher franchised margin dollars. Higher other
operating expenses also contributed to the nine month decrease.
The declines in Company-operated margins as a percent of sales primarily
resulted from higher payroll and occupancy & other operating expenses,
partially offset by lower food & paper costs. The declines in franchised
margins as a percent of revenues were due to negative comparable sales and
increased rent expense reflecting a higher proportion of leased sites
resulting from accelerated expansion.
OPERATING RESULTS OUTSIDE OF THE U.S.
Expansion was primarily responsible for sales increases outside of the U.S.,
offset in part by weaker foreign currencies. The difference between the
percentage increases in sales and revenues for both periods is primarily due
to the weakening Japanese Yen that had a greater effect on sales versus
revenues and the higher growth rate in Company-operated versus franchised
restaurants. If exchange rates had remained at 1995 levels, sales outside of
the U.S. would have increased 15 and 14 percent for the nine months and
quarter, respectively.
Operating results outside Nine months Quarters
of the U.S. ended September 30 ended September 30
--------------------------------------
1996 1995 1996 1995
Percent increase ---- ---- ---- ----
Sales 10 30 9 24
Revenues 14 31 13 25
Operating income 9 34 11 25
As a percent of sales/revenues
Company-operated margins 19.8 20.5 21.0 21.2
Franchised margins 81.7 82.1 82.8 83.2
Of the fifteen largest international markets, the following had strong
sales and operating income growth for the first nine months of 1996: Japan and
Hong Kong in Asia/Pacific; and England, Italy, Spain and Sweden in Europe. In
the third quarter, Hong Kong, England, Italy, Spain, Sweden and Taiwan had
strong sales and operating income growth. In Latin America, Brazil's results
were good compared with exceptional performance last year. Results in Mexico
continued to be weak due to its adverse economy and currency devaluation;
however, we continue to believe this market offers long-term potential and are
encouraged by recent improvement in operating results. Our business in
Canada, France and Germany continued to be negatively impacted by weak
economies.
The increases in operating income outside of the U.S. were driven by
higher combined operating margin dollars resulting from expansion and cost
efficiencies, partially offset by weaker foreign currencies and higher
general, administrative & selling expenses driven by new country development.
Excluding the impact of weaker foreign currencies and the $16 million noncash
charge for the adoption of the accounting standard for asset impairment for
restaurant sites in Mexico recorded in the first quarter of 1996, operating
income outside of the U.S. increased 13 percent for the nine months and 14
percent for the quarter.
Company-operated margins as a percent of sales declined for both periods,
however, the decrease continued to narrow in the third quarter. The slight
decrease for the quarter was primarily due to increases in occupancy & other
operating costs, significantly offset by lower payroll costs. Food & paper
costs were relatively flat for the quarter. For the nine months, food & paper
and occupancy & other operating costs increased, while payroll costs were
relatively flat. While Brazil and Taiwan contributed to the decline in
Company-operated margins for the nine months, margin trends in both markets
improved in the third quarter and strategic initiatives implemented in both
markets resulted in sales and market share gains.
Franchised margins as a percent of revenues decreased slightly for both
periods, reflecting pressure on comparable sales primarily in Europe and
Canada.
IMPACT OF FOREIGN CURRENCIES ON REPORTED RESULTS
While changing foreign currencies impact reported results, McDonald's lessens
short-term cash exposures by primarily purchasing goods and services in local
currencies, financing in local currencies and hedging foreign-denominated cash
flows.
The weakening of the Japanese Yen and Deutsche Mark were the primary
foreign currency changes impacting 1996 results. If exchange rates had
remained at 1995 levels, results would have been as follows:
Foreign currency impact
on international results
Nine months ended September 30, 1996
-----------------------------------------------------
Reported Adjusted Adjustment Reported Adjusted
Dollars in millions -------- -------- ---------- -------- --------
Sales $11,342.9 $11,835.4 $(492.5) 10% 15%
Operating income 1,131.1 1,159.4 (28.3) 9 12
Quarter ended September 30, 1996
-----------------------------------------------------
Reported Adjusted Adjustment Reported Adjusted
-------- -------- ---------- -------- --------
Sales $4,103.0 $4,282.5 $(179.5) 9% 14%
Operating income 439.6 450.8 (11.2) 11 14
Foreign currency impact
on worldwide results
Nine months ended September 30, 1996
-----------------------------------------------------
Reported Adjusted Adjustment Reported Adjusted
Dollars in millions -------- -------- ---------- -------- --------
Systemwide sales $23,527.6 $24,020.1 $(492.5) 6% 8%
Operating income 2,018.6 2,046.9 (28.3) 3 5
Net income 1,162.6 1,171.1 (8.5) 10 10
Quarter ended September 30, 1996
-----------------------------------------------------
Reported Adjusted Adjustment Reported Adjusted
-------- -------- ---------- -------- --------
Systemwide Sales $ 8,286.1 $ 8,465.6 $(179.5) 5% 8%
Operating Income 744.0 755.2 (11.2) 3 5
Net Income 440.6 445.0 (4.4) 10 11
NEW ACCOUNTING STANDARD
The Company adopted Statement of Financial Accounting Standard 121, Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed of, in the first quarter 1996. This statement requires impairment
losses be recognized for long-lived assets, whether these assets are held for
disposal or continue to be used in operations, when indicators of impairment
are present and the fair value of assets are estimated to be less than
carrying amounts. The fair value of assets was based on projected future cash
flows. The adoption of this standard resulted in a $16 million noncash pre-
tax charge in other operating (income) expense, equivalent to 2 cents per
common share, related to restaurant sites in Mexico.
