MCD McDonalds Corp

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The following table presents restaurant information by ownership type:

Restaurants at June 30,	2018			2017
Conventional franchised	21,535			21,317
Developmental licensed	7,013			7,263
Foreign affiliated	5,973			3,356
Total Franchised	34,521			31,936
Company-operated	2,885			5,075
Systemwide restaurants	37,406			37,011

Measurement Period - Tax Cuts and Jobs Act of 2017

In December 2017, the Securities and Exchange Commission published Staff Accounting Bulletin No. 118 ("SAB 118"), which provides guidance on reporting for accounting impacts of the Tax Cuts and Jobs Act of 2017 (“Tax Act”). SAB 118 allowed the Company to provide reasonable estimates in its 2017 consolidated financial statements for the income tax effects of the Tax Act and to report those effects as provisional amounts in its financial statements through a limited measurement period. Under SAB 118, the measurement period may not extend beyond one year from the enactment of the Tax Act.

The Company has not completed the accounting for the tax effects of the enactment of the Tax Act, although it has made reasonable estimates of the effects on existing deferred tax balances and on the one-time transition tax on earnings of certain foreign subsidiaries. Certain aspects of the Tax Act are expected to be clarified, and as such, could impact these estimates. A net provisional tax cost of approximately $700 million was originally recognized in the Company's 2017 consolidated financial statements, and subsequently increased by $52 million in the first quarter of 2018.

Lease Accounting

In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, “Leases (Topic 842),” to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements.  Most prominent among the amendments is the recognition of assets and liabilities by lessees for those leases classified as operating leases under current U.S. GAAP. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company will adopt the new standard effective January 1, 2019.

At transition, the Company will recognize and measure leases using the required modified retrospective approach. The Company anticipates ASU 2016-02 will have a material impact on the consolidated balance sheet due to the significance of the Company’s operating lease portfolio. The Company will elect an optional practical expedient to retain the current classification of leases, and, therefore,

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anticipates a minimal initial impact on the consolidated statement of income. The impact of ASU 2016-02 is non-cash in nature; therefore, it will not affect the Company’s cash flows.

Recently Adopted Accounting Standards

Derivatives and Hedging

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 expanded components of fair value hedging, specifies the recognition and presentation of the effects of hedging instruments, and eliminates the separate measurement and presentation of hedge ineffectiveness. The Company elected to early adopt the new standard in the first quarter of 2018 and applied the presentation and disclosure guidance on a prospective basis. The adoption of the standard did not have a material impact on the Company's condensed consolidated financial statements.

Income Taxes

In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” The goal of this update was to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The Company adopted this standard on January 1, 2018 using a modified retrospective method, resulting in a cumulative catch up adjustment of $57 million, the majority of which was recorded within miscellaneous other assets on the condensed consolidated balance sheet. The adoption of this standard did not have a material impact on the condensed consolidated statements of income and cash flows.

Revenue Recognition

In May 2014, the FASB issued guidance codified in Accounting Standards Codification ("ASC") 606, "Revenue Recognition - Revenue from Contracts with Customers," which amended the guidance in former ASC 605, "Revenue Recognition." The core principle of the standard is to recognize revenue when control of the promised goods or services is transferred to customers in an amount that reflects the consideration expected to be received for those goods or services. The standard also requires additional disclosures around the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.

The Company’s revenues consist of sales by Company-operated restaurants and fees from franchised restaurants operated by conventional franchisees, developmental licensees and foreign affiliates. Revenues from conventional franchised restaurants include rent and royalties based on a percent of sales with minimum rent payments, and initial fees. Revenues from restaurants licensed to foreign affiliates and developmental licensees include a royalty based on a percent of sales, and may include initial fees.

ASC 606 provides that revenues are to be recognized when control of promised goods or services is transferred to a customer in an amount that reflects the consideration expected to be received for those goods or services. This standard does not impact the Company's recognition of revenue from Company-operated restaurants as those sales are recognized on a cash basis at the time of the underlying sale and are presented net of sales tax and other sales-related taxes. The standard also does not change the recognition of royalties from restaurants operated by franchisees or licensed to affiliates and developmental licensees, which are based on a percent of sales and recognized at the time the underlying sales occur. Rental income from restaurants operated by conventional franchisees is also not impacted by this standard as those revenues are subject to the guidance in ASC 840, "Leases." The standard does change the timing in which the Company recognizes initial fees from franchisees for new restaurant openings and new franchise terms. The Company's accounting policy through December 31, 2017, was to recognize initial franchise fees when received, upon a new restaurant opening and at the start of a new franchise term. Beginning in January 2018, initial franchise fees are being recognized as the Company satisfies the performance obligation over the franchise term, which is generally 20 years.

The Company adopted ASC 606 as of January 1, 2018, using the modified retrospective method. This method allows the standard to be applied retrospectively through a cumulative catch up adjustment recognized upon adoption. As such, comparative information in the Company’s financial statements has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative adjustment recorded upon adoption of ASC 606 consisted of deferred revenue of approximately $600 million within long-term liabilities and approximately $150 million of associated adjustments to the deferred tax balances which are recorded in Deferred income taxes and Miscellaneous other assets on the condensed consolidated balance sheet.

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The following table presents revenue disaggregated by revenue source (in millions):

		Quarters Ended								Six Months Ended
		June 30,								June 30,
		2018				2017				2018				2017
Company-operated sales
U.S.		$	696.8			$	849.5			$	1,405.5			$	1,685.1
International Lead Markets		1,022.7				1,021.4				2,029.8				1,962.6
High Growth Markets		732.6				1,459.3				1,432.9				2,804.6
Foundational Markets & Corporate		142.8				239.4				262.3				529.2
Total		$	2,594.9			$	3,569.6			$	5,130.5			$	6,981.5
Franchised revenues
U.S.		$	1,264.4			$	1,198.9			$	2,422.9			$	2,292.3
International Lead Markets		908.2				791.8				1,778.6				1,494.1
High Growth Markets		281.4				219.9				553.3				411.8
Foundational Markets & Corporate		305.0				269.5				607.5				545.9
Total*		$	2,759.0			$	2,480.1			$	5,362.3			$	4,744.1
Total revenues
U.S.		$	1,961.2			$	2,048.4			$	3,828.4			$	3,977.4
International Lead Markets		1,930.9				1,813.2				3,808.4				3,456.7
High Growth Markets		1,014.0				1,679.2				1,986.2				3,216.4
Foundational Markets & Corporate		447.8				508.9				869.8				1,075.1
Total		$	5,353.9			$	6,049.7			$	10,492.8			$	11,725.6

*	Although the Company expects the application of ASC 606 to negatively impact 2018 annual franchised revenues by approximately $50 million, results for the quarter and six months ended June 30, 2018, only reflected an impact of approximately $10 million and $15 million, respectively, due to the timing of new restaurant openings and new franchise terms.

The Company measures certain financial assets and liabilities at fair value. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The Company did not have any significant changes to the valuation techniques used to measure fair value as described in the Company's December 31, 2017 Annual Report on Form 10-K.

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The Company is exposed to global market risks, including the effect of changes in interest rates and foreign currency fluctuations. The Company uses foreign currency denominated debt and derivative instruments to mitigate the impact of these changes. The Company does not hold or issue derivatives for trading purposes.

The following table presents the fair values of derivative instruments included on the condensed consolidated balance sheet:

	Derivative Assets										Derivative Liabilities
In millions	Balance Sheet Classification		June 30, 2018				December 31, 2017				Balance Sheet Classification		June 30, 2018				December 31, 2017
Derivatives designated as hedging instruments
Foreign currency	Prepaid expenses and other current assets		$	20.7			$	0.5			Accrued payroll and other liabilities		$	(5.4	)		$	(31.0	)
Interest Rate											Accrued payroll and other liabilities		(0.8		)		(0.3		)
Foreign currency	Miscellaneous other assets		5.6				0.1				Other long-term liabilities		(0.1		)		(1.4		)
Interest rate	Miscellaneous other assets										Other long-term liabilities		(21.6		)		(5.9		)
Total derivatives designated as hedging instruments			$	26.3			$	0.6					$	(27.9	)		$	(38.6	)
Derivatives not designated as hedging instruments
Equity											Accrued payroll and other liabilities		$	(3.1	)		$	(1.3	)
Foreign currency	Prepaid expenses and other current assets		$	6.5			$	—			Accrued payroll and other liabilities		—				(5.5		)
Equity	Miscellaneous other assets		153.3				167.3
Total derivatives not designated as hedging instruments			$	159.8			$	167.3					$	(3.1	)		$	(6.8	)
Total derivatives			$	186.1			$	167.9					$	(31.0	)		$	(45.4	)

