1. Brandon Honey Brandon Lee David Light Presented, December 4, 2008
Watch List Items
Brandon Honey
Brandon Lee
David Light
Presented, December 4, 2008

2. McDonalds (NYSE: MCD)

3. Overview
General Corporate Information
Strategy
Trends
Valuation

4. General Corporate Information
Leading global foodservice retailer
Serves 52mm people a day in 100 countries
Headquartered in [Oakbrook, IL?]
Source: Company website

5. Strategy Expanding product offerings Increased franchising
Healthier menu transition
McCafe
Increased franchising
Many company operated store are being franchised, especially in Europe
Decreases top line, increases margins
Source: Company filings

6. Thesis Proven business model Exceptional management
Franchising and new products driving possible bottom line growth
Removes a lot of food price risk
Solid dividend
Hits 4% when stock price gets to $50

7. Valuation Currently at $57 DCF yields a value of just under $50
Given the state of the market, MCD has held up well
Should the stock price fall near or below $50, this warrants strong consideration