Feb 19 co op deck final

Partnership Program McDonalds and USA TODAY

Today’s Program For More Successful Tomorrows

February 19, 2013

WHY USA TODAY? #1 in total daily print circulation in the U.S.

Leader in single-copy newsstand volume, selling more than 425,000 copies per day

3.1 million total readers

We give back to our communities

Donation of 20¢ per copy to RMHC

WHY USA TODAY?

Source: GfK MRI Spring 2012- Visited Restaurants Visited in Past 6 Months

More USA TODAY readers choose McDonald’s than any other chain

Audience (000)

WHERE WE ARE…

More than $181,902.60 raised locally since 2002

More than 97 locations currently participating out of 146 deliverable locations

More than $1 million contributed annually to Ronal McDonald House Charities

WHAT WE HAVE SEEN…

Contributions are decreasing

P.O.S is taken down within days of placement Displays are being removed from front counters

Racks are being picked up due to low sales

WHAT WE ARE DOING… Re-evaluating our program and simplifying

operations and billing

New displays have been developed to promote awareness of the charity and to move newspapers off the front counter placement

No more billing - simply a monthly email reminder

SUPPORT THE PLAN TO WIN

Improve service levels by making newspaper buying a part of the total experience

Enhance the single diner experience

Offer customers the convenience of purchasing their newspaper and other products all in one stop

Provide increased funding for RMHC

PROGRAM COMPONENTS No cost for display & signage

Monday – Friday delivery (Friday newspaper serves as the weekend edition and will remain on sale through

Sunday)

Pay for newspapers sold only

20¢ per copy on each sold newspaper goes to RMHC, with 75% of funds staying local

$1.21 MM in cause related advertising annually

BRING USA TODAY INSIDE

Vending machines are not convenient for customers

Maintain an aesthetically pleasing exterior free of vending machines

Increase charitable contributions to RMHC with no risk to you

Create consistency throughout the brand

All McOpCo restaurants are part of the inside program and have removed all vending machines

HERE’S HOW IT WORKS

Create timeline to determine rollout schedule and completion of details – convert existing stores by April 1st

Displays and signage delivered to each restaurant

Monthly payment to USA TODAY based on sales rang through the restaurant register system

Emailed reminder to your back office staff at the end of each month requesting payment for all USA TODAY sales

No contract or commitment required

USA TODAY is Menu Item # 8072 Priced @ $1.00 Located on the GIFT MENU SCREEN

RING UP USA TODAY

EMAIL REMINDER

CHARITY PAYOUT

Source: * 2012 sales analysis of active McDonald’s stores on current program

Total Sale Charity

Rate Total Grand Total

April 2002 113 deliverable stores

5 + Rack Sales $150.00 $150.00 $16,950.00

2011 110 racks $21,437.50

2012 84 racks $17,256.25

January 2013 146 deliverable stores 3 $0.20 $152.40 $22,250.40

THANK YOU

Mary Ramatowski (314) 991-9407 [email protected]

Commercial here

Ways to Engage Through Social Media

@GoodMorningSTL GoodMorningSTL.com

Social Campaign Objectives

1 – Get people engaged 2 – Aggregate chatter to a single platform 3 – Reach out to consumers in digital space 4 – Make online interactions a reality







John Doe 555 St. Louis Ave. St. Louis, MO 63108 Greeting Card

Copy: There are only two types of people in the world: those who are having a good morning, and those who are about to. Good morning, from your friends at McDonald's.The best morning are enjoyed with others. Share your good morning.

5 Business Cards 5 BOGs

Outer Envelope with Seal

5 Ronald Smile on a Stick

Business Cards

John Doe 555 St. Louis Ave. St. Louis, MO 63108

envelope

Bag to Hold Breakfast Items & “Good Morning” Kit (10)

Greeting Card (10) Copy: There are only two types of people in the world: those who are having a good morning, and those who are about to. Good morning, from your friends at McDonald's. The best morning are enjoyed with others. Share your good morning.

