McDONALD'S REPORTS 2ND QUARTER 2022 RESULTS.

CHICAGO: McDonald's Corporation today announced results for the second quarter ended June 30, 2022.

"The McDonald's System continues to demonstrate strength and resiliency," said McDonald's President and Chief Executive Officer, Chris Kempczinski. "Our second quarter performance reflects outstanding execution against our Accelerating the Arches strategy. By focusing on our customers and crew, enabled by a rapidly growing digital capability, we delivered global comparable sales growth of nearly 10%. Nonetheless, the operating environment across the competitive landscape remains challenging. While we are planning for a wide range of scenarios, I am confident that our plans and people position McDonald's to weather this environment better than others."

Second quarter financial performance:

Global comparable sales increased 9.7%, reflecting positive comparable sales across all segments:

U.S. increased 3.7%

International Operated Markets segment increased 13.0%

International Developmental Licensed Markets segment increased 16.0%

Consolidated revenues decreased 3% (increased 3% in constant currencies).

Systemwide sales increased 4% (10% in constant currencies).

Consolidated operating income decreased 36% (30% in constant currencies). Results included $1.2 billion of charges related to the sale of the Company's business in Russia and a gain of $271 million related to the Company's sale of its Dynamic Yield business. Excluding these current year net charges and prior year net gains of $98 million, primarily related to the sale of McDonald's Japan stock, consolidated operating income was flat (increased 7% in constant currencies).

Diluted earnings per share was $1.60, a decrease of 46% (41% in constant currencies). Excluding the net charges described above of $0.90 per share and nonoperating expense of $0.05 per share related to the settlement of a tax audit in France, diluted earnings per share for the quarter was $2.55, an increase of 8% (14% in constant currencies), when also excluding prior year net pre-tax gains of $0.10 per share and income tax benefits of $0.48 per share.**

* Refer to page 4 for a definition of Systemwide sales.

** Refer to page 2 for additional details.

COMPARABLE SALES*

Increase/(Decrease)

Quarters Ended June 30,

2022

2021

U.S.

3.7 %

25.9 %

International Operated Markets

13.0

75.1

International Developmental Licensed Markets & Corporate

16.0

32.3

Total

9.7 %

40.5 %

*

For both International Operated Markets and Total comparable sales calculations for the second quarter 2022, restaurants in Russia were treated as permanently closed starting April 1, 2022 and therefore excluded from the calculations, and restaurants in Ukraine were treated as temporarily closed and therefore included in the calculations.

U.S.: Comparable sales growth was driven by...