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Rich FLOERSCH

Rich FLOERSCH. Executive Vice President and Chief Human Resources Officer. The History of McDonald’s. RONALD MCDONALD. HOUSE CHARITIES. 1970s Standardized Business. U.S. Focus Common Operating Platform and Menu Leverage Franchisee Ideas Creation of Ronald McDonald House.

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Rich FLOERSCH

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  1. RichFLOERSCH Executive Vice President and Chief Human Resources Officer

  2. The History of McDonald’s RONALD MCDONALD HOUSE CHARITIES 1970s Standardized Business • U.S. Focus • Common Operating Platform and Menu • Leverage Franchisee Ideas • Creation of Ronald McDonald House • Late 1950s -1960s - The Beginning • Ray Kroc buys McDonald’s business • Franchising Opportunities Abound & HU Introduced • IPO 1965 - 13 Stock Splits Since 1966 1970 1955 1960

  3. The History of McDonald’s 2002 & 2003 Sweeping Organizational Changes 1990s Business Environment Changed; McDonald’s Stalled • Took Our Eyes Off Our Fries • Opened Too Many Restaurants • Distracted By Other Brands (Chipotle, Boston Market, etc.) • Cover of BusinessWeek • “Hamburger Hell” • Staff Reductions • Stock Price Drops to $12.38 (high $47) • CEO Change • Call to Action Plan to Win • 1980s & 1990s Explosive Growth • International Expansion/118 markets • Darling of Wall Street 1980 1990 2000

  4. McDonald’s Today • 2003-2010 McDonald’s Revitalization • 29 consecutive quarters of positive comp sales • Stock price reaches all-time high of $76 • CEO tragedies • 2009 Chief Executive Magazine CEO of the Year • Food and beverage focus 2010 2003

  5. 32,000 Restaurants 14,000 U.S. Restaurants 117 Countries 80% Franchised

  6. Revitalization Recipe • Plan to Win and Alignment • Customer Focus and Brand Contemporization • Family-Based and High Performance Culture • Innovation and Execution • Talent Management and Leadership Development

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