Dominant company in fast food Excellent worldwide brand recognition Strong free cash flow Excellent access to capital Decline in worldwide comparable-store sales Operates in an intensely competitive industry Shrinking margins at company-operated and franchised stores Negative impact from aggressive share repurchase programs The ratings reflect McDonald's Corp.'s worldwide leadership in the quick-service sector of the restaurant industry, its ongoing business recovery after a decline over the past several years, and its strong financial flexibility. However, the ratings also take into account Standard&Poor's Ratings Services' opinion that management continues to face significant challenges. These challenges relate to the further implementation of a number of important strategic changes that are designed to better generate predictable growth in sales and earnings