Ronald Smile on a Stick (100)

Building Restaurant Capacity

Chrissy Hurst

Operations Excellence Team

Building Restaurant Capacity YTD Results: January 2013 Primary Measures Region YTD St. Louis

YTD Target

GC’s - Breakfast +2 +8 +10

GC’s - Lunch +1 -2 +10

GC’s – Dinner -1 -1 +10

CSO – decrease by 5% 35.6% 35.6% <33%

FAST – 70% 67.1% 65.3% 70%

PEAK 2nd Side Usage 2nd Side Usage Usage %

Region

Healthy Usage %

Region

Usage % St. Louis

Healthy Usage %

St. Louis

Breakfast 86% 60% 71% 40%

Lunch 89% 70% 82% 59%

Dinner 81% 57% 68% 40%

For the month of Jan 2013

Building Restaurant Capacity Co-Op Initiatives: Friday Car Count Champions Breakfast & Lunch Top 15 restaurants over ‘12 win!

Report Top 30(ish) weekly Breakfast & Lunch February 8- March 29

Product Incentives Top 10 UPTs sold win $$ Report Top 25 weekly

McWraps April 1- May 19

Egg White Delight April 29- June 9

Deb Bishop

Profit Team Update

4th Day Part As Of: 1/31/13 % on 24/7 % on 24+ % +/- overnight day part

Heartland 43% 54% +1.8% Mid-Kansas 68% 73% +3.3% ILIAMO 56% 56% +14.3% HOA 41% 55% +1.6% Ne-Kan 40% 55% -9.4% Mid-Missouri 45% 55% +6.2% St. Louis 40% 54% +2.8% Ozarks 38% 45% +4.5% Joplin 29% 42% +0.1% High Plains 0% 14% -5.8%

4th Day Part " “Menu After Midnight”

– Goal is to have a standard (reduced) menu for overnight – Improve Operations and Cash Flow – Overnight complaints are three times worse than other day

parts – Tests are underway across the country – Final decision expected no later than 4/1/13

" Incentive is currently under review!

Food Over Base – the road to 3.5% As of 1/31/13 YTD FOB % B(W) vs. target

U.S. 3.8% N/A

Central Division 4.0% N/A Heartland Region 3.9% (0.4%) HOA 3.4% 0.1% Joplin 3.3% 0.2% Ne-Kan 3.4% 0.1%

High Plains 3.6% (0.1%) Mid-Missouri 3.9% (0.4%) St. Louis 4.1% (0.6%) Mid-Kansas 4.1% (0.6%) Ozarks 4.2% (0.7%) ILIAMO 4.4% (0.9%)

LMS Profit Modules " LMS Profit Modules available on Heartland

website – Click “Profit”, then “Tools” " This month, we’ll highlight People Manager

modules – Projecting Transactions and Labor – Generating and Balancing the Schedule – Analyzing and Controlling Labor – Made for You Operating System Diagnostic Tool

Cash Flow Performance- StL December 2012 YTD

US Central Division

Heartland Region

St. Louis Co-op

Cash Flow at 12/31/11

$342k $338k $324k $282k

Sales Based +$56k +$60k +$70k +$42k Food & Paper ($33k) ($29k) ($28k) ($32k)

Total Labor ($10k) ($11k) ($7k) $0 All Other ($7k) ($6k) $0 +$11k

Net change YTD CF +$6k +$13k +$34k +$20k

Cash Flow at 12/31/12

$349k $352k $359k $302k

Keeping our customers and our people at the center of everything we do!

People Pillar

Mickey Avery St. Louis Coop


People Results – Jan 2013 Crew Staffing Target = 51


People Results – Jan 2013


People Results – Jan 2013 Day-Part Staffing: 8-9am; Target=100%


People Results – Jan 2013 Day-Part Staffing: 12-1pm Target=100%


People Results – Jan 2013 Day-Part Staffing: 5-6pm Target=100%


PEAK STAFFING – Jan 2013

Peak Hr. Staffing VLH Heartland

% of Rest Staffed Heartland

1 Hr.

VLH St. Louis

% of Rest Staffed St. Louis

1 Hr.

Breakfast -.10 63.9% -.30 56.4%

Lunch .40 55.1% -.80 48.7%

Dinner .30 80% .10 79%

% Staffed- Breakfast 8-9 Lunch 12-1 Dinner 5-6

VLH- Breakfast 7-10 Lunch 11-2 Dinner 5-7


People Results – Jan 2013 Commitment to RDM ‘Sustain It’ Target =80%


RDM STL COOP


Q1 People Focus All Day-parts Fully Staffed: • Commitment of +2 Staffing at each Peak • People Department Managers Attend Regional Monthly Webinars (Feb 26, Mar 26, Apr 30)

Commit to RDM: • Participation in RDM Learning Sessions • Prioritize LMS Modules • Subscribe to the New Learner History Report


Staffing Tool


People Pillar

Questions?

