McDonald's is launching its first global media review in over a decade, aiming to partner with multiple agencies instead of a single one, while maintaining its long-standing relationship with OMD. The review comes as McDonald's strives to improve marketing efficiency and customer engagement amidst recent declines in sales and engagement metrics. The document also highlights key consumer trends and demographics influencing fast food choices, reflecting the competitive landscape of the quick-service restaurant industry.

1. N E W B U S I N E S S P I T C H B R I E F
NOVEMBER 2017

2. T H E D A T A
McDonald's is beginning its first global media review in
more than 10 years, now seeking to work with a roster of
preferred agencies rather than a single partner.
OMD, the company's longtime media agency, will be
participating in the process, McDonald's said. "Our
long-term relationship with OMD remains strong,"
McDonald's said in a statement.
"As part of our journey to build a better McDonald's we
are striving to make our marketing dollars work
harder—through more efficient media spending and
better connections with our customers," it said.
Y O U N E E D
T O W I N
T H I S P I T C H
McDonald’s Launch Global
Media Agency Review
Media
Global
October 31, 2017

3. C O M P A N Y B A C K G R O U N D
C L I E N T P R O F I L E / M A R K E T
Dick and Mac McDonald opened their eponymous burger stand in 1948 in San
Bernardino, Calif. Under the guidance of Ray Kroc, a onetime milkshake-mixer
salesman wowed by the restaurant's success, McDonald's franchises grew
swiftly: by the end of the 1960s, there were more than 1,000 across the U.S.
The first international franchise opened in 1967 in British Columbia, and was
followed by another in Costa Rica later that year. From there, the chain spread
steadily: over a six-month period in 1971, Golden Arches popped up on three
new continents, as stores launched in Japan, Holland and a suburb of Sydney.
A Brazilian McDonald's opened in 1979, bringing Ronald McDonald to South
America for the first time. McDonald's reached its sixth (and, barring a
sub-Arctic drive-thru, final) continent in 1992, with the opening of a restaurant in
Casablanca, Morocco.
F I N A N C I A L O V E R V I E W
2016 Sales (mil)
2016 Employees
Employee Growth Percent
Assets (mil)
Net Income Growth Percent
Sales Growth Percent
25,413
420,000
NA
37,938,699
-4.8%
-7.4%
D E C I S I O N M A R K E R S by M A I N C O M P E T I T O R S
rebecca.anderson@us.mcd.comManager,
United States Marketing
Ms Rebecca Anderson
morgan.flatley@us.mcd.comChief Marketing Officer
Ms. Morgan Flatley

4. F A S T F O O D I N D U S T R Y I N N U M B E R S
Q U I C K S E R V I C E R E S T A U R A N T S
OTHER
50%
50%
QSR
(Fast Foods + Fast Casual) Account for half of sales in the entire restaurant sector
2016 U.S. REVENUE
$ 245 b
- IBISWorld -
ANNUAL GROWTH 12-17
3.1%
- IBISWorld -
294,633
FAST FOOD IN THE U.S.

5. A M E R I C A N S A N D F A S T F O O D S
F A S T F O O D F R E Q U E N C Y
- Pew Research Center -
AMERICANS EAT AT
ONE FAST FOOD
RESTAURANT
EVERY DAY
50 MLN
- CDC's National Center for Health Statistics -
OF CHILDREN AND ADOLESCENTS,
AGED 2-19, CONSUME FAST FOOD ON
A GIVEN DAY
30 %

6. F A S T F O O D : A C O N V E N I E N C E C H O I C E
OF THEIR DISPOSABLE
INCOME ON FAST FOOD
EVERY YEAR10%
- Stanford University Research -
OF ALL AMERICAN
MEALS ARE EATEN IN
THE CAR20%
- Advocate Health Care -
Convenient 67,2%
Cheap 31,7%
I just like it 30,6%
Lack of other options 13,2%
Other 5,6%
R E A S O N S T O E A T A T F A S T F O O D R E S T A U R A N T S
F A S T F O O D W I T H T H E B E S T F R I E S F A S T F O O D W I T H T H E B E S T B E E F B U R G E R
30%
22,5%
15%
7,5%
0%
McDonald’s Five Guys In-N-Out
17%
12,7%
8,5%
4,25%
0%
Five Guys In-N-Out Whataburger
29%
11%
9%
17% 17%
11%

7. M c D O N A L D ‘ S S T I L L T H E B I G G E S T P L A Y E R
40,000
30,000
20,000
10,000
0
McDonald’s Starbucks Subway
F A S T F O O D B Y R E V E N U E
Burger King Wendy’s Taco Bell
$ 25.4 B
McDonald’s 2015
Global revenue
40%
of its system
restaurants
U.S. Market
represent

8. T H E G O L D E N A R C H E S H A D T O F A C E 2 Y E A R S O F D E C L I N E
M c D O N A L D ’ S U. S. B U S I N E S S F I N A L L Y I M P R O V I N G
The restaurant chain’s U.S. comparable sales rose for the first time in 2 years in the third quarter
1
0
- 1
- 2
- 3
Q3 - 13
0.70%
Q4 - 13
-1.40%
Q1 - 14
-1.70%
Q2 - 14
-1.50%
Q3 - 14
-3.30%
Q4 - 14 Q1 - 15 Q2 - 15
-2.0%
Q3 - 15
0.90%
-1.70%
-2.60%
$ 2.2 B
McDonald’s 2016
worldwide measured
media spending
$ 3.3 B
McDonald’s 2016
worldwide AD
spending

