EXHIBIT 12
McDONALD'S CORPORATION
STATEMENT RE: COMPUTATION OF RATIOS
Dollars In Millions
THREE MONTHS
ENDED MARCH 31, YEARS ENDED DECEMBER 31,
1999 1998 1998 1997 1996 1995 1994
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EARNINGS AVAILABLE FOR FIXED CHARGES
- - Income before provision for income taxes $600.7 $540.2 $2,307.4(1) $2,407.3 $2,251.0 $2,169.1 $1,886.6
- - 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 5.1 4.8 23.7 28.3 39.6 19.6 6.6
- - Provision for income taxes of 50% owned
affiliates included in consolidated income
before provision for income taxes 16.1 17.8 99.9 69.0 73.2 73.3 34.9
- - Portion of rent charges (after reduction
for rental income from subleased
properties) considered to be representative
of interest factors* 42.8 40.0 161.3 145.9 130.9 103.8 83.4
- - Interest expense, amortization of debt
discount and issuance costs, and
depreciation of capitalized interest* 118.5 116.1 461.9 424.8 392.2 388.8 346.0
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$783.2 $718.9 $3,054.2 $3,075.3 $2,886.9 $2,754.6 $2,357.5
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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* $ 42.8 $ 40.0 $ 161.3 $ 145.9 $ 130.9 $ 103.8 $ 83.4
- - Interest expense, amortization of debt
discount and issuance costs, and fixed
charges related to redeemable preferred
stock* 115.6 113.3 453.4 426.1 410.4 403.4 343.9
- - Capitalized interest* 2.7 4.0 18.3 23.7 23.5 22.8 21.0
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$161.1 $157.3 $ 633.0 $ 595.7 $ 564.8 $ 530.0 $ 448.3
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RATIO OF EARNINGS TO FIXED CHARGES 4.86 4.57 4.82(2) 5.16 5.11 5.20 5.26
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*Includes amounts of the Registrant and its majority-owned subsidiaries, and
one-half of the amounts of 50%-owned affiliates.
(1) Includes $161.6 million of Made for You costs and the $160.0 million pre-tax
special charge related to the home office productivity initiative for a 1998
pre-tax total of $321.6 million.
(2) Excluding Made for You costs and the special charge, the ratio of earnings
to fixed charges for the year ended December 31, 1998 would have been
5.33.
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