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 Corp. 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. The company's participation in the intensely competitive quick-service restaurant sector partially mitigates these strengths. 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 Services
