By far the leading quick service restaurant (QSR) chain in the U.S. and industry leader in many international markets; Significantly larger advertising and marketing budgets compared with competitors; Large amount of stable revenue from franchise royalties and rental income; Leading industry average unit volumes and restaurant level operating margins; and Vulnerable to weak economic conditions, consumer preferences, and intense industry competition. Capital allocation to shareholders has increased leverage ratios to levels we do not expect to decline; Continued refranchising efforts improving margin profile and cash flow generation; and We expect the company to distribute most free cash flow to shareholders. S&P Global Ratings' stable outlook on McDonald's Corp. reflects our expectation that the company will borrow an incremental $2.5 billion