The following table presents the pre-tax amounts from derivative instruments affecting income and other comprehensive income (“OCI”) for the six months ended June 30, 2018 and 2017, respectively:

	Location of Gain or Loss Recognized in Income on Derivative		Gain (Loss) Recognized in Accumulated OCI								Gain (Loss) Reclassified into Income from Accumulated OCI								Gain (Loss) Recognized in Income on Derivative
In millions			2018				2017				2018				2017				2018				2017
Foreign currency	Nonoperating income/expense		$	31.8			$	(47.5	)		$	(19.7	)		$	9.4
Interest rate	Interest expense		—				—				(0.5		)		(0.2		)
Cash flow hedges			$	31.8			$	(47.5	)		$	(20.2	)		$	9.2
Foreign currency denominated debt	Nonoperating income/expense		$	399.7			$	(978.1	)		$	—			$	—
Foreign currency derivatives	Nonoperating income/expense		1.0				(23.0		)		—				8.0
Foreign currency derivatives(1)	Interest expense																		$	0.2			$	—
Net investment hedges			$	400.7			$	(1,001.1	)		$	—			$	8.0			$	0.2			$	—
Foreign currency	Nonoperating income/expense																		$	11.8			$	(18.5	)
Equity	Selling, general & administrative expenses																		(8.6		)		50.9
Undesignated derivatives																			$	3.2			$	32.4
(1)The amount of gain (loss) recognized in income related to components excluded from effectiveness testing.

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Fair Value Hedges

The Company enters into fair value hedges to reduce the exposure to changes in fair values of certain liabilities. The Company enters into fair value hedges that convert a portion of its fixed rate debt into floating rate debt by use of interest rate swaps.  At June 30, 2018, the carrying amount of fixed-rate debt that was effectively converted was $727.7 million, which included a decrease of $22.3 million of cumulative hedging adjustments. For the six months ended June 30, 2018, the Company recognized a $16.2 million loss on the fair value of interest rate swaps, and a corresponding gain on the fair value of the related hedged debt instrument to Interest expense.

Cash Flow Hedges

The Company enters into cash flow hedges to reduce the exposure to variability in certain expected future cash flows. To protect against the reduction in value of forecasted foreign currency cash flows (such as royalties denominated in foreign currencies), the Company uses foreign currency forwards to hedge a portion of anticipated exposures. The hedges cover the next 18 months for certain exposures and are denominated in various currencies. As of June 30, 2018, the Company had derivatives outstanding with an equivalent notional amount of $809.5 million that hedged a portion of forecasted foreign currency denominated cash flows.

Based on market conditions at June 30, 2018, the $23.8 million in cumulative cash flow hedging gains, after tax, is not expected to have a significant effect on earnings over the next 12 months.

Net Investment Hedges

The Company primarily uses foreign currency denominated debt (third party and intercompany) to hedge its investments in certain foreign subsidiaries and affiliates. Realized and unrealized translation adjustments from these hedges are included in shareholders' equity in the foreign currency translation component of OCI and offset translation adjustments on the underlying net assets of foreign subsidiaries and affiliates, which also are recorded in OCI. As of June 30, 2018, $11.7 billion of the Company's third party foreign currency denominated debt and $4.0 billion of intercompany foreign currency denominated debt were designated to hedge investments in certain foreign subsidiaries and affiliates.

Undesignated Derivatives

The Company enters into certain derivatives that are not designated for hedge accounting, therefore the changes in the fair value of these derivatives are recognized immediately in earnings together with the gain or loss from the hedged balance sheet position. As an example, the Company enters into equity derivative contracts, including total return swaps, to hedge market-driven changes in certain of its supplemental benefit plan liabilities. Changes in the fair value of these derivatives are recorded in Selling, general & administrative expenses together with the changes in the supplemental benefit plan liabilities. In addition, the Company uses foreign currency forwards to mitigate the change in fair value of certain foreign currency denominated assets and liabilities. The changes in the fair value of these derivatives are recognized in Nonoperating (income) expense, net, along with the currency gain or loss from the hedged balance sheet position.

Credit Risk

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The Company franchises and operates McDonald’s restaurants in the global restaurant industry. The following reporting segments reflect how management reviews and evaluates operating performance.

•	U.S. - the Company's largest segment

•	International Lead Markets - established markets including Australia, Canada, France, Germany, the U.K. and related markets

•	High Growth Markets - markets the Company believes have relatively higher restaurant expansion and franchising potential including China, Italy, South Korea, Poland, Russia, Spain, Switzerland, the Netherlands and related markets

•	Foundational Markets & Corporate - the remaining markets in the McDonald's system, most of which operate under a largely franchised model. Corporate activities are also reported within this segment

The following table presents the Company’s revenues and operating income by segment:

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•	Global comparable sales increased 4.0% for the quarter and 4.7% for the six months, reflecting positive comparable sales in all segments

•	Due to the impact of the Company's strategic refranchising initiative, consolidated revenues decreased 12% (14% in constant currencies) for the quarter and 11% (14% in constant currencies) for the six months

•	Systemwide sales increased 5% in constant currencies for the quarter and 6% in constant currencies for the six months

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Consolidated operating income decreased 1% (4% in constant currencies) for the quarter and increased 2% (decreased 2% in constant currencies) for the six months. Both periods were negatively impacted by $92 million of strategic restructuring charges incurred in the current quarter. Excluding the impact of these charges, as well as strategic charges in the prior year, operating income increased 2% (decreased 1% in constant currencies) for the quarter and increased 3% (decreased 1% in constant currencies) for the six months

•	Diluted earnings per share of $1.90 increased 12% (9% in constant currencies) for the quarter and $3.62 for the six months increased 14% (10% in constant currencies), reflecting $0.09 per share of strategic restructuring charges incurred in the quarter. The six months also included $0.07 per share of additional income tax expense related to an adjustment to the

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•	Returned $2.5 billion to shareholders through share repurchases and dividends for the quarter. This brings the six months return to shareholders to $4.9 billion

•	Changes in Systemwide sales are driven by comparable sales, net restaurant unit expansion, and the potential impacts of hyper-inflation. The Company expects net restaurant additions to add approximately 1 percentage point to 2018 Systemwide sales growth (in constant currencies).

•	The Company does not generally provide specific guidance on changes in comparable sales. However, as a perspective, assuming no change in cost structure, a 1 percentage point change in comparable sales for either the U.S. or the International Lead segment would change annual diluted earnings per share by about 5 to 6 cents.

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Effective January 1, 2018, the Company adopted the guidance issued in Accounting Standards Codification 606, "Revenue Recognition - Revenue from Contracts with Customers." This standard changed the way initial fees from franchisees for new restaurant openings and new franchise terms are recognized. Under the new guidance, initial franchise fees will be recognized evenly over the franchise term. The Company expects the adoption of this guidance to negatively impact 2018 Consolidated franchised revenues and franchised margins by approximately $50 million.

•	With about 75% of McDonald's grocery bill comprised of 10 different commodities, a basket of goods approach is the most comprehensive way to look at the Company's commodity costs. For the full-year 2018, costs for the total basket of goods are expected to increase about 1% to 2% in the U.S. and increase about 2% in the International Lead segment.

•	The Company expects full-year 2018 selling, general and administrative expenses to decrease about 1% in constant currencies.

•	Based on current interest and foreign currency exchange rates, the Company expects interest expense for the full-year 2018 to increase about 5% to 7% compared with 2017 due primarily to higher average debt balances.

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A significant part of the Company's operating income is generated outside the U.S., and about 40% of its total debt is denominated in foreign currencies. Accordingly, earnings are affected by changes in foreign currency exchange rates, particularly the Euro, British Pound, Australian Dollar and Canadian Dollar. Collectively, these currencies represent approximately 70% of the Company's operating income outside the U.S. If all four of these currencies moved by 10% in the same direction, the Company's annual diluted earnings per share would change by about 30 cents.

•	The Company expects the effective income tax rate for the full-year 2018 to be in the 25-27% range, with volatility between the quarters. Certain aspects of the Tax Act are expected to be clarified, and as such, could impact the Company's tax rate.

