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McDonald's Plans Aggressive Initiative to Drive U.S. Sales

PRNewswire-FirstCall
OAK BROOK, Ill.
Sep 6, 2002

McDonald's USA this week outlined a comprehensive set of aggressive initiatives, including a national value strategy, to drive growth in its U.S. restaurant business. The plan was endorsed by McDonald's Owner/Operator leadership at a meeting held in Las Vegas.

The program would involve national advertising of the Big 'N' Tasty and McChicken sandwiches for $1.00 each starting October 4, followed by national advertising of an eight-item "Dollar Menu" on November 1. Other features include customer service initiatives to improve the customer experience, particularly during peak luncheon hours, and targeted investment in the system's restaurant facilities.

The program was announced by Mike Roberts, President of McDonald's USA, and will be presented to the rest of the McDonald's U.S. System over the next week. The plan is contingent upon approval by the McDonald's owner/operators.

"This set of initiatives, which is a part of the U.S. Agenda we announced earlier this year, will enable us to improve the customer experience and ultimately increase the sales and profitability of all our restaurants across the system," Roberts said. "The meeting in Las Vegas confirmed my belief that this system is united in its focus on the key elements of value, menu and service and we will use them to make the biggest difference to meet our short and long-term goals."

The program would also include economic incentives for physical improvements that enhance the customer service experience -- from new signage to improved drive-thrus to complete restaurant remodeling. The total company investment cannot be quantified at this time because funding decisions will be made on an individual restaurant basis.

"Our objective is to participate with our Owner/Operators in identifying investment opportunities that will produce a significant return," Roberts said.

McDonald's (NYSE: MCD) is the leading global foodservice retailer, with more than 30,000 local restaurants serving nearly 46 million people each day in 121 countries. Approximately 80 percent of all McDonald's restaurants worldwide are owned and operated by independent franchisees.

Forward-looking Statements

Certain forward-looking statements are included in this release. They use such words as "may," "will," "expect," "believe," "plan," and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this release. These forward-looking statements involve a number of risks and uncertainties. The following are some of the factors that could cause actual results to differ materially from those expressed in or underlying our forward-looking statements: the effectiveness of operating initiatives and advertising and promotional efforts, as well as changes in: global and local business and economic conditions; currency exchange and interest rates; food, labor and other operating costs; political or economic instability in local markets; competition; consumer preferences, spending patterns and demographic trends; legislation and governmental regulation; and accounting policies and practices. The foregoing list of important factors is not exclusive.

The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

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SOURCE: McDonald's Corporation

CONTACT: Investors, Mary Healy, +1-630-623-6429, or Media,
Anna Rozenich, +1-630-623-7316, both of McDonald's

Web site: http://www.mcdonalds.com/