McDonald’s Corporation said it expects first quarter 2002 earnings per share to be $.29
– $.30 excluding certain charges. Chairman and CEO Jack Greenberg said, “Based on expected first quarter results and our outlook for the year, we expect
annual earnings per share to be toward the lower end of our previously announced range of
$1.47 – $1.54 in constant currencies, excluding certain charges. If foreign currency
exchange rates remain where they are today, we expect annual 2002 earnings per share to be
negatively impacted by about 2 cents. In the first quarter, we expect the per share currency
impact to be neutral to negative one cent.”

The company said it expects to record a first quarter non-cash charge of approximately $45 million, pre
and after tax ($.03 per share), primarily related to the impairment of assets in Latin America and
the closing of 32 underperforming restaurants in Turkey, as a result of continued economic
weakness. Including this $45 million charge, McDonald’s said it expects first quarter earnings per share to be $.26
– $.27, before the cumulative effect of the accounting change described below.

The company is required to adopt SFAS No. 142, “Goodwill and Other Intangible Assets,”
effective January 1, 2002. SFAS 142 indicates that goodwill will no longer be amortized but will
be subject to annual impairment tests. In 2001, amortization of goodwill was approximately $30
million after tax ($.02 per share). McDonald’s says it expects the elimination of goodwill amortization to benefit
2002 net income by a similar amount. As a result of its initial goodwill impairment tests, McDonald’s
expects a non-cash charge of approximately $100 million after tax ($.08 per share), in the first
quarter for the cumulative effect of this accounting change. The impaired goodwill is primarily in
Latin America, where economies have weakened significantly over the last several years.

McDonald’s said systemwide sales for the first two months of 2002 were $6.2 billion, up 3 percent in
constant currencies over the same period last year. The company expects sales to improve as the year
progresses and expect constant currency sales to increase 6 to 7 percent for the year.

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