This is the Tagline, edited under "Misc Content"

Global Comparable Sales Drive Strong Second Quarter Results at McDonald's

PRNewswire-FirstCall
OAK BROOK, Ill.
Jul 23, 2008

McDonald's Corporation today announced strong operating results for the second quarter, driven by global comparable sales growth of 6.1%.

"Our strategic focus on putting the customer first in everything we do continues to yield outstanding operating results," said Chief Executive Officer Jim Skinner. "For the quarter, we grew comparable sales and guest counts across all geographic segments and delivered increased profitability. These results are a testament to the strength and resilience of McDonald's Plan to Win."

  McDonald's reported the following second quarter highlights:

  -- Global comparable sales increased 6.1%
  -- Growth in consolidated Company-operated and franchised restaurant
     margins for the tenth consecutive quarter
  -- Earnings per share from continuing operations of $1.04, a 44% increase
     (35% in constant currencies) over the prior year, after adjusting for
     the impact of the 2007 Latin America transaction.  Second quarter 2008
     earnings include a $0.10 per share gain from the previously announced
     sale of the Company's minority interest in Pret A Manger
  -- The Company repurchased 13.3 million shares of its stock for $788
     million and paid $422 million in quarterly dividends

Jim Skinner continued, "Our ongoing performance demonstrates that McDonald's is a trusted and familiar brand offering value, convenience and choice worldwide. We're operating from a position of strength with double-digit operating income growth in Europe and Asia/Pacific, Middle East and Africa and solid quarterly results in the U.S."

For McDonald's U.S., comparable sales were up 3.4% and operating income increased 6% for the quarter. The U.S. business continues to increase sales and guest counts through initiatives that provide value and variety to the consumer. The four key growth strategies of chicken, breakfast, beverages and convenience drove results with the nationwide launch of the Southern Style Chicken Biscuit and Sandwich and locally relevant beverage promotions.

In Europe, comparable sales increased 7.4% and operating income rose 29% (13% in constant currencies) as emphasis on delivering an improved customer experience along with unique marketing and signature menu options drove performance. Europe's three-tier menu offerings, innovative new products and restaurant reimaging continue to give customers even more reasons to visit McDonald's.

Asia/Pacific, Middle East and Africa delivered strong results, led by Australia and China along with broad-based strength throughout the segment. Second quarter comparable sales increased 8.8%, driving operating income up 37% (22% in constant currencies). Throughout Asia/Pacific, Middle East and Africa, McDonald's everyday value, convenience and appealing product offerings are fueling results.

Skinner added, "Around the world, McDonald's is powered by the contributions of a dedicated System of owner/operators, suppliers and employees who are committed to satisfying every customer, every time. I am confident that our collective focus on delivering great-tasting quality food at a compelling value will continue to drive McDonald's momentum."

  KEY HIGHLIGHTS - CONSOLIDATED
  Dollars in millions, except per share data
  -------------------------------------------------------------------------
                    Quarters ended June 30,       Six months ended June 30,
  -------------------------------------------------------------------------
                                      %Inc/                           %Inc/
                  2008         2007*  (Dec)       2008        2007*   (Dec)
  -------------------------------------------------------------------------
  Revenues     $6,075.3     $5,839.4      4    11,690.1    $11,132.1      5
  Operating
   income
   (loss)       1,654.2       (181.7)   n/m     3,117.0        999.6    n/m
  Income (loss)
   from
   continuing
   operations   1,190.5       (708.4)   n/m     2,136.6         58.1    n/m
  Income (loss)
   from
   discontinued
   operations                   (3.3)   n/m                     (7.4)   n/m
  Net income
   (loss)       1,190.5       (711.7)   n/m     2,136.6         50.7    n/m
  Earnings
   (loss)
   per share
   from
   continuing
   operations-
   diluted         1.04        (0.59)   n/m        1.85         0.05    n/m
  Earnings
   (loss)
   per share-
   diluted         1.04        (0.60)   n/m        1.85         0.04    n/m
  -------------------------------------------------------------------------
  n/m  Comparisons are not meaningful due to the impact of the Latin
       America transaction described below.

In August 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." Under the new ownership structure, the Company now receives only royalties in these markets instead of a combination of Company-operated sales and franchised rents and royalties.

In addition to the reported results for the quarter and six months ended June 30, 2007 shown above, consolidated results for these periods are presented throughout this report excluding the impact of the Latam transaction. Management believes the Latam transaction and the associated charge are not indicative of ongoing operations due to the size and scope of the transaction. Management believes that the adjusted results better reflect the underlying business trends relevant to the periods presented.