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The Company expects capital expenditures for 2018 to be approximately $2.4 billion. About $1.5 billion will be dedicated to our U.S. business, primarily focused on accelerating the pace of EOTF. We expect to complete EOTF at nearly 4,000 additional U.S. restaurants in 2018, and, as a result, about half of the total U.S. restaurants will have EOTF by the end of 2018. Of the remaining capital, about half will be dedicated to new restaurant openings and the remainder will be allocated to reinvestment in continued expansion of EOTF around the world. The Company will contribute capital towards about 250 restaurant openings, while developmental licensees and affiliates will contribute capital towards the opening of approximately 750 restaurants, for a total of about 1,000 expected restaurant openings in 2018. The Company expects net additions of about 600 restaurants in 2018.

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Information in constant currency is calculated by translating current year results at prior year average exchange rates. Management reviews and analyzes business results excluding the effect of foreign currency translation, impairment and other strategic charges and gains, as well as adjustments to the provisional amounts recorded in December 2017 under the Tax Act, and bases incentive compensation plans on these results, because the Company believes this better represents underlying business trends.

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Systemwide sales include sales at all restaurants, whether operated by the Company or by franchisees. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company's financial performance, because these sales are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base.

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Comparable sales represent sales at all restaurants and comparable guest counts represent the number of transactions at all restaurants, whether operated by the Company or by franchisees, in operation at least thirteen months including those temporarily closed. Some of the reasons restaurants may be temporarily closed include reimaging or remodeling, rebuilding, road construction and natural disasters. Comparable sales exclude the impact of currency translation and sales from hyper-inflationary markets (currently only Venezuela). Management generally identifies hyper-inflationary markets as those markets whose cumulative inflation rate over a three-year period exceeds 100%. Management believes that these exclusions more accurately reflect the underlying business trends. Comparable sales are driven by changes in guest counts and average check, which is affected by changes in pricing and product mix. Typically, pricing has a greater impact on average check than product mix. Management reviews the increase or decrease in comparable sales and comparable guest counts compared with the same period in the prior year to assess business trends.

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•	Revenues: Revenues decreased 12% (14% in constant currencies) for the quarter and decreased 11% (14% in constant currencies) for the six months due to the Company's strategic refranchising initiative.

•	U.S.: Revenues decreased for both periods as the benefit from positive comparable sales was more than offset by the impact of refranchising.

•	International Lead Markets: Revenues increased for both periods due to strong performance in the U.K. and France as well as positive comparable sales across all markets, partly offset by the impact of refranchising.

•	High Growth Markets: Revenues decreased for both periods as positive comparable sales across most markets were more than offset by the impact of refranchising the Company's businesses in China and Hong Kong in third quarter 2017.

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*	Unlike comparable sales, the Company has not excluded hyper-inflationary market results from Systemwide sales as these sales are the basis on which the Company calculates and records revenues.

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*	The franchised sales increases reflect the impact of refranchising the Company's businesses in China and Hong Kong in the third quarter of 2017.

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•	Franchised: Franchised margin dollars increased $233.0 million or 11% (9% in constant currencies) for the quarter and increased $522.1 million or 13% (9% in constant currencies) for the six months. Both periods benefited from expansion and the impact of refranchising, as well as positive comparable sales performance across all segments.

•	U.S.: The decrease in the franchised margin percent for the quarter and six months was primarily due to higher depreciation costs related to EOTF, partly offset by the benefit from positive comparable sales.

•	International Lead Markets: The increase in the franchised margin percent for the quarter and six months primarily reflected the benefit from strong comparable sales performance.

•	High Growth Markets: The increase in the franchised margin percent for the quarter and six months was primarily due to the impact of refranchising, largely related to the July 2017 China and Hong Kong transaction, and positive comparable sales performance.

•	Company-operated: Company-operated margin dollars decreased $201.9 million or 30% (32% in constant currencies) for the quarter and decreased $392.7 million or 31% (34% in constant currencies) for the six months, reflecting the impact of refranchising.

•	U.S.: The Company-operated margin percent decreased for the quarter and was flat for the six months, reflecting higher labor and commodity costs and the benefits from positive comparable sales and refranchising.

•	International Lead Markets: The Company-operated margin percent decreased slightly for the quarter and six months as higher labor, commodity and occupancy costs more than offset the benefit from strong comparable sales.

•	High Growth Markets: The decrease in the Company-operated margin percent for the quarter and six months was primarily due to the impact of refranchising in China and Hong Kong as well as negative comparable sales in South Korea.

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Selling, general and administrative expenses increased $16.7 million or 3% (2% in constant currencies) for the quarter and increased $28.5 million or 3% (flat in constant currencies) for the six months. Both periods included higher restaurant technology spending as well as costs related to the 2018 Worldwide Owner/Operator Convention, which were partly offset by reduced employee-related costs resulting from the Company's ongoing G&A discipline. The six months also reflected costs related to the sponsorship of the 2018 Winter Olympics.

•	For the six months, selling, general and administrative expenses as a percent of Systemwide sales decreased to 2.3% for 2018 compared with 2.4% for 2017.

•	Gains on sales of restaurant businesses decreased for the quarter and increased for the six months primarily due to activity within the U.S.

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Equity in (earnings) losses of unconsolidated affiliates for the quarter and six months reflected improved performance in Japan, offset by a higher effective tax rate in Japan in 2018 compared with 2017. Results in 2018 also reflect the retained 20% ownership in the entity that operates the Company's businesses in China and Hong Kong subsequent to the refranchising transaction that occurred in third quarter 2017.

•	Asset dispositions and other (income) expense, net for the quarter and six months benefited from gains on the strategic sale of restaurant properties in both the U.S. and Australia.

•	Impairment and other charges (gains), net included the strategic restructuring charge in the U.S for the quarter and six months 2018. The prior year periods included unrelated restructuring charges as well as a loss from the sale of the Company's business in Taiwan to a developmental licensee.

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Operating Income: Operating income decreased $32.8 million or 1% (4% in constant currencies) for the quarter and increased $76.3 million or 2% (decreased 2% in constant currencies) for the six months. Both periods were negatively impacted by $92 million of strategic restructuring charges incurred in the current quarter. Excluding the impact of these charges, as well as strategic charges in the prior year, operating income increased $40.3 million or 2% (decreased 1% in constant currencies) for the quarter and increased $151.5 million or 3% (decreased 1% in constant currencies) for the six months.

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U.S.: Excluding the strategic restructuring charge of $85 million, operating income increased 1% for the quarter and 3% for the six months. Results for both periods reflected higher franchised margin dollars, partly offset by lower Company-operated margin dollars. The six months reflected higher gains on the sales of restaurant businesses, partly offset by lower gains from the strategic sale of restaurant properties.

•	International Lead Markets: The constant currency operating income increase for the quarter and six months was primarily due to sales-driven improvements in franchised margin dollars across all markets.

•	High Growth Markets: The constant currency operating income decrease for the quarter and six months reflected the impact of refranchising, and to a lesser extent, the continued challenges in South Korea.

•	Foundational Markets & Corporate: The constant currency operating income decrease for the quarter and six months reflected the Company's refranchising initiatives, higher restaurant technology spending as well as costs related to the 2018 Worldwide Owner/Operator Convention. The six months also reflected additional costs related to the sponsorship of the 2018 Winter Olympics.

•	Operating Margin: Operating margin is defined as operating income as a percent of total revenues. Operating margin was 42.0% and 36.9% for the six months ended 2018 and 2017, respectively. Excluding the impact of the current year strategic restructuring charges and the prior year strategic charges, operating margin was 42.9% and 37.1% for the six months ended 2018 and 2017, respectively.

•	Interest expense increased 4% (2% in constant currencies) for the quarter and increased 6% (4% in constant currencies) for the six months, primarily reflecting higher average debt balances, partly offset by lower average interest rates.

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•	The effective income tax rate was 25.9% and 32.3% for the quarters ended 2018 and 2017, respectively, and 26.5% and 32.5% for the six months ended 2018 and 2017, respectively.

•	The decrease in the tax rate for the quarter and six months primarily reflects the lower enacted U.S. corporate tax rate. The tax rate for the six months also includes adjustments to the provisional amounts recorded in December 2017 under the Tax Act. Excluding the impact of these provisional adjustments, the effective income tax rate for the six months was 25.1%.

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•	Continue to innovate and differentiate the McDonald’s experience by preparing and serving our food in a way that balances value and convenience to our customers with profitability;

•	Capitalize on our global scale, iconic brand and local market presence to enhance our ability to retain, regain and convert key customer groups;

•	Utilize our more adaptive organizational structure to execute against our initiatives at an accelerated pace;

•	Strengthen customer appeal and augment our digital initiatives, including mobile ordering and delivery, along with Experience of the Future (“EOTF”), particularly in the U.S.;

•	Identify and develop restaurant sites consistent with our plans for net growth of Systemwide restaurants; and

•	Operate restaurants with high service levels and optimal capacity while managing the increasing complexity of our restaurant operations.

