Rich FLOERSCH Executive Vice President and Chief Human Resources Officer

The History of McDonald’s Late 1950s -1960s - The Beginning Ray Kroc buys McDonald’s business Franchising Opportunities Abound & HU Introduced IPO Stock Splits Since 1966 U.S. Focus Common Operating Platform and Menu Leverage Franchisee Ideas Creation of Ronald McDonald House 1970s Standardized Business

& 2003 Sweeping Organizational Changes 1990s Business Environment Changed; McDonald’s Stalled Took Our Eyes Off Our Fries Opened Too Many Restaurants Distracted By Other Brands (Chipotle, Boston Market, etc.) 1980s & 1990s Explosive Growth International Expansion/118 markets Darling of Wall Street Cover of BusinessWeek “Hamburger Hell” Staff Reductions Stock Price Drops to $12.38 (high $47) CEO Change Call to Action Plan to Win The History of McDonald’s

McDonald’s Today McDonald’s Revitalization 29 consecutive quarters of positive comp sales Stock price reaches all-time high of $76 CEO tragedies 2009 Chief Executive Magazine CEO of the Year Food and beverage focus

32,000 Restaurants 117 Countries 14,000 U.S. Restaurants 80% Franchised

Revitalization Recipe  Plan to Win and Alignment  Customer Focus and Brand Contemporization  Family-Based and High Performance Culture  Innovation and Execution  Talent Management and Leadership Development