The dominant company in fast food Excellent worldwide brand recognition Strong free cash flow Excellent access to capital Lackluster sales in the U.S. International operations being impacted by concerns over beef safety, economies, and currency translations Intensely competitive industry Aggressive share repurchase program The ratings on McDonald's Corp. are based on the company's strong position in the quick-service sector of the restaurant industry. This should continue to be its major business strength. The company's worldwide access to capital and excellent liquidity remain its major financial strengths. However, recent performance problems and an aggressive desire to enhance shareholder value via stock repurchases have used up much of the company's flexibility within the rating. The 2001 performance was below expectations, and earnings
