Mcdonalds Unveils "big Salads"

[george]

Junk food:

McDonalds unveils "big salads"

Fast food chain McDonald's unveiled today what it described as the biggest change to its menu since arriving in the UK 30 years ago.

The company is introducing meal-size salads, a side salad, fresh apples and a burger made from the meat substitute Quorn.

Parents will have the option of swapping fries for a green salad in children's Happy Meals.

McDonald's, which has been criticised by health campaigners worried about rising levels of obesity, also confirmed it was cutting levels of salt in fries and chicken nuggets.

Bosses believe the new healthier options could one day sell as much as McDonald's better-known products, such as the Big Mac.

Andrew Taylor, chief executive of McDonald's UK, told PA News: "We mustn't duck away from the issue of obesity - it is out there every day.

"But this isn't a response to that, it is a response to what our customers want."

The new Salads Plus menu includes two types of grilled or crispy chicken salad - ranch and caesar - for £3.49. Each is made with six different varieties of lettuce, as well as carrots and cherry tomatoes.

Examination of the nutritional information for each product, which will be available in restaurants, show big variations.

A grilled chicken caesar salad without dressing or croutons has 3.2 grams of fat per 100 grams. However, a crispy chicken caesar salad with dressing and croutons has 8.1 grams of fat per 100 grams.

A Big Mac, in comparison, has 10.7 grams of fat per 100 grams.

Health

A McDonald's spokeswoman said they did not make health claims about the products.

The new menu, which is available from March 29 in the UK, is the latest attempt by the chain to alter its menu.

In February last year it announced plans to sell bags of sliced apples and grapes, and a juice drink option in Happy Meals.

Last week McDonald's confirmed it was phasing out its supersize portions of fizzy drinks and fries.

In response to concerns about high levels of salt in the nation's diets it is cutting the amount in fries by 25% and in Chicken McNuggets by 30% over the next three years.

A spokeswoman for the Food Commission, a healthy eating campaign group, said: "It is good that a company like McDonald's is acknowledging they need to help consumers improve their diets.

"But on the pricing front, they have salads at £3.49 while doing a promotion for burgers for 99p."

--Agencies, UK 2004-03-09

[george]

Press Release Source: McDonald's Corporation

McDonald's Revitalization Plan Delivering Results

Monday March 8, 3:30 pm ET

Company Says Revitalization Plan Is Working But More To Do

OAK BROOK, Ill., March 8 /PRNewswire-FirstCall/ -- McDonald's (NYSE: MCD - News)

Chairman and Chief Executive Officer Jim Cantalupo provided an update on the company's revitalization momentum and positive business trends during an investor presentation/webcast in New York City today. Presenting with Cantalupo were Charlie Bell, President and Chief Operating Officer; Matthew Paull, Executive Vice President and Chief Financial Officer; Mike Roberts, President, McDonald's U.S.A.; and Russ Smyth, President, McDonald's Europe.

Cantalupo said, "Last year, we laid out a comprehensive revitalization plan designed to get McDonald's business back on track. With the results that we have seen in 2003, it's clear that our 'Plan to Win' is making a difference and driving results beyond even our own expectations. While I'm pleased with our performance, I know we have more work to do."

"Our recent performance proves that operating restaurants better is a strategy that delivers growth and attracts customers," said Cantalupo. "February marked the tenth consecutive month of positive systemwide comparable sales which we achieved by focusing on our customers and restaurants. Our progress to date has been significant, however, our revitalization will not be complete until we see sustainable improvements around the world. To achieve this kind of growth, we must focus on improving execution and innovation to give our customers a better experience."

McDonald's sustaining growth targets for 2005 and beyond are:

-- Annual systemwide sales and revenue growth of 3% to 5% (constant

currencies)

-- Annual operating income growth of 6% to 7% (constant currencies)

-- Annual return on incremental invested capital in the high teens

(constant currencies)

During his remarks, Charlie Bell, President and Chief Operating Officer, said, "Last April, we focused the entire McDonald's System on the five drivers of superior customer experiences -- people, products, place, price and promotion -- which will result in enduring profitable growth for McDonald's global business.

"We also established three-year goals to measure our progress against these business drivers. I am glad to report that we have made progress in some areas, but overall we are not satisfied. Our near-term objective is to continue to strengthen our foundation by improving customer relevance through operations excellence and leadership marketing."

Matthew Paull, Executive Vice President and Chief Financial Officer, said, "Over the long term, we see ourselves as a steadily growing, reliable generator of cash. With more than 30,000 restaurants worldwide, our existing restaurants are a powerful growth engine with enormous opportunity for sustainable profitable growth and higher returns.

"In 2003, McDonald's generated $3.3 billion of cash from operations. As we become even more relevant to our customers, we have strategically increased capital expenditures for 2004 by $200 million to $300 million, to $1.5 billion to $1.6 billion. This increase is primarily for higher reinvestment in existing restaurants to build our brand and attract more customers. Nothing represents our brand more than the look and feel of our restaurants. Generally, remodeled restaurants drive incremental sales and profits as they are more appealing to customers and more efficient to operate. In terms of new restaurant openings, we are expanding in markets where we expect good returns and where long-term opportunities are significant, such as China.

"We also plan to pay down $400 million to $700 million in debt this year and return about $1 billion to shareholders through dividends and share repurchase. McDonald's will continue to exercise discipline in management of G&A and capital expenditures."

At the conclusion of the webcast, Cantalupo noted, "McDonald's is one of the world's favorite brands. We know our business requires a relentless focus on the details. Our revitalization is not complete, however, the changes we put in place over the past year have put us well on the track toward sustainable, predictable, earnings growth and increased returns."

More than 30,000 local McDonald's restaurants serve approximately 47 million customers each day in more than 100 countries. Please visit our newly designed website at www.mcdonalds.com to learn more McDonald's.