Proprietary and Confidential

The categories gaining the most share of Total Day traffic long-term include C-Stores and Mexican. The Hamburger category’s share down from 2007/2008.

Total Dayparts Pt.

St. Louis MO 2YE 2YE 2YE Change

Share of QSR Traffic Sep'08 Sep'10 Sep'12 '12 vs. '08

Categories

Convenience Stores 8.8 9.6 9.8 +1.0

Mexican 5.2 5.8 6.2 +1.0

Sub Shops 5.1 5.6 5.6 +0.5

Other Sandwich 2.6 2.6 3.1 +0.5

Bakery Sandwich 3.3 3.5 3.7 +0.4

Gourmet Coffee/Tea 4.0 3.8 4.0 NC

Deli 1.0 1.1 1.0 NC

Dept./Variety/Discount Stores 1.5 1.6 1.4 -0.1

Varied Menu/Uncl. 0.9 0.8 0.7 -0.2

Food/Drug Stores 5.3 5.1 5.0 -0.3

Chicken 3.1 2.9 2.8 -0.3

Asian 2.5 2.4 2.2 -0.3

Hamburger 35.8 35.5 35.4 -0.4

Recreation 2.1 1.9 1.7 -0.4

Pizza 10.5 10.1 10.0 -0.5

Frozen Sweets 4.0 3.4 3.3 -0.7 Source: The NPD Group / CREST® Local Market


Although still small, QuikTrip’s share is up most over the longer term. McDonald’s and Wendy’s also gained (the same amount).

Total Dayparts Pt.

St. Louis MO 2YE 2YE 2YE Change

Share of QSR Traffic Sep'08 Sep'10 Sep'12 '12 vs. '08

Chains

QuikTrip 2.8 2.8 4.0 +1.2

McDonald's 16.1 16.7 17.0 +0.9

Wendy's 0.8 1.2 1.7 +0.9

Subway 3.1 3.4 3.6 +0.5

Taco Bell 4.4 4.5 4.8 +0.4

Panera Bread 3.3 3.5 3.7 +0.4

Steak 'N Shake 2.0 2.1 2.3 +0.3

Domino's 1.4 1.3 1.5 +0.1

Arby's 1.3 1.3 1.4 +0.1

Walmart 1.2 1.3 1.1 -0.1

Papa John's 0.9 0.8 0.8 -0.1

Pizza Hut 1.7 1.5 1.5 -0.2

KFC 1.4 1.3 1.2 -0.2

Hardee's 2.9 2.8 2.6 -0.3

Source: The NPD Group / CREST® Local Market

Continued on next page


While McDonald’s share of Morning Meal increased, share of Rest of Day held steady.

McDonald's Share of QSR Traffic by Consumer-Perceived Daypart St. Louis, MO



Increases in shares of Lunch and PM Snacks offset a loss in share of Supper visits.

McDonald's Share of QSR Traffic by Consumer-Perceived Daypart St. Louis, MO


Annually (from 2011 to 2012): Lunch share fell -0.3 pts Supper and PM Snacks share also dropped*

*Supper and PM Snacks trends based on low samples, use with caution


McDonald’s dominates most product categories in St. Louis with the exception of salads (Panera leads), desserts (Dairy Queen), and specialty coffee (Starbucks).

McDonald's and (Next) Largest Servings Shareholder for each Product Category St. Louis, MO

Two Years Ending September 2012

Next/Top Competitor Panera Bread

Burger King

KFC

Panera Bread

Steak 'N Shake

Dairy Queen

Starbucks

Starbucks

Starbucks

Starbucks



McDonald’s holds the highest share of Rest of Day traffic in St. Louis. The level is slightly above average. Taco Bell ranks second with a share level that is also above average while #3 Subway’s share is slightly

below the norm. Many of the other top chains over-index.

