McDONALD'S REPORTS FOURTH QUARTER AND FULL YEAR 2022 RESULTS

CHICAGO, Jan. 31, 2023

"Our Accelerating the Arches strategy is driving growth and building brand strength, delivering exceptional full year performance in 2022 with over 10% comparable sales growth and 5% comparable guest count growth globally," said McDonald's President and Chief Executive Officer, Chris Kempczinski. "While we expect short-term inflationary pressures to continue in 2023, we remain highly confident in Accelerating the Arches, which now includes a greater emphasis on new restaurant openings. The recently announced Accelerating the Organization initiative will complement this strategy to enable the McDonald's System to be faster, more innovative, and more efficient. We're proud of our continued strong performance, but we're not satisfied. That's the hallmark of McDonald's."

Fourth quarter financial performance:

• Global comparable sales increased 12.6%, reflecting strong comparable sales across all segments:
• U.S. increased 10.3%
• International Operated Markets segment increased 12.6%
• International Developmental Licensed Markets segment increased 16.5%
• Consolidated revenues decreased 1% (increased 5% in constant currencies).
• Systemwide sales increased 5% (13% in constant currencies).
• Consolidated operating income increased 8% (16% in constant currencies). Excluding $54 million of prior year charges primarily related to the 2021 sale of McD Tech Labs, consolidated operating income increased 5% (14% in constant currencies).**
• Diluted earnings per share was $2.59, an increase of 19% (26% in constant currencies). Excluding the prior year charges described above, diluted earnings per share increased 16% (23% in constant currencies).**

Full year financial performance:

• Global comparable sales increased 10.9%, reflecting strong comparable sales across all segments:
• U.S. increased 5.9%
• International Operated Markets segment increased 13.3%
• International Developmental Licensed Markets segment increased 16.0%
• Consolidated revenues were flat (increased 6% in constant currencies).
• Systemwide sales increased 5% (11% in constant currencies).
• Consolidated operating income decreased 10% (3% in constant currencies). 2022 results included $1.3 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 items along with net gains in 2021, consolidated operating income increased 3% (10% in constant currencies).**

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• Diluted earnings per share was $8.33, a decrease of 17% (12% in constant currencies). Excluding the current year charges and gains described above of $1.04 per share and additional nonoperating expense of $0.73 per share related to the settlement of a tax audit in France, diluted earnings per share was $10.10, an increase of 9% (15% in constant currencies), when also excluding prior year net gains and income tax benefits.**

*Refer to page 5 for a definition of Systemwide sales.
**Refer to pages 3 and 4 for additional details on fourth quarter and full year gains and charges for 2022 and 2021.

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