The following tables present reconciliations of the key consolidated highlights for the quarters and six months ended June 30, 2008 and 2007 to the highlights excluding the net impact of the impairment charge from the Latam transaction.

  --------------------------------------------------------------------------
                                                                    Adjusted
                                                                       %Inc/
                                                                Curr-  (Dec)
                                                  2007           ency   Excl
  Quarters                                        Excl     Adj  Trans  Curr-
  ended                               Latam      Latam       %  Bene-   ency
  June 30,       2008       2007*     Trans      Trans     Inc    fit  Trans
  --------------------------------------------------------------------------
  Revenues   $6,075.3    $5,839.4              $5,839.4     4 $  374.9   (2)
  Operating
   income
   (loss)     1,654.2      (181.7)  $(1,594.4)  1,412.7    17    111.1    9
  Income
   (loss)
   from
   continuing
   operations 1,190.5      (708.4)   (1,581.6)    873.2    36     73.1   28
  Income
   (loss)
   from
   discontinued
   operations                (3.3)                 (3.3)  n/m           n/m
  Net income
   (loss)     1,190.5      (711.7)   (1,581.6)    869.9    37     73.1   28
  Earnings
   (loss)
   per share
   from
   continuing
   operations-
   diluted       1.04       (0.59)      (1.31)     0.72    44     0.07   35
  Earnings
   (loss) per
   share-
   diluted       1.04       (0.60)      (1.31)     0.71    46     0.07   37
  --------------------------------------------------------------------------
  n/m  Not meaningful

  --------------------------------------------------------------------------
                                                                    Adjusted
                                                                       %Inc/
                                                                Curr-  (Dec)
                                                  2007           ency   Excl
  Six Months                                      Excl     Adj  Trans  Curr-
  ended                               Latam      Latam       %  Bene-   ency
  June 30,       2008      2007*      Trans      Trans     Inc    fit  Trans
  --------------------------------------------------------------------------

  Revenues  $11,690.1 $11,132.1               $11,132.1     5  $ 720.4   (1)
  Operating
   income
   (loss)     3,117.0     999.6    $(1,594.4)   2,594.0    20    208.5   12
  Income
  (loss)
   from
   continuing
   operations 2,136.6      58.1     (1,581.6)   1,639.7    30    134.1   22
  Income
   (loss)
   from
   discontinued
   operations              (7.4)                   (7.4)  n/m           n/m
  Net income
   (loss)     2,136.6      50.7     (1,581.6)   1,632.3    31    134.1   23
  Earnings
   (loss)
   per share
   from
   continuing
   operations-
   diluted       1.85      0.05        (1.29)      1.34    38     0.12   29
  Earnings
   (loss) per
    share-
    diluted      1.85      0.04        (1.30)      1.34    38     0.12   29
  --------------------------------------------------------------------------
  *   The results for the quarter and six months ended June 30, 2007
      included impairment and other charges of $1,611.9 million associated
      with the Latam transaction, partly offset by a benefit of $17.5
      million due to eliminating depreciation on the assets in Latam in
      mid-April 2007 in accordance with accounting rules. The resulting tax
      benefit of $12.8 million was minimal in the second quarter 2007 due to
      the Company's inability to utilize most of the capital losses
      generated by this transaction.

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

Comparable sales represent sales at all 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 temporarily closed include reimaging or remodeling, road construction 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. Management reviews and analyzes business results excluding the effect of foreign currency translation and bases certain incentive compensation plans on these results because they believe this better represents the Company's underlying business trends.

The number of weekdays, weekend days and timing of holidays can impact our reported comparable sales. In the six months of 2008, the Company benefited from this calendar shift/trading day adjustment, which consisted of one additional trading day compared with the six months of 2007, due to 2008 being a leap year.

RELATED COMMUNICATIONS

McDonald's Corporation will broadcast its investor conference call live over the Internet at 12:00 p.m. / Noon Central Time on July 23, 2008. A link to the live webcast will be available at http://www.investor.mcdonalds.com/. There will also be 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 six months ended June 30, 2008.

The Company plans to release July 2008 sales information on August 8, 2008.

