McDonald's is the world's leading global food service retailer with over 36,000 locations serving approximately 69 million customers in over 100 countries each day. More than 80% of McDonald's restaurants worldwide are owned and operated by independent local business men and women.
Our Strategic Direction
The strength of the alignment among the Company, its franchisees and suppliers (collectively referred to as the "System") has been key to McDonald's long-term success. By leveraging our System, we have been able to identify, implement and scale ideas that meet customers' changing needs and preferences. In addition, our business model enables McDonald's to consistently deliver locally-relevant restaurant experiences to customers and be an integral part of the communities we serve.
Our overall vision is for McDonald's to become a modern, progressive burger company delivering a contemporary customer experience. Modern is about getting the brand to where we need to be today and progressive is about doing what it takes to be the McDonald's our customers will expect tomorrow. To realize this commitment, we are focused on delivering great tasting, high-quality food to our customers and providing a world-class experience that makes them feel welcome and valued.
The business was managed as distinct geographic segments through June 30, 2015, that included the U.S., Europe, Asia/Pacific, Middle East and Africa (APMEA) and Other Countries & Corporate (OCC) including Canada, Latin America and Corporate.
Beginning July 1, 2015, McDonald’s started operating under a new organizational structure with the following four segments that combine markets with similar characteristics, challenges, and opportunities for growth:
U.S. - the Company’s largest segment, accounting for more than 40% of the Company’s 2014 operating income;
International Lead Markets - established markets including Australia, Canada, France, Germany, and the UK, which operate within similar economic and competitive dynamics, offer similar growth opportunities and collectively represented about 40% of the Company’s 2014 operating income;
High Growth Markets - markets with relatively higher restaurant expansion and franchising potential including China, Italy, Poland, Russia, Korea, Spain, Switzerland and the Netherlands. Together these markets accounted for about 10% of the Company’s 2014 operating income; and
Foundational Markets & Corporate - the remaining markets in the McDonald’s system, each of which has the potential to operate under a largely franchised model. Corporate activities will also be reported within this segment.
In conjunction with these changes, the Company will provide recast financial information for the years 2010 to 2014 and quarters ended March 31, 2014 to June 30, 2015 by the end of September 2015.
We view ourselves primarily as a franchisor and believe franchising is important to delivering great customer experiences and driving profitability. At year-end 2014, more than 80% of McDonald’s restaurants were franchised. Of the total McDonald’s restaurants worldwide:
Over 57% are conventional franchisees
Approximately 24% are licensed to foreign affiliates or developmental licensees