Exhibit 12
MCDONALD'S CORPORATION
STATEMENT RE: COMPUTATION OF RATIOS
(Dollars in Millions)
Year Ended December 31,
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1997 1996 1995 1994 1993
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EARNINGS AVAILABLE FOR FIXED CHARGES
- - Income before provision for income taxes $2,407.3 $2,251.0 $2,169.1 $1,886.6 $1,675.7
- - Minority interest in operating results of
majority-owned subsidiaries, including
fixed charges related to redeemable
preferred stock, less equity in
undistributed operating results of
less-than-50% owned affiliates 28.3 39.6 19.6 6.6 6.9
- - Provision for income taxes of 50% owned
affiliates included in consolidated income
before provision for income taxes 69.0 73.2 73.3 34.9 34.2
- - Portion of rent charges (after reduction
for rental income from subleased
properties) considered to be representative
of interest factors* 145.9 130.9 103.8 83.4 71.6
- - Interest expense, amortization of debt
discount and issuance costs, and
depreciation of capitalized interest* 424.8 392.2 388.8 346.0 358.0
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$3,075.3 $2,886.9 $2,754.6 $2,357.5 $2,146.4
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FIXED CHARGES
- - Portion of rent charges (after reduction
for rental income from subleased
properties) considered to be representative
of interest factors* $ 145.9 $ 130.9 $ 103.8 $ 83.4 $ 71.6
- - Interest expense, amortization of debt
discount and issuance costs, and fixed
charges related to redeemable preferred
stock* 426.1 410.4 403.4 343.9 349.3
- - Capitalized interest* 23.7 23.5 22.8 21.0 20.7
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$ 595.7 $ 564.8 $ 530.0 $ 448.3 $ 441.6
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RATIO OF EARNINGS TO FIXED CHARGES 5.16 5.11 5.20 5.26 4.86
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* Includes amounts of the Registrant and its majority-owned subsidiaries, and
one-half of the amounts of 50% owned affiliates.