McDonald's Announces Strong Sales and Earnings Growth for First Quarter 2010

• Global comparable sales increased 4.2%, with the U.S. up 1.5%, Europe up 5.2% and Asia/Pacific, Middle East and Africa up 5.7%
• Combined operating margin improved 220 basis points to 29.8%
• Diluted earnings per share were $1.00, up 15% (9% in constant currencies) including a $0.05 per share currency benefit
• Returned $1.0 billion to shareholders through share repurchases and dividends

McDonald's U.S. continues to be a convenient and affordable choice for consumers in an uncertain economy. For the first quarter, the U.S. business drove sales and market share increases by providing outstanding value across the entire menu, contributing to the segment's 12% operating income increase. Consumers visited McDonald's more often to enjoy a wide range of beverage offerings including value-based drinks, frappes and the entire McCafe line-up, everyday value menu options, led by the recently introduced Breakfast Dollar Menu, and classic core favorites like Chicken McNuggets.

For the first quarter, performance in France, Russia and the U.K. drove Europe's operating income up 23% (14% in constant currencies). Across the segment, McDonald's continued to outperform the informal eating out market and gain market share. Europe's themed food events, three- and four-price tier menus, restaurant reimaging and daypart expansion fueled the segment's strong performance.

Asia/Pacific, Middle East and Africa's (APMEA) ongoing commitment to compelling, everyday value, locally-relevant products and emphasis on operations excellence drove positive comparable sales in nearly all markets. APMEA's operating income increased 27% (9% in constant currencies), led by results in Australia and China.

Jim Skinner concluded, "This week, McDonald's franchisees, suppliers and employees are gathering together for our biennial Worldwide Owner/Operator Convention to celebrate our accomplishments and collaborate on our future. I am confident that our collective strength and alignment around the world will continue to energize our future performance. Our momentum continues with April's global comparable sales trending at least as strong as first quarter sales."