The ratings on McDonald's Corp. reflect the company's worldwide leadership in the quick-service sector of the restaurant industry, its business recovery after a decline over the past several years, and its strong financial flexibility. However, they also take into account disappointing results in 2002, and Standard&Poor's Ratings Services' opinion that management continues to face significant challenges. These relate to the ongoing implementation of a number of important strategic changes, which are designed to better generate predictable growth in sales and earnings as management strives to further revitalize McDonald's worldwide business. The company possesses substantial business strengths, and its overall business profile is considered to be above average. However, McDonald's financial performance has been hurt as domestic competitors have
