Brandon Honey Brandon Lee David Light Presented, December 4, 2008 Watch List Items Brandon Honey Brandon Lee David Light Presented, December 4, 2008

McDonalds (NYSE: MCD)

Overview General Corporate Information Strategy Trends Valuation

General Corporate Information Leading global foodservice retailer Serves 52mm people a day in 100 countries Headquartered in [Oakbrook, IL?] Source: Company website

Strategy Expanding product offerings Increased franchising Healthier menu transition McCafe Increased franchising Many company operated store are being franchised, especially in Europe Decreases top line, increases margins Source: Company filings

Thesis Proven business model Exceptional management Franchising and new products driving possible bottom line growth Removes a lot of food price risk Solid dividend Hits 4% when stock price gets to $50

Valuation Currently at $57 DCF yields a value of just under $50 Given the state of the market, MCD has held up well Should the stock price fall near or below $50, this warrants strong consideration