McDonald's 10-K 2020-12-31
Filed 2021-02-23. 22 sections, 359K characters. Original on sec.gov · Markdown · JSON
Cover and table of contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
| FORM | 10-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

| McDONALD’S CORPORATION | ||||||||
| (Exact name of registrant as specified in its charter) |
| Delaware | 36-2361282 | |||||||||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
| 110 North Carpenter Street, | Chicago, | Illinois | 60607 | |||||||||||
| (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 class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| Common Stock, $0.01 par value | MCD | New 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 Statements | 3 | ||||||||||
| About McDonald's | 3 | ||||||||||
| Business Summary | 3 | ||||||||||
| Management's Discussion and Analysis of Financial Condition and Results of Operations | 8 | ||||||||||
| Management's View of the Business | 8 | ||||||||||
| Financial Performance and Strategic Direction | 8 | ||||||||||
| Outlook | 10 | ||||||||||
| Consolidated Operating Results | 11 | ||||||||||
| Cash Flows | 19 | ||||||||||
| Financial Position and Capital Resources | 21 | ||||||||||
| Other Matters | 24 | ||||||||||
| Other Key Information | 25 | ||||||||||
| Selected Financial Data | 26 | ||||||||||
| Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities | 28 | ||||||||||
| Risk Factors | 29 | ||||||||||
| Legal Proceedings | 35 | ||||||||||
| Properties | 35 | ||||||||||
| Information About our Executive Officers | 36 | ||||||||||
| Availability of Company Information | 37 | ||||||||||
| Financial Statements and Supplementary Data | 37 | ||||||||||
| Controls and Procedures | 64 | ||||||||||
| 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. Dean | By | /s/ Richard H. Lenny | ||||||||
| Lloyd H. Dean | Richard H. Lenny | ||||||||||
| Director | Director | ||||||||||
| By | /s/ Robert A. Eckert | By | /s/ John J. Mulligan | ||||||||
| Robert A. Eckert | John J. Mulligan | ||||||||||
| Director | Director | ||||||||||
| By | /s/ Catherine M. Engelbert | By | /s/ Kevin M. Ozan | ||||||||
| Catherine M. Engelbert | Kevin M. Ozan | ||||||||||
| Director | Corporate Executive Vice President and Chief Financial Officer | ||||||||||
| (Principal Financial Officer) | |||||||||||
| By | /s/ Margaret H. Georgiadis | By | /s/ Sheila A. Penrose | ||||||||
| Margaret H. Georgiadis | Sheila A. Penrose | ||||||||||
| Director | Director | ||||||||||
| By | /s/ Enrique Hernandez, Jr. | By | /s/ John W. Rogers, Jr. | ||||||||
| Enrique Hernandez, Jr. | John W. Rogers, Jr. | ||||||||||
| Chairman of the Board and Director | Director | ||||||||||
| By | /s/ Catherine Hoovel | By | /s/ Paul S. Walsh | ||||||||
| Catherine Hoovel | Paul S. Walsh | ||||||||||
| Corporate Vice President – Chief Accounting Officer | Director | ||||||||||
| (Principal Accounting Officer) | |||||||||||
| By | /s/ Christopher J. Kempczinski | By | /s/ Miles D. White | ||||||||
| Christopher J. Kempczinski | Miles D. White | ||||||||||
| President, Chief Executive Officer and Director | Director | ||||||||||
| (Principal Executive Officer) | |||||||||||
McDonald's Corporation 2020 Annual Report 69