a.        Significant trends in consolidated totals:

Net revenues increased significantly each year within each of the three primary segments and for the company in total, indicating that McDonald’s remains in a steady growth stage.

Segment operating income also increased significantly each year for each of the three primary segments.  The growth pattern in operating income was more pronounced in Europe and APMEA than in the U.S., which makes sense because the U.S. is likely to be a highly saturated market for McDonald’s.

Depreciation and amortization expense is quite stable from year to year, although it is generally increasing, particularly in Europe.

Assets increased in 2007 (as compared to 2006) within each of the three primary segments, but then decreased in 2008 (as compared to 2007) except for the U.S. segment. The asset reductions in 2008 were due, in part, to the downsizing efforts that the company had undergone in 2006 and 2007.

Notable trends in specific business segments:

Net revenues and segment operating income increased rather consistently each year in each of the primary geographic segments.  Yet, the pattern of net revenue and operating income growth differed from segment to segment.  The growth patterns within Europe and APMEA are substantially more aggressive than the respective trends shown in the U.S. segment data.  These are signs of a financially stable and growing company, and that management has a clear understanding of where the most promising future growth opportunities lie.

Depreciation and amortization expense has increased more rapidly in Europe than in the other primary segments, which may a reflection of the relatively high cost of real estate in Europe as compared to most other parts of the world.

The only possible reason for concern in the data presented is the decline in total company operating income in 2007 (as compared to 2006).  McDonald’s 2008 annual report should be read carefully to learn of the possible reasons for this result.  The income statement and statement of cash flows indicate that the company reported a nonrecurring item for asset impairment charges of $1,670 million in 2007 due to restructuring efforts.  Were it not for these charges, McDonald’s overall trend in operating income would have been extremely consistent from year to year.