Dominant company in fast food; Excellent worldwide brand recognition; Strong free cash flow; and Excellent access to capital. Operates in an intensely competitive industry; and Uses a large portion of its cash flow to enhance shareholder value. The ratings on McDonald's reflect its worldwide leadership in the quick-service sector of the restaurant industry, its consistent and solid operating performance since 2003, and its strong financial flexibility. These strengths are partially mitigated by the company's participation in the intensely competitive quick-service restaurant sector. Oak Brook, Ill.-based McDonald's holds the world's No. 1 position in terms of restaurant sales. The company possesses substantial business strengths because of its strong brand recognition, prime real estate locations, and marketing power. Standard&Poor's Ratings
