Overview Key strengths Key risks Significant scale as the world?s largest quick-service restaurant (QSR) chain, with systemwide sales of $130 billion. Challenging operating conditions globally may disrupt performance trends more than we anticipate. Leading brand awareness, marketing strength, and improving digital capabilities drive robust average unit volumes and operating margins. Franchisees will need to navigate operating cost pressures across commodities, particularly beef, and labor and adjust prices while preserving the company?s strong value perception. Highly franchised business model and operating strength generate consistently strong free cash flow. Industry competition remains fierce and is prone to price wars during times of slowing consumer demand. McDonald?s sales trends have softened this year as consumers have pulled back on their restaurant visits. Significant