Share of QSR Rest of Day Traffic – Chains

Two Years Ending September 2012 Only chains with >=1% share are shown.



McDonald’s shares of both Morning Meal and Rest of Day traffic are slightly above average.

McDonald's Share of QSR Traffic by Consumer-Perceived Daypart

Two Years Ending September 2012

Index to Top 49 DMAs = 116

Index to Top 49 DMAs = 113


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!2/12/2012 Vs. 12/14/2011

Sales +$1,462 or +21.9%

GC +$199 or 14.8%

Units Sales GM Fries +114 +$235 +$192 A la Carte Sandwiches* +701 +$1,171 +$644

ROD EVM -47 -$124 -$93 CSD/Tea +83 +$90 +$70 Reg Menu +570 +$1,338 +$728 Total Day +656 +$1,471 +$848

Source: Market Analytics, PMIX003, SL-SD001 *A la carte includes Reg Menu Multi

12/13/2012 Vs. 12/15/2011

Breakfast Sales +$53 or 3.2%

Breakfast GC +18 or 4.1%

Units Sales GM Hash Browns +9 +$9 +$7 Bkfst A la Carte Sandwiches*

+59 +$85 +$60

Hot Beverage +5 +$14 -$18 Breakfast Meals -9 -$16 -$12 Morning Food +21 +$75 +$53

Source: Market Analytics, PMIX003, DYPT006 *A la carte includes Bkfst Multi

Dominate Launch 810 GRPs

85-90% Reach

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2011 GM 2012 GM 2011 UPT 2012 UPT

PMIX-W005a, all stores selling, 11/9-1/24/2013 vs. 10/7-12/22/2011 (2011 – Late October vs 2012 mid-November)

Wkly Results Units Sold Product Sales UPT Gross Margin

2012 636 $1,474 45.9 $1,083 2011 788 $1,844 55.7 $1,314 Difference -152 -$370 -9.8 -$231

% Change -19.3% -20.0% -17.6% -17.6%

PMIX-W005a, all stores selling, 11/9-1/24/2013 vs. 10/7-12/22/2011

Weekly Units Sold Product Sales UPT Gross Margin STL Reg +/- STL Reg +/- STL Reg. +/- STL Reg +/-

McRib a la carte

153 174 -12.0% $371 $432 -14.1% 16.5 18.6 -11.3% $284 $331 -14.1%

McRib EVM 250 300 -16.6% $1081 $1428 -24.3% 29.1 33.7 -13.6% $781 $1,079 -27.6%

Fries 1,899 1,960 -3.1% $2,760 $2,930 -5.8% 220.8 220.7 +0.04% $2,302 $2,460 -6.4%

CSD & Tea 5,948 6,420 -7.4% $6,647 7,176 -7.4% 654.2 722.7 -9.5% $5,497 $5,860 -6.2%

PMIX-W005a, all stores selling, 11/9-1/24/2013 vs. 10/7-12/22/2011

Wkly UPT Product Sales Gross Margin

St. Louis Region Difference St. Louis Region Difference St. Louis Region Difference

2010 71.1 67.4 +5.6% $1,791 $1,721 +4.0% $1,409 $1,353 +4.2%

2011 72.3 70.2 +3.0% $1,888 $1,868 +1.1% $1,459 $1,447 +0.8%

2012 65.3 70.8 -7.7% $1,659 $2,004 -17.2% $1,334 $1,638 -18.5%

Dominate Launch 1,890 GRPs 85% Reach

STL 2013 Wkly UPT Avg 2012 Wkly UPT Avg Difference Big Mac 46.5 55.6 -9.1 UPT QPC 34.6 43.7 -9.1 UPT GOC 80.0 NA NA McDouble 275.4 286.9 -11.5 UPT McChicken 152.8 155.9 -3.1 UPT Cheeseburger 111.5 118.3 -6.8 UPT

Region 2013 Wkly UPT Avg 2012 Wkly UPT Avg Difference Big Mac 43.7 49.9 -6.2 UPT QPC 36.4 49.4 -12.9 UPT GOC 72.2 NA NA McDouble 280.3 281.7 -1.5 UPT McChicken 164.7 160.6 +4.1 UPT Cheeseburger 108.8 107.3 +1.5 UPT

