McDonald's 10-K 2020-12-31

Filed 2021-02-23. 22 sections, 359K characters. Original on sec.gov · Markdown · JSON

What changed since the 2019-12-31 10-KNew, removed and reworded risk factor headings, then every item sentence by sentence.

Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2020

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-5231

mcd-20201231_g1.jpg

McDONALD’S CORPORATION
(Exact name of registrant as specified in its charter)
Delaware36-2361282
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
110 North Carpenter Street,Chicago,Illinois60607
(Address of principal executive offices)(Zip code)

Registrant’s telephone number, including area code: (630) 623-3000

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueMCDNew York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐

Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of common stock held by non-affiliates of the registrant as of June 30, 2020 was $137,233,144,378.

The number of shares outstanding of the registrant’s common stock as of January 31, 2021 was 745,572,145.

DOCUMENTS INCORPORATED BY REFERENCE

Part III of this Form 10-K incorporates information by reference from the registrant’s 2021 definitive proxy statement, which will be filed no later than 120 days after December 31, 2020.

McDONALD’S CORPORATION

TABLE OF CONTENTS

ORGANIZATION OF OUR ANNUAL REPORT ON FORM 10-K

The order and presentation of content in our Annual Report on Form 10-K ("Form 10-K") differs from the traditional U.S. Securities and Exchange Commission ("SEC") Form 10-K format. We believe that our format improves readability and better presents how we organize and manage our business. See "Form 10-K Cross-Reference Index" for a cross-reference index to the traditional SEC Form 10-K format.

Page reference
Forward-Looking Statements3
About McDonald's3
Business Summary3
Management's Discussion and Analysis of Financial Condition and Results of Operations8
Management's View of the Business8
Financial Performance and Strategic Direction8
Outlook10
Consolidated Operating Results11
Cash Flows19
Financial Position and Capital Resources21
Other Matters24
Other Key Information25
Selected Financial Data26
Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities28
Risk Factors29
Legal Proceedings35
Properties35
Information About our Executive Officers36
Availability of Company Information37
Financial Statements and Supplementary Data37
Controls and Procedures64
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters[64](#ie6432d332c1e474ebcfd7a8ae92953

Showing the first 8K of 355K characters. Open the full section

Item 1. Business Pages 3-7, 9

Item 1A. Risk Factors and Cautionary Statement Regarding Forward-Looking Statements Pages 3, 29-35

Item 1B. Unresolved Staff Comments Not applicable

Item 2. Properties Page 36

Item 3. Legal Proceedings Page 35

Item 4. Mine Safety Disclosures Not applicable

| | | | Additional Item | | | Information About our Executive Officers | | | Page 36 | | | | | | | | | | | | | | | | | Part II | | | | | | | | | | | |

Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities Page 28

Item 6. Selected Financial Data Page 26

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Pages 3-37

Item 7A. Quantitative and Qualitative Disclosures About Market Risk Pages 22-24

Item 8. Financial Statements and Supplementary Data Pages 38-59

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Not applicable

Item 9A. Controls and Procedures Page 64

Item 9B. Other Information Not applicable

| | | | | | | | | | | | | | Part III | | | | | | | | | | | |

Item 10. Directors, Executive Officers and Corporate Governance Page 36, (a)

Item 11. Executive Compensation (a)

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters Page 64

Item 13. Certain Relationships and Related Transactions, and Director Independence (a)

Item 14. Principal Accounting Fees and Services (a)

| | | | | | | | | | | | | | Part IV | | | | | | | | | | | |

Item 15. Exhibits and Financial Statement Schedules Pages 65-67

Item 16. Form 10-K Summary Not applicable

| | | | | | | | | | | | | | Signatures | | | | | | | | | Page 69 | | |

(a) - Incorporated herein by reference from the Company's definitive proxy statement, which will be filed no later than 120 days after December 31, 2020.

McDonald's Corporation 2020 Annual Report 68

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

McDonald’s Corporation

(Registrant)

By/s/ Kevin M. Ozan
Kevin M. Ozan
Corporate Executive Vice President and Chief Financial Officer
February 23, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in their capacities indicated below on the 23rd day of February, 2021:

By/s/ Lloyd H. DeanBy/s/ Richard H. Lenny
Lloyd H. DeanRichard H. Lenny
DirectorDirector
By/s/ Robert A. EckertBy/s/ John J. Mulligan
Robert A. EckertJohn J. Mulligan
DirectorDirector
By/s/ Catherine M. EngelbertBy/s/ Kevin M. Ozan
Catherine M. EngelbertKevin M. Ozan
DirectorCorporate Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
By/s/ Margaret H. GeorgiadisBy/s/ Sheila A. Penrose
Margaret H. GeorgiadisSheila A. Penrose
DirectorDirector
By/s/ Enrique Hernandez, Jr.By/s/ John W. Rogers, Jr.
Enrique Hernandez, Jr.John W. Rogers, Jr.
Chairman of the Board and DirectorDirector
By/s/ Catherine HoovelBy/s/ Paul S. Walsh
Catherine HoovelPaul S. Walsh
Corporate Vice President – Chief Accounting OfficerDirector
(Principal Accounting Officer)
By/s/ Christopher J. KempczinskiBy/s/ Miles D. White
Christopher J. KempczinskiMiles D. White
President, Chief Executive Officer and DirectorDirector
(Principal Executive Officer)

McDonald's Corporation 2020 Annual Report 69