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•	The relative level of our defense costs, which vary from period to period depending on the number, nature and procedural status of pending proceedings;

•	The cost and other effects of settlements, judgments or consent decrees, which may require us to make disclosures or take other actions that may affect perceptions of our brand and products;

•	Adverse results of pending or future litigation, including litigation challenging the composition and preparation of our products, or the appropriateness or accuracy of our marketing or other communication practices; and

•	The scope and terms of insurance or indemnification protections that we may have.

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•	The unpredictable nature of global economic and market conditions;

•	Governmental action or inaction in light of key indicators of economic activity or events that can significantly influence financial markets, particularly in the U.S., which is the principal trading market for our common stock, and media reports and commentary about economic or other matters, even when the matter in question does not directly relate to our business;

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Trading activity in our common stock or trading activity in derivative instruments with respect to our common stock or debt securities, which can be affected by market commentary (including commentary that may be unreliable or incomplete); unauthorized disclosures about our performance, plans or expectations about our business; our actual performance and creditworthiness; investor confidence, driven in part by expectations about our performance; actions by shareholders and others seeking to influence our business strategies; portfolio transactions in our stock by significant shareholders; or trading activity that results from the ordinary course rebalancing of stock indices in which McDonald’s may be included, such as the S&P 500 Index and the Dow Jones Industrial Average;

•	The impact of our stock repurchase program or dividend rate; and

•	The impact on our results of corporate actions and market and third-party perceptions and assessments of such actions, such as those we may take from time to time as we implement our strategies in light of changing business, legal and tax considerations and evolve our corporate structure.

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*	Subject to applicable law, the Company may repurchase shares directly in the open market, in privately negotiated transactions, or pursuant to derivative instruments and plans complying with Rule 10b5-1, among other types of transactions and arrangements.

(1)	On July 27, 2017, the Company's Board of Directors approved a share repurchase program, effective July 28, 2017, that authorizes the purchase of up to $15 billion of the Company's outstanding common stock with no specified expiration date.

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*	Includes amounts of the Company and its majority-owned subsidiaries, and one-half of the amounts of 50%-owned affiliates. The Company records interest expense on unrecognized tax benefits in the provision for income taxes. This interest is not included in the computation of fixed charges.

(1)	I have reviewed this quarterly report on Form 10-Q of McDonald’s Corporation;

(2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4)	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5)	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

(1)	I have reviewed this quarterly report on Form 10-Q of McDonald’s Corporation;

(2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4)	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5)	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

v3.10.0.1

Document and Entity Information	6 Months Ended
	Jun. 30, 2018 shares
Document Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Trading Symbol	MCD
Entity Registrant Name	MCDONALDS CORP
Entity Central Index Key	0000063908
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	775,800,409

v3.10.0.1

Condensed Consolidated Balance Sheet - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and equivalents	$ 1,623.5	$ 2,463.8
Accounts and notes receivable	2,217.2	1,976.2
Inventories, at cost, not in excess of market	49.6	58.8
Prepaid expenses and other current assets	465.3	828.4
Total current assets	4,355.6	5,327.2
Other assets
Investments in and advances to affiliates	1,127.6	1,085.7
Goodwill	2,347.2	2,379.7
Miscellaneous	2,516.8	2,562.8
Total other assets	5,991.6	6,028.2
Property and equipment
Property and equipment, at cost	36,577.3	36,626.4
Accumulated depreciation and amortization	(14,216.1)	(14,178.1)
Net property and equipment	22,361.2	22,448.3
Total assets	32,708.4	33,803.7
Current liabilities
Accounts payable	917.9	924.8
Income taxes	211.5	265.8
Other taxes	278.8	275.4
Accrued interest	236.4	278.4
Accrued payroll and other liabilities	1,033.5	1,146.2
Current maturities of long-term debt	292.2	0.0
Total current liabilities	2,970.3	2,890.6
Long-term debt	30,687.7	29,536.4
Long-term income taxes	1,987.0	2,370.9
Deferred revenues - initial franchise fees	606.7	0.0
Other long-term liabilities	1,134.6	1,154.4
Deferred income taxes	1,173.1	1,119.4
Shareholders' equity (deficit)
Preferred stock, no par value; authorized—165.0 million shares; issued—none	0.0	0.0
Common stock, $.01 par value; authorized—3.5 billion shares; issued—1,660.6 million shares	16.6	16.6
Additional paid-in capital	7,195.2	7,072.4
Retained earnings	49,106.7	48,325.8
Accumulated other comprehensive income (loss)	(2,435.0)	(2,178.4)
Common stock in treasury, at cost; 884.8 and 866.5 million shares	(59,734.5)	(56,504.4)
Total shareholders' equity (deficit)	(5,851.0)	(3,268.0)
Total liabilities and shareholders' equity (deficit)	$ 32,708.4	$ 33,803.7

v3.10.0.1

Condensed Consolidated Balance Sheet (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Preferred stock, par value	$ 0	$ 0
Preferred stock, authorized	165,000,000	165,000,000
Preferred stock, issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	3,500,000,000	3,500,000,000
Common stock, issued	1,660,600,000	1,660,600,000
Common stock in treasury, shares	884,800,000	866,500,000

v3.10.0.1

Condensed Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues
Sales by Company-operated restaurants	$ 2,594.9	$ 3,569.6	$ 5,130.5	$ 6,981.5
Revenues from franchised restaurants	2,759.0	2,480.1	5,362.3	4,744.1
Total revenues	5,353.9	6,049.7	10,492.8	11,725.6
Operating costs and expenses
Company-operated restaurant expenses	2,130.5	2,903.3	4,261.4	5,719.7
Franchised restaurants-occupancy expenses	483.9	438.0	964.2	868.1
Selling, general & administrative expenses	542.1	525.4	1,075.2	1,046.7
Other operating (income) expense, net	(64.9)	(112.1)	(213.4)	(238.0)
Total operating costs and expenses	3,091.6	3,754.6	6,087.4	7,396.5
Operating income	2,262.3	2,295.1	4,405.4	4,329.1
Interest expense	240.2	230.9	477.0	449.5
Nonoperating (income) expense, net	4.0	2.8	22.4	10.7
Income before provision for income taxes	2,018.1	2,061.4	3,906.0	3,868.9
Provision for income taxes	521.8	666.3	1,034.3	1,259.0
Net income	$ 1,496.3	$ 1,395.1	$ 2,871.7	$ 2,609.9
Earnings per common share-basic	$ 1.92	$ 1.72	$ 3.66	$ 3.20
Earnings per common share-diluted	1.90	1.70	3.62	3.17
Dividends declared per common share	$ 1.01	$ 0.94	$ 2.02	$ 1.88
Weighted average shares outstanding-basic	780.0	811.6	785.4	815.2
Weighted average shares outstanding-diluted	787.1	819.2	793.0	822.3

v3.10.0.1

Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net income	$ 1,496.3	$ 1,395.1	$ 2,871.7	$ 2,609.9
Foreign currency translation adjustments:
Gain (loss) recognized in accumulated other comprehensive income (AOCI), including net investment hedges	(326.4)	245.7	(300.7)	533.3
Reclassification of (gain) loss to net income	0.0	(4.6)	0.0	104.4
Foreign currency translation adjustments-net of tax benefit (expense) of $(143.9), $227.6, $(71.6) and $272.1	(326.4)	241.1	(300.7)	637.7
Cash flow hedges:
Gain (loss) recognized in AOCI	32.2	(23.2)	24.7	(30.3)
Reclassification of (gain) loss to net income	3.6	(2.0)	15.6	(5.9)
Cash flow hedges-net of tax benefit (expense) of $(10.5), $14.3, $(11.7) and $20.5	35.8	(25.2)	40.3	(36.2)
Defined benefit pension plans:
Gain (loss) recognized in AOCI	0.0	0.0	(1.1)	(0.3)
Reclassification of (gain) loss to net income	2.1	2.7	4.9	5.3
Defined benefit pension plans-net of tax benefit (expense) of $0.1, $0.0, $(0.8) and $(0.5)	2.1	2.7	3.8	5.0
Total other comprehensive income (loss), net of tax	(288.5)	218.6	(256.6)	606.5
Comprehensive income (loss)	$ 1,207.8	$ 1,613.7	$ 2,615.1	$ 3,216.4

