History of McDonalds

For most of you, McDonald’s is just a place to grab something quick to eat. For me it is an institution that has been around practically my entire life. I grew up with McDonald’s much the same way that you grew up with ESPN, Apple Computers and Facebook. McDonald’s is a way of life for me. They set the standards of the fast food industry and everyone wanted to be like them. Much like Dell or Microsoft today. Coupled with the fact that this was my first job in life, and I started as a crew person, at the bottom of the ladder, and worked my way up to supervising 3 Restaurants doing over 4 million dollars a year. This presentation is very personal for me, and the information that I am going to share with you is life that I lived through. 2

McDonalds How it began! Speedy ! McDonalds Early Spokesman

McDonald’s Bar-B-Que Opens 1940 Dick and Mac McDonald Bar-B-Que Restaurant Typical Drive-in Car Hop Service Featuring A Large Menu

McDonald’s is Founded 1948 Shut Down To Remodel Reopens as a Self Service Drive-In Menu Reduced to 9 Items Staple is a 15 cent hamburger

McDonald’s First Menu 1948 Hamburger Cheeseburger Soft Drinks Milk Coffee Potato Chips A slice of pie

World Famous French Fries 1949 French Fries Replaced Potato Chips Triple Thick Shakes

Ray Kroc’s Humble Beginnings $ Ray Sold Multi Mixers $ Ray Made A Trip Out West

Ray Kroc’s Trip West 1954 He Intended to sell Multi-Mixers He is fascinated by the operation Looking for a nationwide franchise agent This will be Ray’s Future

Des Plaines Location Opens 1955 First McDonald’s opens April 15, 1955 Red and White tiled building with the Golden Arches First Day Sales are $ By 1965 There would be 700 more

Fred Turner Hired 1956 Turner future CEO defines their standard of business Hires Fred Turner, future CEO, as a Counter Man Their standard is know as “QS&C”

100 Million Sold 1958 $ M cDonald’s sells its 100 millionth hamburger.

100 th Restaurant 1959 The 100 th Restaurant opens in Fond Du Lac, Wisconsin

Hamburger University Opens 1961

Our College Degree Program Our College Degree Program The American Council on Education (ACE) is the nation's unifying body for higher education. They have recognized the investment McDonald’s has made in people and the company’s high-caliber training curriculum. Hamburger University students can earn credit toward a college degree through their course work. The American Council on Education has recommended 100 percent of the restaurant manager and mid-management curriculum for college credit – a total of 46 credits. This means that McDonald's training for Managers is now recognized as college- level course work, eligible for credits that can be transferred to colleges and universities (both private and public) and applied toward a 2 or 4-year degree. The average restaurant manager has completed the equivalent of approximately 21 credit hours of college-level work through their McDonald’s training, which is equal to about one semester of college. We continue to work with colleges and universities to leverage our partnership with the American Council on Education.

First Indoor Seating 1962 McDonald’s in Denver, Colorado becomes the first restaurant with inside seating.

500 th Restaurant 1963 The 500 th McDonald’s restaurant opens in Toledo, Ohio.

10 th Anniversary 1965 McDonald’s celebrates its 10 th anniversary with the first public stock offering at: $22.50 per share. Today’s Price is $74.00 per share.

First Television Commercial 1966 Ronald McDonald appears in his first national television commercial. He appeared on his “flying hamburger” in 35 one minute color spots on the NBC and CBS networks He had wide TV exposure through his appearance in 1966 at Macy’s Thanksgiving Parade. He was an INSTANT hit! Willard Scott was the first Ronald McDonald

McDonald’s Goes International 1967 The First international McDonald’s restaurants open in Canada and Puerto Rico. Today McDonald’s restaurants are in 118 countries around the world.

Big Mac Introduced 1968 The Big Mac, developed by Owner/Operator Jim Delligatti of Pittsburgh, is added to the national menu.

Golden Arches Updated 1969 Major Changes Major Remodeling ORIGINAL CURRENT

Ronald’s New Friends 1971 McDonald’s Gang

Quarter Pounder Debuts 1973

First Ronald McDonald House Opens 1974 Opens in Philadelphia, Pa. There are currently 305 Houses in 52 countries

Breakfast at McDonald’s 1975 The Egg McMuffin Santa Barbara, Ca.

All American H.S. Basketball Team 1977 All American Earvin “Magic” Johnson The Capital All Stars McDonald’s Capital Classic

5,000 th Restaurant ,000 th Restaurant opens in Kanagawa, Japan

Happy Meals Debuts 1979 Circus Wagon Theme

25 th Anniversary 1980

International Growth 1981 The first McDonald’s restaurants are open in – Denmark Philippines Spain

McDonald’s in 32 Countries Restaurants 32 Countries

Ray Kroc Passes Away 1984 January 14, 1984 His legacy lives on world wide!

30 th Anniversary 1985 April 15 th 30 Years

Fresh Salads Added 1987 Fresh Tossed Salads

Our Famous Hamburgers 1988 Fortune Magazine 100 Products America Makes Best

Moscow Location Opens 1990 On January 31, the first McDonald’s restaurant in OSCOW OPENS

Warsaw Location Opens 1992 Breaking Records for Opening Day

Have You Had Your Break Today? 1995 New Advertising Debuts

McDonalds.com Launched 1996 McDonald’s Corporation Internet site McDonalds.com is inaugurated

Big N’ Tasty Introduced 2001

A Busy Year for McDonald’s 2003 Premium Salads Denmark Opens Hydroflurocarbon free McGriddles “I’m lovin’ it

Happy Meal turns Visit HappyMeal.com

50 th Anniversary 2005 April 15th

Snack Wrap Introduced 2006 Snack Wrap

Packaging Update 2007 McD’s new packaging features 24 faces from first-ever global casting call.

McDonald Fun Facts McDonalds serves an average of 47 million customers daily. McDonalds is on 6 continents McDonalds has sold over 100 billion hamburgers to date McDonalds has 30,000 locations There is a McDonald’s location in The Pentagon, near other cafeterias and seating areas Located in New York City on 160 Broadway, is a very fancy McDonald’s featuring a doorman, marble tables, a private dining room, grand piano, wait staff and live music. Every single McDonald’s in Lebanon offers complimentary valet parking services to their patrons and guests.

Global Packaging Redesign 2008

McCafe Goes National 2009

McCafe Real Fruit Smoothies and Frappes 2010 July 13 th Strawberry, Banana & Wild Berry Mocha & Caramel Frappes 3 Sizes

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Comparable Sales Growth 3.8% Earnings Per Share Growth 9% Total Cash Returned to Shareholders 2007–2009 $16.6 Billion 2009 Highlights:

Returned $5.1 billion to shareholders Three-year cash return total to $16.6 billion $15 to $17 billion for the years 2007 through 2009

2009 Highlights: 6 th consecutive year of positive sales Served 60 million customers per day Up 2 million from million more per day than in 2002 #1 among 30 blue-chip for 3 years

2009 Highlights: 80 Consecutive months of global comparable sales increases through December 2009

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