The ratings on McDonald's Corp. are based on the company's strong leadership position in the quick-service sector of the restaurant industry, an outstanding track record, consistent financial strength, and worldwide capital resources. These factors are offset by McDonald's increasingly aggressive financial policy; domestic competitors' inroads in terms of actual or perceived quality, service, and cleanliness; and a slowdown in the company's growth rate, in part due to capacity issues in terms of the number of McDonald's restaurants in the U.S. Operating income grew by an average of only 6.3% for the past five years, and little if any growth is anticipated for 2001. McDonald's may be able to reinvigorate performance over time, but it is more likely that earnings growth
