TEXT-Fitch affirms McDonald's IDRs at 'A/F1', outlook stable

Sept 7 - Fitch Ratings has affirmed the ratings of McDonald's Corporation
(NYSE: MCD) as follows:

--Long-term Issuer Default Rating (IDR) at 'A';

--Bank credit facilities at 'A';

--Senior unsecured debt at 'A';

--Short-term IDR at 'F1';

--Commercial paper at 'F1'.

The Rating Outlook is Stable. At June 30, 2012, McDonald's had $13.6 billion of
total debt. Roughly 68% of this debt was U.S. denominated and 32% was foreign
denominated.

Rating Rationale:

McDonald's ratings reflect its substantial cash flow generation, considerable
financial flexibility, and leading global market position with nearly 34,000
units and over $85 billion of systemwide sales. Cash flow from operations has
grown at a 10% compound annual rate since 2003 to $7.2 billion in 2011 and free
cash flow (FCF) has averaged $1.6 billion during the same period. Furthermore,
McDonald's cash balance has averaged over $2 billion since 2003, the firm has
extensive access to public debt capital, and has an undrawn $1.5 billion
revolver expiring November 2016.

Fitch expects operating cash flow to remain strong at approximately $7 billion
in both 2012 and 2013, despite an increasingly challenged global economic
environment and the prospect of higher commodity food costs in 2013. Reinvesting
in its business and returning cash to shareholders while maintaining leverage
appropriate for its 'A' credit rating are the foundation of McDonald's financial
strategy.

McDonald's business model, which is based on a well-established franchisee
network and significant real estate ownership, provides the firm a unique
competitive advantage and strengthens its credit profile. At June 30, 2012,
franchisees and affiliates operated 81% of McDonald's 33,735 units while the
remaining 19% were company-operated.

Revenue from franchise operations, which consists of a stable stream of
sales-based royalties and contractual rent payments, represented 32% of
McDonald's $27 billion of total revenue in 2011. McDonald's owns about 45% of
the land and 70% of the buildings for its system of restaurants. Net property
and equipment had a book value of $23.1 billion at June 30, 2012.

Credit Statistics:

McDonald's credit measures are appropriate for its 'A/F1' ratings and in line
with Fitch's expectations.2012 Outlook: U.S. Restaurants