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
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
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
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
Keeping our customers and our people at the center of everything we do!
People Results – Jan 2013 Crew Staffing Target = 51
Keeping our customers and our people at the center of everything we do!
People Results – Jan 2013
Keeping our customers and our people at the center of everything we do!
People Results – Jan 2013 Day-Part Staffing: 8-9am; Target=100%
Keeping our customers and our people at the center of everything we do!
People Results – Jan 2013 Day-Part Staffing: 12-1pm Target=100%
Keeping our customers and our people at the center of everything we do!
People Results – Jan 2013 Day-Part Staffing: 5-6pm Target=100%
Keeping our customers and our people at the center of everything we do!
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
Keeping our customers and our people at the center of everything we do!
People Results – Jan 2013 Commitment to RDM ‘Sustain It’ Target =80%
Keeping our customers and our people at the center of everything we do!
RDM STL COOP
Keeping our customers and our people at the center of everything we do!
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
Keeping our customers and our people at the center of everything we do!
Staffing Tool
Keeping our customers and our people at the center of everything we do!
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
Proprietary and Confidential
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
Proprietary and Confidential
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
Source: The NPD Group / CREST® Local Market
Proprietary and Confidential
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
Source: The NPD Group / CREST® Local Market
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
Proprietary and Confidential
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
Source: The NPD Group / CREST® Local Market
Proprietary and Confidential
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.
Source: The NPD Group / CREST® Local Market
Proprietary and Confidential
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
Source: The NPD Group / CREST® Local Market
7000
8000
9000
10000
11000
12000
13000
14000
1/2
1/9
1/16
1/
23
1/30
2/
6 2/
13
2/20
2/
27
3/6
3/13
3/
20
3/27
4/
3 4/
10
4/17
4/
24
5/1
5/8
5/15
5/
22
5/29
6/
5 6/
12
6/19
6/
26
7/3
7/10
7/
17
7/24
7/
31
8/7
8/14
8/
21
8/28
9/
4 9/
11
9/18
9/
25
10/2
10
/9
10/1
6 10
/23
10/3
0 11
/6
11/1
3 11
/20
11/2
7 12
/4
12/1
1 12
/18
12/2
5
Aver
age
Sto
re W
eekl
y S
ales
Breakfast Daypart Avg. Weekly Sales
2012 2013
1500
2000
2500
3000
3500
1/2
1/9
1/16
1/
23
1/30
2/
6 2/
13
2/20
2/
27
3/6
3/13
3/
20
3/27
4/
3 4/
10
4/17
4/
24
5/1
5/8
5/15
5/
22
5/29
6/
5 6/
12
6/19
6/
26
7/3
7/10
7/
17
7/24
7/
31
8/7
8/14
8/
21
8/28
9/
4 9/
11
9/18
9/
25
10/2
10
/9
10/1
6 10
/23
10/3
0 11
/6
11/1
3 11
/20
11/2
7 12
/4
12/1
1 12
/18
12/2
5
Aver
age
Sto
re W
eekl
y G
Cs
Breakfast Daypart Average GCs
2012 2013
20000
25000
30000
35000
40000
45000
1/2
1/9
1/16
1/
23
1/30
2/
6 2/
13
2/20
2/
27
3/6
3/13
3/
20
3/27
4/
3 4/
10
4/17
4/
24
5/1
5/8
5/15
5/
22
5/29
6/
5 6/
12
6/19
6/
26
7/3
7/10
7/
17
7/24
7/
31
8/7
8/14
8/
21
8/28
9/
4 9/
11
9/18
9/
25
10/2
10
/9
10/1
6 10
/23
10/3
0 11
/6
11/1
3 11
/20
11/2
7 12
/4
12/1
1 12
/18
12/2
5
Aver
age
Sto
re W
eekl
y S
ales
Rest of Day Daypart Avg. Weekly Sales
2012 2013
4000
4500
5000
5500
6000
6500
7000
7500
1/2
1/9
1/16
1/
23
1/30
2/
6 2/
13
2/20
2/
27
3/6
3/13
3/
20
3/27
4/
3 4/
10
4/17
4/
24
5/1
5/8
5/15
5/
22
5/29
6/
5 6/
12
6/19
6/
26
7/3
7/10
7/
17
7/24
7/
31
8/7
8/14
8/
21
8/28
9/
4 9/
11
9/18
9/
25
10/2
10
/9
10/1
6 10
/23
10/3
0 11
/6
11/1
3 11
/20
11/2
7 12
/4
12/1
1 12
/18
12/2
5
Aver
age
Sto
re W
eekl
y TC
s
Rest of Day Daypart Average TCs
2012 2013
!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
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
0
20
40
60
80
100
120
Wk 1 Wk 2 wk 3 wk 4 wk 5 wk 6 wk 7 wk 8 wk 9 wk 10 wk 11
Aver
age
Wee
kly
Gro
ss M
argi
n
Aver
age
Uni
ts P
er 1
,000
Tot
al D
ay T
rans
actio
ns
McRib
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
300.0
350.0
400.0
450.0
500.0
550.0
1/11
1/
18
1/25
2/
1 2/
8 2/
15
2/22
2/
29
3/7
3/14
3/
21
3/28
4/
4 4/
11
4/18
4/
25
5/2
5/9
5/16
5/
23
5/30
6/
6 6/
13
6/20
6/
27
7/4
7/11
7/
18
7/25
8/
1 8/
8 8/
15
8/22
8/
29
9/5
9/12
9/
19
9/26
10
/3
10/1
0 10
/17
10/2
4 10
/31
11/7
11
/14
11/2
1 11
/28
12/5
12
/12
12/1
9 12
/26
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
STL $1 Menu Sandwiches UPT
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
0
20
40
60
80
100
120
Aver
age
Dai
ly U
nits
Sol
d
Fish McBites Daily Units
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%
Source: Market Analytics, PMIX-003, 12/14/2012 – 1/13/2013
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
0
50
100
150
200
250
300
350
400
1/10
/13
1/11
/13
1/12
/13
1/13
/13
1/14
/13
1/15
/13
1/16
/13
1/17
/13
1/18
/13
1/19
/13
1/20
/13
1/21
/13
1/22
/13
1/23
/13
1/24
/13
1/25
/13
1/26
/13
1/27
/13
1/28
/13
1/29
/13
1/30
/13
1/31
/13
2/1/
13
2/2/
13
2/3/
13
2/4/
13
2/5/
13
2/6/
13
2/7/
13
Aver
age
Wee
kly
Uni
ts S
old
Steak and Egg Burrito Units Sold
Single a la cate 2 for $3 multi meal
-1.0
19.0
39.0
59.0
79.0
99.0
119.0
139.0
10/1
0
10/1
7
10/2
4
10/3
1
11/7
11/1
4
11/2
1
11/2
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%
Breakfast Sandwiches**
262.9 260.3 +1.0% $452 $419 +9.3%
Breakfast Meals* 80.6 83.4 -3.4% $245 $246 -0.4%
Morning Food Items 465.8 463.2 +0.6% $910 $870 +4.6%
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%
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%
Source: Market Analytics, PMIX-003, 12/14/2012 – 1/13/2013
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
Recommended