Annual Letter to Shareholders
It is especially encouraging to see the
power of the three pillars coming together
already. The launch of Famous Orders in
the US, for example, brought together the
strength of our marketing, the popularity of
our core menu items and enormous digital
engagement to drive signicant sales in
the third and fourth quarters of 2020. The
success of this initiative was just a glimpse
of what is possible and we are excited for
what is to come.
We already knew customer habits and expectations were
changing going into 2020. The pandemic accelerated some of
those changes and brought other powerful truths into focus.
First, our customers’ needs are dierent than they were
prior to the pandemic, so the experience we oer must
adapt. A world with less dine-in and more takeout plays to
our signicant advantage in Drive Thru and our growing
capabilities in delivery and curbside pick-up. More lunch and
dinner visits are well-suited to our core menu, with iconic
favorites that people love. Greater dependence on technology
bodes well for McDonald’s fast-growing digital experience
and our inherent scale advantages.
This understanding was essential as we identied three new
growth pillars to deliver our next phase of sustainable growth
under Accelerating the Arches. They are easy to remember…
just think M-C-D:
Leading with our purpose and
refreshing our values to guide
our strategy
The second truth is that people expect
more from corporations today and are
seeking brands that reect their own values.
Customers want to see that the McDonald’s
they visit locally matches how we act globally.
They want and expect us to be a force for
good everywhere.
The strength of McDonald’s business
entering 2020 and our resilience through
the pandemic allowed us to broaden our
perspective to make Accelerating the
Arches a strategy focused on more than
just business performance. It is rooted in
our belief that our next chapter of growth
depends not just on what we do, but how we
do it in more than 39,000 local restaurants
around the world.
Meeting the needs of our customers and
communities requires us to embrace a
bigger, more holistic vision. Just as our
timeless commitment to Quality, Service,
Cleanliness, and Value has been rened over
the years to make them relevant for each era,
the language we use to express our purpose,
mission, and values must be reinvigorated
to ensure it is responsive to today’s
McDonald’s is one of the world’s most recognized brands,
and we invest about $4 billion per year in marketing.
Working with our agency partners, we will raise our
creative ambition and capitalize on evolving digital
behaviors to deepen the connection with our customers
to drive growth.
M - Maximize our Marketing
McDonald’s menu is known around the globe, and
customers love favorites like the Big Mac®, Chicken
McNuggets®, and of course, our World Famous Fries®.
During the pandemic, we focused on these classics and
were reminded not only of customers’ enduring passion
for these products, but also the signicant growth
opportunities that still exist within our core menu.
C - Commit to the Core
Digital, Delivery and Drive Thru. Customers have always
loved McDonald’s for its convenience, and new technologies
oer us the opportunity to make the McDonald’s experience
even faster and easier. We will innovate in these service
channels to unlock even more growth.
D - Double Down on the Three Ds
environment. That’s especially true in an era when customers
and communities expect more of us. That is why one of
our priorities over the past year was to ensure our purpose,
mission, and values reect the role we play in society today—
while embracing the vital place these timeless ideals and
principles occupy as an essential part of this special Brand
we all love.
In speaking to franchisees, customers and crew around
the world, it became clear that McDonald’s purpose is to
feed and foster communities. It also became clear in those
conversations that our ability to deliver on our purpose is
rooted in a refreshed set of core values:
Ray Kroc used to talk constantly about our values. He knew
that in a System where every restaurant is unique and locally
owned, our values would be the light that guides us through
every decision. These refreshed values are a foundational
component of Accelerating the Arches and will guide us in
achieving our business objectives while providing a common
compass for how we serve our communities, and one another.
With its holistic view of what McDonald’s seeks to accomplish
as an organization, Accelerating the Arches will strengthen
our advantages and deliver value—not only to our business,
but to our communities, customers, franchisees, crew,
employees, farmers and suppliers.