Source: Market Analytics, PMIX-W005a, 1/4/2013-2/7/2013

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STL $1 Menu

Source: PMIX-W005a, all stores selling

GOC Launch

Sustaining Weight 400 GRPs

70 - 75% Reach

Units per Week GM Per Week

40 Pc McNugget A la Carte 32.4 $206.74

40 Pc McNugget Meal 12.4 $118.30 Total 44.8 $325.03

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Snack Regular Shareable

Source: Market Analytics, PMIX-D005a, all stores

+300%

Daily Pre Trial Trial

Snack Regular Shareable Snack Regular Shareable

STL total units 12 12 3 89 15 4

Region total units 12 11 4 89 15 5 STL A la carte units 12 9 3 88 10 3

Reg A la carte units 11 8 3 88 10 4

STL UPT 9.8 9.5 2.8 66.7 10.9 3.0

Region UPT 9.1 8.9 2.8 64.9 10.8 3.3

Source: Market Analytics, PMIX-D005a, all stores

Daily Redemption $2.99 6 Pc McNuggets 5 BOGO Filet O Fish 10 promo BOGO Large CSD/Tea 13 promo $3.99 Big Breakfast w/Hotcakes 5 BOGO Egg McMuffin 5 promo BOGO McCafe 2 Promo BOGO Premium Roast Coffee 5 Promo

BOGO Large Sandwich 10 Promo (excludes Filet O Fish)

PMIX-0012, ½-1/13/2013, 1/14-2/1/2013

Large Sandwich includes: Dbl Cheeseburger, Big Mac, QPC, McRib, Pemium Chicken Grilled & Crispy, Southern Style Chicken, Dbl Qtr Cheese, Daily Double, Angus Third Pounders (all)

Dominate Launch 1,430 GRPs 90% Reach

Daily Results Units Sold Product Sales UPT Gross Margin

2012 91 $169 48.3 $132 2011 34 $93 27.8 $78 Difference +57 +$76 +20.5 +$54

% Change +168% +82% +74% 69%

Source: Market Analytics, PMIX-003, 12/14/2012 – 1/13/2013

Daily Summary 2012 UPT

2011 UPT

Difference 2012 GM

2011 GM

Difference

SME 2 for $3 27.4 0 $73 $0

SME EVM 11.8 12.6 -6.3% $35 $37 -5.4%

Total SME 48.3 27.8 +73.7% $132 $78 69.2%

Total Hot Coffee 124.0 111.9 +10.8% $89 $82 +8.5%

Breakfast Sandwiches**

260.2 256.1 +1.6% $445 $401 +11.0%

Breakfast Meals* 77.9 81.8 -4.8% $230 $236 -2.5%

Morning Food Items 463.7 456.0 +1.7% $879 $836 +5.2%


Dominate Launch 2,780 GRPs

85-90% Reach

Item (a la carte and meal) Weekly UPT Sausage Burrito 71.8 Sausage Biscuit 45.1 Sausage McMuffin 34.9 Egg McMcMuffin 33.6 Sausage McMuffin with Egg 27.7

BEC Biscuit 21.4

Sausage Egg Biscuit 14.1 Sausage McGriddles 11.5

Source: Market Analytics, PMIX-W005a, Feb. 1-Feb. 7, 2013

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8

12/5

12/1

2

12/1

9

12/2

6

1/2

1/9

1/16

1/23

1/30

2/6

Uni

ts p

er 1

,000

Tot

al D

ay T

rans

actio

ns

Total Burrito UPT Movement

Sausage Burrito Steak Burrito

Source: PMIX-W005a, all stores selling, includes total of all burritos sold in meals, multi units or individually