v3.10.0.1

Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other comprehensive income (loss), foreign currency translation adjustment, tax	$ (143.9)	$ 227.6	$ (71.6)	$ 272.1
Other comprehensive income (loss), derivatives qualifying as hedges, tax	(10.5)	14.3	(11.7)	20.5
Other comprehensive income (loss), pension and other postretirement benefit plans, tax	$ 0.1	$ 0.0	$ (0.8)	$ (0.5)

v3.10.0.1

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Operating activities
Net income	$ 1,496.3	$ 1,395.1	$ 2,871.7	$ 2,609.9
Charges and credits:
Depreciation and amortization	365.0	339.5	727.9	664.8
Deferred income taxes	54.4	64.6	83.6	150.5
Share-based compensation	23.9	21.3	63.7	44.0
Other	(90.7)	(76.0)	(145.6)	(188.7)
Changes in working capital items	(510.1)	(531.1)	(617.3)	(523.1)
Cash provided by operations	1,338.8	1,213.4	2,984.0	2,757.4
Investing activities
Capital expenditures	(611.3)	(368.7)	(1,164.1)	(796.4)
Purchases of restaurant businesses	(11.6)	(15.0)	(35.3)	(18.1)
Sales of restaurant businesses	143.2	304.1	329.9	849.9
Sales of property	52.8	28.8	124.5	94.1
Other	(63.9)	(96.0)	(104.9)	(138.2)
Cash provided by (used for) investing activities	(490.8)	(146.8)	(849.9)	(8.7)
Financing activities
Net short-term borrowings	239.7	(9.3)	795.7	(778.5)
Long-term financing issuances	500.5	537.1	2,000.2	2,530.1
Long-term financing repayments	(1.2)	(1.4)	(1,002.8)	(403.5)
Treasury stock purchases	(1,607.2)	(1,107.7)	(3,240.1)	(1,855.7)
Common stock dividends	(786.1)	(761.5)	(1,583.6)	(1,532.1)
Proceeds from stock option exercises	91.7	174.4	167.0	290.6
Other	(1.6)	1.9	(6.8)	(4.6)
Cash used for financing activities	(1,564.2)	(1,166.5)	(2,870.4)	(1,753.7)
Effect of exchange rates on cash and cash equivalents	(128.3)	98.7	(104.0)	153.4
Cash and equivalents increase (decrease)	(844.5)	(1.2)	(840.3)	1,148.4
Change in cash balances of businesses held for sale	0.0	(18.6)	0.0	20.6
Cash and equivalents at beginning of period	2,468.0	2,412.2	2,463.8	1,223.4
Cash and equivalents at end of period	$ 1,623.5	$ 2,392.4	$ 1,623.5	$ 2,392.4

v3.10.0.1

Condensed Consolidated Statement of Shareholders' Equity - 6 months ended Jun. 30, 2018 - USD ($) shares in Millions, $ in Millions	Total	Common stock issued	Additional paid-in capital	Retained earnings	Pensions	Cash flow hedges	Foreign currency translation	Common stock in treasury
Beginning Balance (in shares) at Dec. 31, 2017		1,660.6						(866.5)
Beginning Balance at Dec. 31, 2017	$ (3,268.0)	$ 16.6	$ 7,072.4	$ 48,325.8	$ (190.2)	$ (16.5)	$ (1,971.7)	$ (56,504.4)
Net income	2,871.7			2,871.7
Other comprehensive income (loss), net of tax	(256.6)				3.8	40.3	(300.7)
Comprehensive income	2,615.1
Adoption of ASC 606	(450.2)			(450.2)
Adoption of ASU 2016-16	(57.0)			(57.0)
Common stock cash dividends	(1,583.6)			(1,583.6)
Treasury stock purchases (in shares)								(20.8)
Treasury stock purchases	(3,336.3)							$ (3,336.3)
Share-based compensation	63.7		63.7
Stock option exercises and other (in shares)								2.5
Stock option exercises and other	165.3		59.1					$ 106.2
Ending Balance (in shares) at Jun. 30, 2018		1,660.6						(884.8)
Ending Balance at Jun. 30, 2018	$ (5,851.0)	$ 16.6	$ 7,195.2	$ 49,106.7	$ (186.4)	$ 23.8	$ (2,272.4)	$ (59,734.5)

v3.10.0.1

Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of PresentationThe accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in the Company’s December 31, 2017 Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. The results for the quarter and six months ended June 30, 2018, do not necessarily indicate the results that may be expected for the full year.

v3.10.0.1

Restaurant Information	6 Months Ended
	Jun. 30, 2018
Disclosure Restaurant Information By Ownership Type [Abstract]
Restaurant Information	Restaurant Information The following table presents restaurant information by ownership type: Restaurants at June 30, 2018   2017 Conventional franchised 21,535   21,317 Developmental licensed 7,013   7,263 Foreign affiliated 5,973   3,356 Total Franchised 34,521   31,936 Company-operated 2,885   5,075 Systemwide restaurants 37,406   37,011 The results of operations of restaurant businesses purchased and sold in transactions with franchisees were not material either individually or in the aggregate to the condensed consolidated financial statements for the periods prior to purchase and sale.

v3.10.0.1

Per Common Share Information	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Per Common Share Information	Per Common Share InformationDiluted earnings per common share is calculated using net income divided by diluted weighted-average shares. Diluted weighted-average shares include weighted-average shares outstanding plus the dilutive effect of share-based compensation, calculated using the treasury stock method, of 7.1 million shares and 7.6 million shares for the quarters 2018 and 2017, respectively, and 7.6 million shares and 7.1 million shares for the six months 2018 and 2017, respectively. Stock options that would have been antidilutive, and therefore were not included in the calculation of diluted weighted-average shares, totaled 2.6 million shares and 0.1 million shares for the quarters 2018 and 2017, respectively, and 2.6 million shares and 4.0 million shares for the six months 2018 and 2017, respectively.

v3.10.0.1

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	Recently Issued Accounting Standards Measurement Period - Tax Cuts and Jobs Act of 2017 In December 2017, the Securities and Exchange Commission published Staff Accounting Bulletin No. 118 ("SAB 118"), which provides guidance on reporting for accounting impacts of the Tax Cuts and Jobs Act of 2017 (“Tax Act”). SAB 118 allowed the Company to provide reasonable estimates in its 2017 consolidated financial statements for the income tax effects of the Tax Act and to report those effects as provisional amounts in its financial statements through a limited measurement period. Under SAB 118, the measurement period may not extend beyond one year from the enactment of the Tax Act. The Company has not completed the accounting for the tax effects of the enactment of the Tax Act, although it has made reasonable estimates of the effects on existing deferred tax balances and on the one-time transition tax on earnings of certain foreign subsidiaries. Certain aspects of the Tax Act are expected to be clarified, and as such, could impact these estimates. A net provisional tax cost of approximately $700 million was originally recognized in the Company's 2017 consolidated financial statements, and subsequently increased by $52 million in the first quarter of 2018. Lease Accounting In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, “Leases (Topic 842),” to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements.  Most prominent among the amendments is the recognition of assets and liabilities by lessees for those leases classified as operating leases under current U.S. GAAP. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company will adopt the new standard effective January 1, 2019. At transition, the Company will recognize and measure leases using the required modified retrospective approach. The Company anticipates ASU 2016-02 will have a material impact on the consolidated balance sheet due to the significance of the Company’s operating lease portfolio. The Company will elect an optional practical expedient to retain the current classification of leases, and, therefore, anticipates a minimal initial impact on the consolidated statement of income. The impact of ASU 2016-02 is non-cash in nature; therefore, it will not affect the Company’s cash flows. Recently Adopted Accounting Standards Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 expanded components of fair value hedging, specifies the recognition and presentation of the effects of hedging instruments, and eliminates the separate measurement and presentation of hedge ineffectiveness. The Company elected to early adopt the new standard in the first quarter of 2018 and applied the presentation and disclosure guidance on a prospective basis. The adoption of the standard did not have a material impact on the Company's condensed consolidated financial statements. Income Taxes In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” The goal of this update was to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The Company adopted this standard on January 1, 2018 using a modified retrospective method, resulting in a cumulative catch up adjustment of $57 million, the majority of which was recorded within miscellaneous other assets on the condensed consolidated balance sheet. The adoption of this standard did not have a material impact on the condensed consolidated statements of income and cash flows. Revenue Recognition In May 2014, the FASB issued guidance codified in Accounting Standards Codification ("ASC") 606, "Revenue Recognition - Revenue from Contracts with Customers," which amended the guidance in former ASC 605, "Revenue Recognition." The core principle of the standard is to recognize revenue when control of the promised goods or services is transferred to customers in an amount that reflects the consideration expected to be received for those goods or services. The standard also requires additional disclosures around the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method. Refer to the Revenues footnote below for further details.