McDONALD'S CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
Dollars and shares in millions, Nine months ended September 30
except per common share data ----------------------------------------
Increase(Decrease)
------------------
1996 1995 $ %
---- ---- ------ ------
SYSTEMWIDE SALES $23,527.6 $22,179.5 1,348.1 6
Revenues
Sales by Company-operated
restaurants $ 5,565.2 $ 5,051.3 513.9 10
Revenues from franchised
restaurants 2,299.7 2,157.7 142.0 7
TOTAL REVENUES 7,864.9 7,209.0 655.9 9
Operating costs and expenses
Company-operated restaurants 4,524.5 4,070.9 453.6 11
Franchised restaurants--
occupancy costs 420.1 377.7 42.4 11
General, administrative and
selling expenses 985.4 894.9 90.5 10
Other operating (income)
expense--net(1) (83.7) (89.7) 6.0 (7)
Total operating costs
and expenses(1) 5,846.3 5,253.8 592.5 11
OPERATING INCOME(1) 2,018.6 1,955.2 63.4 3
Interest expense 252.3 252.5 (0.2) 0
Nonoperating income (expense)--net (38.8) (73.2) 34.4 (47)
Income before provision for
income taxes(1) 1,727.5 1,629.5 98.0 6
Provision for income taxes 564.9 569.0 (4.1) (1)
NET INCOME(1) $ 1,162.6 $ 1,060.5 102.1 10
NET INCOME PER COMMON SHARE(1)(2) $ 1.63 $ 1.46 .17 12
Weighted average common shares
outstanding(3) 699.1 699.6
Dollars and shares in millions, Quarters ended September 30
except per common share data --------------------------------------
Increase(Decrease)
------------------
1996 1995 $ %
----- ----- ----- ------
SYSTEMWIDE SALES $8,286.1 $7,866.6 419.5 5
Revenues
Sales by Company-operated restaurants $1,965.6 $1,811.9 153.7 8
Revenues from franchised restaurants 808.2 768.2 40.0 5
TOTAL REVENUES 2,773.8 2,580.1 193.7 8
Operating costs and expenses
Company-operated restaurants 1,582.1 1,448.0 134.1 9
Franchised restaurants--occupancy costs 142.2 131.7 10.5 8
General, administrative and selling
expenses 347.9 314.1 33.8 11
Other operating (income) expense--net(1) (42.4) (35.8) (6.6) 18
Total operating costs and
expenses(1) 2,029.8 1,858.0 171.8 9
OPERATING INCOME(1) 744.0 722.1 21.9 3
Interest expense 84.7 86.1 (1.4) (2)
Nonoperating income (expense)--net (9.4) (26.5) 17.1 (65)
Income before provision for
income taxes(1) 649.9 609.5 40.4 7
Provision for income taxes 209.3 209.4 (0.1) 0
NET INCOME(1) $ 440.6 $ 400.1 40.5 10
NET INCOME PER COMMON SHARE(1)(2) $ 0.62 $ 0.56 0.06 11
Weighted average common shares
outstanding(3) 697.8 698.4
(1) Including the noncash charge related to the adoption of SFAS 121 for the
nine months ended September 30, 1996.
(2) Computed using net income reduced by preferred stock dividends (net of
tax) of $20.7 and $31.8 million for the nine months ended September 30, 1996
and 1995, respectively, and $6.9 and $8.0 million for the quarters of 1996 and
1995, respectively. Also, for the nine months ended September 30, 1995, net
income was reduced by $3.9 million for the one-time effect of the exchange of
Series E Preferred Stock for subordinated debt in the second quarter 1995, and
by $.4 million for the effect of the repurchase of additional Series E
Preferred Stock in the third quarter 1995.
(3) During 1995, shares of Series B and C Preferred Stock were converted into
8.7 million common shares.
McDONALD'S CORPORATION
FINANCIAL INFORMATION
Nine months ended September 30
------------------------------------------
Dollars in millions Increase (Decrease)
------------------
1996 1995 $ %
---- ---- ---- ----
SYSTEMWIDE SALES
----------------
U.S.
