Exhibit 11
MCDONALD'S CORPORATION
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
(Dollars and shares in millions, except per common share data)
Year ended December 31,
--------------------------------------
1997 1996 1995
--------------------------------------
Net income $1,642.5 $1,572.6 $1,427.3
Preferred stock dividends (net of applicable tax benefits) (25.3) (27.6) (40.5)
--------------------------------------
Net income available after preferred stock dividends (A) 1,617.2 1,545.0 1,386.8
Effect of preferred stock exchange (B) -- -- (4.3)
Common stock dividends on assumed conversion of preferred stock -- -- 0.6
--------------------------------------
Net income available to common shareholders $1,617.2 $1,545.0 $1,383.1
======================================
Weighted average number of common shares outstanding during the period (A) 689.3 698.2 701.5
Additional shares related to potentially dilutive stock options 15.8 18.4 16.2
--------------------------------------
Weighted average common shares - diluted 705.1 716.6 717.7
======================================
Net income per common share - diluted (C) $ 2.29 $ 2.16 $ 1.93
======================================
- ---------------
(A) Refer to Consolidated Statement of Income and Financial Comments on pages
21 and 25 from Part II, Item 8 of this 1997 10-K for information concerning
the computation of Net income per common share.
(B) The 1995 period includes $3.9 million for the one-time effect of the
Company's exchange of Series E Cumulative Preferred Stock for subordinated
debt securities completed in June, 1995, and an additional $.4 million for
the effect of the Company's repurchase of additional Series E preferred
stock in the third quarter.
(C) Net income per common share data for all periods has been presented in
conformity with SFAS 128.