Dominate Launch November - 2,360 GRPs

90-95% Reach

60.0

70.0

80.0

90.0

100.0

110.0

120.0

130.0

140.0

8/9

8/16

8/23

8/30

9/6

9/13

9/20

9/27

10/4

10/1

1

10/1

8

10/2

5

11/1

11/8

11/1

5

11/2

2

11/2

9

12/6

12/1

3

12/2

0

12/2

7

1/3

1/10

1/17

1/24

1/31

2/7

Uni

ts P

er 1

,000

Tot

al D

ay T

rans

actio

ns

Coffee UPT Current Year vs.Previous Year

Current Year Previous Year

8/3/12-1/24/13 vs. 8/5/11-1/26/12

$1 Any Size Coffee Jan 2012

Source: Market Analytics, Pmix-w005a, Stores Selling

$1 Any Size Coffee Nov 2012 Begins

0.0

10.0

20.0

30.0

40.0

50.0

60.0

11/9

/07

11/2

3/07

12/7

/07

12/2

1/07

1/4/

08

1/18

/08

2/1/

08

2/15

/08

2/29

/08

3/14

/08

3/28

/08

4/11

/08

4/25

/08

5/9/

08

5/23

/08

6/6/

08

6/20

/08

7/4/

08

7/18

/08

8/1/

08

8/15

/08

8/29

/08

9/12

/08

9/26

/08

10/1

0/08

10/2

4/08

11/7

/08

11/2

1/08

12/5

/08

12/1

9/08

1/2/

09

1/16

/09

1/30

/09

Uni

ts p

er 1

,000

Tot

al D

ay T

rans

actio

ns

Coffee UPT By Size

12 oz 16 oz 20 oz Source: Market Analytics, Pmix-W005a, Stores Selling Weekly 11/2/12-2/7/13 vs. 11/4/11-2/9/12

2012 UPT 2011 UPT Change 2012 GM 2011 GM Change

Total Hot Coffee 123.0 115.1 +6.9% $92 $88 +4.5%

Senior Coffee 37.0 39.6 -6.6% $15 $15 +1.6%

20 oz Coffee 48.1 32.2 +49.4% $42 $34 +21.2%

Hot Beverage 152.6 146.6 +3.4% $158 $162 -2.4%


262.9 260.3 +1.0% $452 $419 +9.3%

Breakfast Meals* 80.6 83.4 -3.4% $245 $246 -0.4%


PMIX-003, 11/2-2/12/2013 vs. 11/4-2/14/2012 Meals do not include beverage GM **includes product multipes

15%

20%

25%

30%

1/19

/201

2 1/

26/2

012

2/2/

2012

2/

9/20

12

2/16

/201

2 2/

23/2

012

3/1/

2012

3/

8/20

12

3/15

/201

2 3/

22/2

012

3/29

/201

2 4/

5/20

12

4/12

/201

2 4/

19/2

012

4/26

/201

2 5/

3/20

12

5/10

/201

2 5/

17/2

012

5/24

/201

2 5/

31/2

012

6/7/

2012

6/

14/2

012

6/21

/201

2 6/

28/2

012

7/5/

2012

7/

12/2

012

7/19

/201

2 7/

26/2

012

8/2/

2012

8/

9/20

12

8/16

/201

2 8/

23/2

012

8/30

/201

2 9/

6/20

12

9/13

/201

2 9/

20/2

012

9/27

/201

2 10

/4/2

012

10/1

1/20

12

10/1

8/20

12

10/2

5/20

12

11/1

/201

2 11

/8/2

012

11/1

5/20

12

11/2

2/20

12

11/2

9/20

12

12/6

/201

2 12

/13/

2012

12

/20/

2012

12

/27/

2012

1/

3/20

13

1/10

/201

3 1/

17/1

3 1/

24/1

3 1/

31/1

3 2/

7/13

Per

cent

age

Breakfast Percent of Total Sales

St. Louis Region

$1 Any Size Coffee Launch

Source: Market Analytics, DYPT0005, 1/19/2012 – 2/7/2013

Daily Bacon, Egg & Cheese Biscuit Egg McMuffin

Units Sold 619 615 Product Sales $1,194 $1,187 UPT 440.8 448.8 BOGO GM $76 $104 Morning Item GM $931 $933

Item (a la carte and meal) Weekly UPT Sausage Burrito 71.8 Sausage Biscuit 45.1 Sausage McMuffin 34.9 Egg McMcMuffin 33.6 Sausage McMuffin with Egg 27.7 BEC Biscuit 21.4 Sausage Egg Biscuit 14.1 Sausage McGriddles 11.5

