IR Under the Arches
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Transcript of IR Under the Arches
IR Under the ArchesNIRI-Chicago
Visit to McDonald’sMary Kay ShawVice President
LC11774
McDonald’s•Well-known global brand– Market cap: $44 billion– 31,000 McDonald’s– 118 countries– 75% franchised– 50 million customers every day
2005 Revenues $20.5 Billion
Europe35%
Other6%
Canada5%
Latin America6%
APMEA14%
U.S.34%
McDonald’s• Customer-focused Plan to Win– 5 Ps: People, Product, Place, Price & Promotion– Global strategy– Local approach
• IR follows major markets– Constant media attention
• Analysts as experts
IR MissionChampion the optimum, fair valuation of the Company and our brand within
the investment community.
Operate and be viewed as a “premier” Investor Relations Department
Primary Accountabilities
• Influencing investor perceptions• Advising management of investors’
perspectives• Servicing shareholders • People development
Influencing Perceptions
• 950,000 retail investors hold 20% of stock• 1,300 institutions hold 80% of stock• SSA coverage: 18 analysts
Outperform 12Market perform (or no rating) 6
Influencing Perceptions• Financial press releases– Monthly sales– Quarterly earnings release & conference
call/webcast• Remarks• Management on call/webcast • Q&A support
– Other releases
Earning Guidance Practice• Do not provide EPS guidance• Shape expectations through:– Monthly sales and quarterly earnings releases– Provide guidance on
• Restaurant openings & Capex • S,G&A trends • Sensitivity of EPS to changes in comparable
sales and FX• Cash returned to shareholders
• Guidance practice has had no impact on coverage, volatility or liquidity
Analyst Meetings
• Participate in 2 - 4 conferences annually
• Analyst day – Host every 1 to 2 years
• Investor meetings/calls– 90 meetings, 800+ calls
Other Communication Efforts• McTrip– Tour of operations in international markets
• Summary annual report & financials– Brand communication
• Retail program– Currently evaluating
•Website
Targeting
• Targeting– Style– Holdings– Investment potential
• Market surveillance
Investor Perceptions
• Perception Studies– Periodically shared with management & board
• First Call– Post-event summaries
• Competitive Analysis– YUM, Wendy’s & BK
Servicing Investors • Transfer Agent (ComputerShare)– Active involvement in Advisory Board and
Corporate Transfer Agent Association
• IR Service Team • MCDirect Shares – Direct Stock Purchase Plan– 60% participation level
Management Perspective on IR
Matthew PaullCFO
IR Under the Arches
Q&A
Join Us for the Networking Mixer
The LodgePrairie Lobby
(across street – up the hill – in front lobby)