v3.10.0.1

Revenues	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer [Text Block]	Revenues The Company’s revenues consist of sales by Company-operated restaurants and fees from franchised restaurants operated by conventional franchisees, developmental licensees and foreign affiliates. Revenues from conventional franchised restaurants include rent and royalties based on a percent of sales with minimum rent payments, and initial fees. Revenues from restaurants licensed to foreign affiliates and developmental licensees include a royalty based on a percent of sales, and may include initial fees. ASC 606 provides that revenues are to be recognized when control of promised goods or services is transferred to a customer in an amount that reflects the consideration expected to be received for those goods or services. This standard does not impact the Company's recognition of revenue from Company-operated restaurants as those sales are recognized on a cash basis at the time of the underlying sale and are presented net of sales tax and other sales-related taxes. The standard also does not change the recognition of royalties from restaurants operated by franchisees or licensed to affiliates and developmental licensees, which are based on a percent of sales and recognized at the time the underlying sales occur. Rental income from restaurants operated by conventional franchisees is also not impacted by this standard as those revenues are subject to the guidance in ASC 840, "Leases." The standard does change the timing in which the Company recognizes initial fees from franchisees for new restaurant openings and new franchise terms. The Company's accounting policy through December 31, 2017, was to recognize initial franchise fees when received, upon a new restaurant opening and at the start of a new franchise term. Beginning in January 2018, initial franchise fees are being recognized as the Company satisfies the performance obligation over the franchise term, which is generally 20 years. The Company adopted ASC 606 as of January 1, 2018, using the modified retrospective method. This method allows the standard to be applied retrospectively through a cumulative catch up adjustment recognized upon adoption. As such, comparative information in the Company’s financial statements has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative adjustment recorded upon adoption of ASC 606 consisted of deferred revenue of approximately $600 million within long-term liabilities and approximately $150 million of associated adjustments to the deferred tax balances which are recorded in Deferred income taxes and Miscellaneous other assets on the condensed consolidated balance sheet. The following table presents revenue disaggregated by revenue source (in millions):     Quarters Ended   Six Months Ended     June 30,   June 30,     2018   2017   2018   2017 Company-operated sales           U.S.   $ 696.8   $ 849.5   $ 1,405.5   $ 1,685.1 International Lead Markets   1,022.7   1,021.4   2,029.8   1,962.6 High Growth Markets   732.6   1,459.3   1,432.9   2,804.6 Foundational Markets & Corporate   142.8   239.4   262.3   529.2 Total   $ 2,594.9   $ 3,569.6   $ 5,130.5   $ 6,981.5 Franchised revenues             U.S.   $ 1,264.4   $ 1,198.9   $ 2,422.9   $ 2,292.3 International Lead Markets   908.2   791.8   1,778.6   1,494.1 High Growth Markets   281.4   219.9   553.3   411.8 Foundational Markets & Corporate   305.0   269.5   607.5   545.9 Total*   $ 2,759.0   $ 2,480.1   $ 5,362.3   $ 4,744.1 Total revenues             U.S.   $ 1,961.2   $ 2,048.4   $ 3,828.4   $ 3,977.4 International Lead Markets   1,930.9   1,813.2   3,808.4   3,456.7 High Growth Markets   1,014.0   1,679.2   1,986.2   3,216.4 Foundational Markets & Corporate   447.8   508.9   869.8   1,075.1 Total   $ 5,353.9   $ 6,049.7   $ 10,492.8   $ 11,725.6 * Although the Company expects the application of ASC 606 to negatively impact 2018 annual franchised revenues by approximately $50 million, results for the quarter and six months ended June 30, 2018, only reflected an impact of approximately $10 million and $15 million, respectively, due to the timing of new restaurant openings and new franchise terms.

v3.10.0.1

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company measures certain financial assets and liabilities at fair value. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The Company did not have any significant changes to the valuation techniques used to measure fair value as described in the Company's December 31, 2017 Annual Report on Form 10-K. At June 30, 2018, the fair value of the Company’s debt obligations was estimated at $32.1 billion, compared to a carrying amount of $31.0 billion. The fair value was based upon quoted market prices, Level 2 within the valuation hierarchy. The carrying amounts of cash and equivalents, short-term investments and notes receivable approximate fair value.

v3.10.0.1

Financial Instruments and Hedging Activities	6 Months Ended
	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Financial Instruments and Hedging Activities	Financial Instruments and Hedging Activities The Company is exposed to global market risks, including the effect of changes in interest rates and foreign currency fluctuations. The Company uses foreign currency denominated debt and derivative instruments to mitigate the impact of these changes. The Company does not hold or issue derivatives for trading purposes. The following table presents the fair values of derivative instruments included on the condensed consolidated balance sheet:    Derivative Assets   Derivative Liabilities In millions Balance Sheet Classification   June 30, 2018   December 31, 2017   Balance Sheet Classification   June 30, 2018   December 31, 2017 Derivatives designated as hedging instruments                 Foreign currency Prepaid expenses and other current assets   $ 20.7   $ 0.5   Accrued payroll and other liabilities   $ (5.4 )   $ (31.0 ) Interest Rate             Accrued payroll and other liabilities   (0.8 )   (0.3 ) Foreign currency Miscellaneous other assets   5.6   0.1   Other long-term liabilities   (0.1 )   (1.4 ) Interest rate Miscellaneous other assets           Other long-term liabilities   (21.6 )   (5.9 ) Total derivatives designated as hedging instruments   $ 26.3   $ 0.6       $ (27.9 )   $ (38.6 ) Derivatives not designated as hedging instruments                 Equity             Accrued payroll and other liabilities   $ (3.1 )   $ (1.3 ) Foreign currency Prepaid expenses and other current assets   $ 6.5   $ —   Accrued payroll and other liabilities   —   (5.5 ) Equity Miscellaneous other assets   153.3   167.3             Total derivatives not designated as hedging instruments   $ 159.8   $ 167.3       $ (3.1 )   $ (6.8 ) Total derivatives   $ 186.1   $ 167.9       $ (31.0 )   $ (45.4 ) The following table presents the pre-tax amounts from derivative instruments affecting income and other comprehensive income (“OCI”) for the six months ended June 30, 2018 and 2017, respectively:   Location of Gain or Loss Recognized in Income on Derivative   Gain (Loss) Recognized in Accumulated OCI   Gain (Loss) Reclassified into Income from Accumulated OCI   Gain (Loss) Recognized in Income on Derivative                 In millions     2018   2017   2018   2017   2018   2017 Foreign currency Nonoperating income/expense   $ 31.8   $ (47.5 )   $ (19.7 )   $ 9.4         Interest rate Interest expense   —   —   (0.5 )   (0.2 )         Cash flow hedges   $ 31.8   $ (47.5 )   $ (20.2 )   $ 9.2                                     Foreign currency denominated debt Nonoperating income/expense   $ 399.7   $ (978.1 )   $ —   $ —         Foreign currency derivatives Nonoperating income/expense   1.0   (23.0 )   —   8.0         Foreign currency derivatives(1) Interest expense                   $ 0.2   $ — Net investment hedges   $ 400.7   $ (1,001.1 )   $ —   $ 8.0   $ 0.2   $ —                             Foreign currency Nonoperating income/expense                   $ 11.8   $ (18.5 ) Equity Selling, general & administrative expenses                   (8.6 )   50.9 Undesignated derivatives                   $ 3.2   $ 32.4 (1)The amount of gain (loss) recognized in income related to components excluded from effectiveness testing. Fair Value Hedges The Company enters into fair value hedges to reduce the exposure to changes in fair values of certain liabilities. The Company enters into fair value hedges that convert a portion of its fixed rate debt into floating rate debt by use of interest rate swaps.  At June 30, 2018, the carrying amount of fixed-rate debt that was effectively converted was $727.7 million, which included a decrease of $22.3 million of cumulative hedging adjustments. For the six months ended June 30, 2018, the Company recognized a $16.2 million loss on the fair value of interest rate swaps, and a corresponding gain on the fair value of the related hedged debt instrument to Interest expense. Cash Flow Hedges The Company enters into cash flow hedges to reduce the exposure to variability in certain expected future cash flows. To protect against the reduction in value of forecasted foreign currency cash flows (such as royalties denominated in foreign currencies), the Company uses foreign currency forwards to hedge a portion of anticipated exposures. The hedges cover the next 18 months for certain exposures and are denominated in various currencies. As of June 30, 2018, the Company had derivatives outstanding with an equivalent notional amount of $809.5 million that hedged a portion of forecasted foreign currency denominated cash flows. Based on market conditions at June 30, 2018, the $23.8 million in cumulative cash flow hedging gains, after tax, is not expected to have a significant effect on earnings over the next 12 months. Net Investment Hedges The Company primarily uses foreign currency denominated debt (third party and intercompany) to hedge its investments in certain foreign subsidiaries and affiliates. Realized and unrealized translation adjustments from these hedges are included in shareholders' equity in the foreign currency translation component of OCI and offset translation adjustments on the underlying net assets of foreign subsidiaries and affiliates, which also are recorded in OCI. As of June 30, 2018, $11.7 billion of the Company's third party foreign currency denominated debt and $4.0 billion of intercompany foreign currency denominated debt were designated to hedge investments in certain foreign subsidiaries and affiliates. Undesignated Derivatives The Company enters into certain derivatives that are not designated for hedge accounting, therefore the changes in the fair value of these derivatives are recognized immediately in earnings together with the gain or loss from the hedged balance sheet position. As an example, the Company enters into equity derivative contracts, including total return swaps, to hedge market-driven changes in certain of its supplemental benefit plan liabilities. Changes in the fair value of these derivatives are recorded in Selling, general & administrative expenses together with the changes in the supplemental benefit plan liabilities. In addition, the Company uses foreign currency forwards to mitigate the change in fair value of certain foreign currency denominated assets and liabilities. The changes in the fair value of these derivatives are recognized in Nonoperating (income) expense, net, along with the currency gain or loss from the hedged balance sheet position. Credit Risk The Company is exposed to credit-related losses in the event of non-performance by its derivative counterparties. The Company did not have significant exposure to any individual counterparty at June 30, 2018 and has master agreements that contain netting arrangements. For financial reporting purposes, the Company presents gross derivative balances in the financial statements and supplementary data, including for counterparties subject to netting arrangements. Some of these agreements also require each party to post collateral if credit ratings fall below, or aggregate exposures exceed, certain contractual limits. At June 30, 2018, the Company was required to post an immaterial amount of collateral due to the negative fair value of certain derivative positions. The Company's counterparties were not required to post collateral on any derivative position, other than on certain hedges of the Company’s supplemental benefit plan liabilities where the counterparties were required to post collateral on their liability positions.