Source: Market Analytics, PMIX-W005a, Feb. 1-Feb. 7, 2013

Daily Summary 2012 UPT

2011 UPT

Difference 2012 GM

2011 GM

Difference

SME 2 for $3 27.4 0 $73 $0

SME EVM 11.8 12.6 -6.3% $35 $37 -5.4%

Total SME 48.3 27.8 +73.7% $132 $78 69.2%

Total Hot Coffee 124.0 111.9 +10.8% $89 $82 +8.5%


260.2 256.1 +1.6% $445 $401 +11.0%

Breakfast Meals* 77.9 81.8 -4.8% $230 $236 -2.5%



Source: Market Analytics, PMIX-W005a All Beverages Sold

Source: Market Analytics, PMIX-W005a

Source: Market Analytics, PMIX-W005a All Beverages Sold

Source: Market Analytics, PMIX-W005a

2008 Beverage Strategy

Evansville and Tri-State

2007 Beverage Tactics

April May June July August Sept

Evansville Sweet Tea All 32oz $1 $1 Tea Tri-State $1 Tea All 32oz $1

2008 Beverage Tactics

April May June July August Sept

Evansville All Sizes for $1 Tri-State 32oz $1 All $1 All Sizes for $1

Soft Drink / Iced Tea Results May - August, 2008 vs PY – Average Week

Evansville Tri-State St. Louis Division

2007 Beverage Tactic All 32oz $1 42 for 89 2008 Beverage Tactic All / $1 42 for 99 TCs (Analytic) +10.2% +3.7% -2.4% +3.5%

UPTs +47 +58 -10 +46

Units +1,023 +738 -154 +613

Drink Sales +$482 +$777 +$77 +$515

Gross Profit +$119 +$475 -$57 +$329

Average Traditional Store / Analytic Comp

Gross Profit Change May - August, 2008 vs PY – Average Week

Evansville Tri-State St. Louis Division

2007 Beverage Tactic All 32oz $1 42 for 89 2008 Beverage Tactic All / $1 42 for 99 TCs (Analytic) +10.2% +3.7% -2.4% +3.5%

Bkfst Food +$698 +$496 +$388 +$479

RM Food +$1,790 +$1,046 -$39 +$703

All Day +$42 +$379 -$208 +$287

Total +$2,530 +$1,921 +$129 +$1,469

Soft Drink / Tea +$119 +$475 -$57 +$329

Average Traditional Store / Analytic Comp

P&L Results May - August, 2008 vs PY – Licensee Only

Evansville Tri-State St. Louis

2007 Beverage Tactic All 32oz $1 42 for 89 2008 Beverage Tactic All / $1 42 for 99 Sales +7.9% +7.3% +1.4%

F&P Cost +1.1% +0.4% +0.5%

Gross Profit +$33,258 +$32,904 +$3,406

Variable Profit +$7,461 +$11,631 -$1,435

Other Costs -$6,235 +$2,801 -$274

Cash Flow +$13,696 +$8,830 -$1,709

FFS – Licensee Comp Restaurants

Variable Costs: Food & Paper, Total Labor, Ad & Promo, Rent & Service

Summary • In Evansville and Tri-State the move from Large for

$1 to Any Size for $1 helped contribute to: – Additional customers – Additional Soft Drink and Tea UPT, Units, Sales and

Profits • In addition, after the conversion to Any Size for $1

Evansville and Tri-State saw: – Additional Gross Profit – Additional Cash Flow

Wkly Product Sales to Breakeven % of Total Sales

$170 .4%

Weekly Guest Counts to Breakeven % of Total Guest Counts

33 .4%

$170 GM needed To BE

$1 Any Size SD/ST

Beverages

Free small McCafe or Hot Chocolate w/ purchase

Free Large Sweet Tea or Soft Drink w/ purchase

Rest of Day

BOGO QPC

Breakfast

BOGO Egg McMuffin

Six Flags Partnership

2012 Donation to RMHC of St. Louis of $8,843!

$�$8,843!

OPNAD Updates Kate Owens

St. Louis 50pc McNuggets Results

• September 7, 2010 • 62 ala carte 50pc per week • 46 combos per week • 108 total per week • 43% in combo • $789 GM per week

Documents

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