This is the Tagline, edited under "Misc Content"

McDonald's Ongoing Business Momentum Drives Third Quarter Results

PRNewswire-FirstCall
OAK BROOK, Ill.
Oct 19, 2007

McDonald's Corporation (NYSE: MCD) today announced strong operating results for the third quarter fueled by comparable sales growth. Quarterly highlights included:

  --  Global comparable sales increased 6.9%
  --  Growth in consolidated Company-operated and franchised restaurant
      margins for the seventh consecutive quarter
  --  Consolidated operating income increased 18% (13% in constant
      currencies)
  --  Earnings per share increased 31% to $0.89.  This includes $0.83 per
      share from continuing operations (a 22% increase compared with the
      prior year) and an after-tax gain in discontinued operations of $0.06
      per share from the sale of Boston Market
  --  The Company repurchased $927 million of its stock


Chief Executive Officer Jim Skinner commented, "Our strategic focus on building the McDonald's business by "being better not just bigger" and our global Plan to Win have combined to create enduring business momentum. By offering menu innovations and everyday conveniences that address the needs of our on-the-go customers, we are keeping our brand relevant and in demand. Third quarter marks the seventh consecutive quarter that we've posted positive comparable sales across all segments and demonstrates that our strategy is yielding results."

McDonald's U.S. performance continues to be fueled by initiatives that provide value to the consumer. For the quarter, McDonald's U.S. generated strong operating income growth despite industry-wide commodity and labor headwinds.

Europe's focus on delivering an improved customer experience along with unique marketing and locally appealing menu options drove robust sales and profitability for the third quarter.

Asia/Pacific, Middle East and Africa posted an 11.4% comparable sales increase for the third quarter - the segment's highest quarterly performance in 10 years. Our ongoing commitment to everyday affordability, convenience and locally relevant menu choice contributed to the segment's strong top-line and bottom-line results.

Jim Skinner continued, "We are leveraging our current momentum with disciplined practices that enhance long-term shareholder value while maintaining our financial strength and flexibility. During the quarter, we increased our cash return to shareholders target to $15 billion to $17 billion in 2007 through 2009 and raised our annual dividend by 50% to $1.50 per share. These commitments reflect confidence in our business outlook and in the strength and reliability of our future cash flows.

"The McDonald's business is strong. We are aligned as one System, behind one plan and focused on elevating our performance to even higher levels."

KEY HIGHLIGHTS - CONSOLIDATED

Dollars in millions, except per share data

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                                                                       %Inc
                                                                  Excluding
                                                                   Currency

Quarters ended September 30, 2007* 2006** % Inc Translation ------------------------------------------------------------------------------

  Revenues                  $5,900.9     $5,503.2           7             3
  Operating income           1,524.8      1,288.3          18            13
  Income from continuing
   operations                1,003.7        841.7          19            14
  Income from discontinued
   operations                   67.5          1.6         n/m           n/m
  Net income                 1,071.2        843.3          27            22
  Earnings per share from
   continuing operations-
   diluted                      0.83         0.68          22            18
  Earnings per share from
   discontinued operations-
   diluted                      0.06          --          n/m           n/m
  Earnings per share-diluted    0.89         0.68          31            25

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                                                                 %Inc/(Dec)
                                                                  Excluding
  Nine Months ended                                     % Inc      Currency
   September 30,                2007*        2006**      (Dec)  Translation

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  Revenues                 $17,033.0    $15,449.9          10             6
  Operating income           2,524.4      3,325.1         (24)          (29)
  Income from continuing
   operations                1,061.8      2,114.4         (50)          (54)
  Income from discontinued
   operations                   60.1        188.3         n/m           n/m
  Net income                 1,121.9      2,302.7         (51)          (55)
  Earnings per share from
   continuing operations-
   diluted                      0.87         1.68         (48)          (52)
  Earnings per share from
   discontinued operations-
   diluted                      0.05         0.15         n/m           n/m
  Earnings per share-diluted    0.92         1.83         (50)          (54)

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  n/m Not meaningful


  *    In August 2007, the Company sold its investment in Boston Market and
       as a result, Boston Market's results of operations and transaction
       gain have been reflected in discontinued operations for all periods
       presented.

       In third quarter 2007, the Company completed the sale of its
       businesses in Brazil, Argentina, Mexico, Puerto Rico, Venezuela and
       13 other countries in Latin America and the Caribbean to a
       developmental licensee organization. The Company refers to these
       markets as "Latam".  The results for the third quarter 2007 included
       impairment and other charges of $52.7 million ($3.3 million after
       tax) associated with the Latam transaction.  The results for the nine
       months 2007 included impairment and other charges of $1,666.6 million
       ($1604.4 million after tax or $1.32 per share),primarily associated
       with the Latam transaction.

  **   In 2006, the Company disposed of its entire investment in Chipotle
       Mexican Grill (Chipotle) via public stock offerings in the first and
       second quarters and a tax-free exchange for McDonald's common stock
       in the fourth quarter. As a result, Chipotle's results of operations
       and transaction gains are reflected as discontinued operations.

       The third quarter 2006 results included $0.01 per share of expense
       primarily related to impairment charges in Asia/Pacific, Middle East
       and Africa.  In addition to the third quarter items, results for the
       nine months 2006 also included $0.07 per share of operating expenses
       primarily related to strategic actions taken to enhance overall
       profitability and improve returns, as well as $0.01 per share of net
       incremental expense primarily related to a tax law change in Canada.


THE FOLLOWING DEFINITIONS APPLY TO THESE TERMS AS USED THROUGHOUT THIS RELEASE

Comparable sales represent sales at all McDonald's restaurants, including those operated by the Company, franchisees and affiliates, in operation at least thirteen months including those temporarily closed, excluding the impact of currency translation. Some of the reasons restaurants may be closed temporarily include road construction, reimaging or remodeling, and natural disasters. Management reviews the increase or decrease in comparable sales compared with the same period in the prior year to assess business trends.

