McDonalds and USA TODAY Partnership Program Summary

McDonalds and USA TODAY
Partnership Program
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?
More USA TODAY readers choose McDonald’s than any other chain

Audience (000)

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

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

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

Enhance the single diner experience

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

 0¢ per copy on each sold newspaper
2
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

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

CHARITY PAYOUT
Charity
Total Sale Rate Total Grand Total

April 2002
5 + Rack
113 deliverable stores $150.00 $150.00 $16,950.00
Sales

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

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

THANK YOU

Mary Ramatowski
(314) 991-9407
mramatowski@usatoday.com

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

5 BOGs
5 Business Cards

Outer Envelope with Seal 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
5 with others. Share your good morning.

Ronald Smile on a Stick

Business Cards

Greeting Card (10)
John Doe Copy: There are only two types of people
555 St. Louis Ave. in the world: those who are having a good
St. Louis, MO 63108 morning, and those who are about to.
Good morning, from your friends at
McDonald's. The best morning are
Bag to Hold Breakfast enjoyed with others. Share your good
morning.
Items & “Good Morning”
Kit (10) envelope

Ronald Smile on a Stick
(100)

Building Restaurant Capacity

Operations
Excellence Team
Chrissy Hurst

YTD Results: January 2013
Primary Measures Region YTD St. Louis Target
YTD

GC’s - Breakfast +2 +8 +10

GC’s - Lunch +1 -2 +10
GC’s – Dinner -1 -1 +10
CSO – decrease
35.6% 35.6% <33%
by 5%

FAST – 70% 67.1% 65.3% 70%

PEAK 2nd Side Usage
Healthy Healthy
Usage % Usage %
2nd Side Usage Usage % Usage %
Region St. Louis
Region St. Louis

Breakfast 86% 60% 71% 40%

Lunch 89% 70% 82% 59%

Dinner 81% 57% 68% 40%

For the month of Jan 2013

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

Profit Team Update

Deb Bishop

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!

FoodofOver Base FOBthe road to 3.5%
As 1/31/13 YTD – % 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 Heartland St. Louis
Division Region Co-op
Cash Flow at $342k $338k $324k $282k
12/31/11
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 $349k $352k $359k $302k
12/31/12

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


Day-Part Staffing: 8-9am; Target=100%


Day-Part Staffing: 12-1pm Target=100%


Day-Part Staffing: 5-6pm Target=100%


PEAK STAFFING – Jan 2013
% of Rest % of Rest
Peak Hr. Staffing VLH Staffed VLH Staffed
Heartland Heartland St. Louis St. Louis
1 Hr. 1 Hr.

Breakfast -.10 63.9% -.30 56.4%

Lunch .40 55.1% -.80 48.7%

Dinner .30 80% .10 79%

VLH- Breakfast 7-10 % Staffed- Breakfast 8-9
Lunch 11-2 Lunch 12-1
Dinner 5-7 Dinner 5-6

Commitment to RDM ‘Sustain It’ Target =80%


RDM STL COOP


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

Commit to RDM:
• articipation in RDM Learning Sessions
P
• rioritize LMS Modules
P
• ubscribe to theour people at the center of everything we do! Report
S Keeping our customers and New Learner History

Staffing Tool


People Pillar

Questions?


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
Proprietary and Confidential
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

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.

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
Next/Top
Competitor
Panera Bread

Burger King

KFC

Panera Bread

Steak 'N Shake

Dairy Queen

Starbucks

Starbucks

Starbucks

Starbucks

Two Years Ending September 2012

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

Only chains with >=1% share are shown.


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


Index to Index to
Top 49 DMAs Top 49 DMAs
= 116 = 113



Average Store Weekly Sales

11000

7000
8000
9000
10000
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

2012
6/12
6/19
6/26
7/3
7/10

2013
7/17
7/24
Breakfast Daypart Avg. Weekly Sales

7/31
8/7
8/14
8/21
8/28
9/4
9/11
9/18
9/25
10/2
10/9
10/16
10/23
10/30
11/6
11/13
11/20
11/27
12/4
12/11
12/18
12/25

Average Store Weekly GCs

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

2012
6/12
Breakfast Daypart Average GCs

6/19
6/26

2013
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
10/16
10/23
10/30
11/6
11/13
11/20
11/27
12/4
12/11
12/18
12/25

Average Store Weekly Sales

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

2012
6/12
6/19
6/26
7/3
7/10
2013
7/17
7/24
7/31
8/7
8/14
Rest of Day Daypart Avg. Weekly Sales

8/21
8/28
9/4
9/11
9/18
9/25
10/2
10/9
10/16
10/23
10/30
11/6
11/13
11/20
11/27
12/4
12/11
12/18
12/25