v3.10.0.1

Segment Information	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment Information	Segment Information The Company franchises and operates McDonald’s restaurants in the global restaurant industry. The following reporting segments reflect how management reviews and evaluates operating performance. • U.S. - the Company's largest segment • International Lead Markets - established markets including Australia, Canada, France, Germany, the U.K. and related markets • High Growth Markets - markets the Company believes have relatively higher restaurant expansion and franchising potential including China, Italy, South Korea, Poland, Russia, Spain, Switzerland, the Netherlands and related markets • Foundational Markets & Corporate - the remaining markets in the McDonald's system, most of which operate under a largely franchised model. Corporate activities are also reported within this segment The following table presents the Company’s revenues and operating income by segment:   Quarters Ended   Six Months Ended    June 30,   June 30, In millions 2018   2017   2018   2017 Revenues               U.S. $ 1,961.2   $ 2,048.4   $ 3,828.4   $ 3,977.4 International Lead Markets 1,930.9   1,813.2   3,808.4   3,456.7 High Growth Markets 1,014.0   1,679.2   1,986.2   3,216.4 Foundational Markets & Corporate 447.8   508.9   869.8   1,075.1 Total revenues $ 5,353.9   $ 6,049.7   $ 10,492.8   $ 11,725.6 Operating Income               U.S. $ 999.2   $ 1,072.9   $ 1,997.2   $ 2,020.8 International Lead Markets 889.9   776.0   1,699.6   1,442.6 High Growth Markets 282.7   349.5   517.0   650.2 Foundational Markets & Corporate 90.5   96.7   191.6   215.5 Total operating income $ 2,262.3   $ 2,295.1   $ 4,405.4   $ 4,329.1

v3.10.0.1

Subsequent Events	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsThe Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. There were no subsequent events that required recognition or disclosure.

v3.10.0.1

Restaurant Information (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure Restaurant Information By Ownership Type [Abstract]
Restaurant Information by Ownership Type	The following table presents restaurant information by ownership type: Restaurants at June 30, 2018   2017 Conventional franchised 21,535   21,317 Developmental licensed 7,013   7,263 Foreign affiliated 5,973   3,356 Total Franchised 34,521   31,936 Company-operated 2,885   5,075 Systemwide restaurants 37,406   37,011

v3.10.0.1

Revenues (Disaggregation of Revenues) (Tables)	6 Months Ended
	Jun. 30, 2018
Disaggregation of Revenue [Abstract]
Disaggregation of Revenue [Table Text Block]	The following table presents revenue disaggregated by revenue source (in millions):     Quarters Ended   Six Months Ended     June 30,   June 30,     2018   2017   2018   2017 Company-operated sales           U.S.   $ 696.8   $ 849.5   $ 1,405.5   $ 1,685.1 International Lead Markets   1,022.7   1,021.4   2,029.8   1,962.6 High Growth Markets   732.6   1,459.3   1,432.9   2,804.6 Foundational Markets & Corporate   142.8   239.4   262.3   529.2 Total   $ 2,594.9   $ 3,569.6   $ 5,130.5   $ 6,981.5 Franchised revenues             U.S.   $ 1,264.4   $ 1,198.9   $ 2,422.9   $ 2,292.3 International Lead Markets   908.2   791.8   1,778.6   1,494.1 High Growth Markets   281.4   219.9   553.3   411.8 Foundational Markets & Corporate   305.0   269.5   607.5   545.9 Total*   $ 2,759.0   $ 2,480.1   $ 5,362.3   $ 4,744.1 Total revenues             U.S.   $ 1,961.2   $ 2,048.4   $ 3,828.4   $ 3,977.4 International Lead Markets   1,930.9   1,813.2   3,808.4   3,456.7 High Growth Markets   1,014.0   1,679.2   1,986.2   3,216.4 Foundational Markets & Corporate   447.8   508.9   869.8   1,075.1 Total   $ 5,353.9   $ 6,049.7   $ 10,492.8   $ 11,725.6 * Although the Company expects the application of ASC 606 to negatively impact 2018 annual franchised revenues by approximately $50 million, results for the quarter and six months ended June 30, 2018, only reflected an impact of approximately $10 million and $15 million, respectively, due to the timing of new restaurant openings and new franchise terms.

v3.10.0.1

Financial Instruments and Hedging Activities (Tables)	6 Months Ended
	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Values of Derivative Instruments Included on Consolidated Balance Sheet	The following table presents the fair values of derivative instruments included on the condensed consolidated balance sheet:    Derivative Assets   Derivative Liabilities In millions Balance Sheet Classification   June 30, 2018   December 31, 2017   Balance Sheet Classification   June 30, 2018   December 31, 2017 Derivatives designated as hedging instruments                 Foreign currency Prepaid expenses and other current assets   $ 20.7   $ 0.5   Accrued payroll and other liabilities   $ (5.4 )   $ (31.0 ) Interest Rate             Accrued payroll and other liabilities   (0.8 )   (0.3 ) Foreign currency Miscellaneous other assets   5.6   0.1   Other long-term liabilities   (0.1 )   (1.4 ) Interest rate Miscellaneous other assets           Other long-term liabilities   (21.6 )   (5.9 ) Total derivatives designated as hedging instruments   $ 26.3   $ 0.6       $ (27.9 )   $ (38.6 ) Derivatives not designated as hedging instruments                 Equity             Accrued payroll and other liabilities   $ (3.1 )   $ (1.3 ) Foreign currency Prepaid expenses and other current assets   $ 6.5   $ —   Accrued payroll and other liabilities   —   (5.5 ) Equity Miscellaneous other assets   153.3   167.3             Total derivatives not designated as hedging instruments   $ 159.8   $ 167.3       $ (3.1 )   $ (6.8 ) Total derivatives   $ 186.1   $ 167.9       $ (31.0 )   $ (45.4 )
Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income	The following table presents the pre-tax amounts from derivative instruments affecting income and other comprehensive income (“OCI”) for the six months ended June 30, 2018 and 2017, respectively:   Location of Gain or Loss Recognized in Income on Derivative   Gain (Loss) Recognized in Accumulated OCI   Gain (Loss) Reclassified into Income from Accumulated OCI   Gain (Loss) Recognized in Income on Derivative                 In millions     2018   2017   2018   2017   2018   2017 Foreign currency Nonoperating income/expense   $ 31.8   $ (47.5 )   $ (19.7 )   $ 9.4         Interest rate Interest expense   —   —   (0.5 )   (0.2 )         Cash flow hedges   $ 31.8   $ (47.5 )   $ (20.2 )   $ 9.2                                     Foreign currency denominated debt Nonoperating income/expense   $ 399.7   $ (978.1 )   $ —   $ —         Foreign currency derivatives Nonoperating income/expense   1.0   (23.0 )   —   8.0         Foreign currency derivatives(1) Interest expense                   $ 0.2   $ — Net investment hedges   $ 400.7   $ (1,001.1 )   $ —   $ 8.0   $ 0.2   $ —                             Foreign currency Nonoperating income/expense                   $ 11.8   $ (18.5 ) Equity Selling, general & administrative expenses                   (8.6 )   50.9 Undesignated derivatives                   $ 3.2   $ 32.4 (1)The amount of gain (loss) recognized in income related to components excluded from effectiveness testing.

