The ratings reflect McDonald's Corp.'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, the ratings also take into account disappointing results in 2002, as well as Standard&Poor's Ratings Services' opinion that management continues to face significant challenges. These challenges relate to the ongoing implementation of a number of important strategic changes that are designed to better generate predictable growth in sales and earnings as management strives to further revitalize the company's worldwide business. McDonald's possesses substantial business strengths, and its overall business profile is considered to be above average. However, the company's financial performance has been hurt, as domestic