Average Store Weekly TCs

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

2012
6/19
6/26
7/3
7/10
7/17
2013 7/24
7/31
8/7
Rest of Day Daypart Average TCs

8/14
8/21
8/28
9/4
9/11
9/18
9/25
10/2
10/9
10/16
10/23
10/30
11/6
11/13
11/20
11/27
12/4
12/11
12/18
12/25

!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 +59 +$85 +$60
Sandwiches*
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

McRib
$4,000
Average Units Per 1,000 Total Day Transactions

120 $3,500

Average Weekly Gross Margin
100 $3,000

$2,500
80

$2,000
60
$1,500

40
$1,000

20
$500

0 $0
Wk 1 Wk 2 wk 3 wk 4 wk 5 wk 6 wk 7 wk 8 wk 9 wk 10 wk 11

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

Units per 1,000 Total Day Transactions

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

Source: PMIX-W005a, all stores selling
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
STL $1 Menu Sandwiches UPT

10/10
10/17
10/24
10/31
11/7
11/14
11/21
11/28
12/5
12/12
12/19
12/26
GOC

1/2
1/9
Launch

1/16
1/23
1/30
2/6
STL $1 Menu

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

Fish McBites Daily Units
120
+300%
100
Average Daily Units Sold

80

60
Snack
Regular
40
Shareable

20

0

Source: Market Analytics, PMIX-D005a, all stores

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)
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)

PMIX-0012, ½-1/13/2013, 1/14-2/1/2013

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 2011 Difference 2012 2011 Difference
UPT UPT GM GM
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 260.2 256.1 +1.6% $445 $401 +11.0%
Sandwiches**
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

Average Weekly Units Sold

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

Single a la cate
1/22/13

1/23/13

1/24/13
2 for $3 multi 1/25/13

1/26/13

1/27/13
Steak and Egg Burrito Units Sold

meal

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

Total Burrito UPT Movement
139.0

119.0

99.0

79.0

59.0

39.0

19.0

-1.0
10/10

10/17

10/24

10/31

11/7

11/14

11/21

11/28

12/5

12/12

12/19

12/26

1/2

1/9

1/16

1/23

1/30

2/6
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

Coffee UPT
Current Year vs.Previous Year
140.0
Units Per 1,000 Total Day Transactions

130.0

120.0

110.0

100.0
Current Year
90.0 Previous Year
$1 Any
$1 Any Size
80.0
Size Coffee
Coffee Jan 2012
70.0
Nov 2012
60.0
Begins
8/9
8/16
8/23
8/30
9/6
9/13
9/20
9/27
10/4
10/11
10/18
10/25
11/1
11/8
11/15
11/22
11/29
12/6
12/13
12/20
12/27
1/3
1/10
1/17
1/24
1/31
2/7
8/3/12-1/24/13 vs. 8/5/11-1/26/12
Source: Market Analytics, Pmix-w005a, Stores Selling


0.0
10.0
20.0
30.0
40.0
50.0
60.0
11/9/07

11/23/07

12/7/07

12/21/07

1/4/08

1/18/08

2/1/08

2/15/08

2/29/08

3/14/08

3/28/08

Source: Market Analytics, Pmix-W005a, Stores Selling
4/11/08

4/25/08

5/9/08

12 oz
5/23/08

6/6/08
By Size
Coffee UPT

6/20/08

16 oz
7/4/08

7/18/08

20 oz
8/1/08

8/15/08

8/29/08

9/12/08

9/26/08

10/10/08

10/24/08
Weekly 11/2/12-2/7/13 vs. 11/4/11-2/9/12

11/7/08

11/21/08

12/5/08

12/19/08

1/2/09

1/16/09

1/30/09

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

Percentage

15%
20%
25%
30%
1/19/2012
1/26/2012
2/2/2012
2/9/2012
2/16/2012
2/23/2012
3/1/2012
3/8/2012
3/15/2012
3/22/2012
3/29/2012
4/5/2012
4/12/2012
4/19/2012
4/26/2012
5/3/2012
5/10/2012
5/17/2012
5/24/2012
5/31/2012
6/7/2012
6/14/2012
6/21/2012
6/28/2012
7/5/2012

St. Louis
7/12/2012
7/19/2012
7/26/2012
8/2/2012
8/9/2012
8/16/2012
Region 8/23/2012
8/30/2012

Source: Market Analytics, DYPT0005, 1/19/2012 – 2/7/2013
Breakfast Percent of Total Sales

9/6/2012
9/13/2012
9/20/2012
9/27/2012
10/4/2012
10/11/2012
10/18/2012
10/25/2012
11/1/2012
11/8/2012
Coffee
Launch

11/15/2012
11/22/2012
11/29/2012
$1 Any Size

12/6/2012
12/13/2012
12/20/2012
12/27/2012
1/3/2013
1/10/2013
1/17/13
1/24/13
1/31/13
2/7/13

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

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

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

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

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

FFS – Licensee Comp Restaurants

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%

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!

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

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