----
Operated by franchisees $ 9,422.6 $ 9,313.1 109.5 1
Operated by the Company 2,085.2 2,034.9 50.3 2
Operated by affiliates 676.9 506.2 170.7 34
--------- --------- ------- --
12,184.7 11,854.2 330.5 3
--------- --------- ------- --
Outside of the U.S.
-------------------
Operated by franchisees 5,402.3 4,907.7 494.6 10
Operated by the Company 3,480.0 3,016.4 463.6 15
Operated by affiliates 2,460.6 2,401.2 59.4 2
--------- --------- ------- --
11,342.9 10,325.3 1,017.6 10
--------- --------- ------- --
$23,527.6 $22,179.5 1,348.1 6
========= ========= ======== ===
By Type
-------
Operated by franchisees $14,824.9 $14,220.8 604.1 4
Operated by the Company 5,565.2 5,051.3 513.9 10
Operated by affiliates 3,137.5 2,907.4 230.1 8
--------- --------- ------- --
$23,527.6 $22,179.5 1,348.1 6
========= ========= ======== ===
---------------------------------------------------------------------------
TOTAL REVENUES
U.S. $ 3,432.5 $ 3,328.0 104.5 3
Outside of the U.S. 4,432.4 3,881.0 551.4 14
--------- --------- ------- --
$ 7,864.9 $ 7,209.0 655.9 9
========= ========= ======== ===
---------------------------------------------------------------------------
OPERATING INCOME
U.S. $ 926.4 $ 951.6 (25.2) (3)
Outside of the U.S.* 1,131.1 1,038.2 92.9 9
Corporate G&A (38.9) (34.6) (4.3) 12
--------- --------- ------- --
$ 2,018.6 $ 1,955.2 63.4 3
========= ========= ======== ===
*Excluding the impact of weaker foreign currencies and the $16 million
noncash charge related to the adoption of SFAS 121, operating income outside
of the U.S. increased 13 percent.
---------------------------------------------------------------------------
PERCENT CONTRIBUTION TO COMBINED OPERATING MARGINS
Nine months ended September 30
------------------------------
1996 1995
---- ----
Company-operated
----------------
U.S. 34 37
Outside of the U.S. 66 63
--- ---
100 100
=== ===
Franchised
----------
U.S. 59 60
Outside of the U.S. 41 40
--- ---
100 100
=== ===
McDONALD'S CORPORATION
RESTAURANT INFORMATION*
At September 30
----------------------------------
Increase (Decrease)
-------------------
1996 1995 # %
---- ---- --- ---
TRADITIONAL RESTAURANTS
U.S.
----
Operated by franchisees 8,403 7,989 414 5
Operated by the Company 1,604 1,607 (3) (0)
Operated by affiliates 653 474 179 38
------ ------ ----- --
10,660 10,070 590 6
------ ------ ----- --
Outside of the U.S.
-------------------
Operated by franchisees 3,440 2,878 562 20
Operated by the Company 2,174 1,743 431 25
Operated by affiliates 1,732 1,408 324 23
------ ------ ----- --
7,346 6,029 1,317 22
------ ------ ----- --
18,006 16,099 1,907 12
====== ====== ===== ==
By Type
-------
Operated by franchisees 11,843 10,867 976 9
Operated by the Company 3,778 3,350 428 13
Operated by affiliates 2,385 1,882 503 27
------ ------ ----- --
18,006 16,099 1,907 12
====== ====== ===== ==
---------------------------------------------------------------------------
SATELLITE RESTAURANTS
U.S. 1,192 883 309 35
Outside of the U.S. 793 421 372 88
------ ------ ----- --
1,985 1,304 681 52
------ ------ ----- --
---------------------------------------------------------------------------
SYSTEMWIDE RESTAURANTS
U.S. 11,852 10,953 899 8
Outside of the U.S. 8,139 6,450 1,689 26
------ ------ ----- --
19,991 17,403 2,588 15
====== ====== ===== ==
---------------------------------------------------------------------------
SYSTEMWIDE COUNTRIES 94 84
---------------------------------------------------------------------------
TOTAL RESTAURANTS IN MARKETS OUTSIDE OF THE U.S.
Japan 1,823 1,344 479 36
Canada 959 862 97 11
Germany 698 632 66 10
England 619 551 68 12
Australia 572 494 78 16
France 500 399 101 25
Brazil 271 223 48 22
Taiwan 147 99 48 48
Netherlands 138 121 17 14
Italy 129 28 101 N/M
Mexico 120 130 (10) (8)
Sweden 114 94 20 21
Hong Kong 114 92 22 24
New Zealand 112 88 24 27
Spain 110 91 19 21
Other 1,713 1,202 511 43
8,139 6,450 1,689 26
*The Company, its franchisees and affiliates operate traditional and
satellite restaurants. Satellite restaurants generally offer a simplified
menu and are smaller in size and sales volume compared to traditional
restaurants.