Supplemental Information Regarding

Free Cash Flow and Free Cash Flow Conversion Rate

Years Ended December 31,

Dollars in millions

2019

2014

Cash Provided by Operations

8,122.1

6,730.3

Less: Capital expenditures

2,393.7

2,583.4

Free cash flow*

5,728.4

4,146.9

Divided by: Net income

6,025.4

4,757.8

Free cash flow conversion rate*

95.1%

87.2%

*Free cash flow, defined as cash provided by operations less capital expenditures, and free cash flow conversion rate, defined as free cash flow divided by net income, are measures reviewed by management in order to evaluate the Company's ability to convert net profits into cash resources, after reinvesting in the core business, that can be used to pursue opportunities to enhance shareholder value.

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McDonald's Corporation published this content on 09 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 November 2020 23:00:02 UTC