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
                                                                       Inc /
  Dollars and shares in millions, except per share data                (Dec)
  --------------------------------------------------------------------------
  Quarters ended June 30,                2008         2007         $       %
  --------------------------------------------------------------------------
  Revenues
  Sales by Company-operated
   restaurants                      $4,296.0     $4,317.8     (21.8)     (1)
  Revenues from franchised and
   affiliated restaurants            1,779.3      1,521.6     257.7      17

  TOTAL REVENUES                     6,075.3      5,839.4     235.9       4

  Operating costs and expenses
  Company-operated restaurant
   expenses                          3,535.2      3,558.2     (23.0)      1
  Franchised restaurants-occupancy
   expenses                            315.3        281.5      33.8      12
  Selling, general &
   administrative expenses             598.7        591.9       6.8       1
  Impairment and other
   charges, net                          0.5      1,611.3  (1,610.8)    n/m
  Other operating (income)
   expense, net                        (28.6)       (21.8)     (6.8)    (31)
  Total operating costs
   and expenses                      4,421.1      6,021.1  (1,600.0)    (27)

  OPERATING INCOME (LOSS)            1,654.2       (181.7)  1,835.9     n/m

  Interest expense                     146.3        101.8      44.5      44
  Nonoperating (income)
   expense, net                        (30.8)       (16.9)    (13.9)     82
  Gain on sale of investment          (160.1)                (160.1)    n/m

  Income (loss) from continuing
   operations before provision
   for income taxes                  1,698.8       (266.6)  1,965.4     n/m
  Provision for income taxes           508.3        441.8      66.5      15

  Income (loss) from continuing
   operations                        1,190.5       (708.4)  1,898.9     n/m
  Income (loss) from discontinued
   operations (net of tax
   benefit of $2.3)                                  (3.3)      3.3     n/m

  NET INCOME (LOSS)                 $1,190.5     $ (711.7)  1,902.2     n/m

  Earnings (loss) per share-diluted
  Continuing operations             $   1.04     $  (0.59)    1.63      n/m
  Discontinued operations                              --      n/m      n/m

  EARNINGS (LOSS) PER SHARE-DILUTED $   1.04     $  (0.60)    1.64      n/m

  Weighted average shares
   outstanding basic                 1,128.9      1,193.7    (64.8)      (5)
  Weighted average shares
   outstanding-diluted*              1,148.8      1,193.7    (44.9)      (4)
  -------------------------------------------------------------------------
  n/m  Not meaningful

  *  For the quarter ended June 30, 2007, common stock equivalents of 23.2
     million were excluded from the computation of weighted average shares
     outstanding-diluted as a result of the net loss.



                              McDONALD'S CORPORATION
                   CONDENSED CONSOLIDATED STATEMENT OF INCOME
                                                                       Inc /
  Dollars and shares in millions, except per share data                (Dec)
  --------------------------------------------------------------------------
  Six months ended June 30,              2008         2007         $       %
  --------------------------------------------------------------------------
  Revenues
  Sales by Company-operated
   restaurants                     $ 8,294.8    $ 8,231.6      63.2       1
  Revenues from franchised and
   affiliated restaurants            3,395.3      2,900.5     494.8      17

  TOTAL REVENUES                    11,690.1     11,132.1     558.0       5

  Operating costs and expenses
  Company-operated
   restaurant expenses               6,874.8      6,851.5      23.3      --
  Franchised restaurants-occupancy
   expenses                            615.1        557.2      57.9      10
  Selling, general &
   administrative expenses           1,151.1      1,137.1      14.0       1
  Impairment and other charges, net      1.0      1,613.9  (1,612.9)    n/m
  Other operating (income)
   expense, net                        (68.9)       (27.2)    (41.7)    n/m
  Total operating costs
   and expenses                      8,573.1     10,132.5  (1,559.4)    (15)

  OPERATING INCOME                   3,117.0        999.6   2,117.4     n/m

  Interest expense                     274.8        199.0      75.8      38
  Nonoperating (income)
   expense, net                        (59.7)       (33.6)    (26.1)    (78)
  Gain on sale of investment          (160.1)                (160.1)    n/m

  Income from continuing operations
   before provision for
   income taxes                      3,062.0        834.2   2,227.8     n/m
  Provision for income taxes           925.4        776.1     149.3      19

  Income from continuing operations  2,136.6         58.1   2,078.5     n/m
  Income (loss) from discontinued
   operations (net of tax
   benefit of $5.0)                                  (7.4)      7.4     n/m

  NET INCOME                        $2,136.6     $   50.7   2,085.9     n/m

  Earnings (loss) per share-diluted
  Continuing operations             $   1.85     $   0.05      1.80     n/m
  Discontinued operations           $               (0.01)     0.01     n/m

  EARNINGS PER SHARE-DILUTED        $   1.85     $   0.04      1.81     n/m

  Weighted average shares
   outstanding-basic                 1,137.2      1,197.4     (60.2)     (5)
  Weighted average shares
   outstanding-diluted               1,157.1      1,220.4     (63.3)     (5)
  --------------------------------------------------------------------------
  n/m  Not meaningful

First Call Analyst:
FCMN Contact: katie.hayes@us.mcd.com

Photo: http://www.newscom.com/cgi-bin/prnh/19990916/MCDLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

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/