9. McDonald’s sponsorship of
Olympic Games begun in 1976.
McDonald’s spends about $25
million a year, or about $100 million
for a four-year period, that includes
the Summer and Winter Olympics.
In the United States, TV ratings of
Olympic Games are diminishing.
NBCUniversal reported that Rio
2016 grabbed 8.6% fewer eyeballs
than London 2012.
P U L L I N G O U T O F O L Y M P I C S S P O N S O R S H I P

10. C O N S U M E R T R E N D S
Other menu claims that influence ordering include: Grass Fed/Pasture Raised (59%); Hormone
Free (57%); Antibiotic Free Protein (56%); Free Range/Free Roaming (55%); Non GMO (55%);
Sustainably Caught/Raised (54%); Fair Trade (54%); Heirloom Fruits and Vegetables (52%);
Cage Free (52%); and Organic (50%).
At restaurants that promote positive business practices and responsibly sourced ingredients,
52% expect fresher food, 48% expect healthier food, 45% expect the food to taste better, and
33% expect the food to cost a bit more but be worth it.
83% of consumers like to patronize restaurants known for treating their employees well.
The top menu claims that influence consumers' menu choices were: Fresh (86%); Local
(73%); Whole Grain (68%); All Natural (66%); and No High Fructose Corn Syrup (62%).
73% of respondents choose to patronize restaurants that support
their local communities or causes they believe in.
40%
30%
20%
10%
0%
JERSEY MIKE’S
SUBS
CHIPOTLE
MEXICAN GRILL
FIREHOUSE
SUBS
F A S T E S T G R O W I N G R E S T A U R A N T S C H A I N S
TOTAL UNIT GROWTHSALES GROWTH
- Nation’s Restaurant News, June 2015 -

11. P S Y C H O G R A P H I C S
F E M A L E S
5 2 . 8 %
1 5 - 1 7 Y E A R S O L D
1 8 . 5 %
L I V I N G I N
T H E S O U T H R E G I O N
3 7 . 5 %
T O P
F O O D
L O V E R S
G A M E R SE N T E R T A I N M E N T
J U N K I E S
S E E T H E F U L L P R O F I L E
M c D O N A L D ‘ S A U D I E N C E

12. F A S T F O O D
Consumers who
are interested
in fast food
restaurants and
have interacted
with at least one
of them online.
F O O D L O V E R S
1 . 6 x
G A M E R S
1 . 5 x
B E A U T Y & W E L L N E S S A W A R E
1 . 4 x
O U T D O O R E N T H U S I A S T
1 . 3 x
C O N S U M E R S

13. F A S T F O O D
C O N S U M E R S
DEMOGRAPHICS
G E T F U L L I N S I G H T S
FEMALE
50%
U. S. S T A T E M A P
2 0 %
1 8 - 2 4 Y E A R S O L D
4 0 %
S I N G L E
6 3 %
W I T H O U T C H I L D R E N
1 7 %
H I S P A N I C
6 0 %
H H I < $ 7 0 k

14. F A S T F O O D
C O N S U M E R S
TAGET
SEGMENTATION
G E T F U L L P R O F I L E
P O S T
M I L L E N N I A L
H I S P A N I C
Our clustering algorithm identified
10 different niches among
Post-Millennial
Hispanics represent
10.6% of the Fast
Food Consumers
target
F A S T F O O D C O N S U M E R S
C L U S T E R S
O V E R V I E W

15. G E T F U L L P R O F I L E
P O S T - M I L L E N N I A L S
H I S P A N I C S
CONTENT
ENGAGEMENT
ANALYSIS
C E L E B R I T I E S
F A N S
2 . 3 x
M O D E L S
2 . 6 x
C H E F S
2 . 2 x
O N L I N E C E L B R I T I E S
1 . 3 x
M O S T E N G A G I N G I N F L U E N C E R S T Y P E
People in this segment want to know everything about
their favorite celebrities, which arises from their heavy
social media usage.
They can easily be persuaded by who they follow;
influencers have a lot of impact on their choices.
19th OCTOBER / 2nd NOVEMBER
INTERACTED
WITH A VIDEO
4 1 %
INTERACTED
ON THURSDAY
3 0 %

16. G E T F U L L I N S I G H T S
P O S T - M I L L E N N I A L S
H I S P A N I C S
MEDIA
T V F O R F U N
1 . 8 x
A F F I N I T Y
R E A L I T Y S H O W S
1 . 5 x
A F F I N I T Y
R A D I O S H O W S
4 6 %
R E A C H
M E D I A O P I N I O N S
I FIND TV ADVERTISING
INTERESTING AND QUITE
OFTEN IT GIVES ME
SOMETHING TO TALK ABOUT
+204.7%
Interaction volume change
1.2 x A F F I N I T Y

17. I N S I G H T S
S U I T E
C O N S U M E R
Discover McDonald’s Target Consumer
on Cubeyou Consumer Insights Suite
T R Y N O W F O R F R E E