McDonald’s Corporation (NYSE: MCD)
announced that annual earnings per share in constant currencies* could be 4 to 5 cents lower than
previous guidance, primarily due to ongoing business challenges in Europe. The Company anticipates
earnings per share for the first quarter of 2001 will be 29-30 cents on a reported basis, and 30-31
cents in constant currencies.

Jack M. Greenberg, Chairman and Chief Executive Officer, commented, “We anticipated difficult
worldwide comparisons in the first quarter due to strong marketing programs last year and the extra
day in 2000 due to leap year. However, the effect of consumer concerns regarding the European beef
supply has persisted longer than we expected, despite the fact that McDonald’s overall safety and
quality standards lead the industry and provide the benchmark for safe food around the world.

“We are taking immediate action to improve financial performance and are optimistic about returning
to double-digit earnings per share growth (in constant currencies) for the remaining nine months of
the year. In addition to an intense focus on building comparable sales through effective marketing,
operations and menu development around the world, we are:

* Accelerating menu variety in Europe

* Strengthening communications to consumers in Europe, including
messages about McDonald’s high-quality and food safety standards

* Reviewing worldwide G&A budgets for cost savings opportunities,
which may be reinvested in additional sales and profit building

* Reducing 2001 capital expenditures in certain emerging markets
that have had significant economic downturns and are not
rebounding as quickly as expected

“Our optimism for the year is based on these plans as well as an expectation that confidence in the
European beef supply will be restored and that we’ll see some improvement in weak economic
conditions in other parts of the world.

“McDonald’s is a strong company with great prospects, given our brand, customer acceptance, and
outstanding owner/operators and suppliers. Over our 46-year history, we have had up and down
cycles often driven by external factors. Currently, we are facing a short-term set of difficult
circumstances, which will take some time to work through. But none of these short-term challenges
have lessened our enthusiasm for the opportunity to bring the McDonald’s experience to customers
around the world.”

Global Systemwide sales for the first two months of 2001 were $6.2 billion, a 4 percent increase on a
constant currency basis, or flat on a reported basis compared with the same period last year. These
sales results were tempered by consumer concerns regarding the BSE issue in certain European
markets, continuing weak economic conditions in certain markets and difficult comparisons caused by
strong marketing programs and the extra trading day in 2000. The reported results were also reduced
by weaker foreign currencies, compared with the year ago period, especially the Euro, the British
Pound and the Japanese Yen. If foreign currency exchange rates remain constant for the rest of the
year, the translation effect on our reported earnings per share for the year would be 2 to 3 cents.

In Europe, constant currency sales growth was flat for the first two months, compared with a strong 14
percent increase one year ago. Sales in the U.S. grew 4 percent for this period, compared with 6
percent growth last year in this period. Sales in Asia/Pacific, the Company’s third largest segment,
increased 2 percent in constant currencies for the first two months of 2001, compared with a 12
percent increase one year ago. In Latin America, sales increased 9 percent in constant currencies
year-to-date. Sales in the Other segment increased 42 percent in constant currencies for the same
period, primarily due to the addition of Boston Market in May 2000.

Greenberg added, “We believe that our infrastructure, management capability and global reach are
significant levers for growth. People all over the world continue to increase their frequency of eating
out and McDonald’s continues to figure prominently in their choices. Therefore, we continue to be
confident in our long-term growth opportunities.”

In conjunction with its first quarter 2001 update, McDonald’s Corporation will webcast its investor
conference call over the Internet on Wednesday, March 14 at 10:00 a.m., Central Time. Interested
parties are invited to listen by logging on to: and clicking
on “Investor Webcasts” under “Latest News”.

News, McDonald's