Information in constant currency is calculated by translating current year results at prior year average exchange rates.

RELATED COMMUNICATIONS

McDonald's Corporation will broadcast its investor conference call live over the Internet at 10:30 a.m. Central Time on October 19, 2007. A link to the live webcast will be available at www.investor.mcdonalds.com. We will also have an archived webcast and podcast available for a limited time.

See Exhibit 99.2 in the Company's Form 8-K filing for supplemental information related to the Company's results for the quarter and nine months ended September 30, 2007.

The Company plans to release October 2007 sales information on November 8, 2007.

McDonald's will webcast the investor meeting it plans to host on November 13, 2007. Please access www.investor.mcdonalds.com for more information on presentation times and links to the live webcast. We will also have an archived webcast and podcast available for a limited time.

FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. The factors that could cause actual results to differ materially from our expectations are detailed in the Company's filings with the Securities and Exchange Commission, such as its annual and quarterly reports and current reports on Form 8-K.

McDONALD'S CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF INCOME

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Inc /

Dollars and shares in millions, except per share data (Dec)

------------------------------------------------------------------------------

Quarters ended September 30, 2007 2006 $ %

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  Revenues
  Sales by Company-operated
   restaurants                     $4,276.2     $4,057.7     218.5        5
  Revenues from franchised and
   affiliated restaurants           1,624.7      1,445.5     179.2       12

  TOTAL REVENUES                    5,900.9      5,503.2     397.7        7

  Operating costs and expenses
  Company-operated restaurant
   expenses                         3,492.3      3,356.2     136.1        4
  Franchised restaurants-occupancy
   expenses                           287.4        271.8      15.6        6
  Selling, general & administrative
   expenses                           569.4        555.1      14.3        3
  Impairment and other charges, net    52.7         17.3      35.4      n/m
  Other operating (income) expense,
   net                                (25.7)        14.5     (40.2)     n/m
  Total operating costs and
   expenses                         4,376.1      4,214.9     161.2        4

  OPERATING INCOME                  1,524.8      1,288.3     236.5       18

  Interest expense                     97.9        102.9      (5.0)      (5)
  Nonoperating income, net            (26.7)       (31.6)     (4.9)     (16)

  Income from continuing operations
   before provision for income
   taxes                            1,453.6      1,217.0     236.6       19
  Provision for income taxes          449.9        375.3      74.6       20

  Income from continuing
   operations                       1,003.7        841.7     162.0       19
  Income from discontinued
   operations (net of taxes
   of $39.5 and $9.8)                  67.5          1.6      65.9      n/m

  NET INCOME                       $1,071.2     $  843.3     227.9       27

  Earnings per share-diluted
  Continuing operations            $   0.83     $   0.68      0.15       22
  Discontinued operations          $   0.06          --       0.06      n/m

  EARNINGS PER SHARE-DILUTED       $   0.89     $   0.68      0.21       31

  Weighted average shares
   outstanding-diluted              1,207.1      1,245.7     (38.6)      (3)

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  n/m  Not meaningful



                             McDONALD'S CORPORATION
                   CONDENSED CONSOLIDATED STATEMENT OF INCOME

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Inc /

Dollars and shares in millions, except per share data (Dec)

------------------------------------------------------------------------------

Nine Months ended September 30, 2007 2006 $ %

------------------------------------------------------------------------------

  Revenues
  Sales by Company-operated
   restaurants                    $12,507.8    $11,393.4   1,114.4       10
  Revenues from franchised and
   affiliated restaurants           4,525.2      4,056.5     468.7       12

  TOTAL REVENUES                   17,033.0     15,449.9   1,583.1       10

  Operating costs and expenses
  Company-operated restaurant
   expenses                        10,343.8      9,559.1     784.7        8
  Franchised restaurants-occupancy
   expenses                           844.6        783.0      61.6        8
  Selling, general & administrative
   expenses                         1,706.5      1,641.1      65.4        4
  Impairment and other charges, net 1,666.6        125.5   1,541.1      n/m
  Other operating (income) expense,
   net                                (52.9)        16.1     (69.0)     n/m
  Total operating costs and
   expenses                        14,508.6     12,124.8   2,383.8       20

  OPERATING INCOME                  2,524.4      3,325.1    (800.7)     (24)

  Interest expense                    296.9        302.9      (6.0)      (2)
  Nonoperating income, net            (60.3)       (92.0)    (31.7)     (34)

  Income from continuing operations
   before provision for income
   taxes                            2,287.8      3,114.2    (826.4)     (27)
  Provision for income taxes        1,226.0        999.8     226.2       23

  Income from continuing operations 1,061.8      2,114.4  (1,052.6)     (50)
  Income from discontinued
   operations (net of taxes of
   $34.5 and $93.7)                    60.1        188.3    (128.2)     n/m

  NET INCOME                       $1,121.9     $2,302.7  (1,180.8)     (51)

  Earnings per share-diluted
  Continuing operations            $   0.87     $   1.68     (0.81)     (48)
  Discontinued operations          $   0.05         0.15     (0.10)     n/m

  EARNINGS PER SHARE-DILUTED       $   0.92     $   1.83     (0.91)     (50)

  Weighted average shares
   outstanding-diluted              1,216.3      1,255.0     (38.7)      (3)

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n/m Not meaningful

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SOURCE: McDonald's Corporation

CONTACT: Investors, Mary Kay Shaw, +1-630-623-7559, or Media, Heidi
Barker, +1-630-623-3791, both of McDonald's Corporation

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