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McDonald's Marketing



             Our new food preparation system, Made For You, plays a big role in making our food a star. It delivers hotter, fresher-tasting food prepared to each customer's order. We also improved our core menu with more flavorful crispy and grilled chicken sandwiches, McSalad Shakers, breakfast bagel sandwiches, Fruit 'n Yogurt Parfaits, and the Big N' Tasty lettuce and tomato hamburger. Our New Tastes Menu has a rotating selection of entrees and desserts that showcase new, regional, sesonal and value items.
             Europe is our largest segment outside the U.S. and contributes about a third of McDonald's operating income. With about 5,500 restaurants in 50 countries at December 31, 2000, we have a strong brand presence, a well-developed infrastructure and a leading market position. Home to the U.K., Germany and France - three of our largest markets - Europe also includes some of our newest and smallest markets. Although in varying stages of development, these markets are united in their strategies to grow the business by providing great food, top notch service, convenience and outstanding value to build sales and further expand our customer base.
             Concerns about the safety of the European beef supply tempered our results in the fourth quarter 2000 and into 2001. However, our overall safety and quality standards lead the industry. We continue to aggressively communicate our quality standards to customers. In addition, our menu variety allows us to offer customers non-beef products.
             Asia/Pacific represents nearly 15 percent of our operating income. With more than half of the world's population but only 6,300 McDonald's restaurants at December 31, 2000, this segment represents enormous opportunities. We use a value strategy to keep prices low, making us more affordable to more people. Our menu incorporates the Asian preference for chicken, with our spicy chicken filet sandwich, bone-in-chicken and chicken wings. And we have built a strong brand that is getting even stronger.


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