Today, at McDonald’s (NYSE: MCD – news) Annual Shareholders’ Meeting, Chairman and Chief Executive Officer Jack M. Greenberg announced that the following members of McDonald’s management were appointed to serve a one-year term as nonvoting advisory directors:
— Kevin Dunn, President – Great Lakes Division, McDonald’s U.S.A.
— Adriaan Hendrikx, Managing Director, McDonald’s Netherlands
— Russell Smyth, Senior Vice President, International Relationship
— Susan Warzecka, Senior Vice President, U.S. Human Resources
Also at the meeting, Greenberg and other members of McDonald’s senior management team discussed McDonald’s vision to be the world’s best quick service restaurant experience. Greenberg noted that the passion, pride and ambition of the many people who comprise the McDonald’s System are driving its vision. Highlights of the presentations include:
— McDonald’s is moving toward its vision with an intense focus on three
key strategies: being the best employer for our people; delivering
operational excellence to customers through quality, service,
cleanliness and value; and creating enduring profitable growth by
growing its hamburger business and by leveraging its competencies to
capture more eating-out occasions beyond the reach of the Golden
— In 2000, the Company plans to add between 1,800 and 1,900 restaurants
or an average of five a day. Of these, about 650 will be in
Asia/Pacific, 550 in Europe, 350 in Latin America and 200 in the U.S.
The remainder will be added in the Middle East, Africa and Canada.
— McDonald’s is leveraging its Made For You food preparation system in
the U.S. to drive sales and transactions with great new products. The
Big Xtra!, Chicken McGrill, Crispy Chicken and McSalad Shakers have
been added to the U.S. menu, and Breakfast Bagels soon will be
available across the U.S. In addition, the Company continues to
excite customers by leveraging tie-ins with the Olympics, Monopoly,
Teenie Beanie Babies and Disney.
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— McDonald’s competitive position in Asia/Pacific is outstanding, and
the growth potential is enormous. At year-end 1999, McDonald’s
operated nearly 5,700 restaurants in Asia/Pacific, far outstripping
other globally branded quick service restaurants. Through continued
expansion and by profitably satisfying customers through everyday
value and great restaurant operations, McDonald’s plans to further
extend its brand to the more than 3.4 billion people in this area of
— The Company aims to build its reputation as a premier training
organization by creating an environment that encourages career-long
learning. It is rolling out a new crew and restaurant management
curriculum worldwide and redoubling the emphasis on coaching and
training. It also plans to leverage operations technology to help
crew satisfy customers more efficiently.
— As McDonald’s believes its stock is undervalued, it is using its
substantial and growing free cash flow plus debt capacity to
aggressively repurchase shares. Last year, the Company generated
more than $1.1 billion in free cash flow, an increase of 29 percent
over 1998. In April, it increased its three-year share repurchase
program by $1 billion, bringing it to $4.5 billion. The program is
scheduled to be completed by the end of 2001.
Based on preliminary results, shareholders elected all nominees for director, approved the appointment of Ernst and Young as auditors and defeated shareholder proposals on genetically engineered crops and foods and to declassify the Board.
McDonald’s is the largest and best-known global food service retailer with more than 27,000 restaurants in 119 countries. On any day, even as the market leader, McDonald’s serves less than one percent of the world’s population.