v3.10.0.1

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Revenues and Operating Income by Geographic Segment	The following table presents the Company’s revenues and operating income by segment:   Quarters Ended   Six Months Ended    June 30,   June 30, In millions 2018   2017   2018   2017 Revenues               U.S. $ 1,961.2   $ 2,048.4   $ 3,828.4   $ 3,977.4 International Lead Markets 1,930.9   1,813.2   3,808.4   3,456.7 High Growth Markets 1,014.0   1,679.2   1,986.2   3,216.4 Foundational Markets & Corporate 447.8   508.9   869.8   1,075.1 Total revenues $ 5,353.9   $ 6,049.7   $ 10,492.8   $ 11,725.6 Operating Income               U.S. $ 999.2   $ 1,072.9   $ 1,997.2   $ 2,020.8 International Lead Markets 889.9   776.0   1,699.6   1,442.6 High Growth Markets 282.7   349.5   517.0   650.2 Foundational Markets & Corporate 90.5   96.7   191.6   215.5 Total operating income $ 2,262.3   $ 2,295.1   $ 4,405.4   $ 4,329.1

v3.10.0.1

Restaurant Information by Ownership Type (Details) - Restaurant	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Number of Restaurants	37,406	37,011
Franchised
Segment Reporting Information [Line Items]
Number of Restaurants	34,521	31,936
Franchised | Conventional franchised
Segment Reporting Information [Line Items]
Number of Restaurants	21,535	21,317
Franchised | Developmental licensed
Segment Reporting Information [Line Items]
Number of Restaurants	7,013	7,263
Franchised | Affiliated
Segment Reporting Information [Line Items]
Number of Restaurants	5,973	3,356
Company-operated
Segment Reporting Information [Line Items]
Number of Restaurants	2,885	5,075

v3.10.0.1

Per Common Share Information (Additional Information) (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Dilutive effect of share-based compensation	7.1	7.6	7.6	7.1
Stock options that were not included in diluted weighted-average shares	2.6	0.1	2.6	4.0

v3.10.0.1

Recent Accounting Pronouncements (Recently Issued Accounting Standards) (Tax Act) (Details - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Adjustments for New Accounting Pronouncement [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount	$ 52	$ 700

v3.10.0.1

Recent Accounting Pronouncements (Recently Adopted Accounting Standards) (Income Taxes) (Details) - USD ($) $ in Millions	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings	$ 49,106.7		$ 48,325.8
Accounting Standards Update 2016-06 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings		$ 57.0

v3.10.0.1

Revenues (Disaggregation of Revenues) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Sales by Company-operated restaurants	$ 2,594.9	$ 3,569.6	$ 5,130.5	$ 6,981.5
Revenues from franchised restaurants	2,759.0	2,480.1	5,362.3	4,744.1
Total revenues	5,353.9	6,049.7	10,492.8	11,725.6
United States
Disaggregation of Revenue [Line Items]
Sales by Company-operated restaurants	696.8	849.5	1,405.5	1,685.1
Revenues from franchised restaurants	1,264.4	1,198.9	2,422.9	2,292.3
Total revenues	1,961.2	2,048.4	3,828.4	3,977.4
International Lead Markets
Disaggregation of Revenue [Line Items]
Sales by Company-operated restaurants	1,022.7	1,021.4	2,029.8	1,962.6
Revenues from franchised restaurants	908.2	791.8	1,778.6	1,494.1
Total revenues	1,930.9	1,813.2	3,808.4	3,456.7
High Growth Markets
Disaggregation of Revenue [Line Items]
Sales by Company-operated restaurants	732.6	1,459.3	1,432.9	2,804.6
Revenues from franchised restaurants	281.4	219.9	553.3	411.8
Total revenues	1,014.0	1,679.2	1,986.2	3,216.4
Foundational Markets and Corporate
Disaggregation of Revenue [Line Items]
Sales by Company-operated restaurants	142.8	239.4	262.3	529.2
Revenues from franchised restaurants	305.0	269.5	607.5	545.9
Total revenues	$ 447.8	$ 508.9	$ 869.8	$ 1,075.1

v3.10.0.1

Revenues (Revenues Narrative) (Details) - Accounting Standards Update 2014-09 [Member] - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2018	Jan. 01, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred Tax Assets Other Assets				$ 150
Deferred Revenue				$ 600
Impact to franchised revenues due to application of ASC 606	$ (10)	$ (15)
Scenario, Forecast [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Expected impact to 2018 annual franchised revenues due to application of ASC 606			$ (50)

v3.10.0.1

Fair Value Measurements (Additional Information) (Details) $ in Billions	Jun. 30, 2018 USD ($)
Fair Value Measurements [Line Items]
Debt obligations, carrying amount	$ 31.0
Level 2
Fair Value Measurements [Line Items]
Debt obligations, fair value	$ 32.1

v3.10.0.1

Financial Instruments and Hedging Activities (Fair Values of Derivative Instruments Included on Consolidated Balance Sheet) (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Asset Derivatives Fair Value	$ 186.1	$ 167.9
Liability Derivatives Fair Value	31.0	45.4
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Asset Derivatives Fair Value	26.3	0.6
Liability Derivatives Fair Value	27.9	38.6
Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Asset Derivatives Fair Value	159.8	167.3
Liability Derivatives Fair Value	3.1	6.8
Interest Rate Contract [Member] | Accrued Expenses And Other Current Liabilities [Member] | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Liability Derivatives Fair Value	0.8	0.3
Interest Rate Contract [Member] | Other Liabilities [Member] | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Liability Derivatives Fair Value	21.6	5.9
Equity [Member] | Accrued Expenses And Other Current Liabilities [Member] | Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Liability Derivatives Fair Value	3.1	1.3
Equity [Member] | Other Assets [Member] | Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Asset Derivatives Fair Value	153.3	167.3
Foreign Exchange [Member] | Accrued Expenses And Other Current Liabilities [Member] | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Liability Derivatives Fair Value	5.4	31.0
Foreign Exchange [Member] | Accrued Expenses And Other Current Liabilities [Member] | Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Liability Derivatives Fair Value	0.0	5.5
Foreign Exchange [Member] | Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Asset Derivatives Fair Value	20.7	0.5
Foreign Exchange [Member] | Prepaid Expenses and Other Current Assets [Member] | Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Asset Derivatives Fair Value	6.5	0.0
Foreign Exchange [Member] | Other Liabilities [Member] | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Liability Derivatives Fair Value	0.1	1.4
Foreign Exchange [Member] | Other Assets [Member] | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Asset Derivatives Fair Value	$ 5.6	$ 0.1

v3.10.0.1

(Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Derivatives in Cash Flow Hedging Relationships
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion)	$ (20.2)	$ 9.2
Gain (Loss) Recognized in Accumulated OCI (Effective Portion)	31.8	(47.5)
Net Investment Hedging Relationships
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion)	0.0	8.0
Gain (Loss) Recognized in Accumulated OCI (Effective Portion)	400.7	(1,001.1)
Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion)	0.2	0.0
Derivatives Not Designated as Hedging Instruments
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion)	3.2	32.4
Foreign Exchange [Member] | Derivatives in Cash Flow Hedging Relationships
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion)	(19.7)	9.4
Gain (Loss) Recognized in Accumulated OCI (Effective Portion)	31.8	(47.5)
Foreign Exchange Forward [Member] | Net Investment Hedging Relationships
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion)	0.0	8.0
Gain (Loss) Recognized in Accumulated OCI (Effective Portion)	1.0	(23.0)
Cross Currency Interest Rate Contract [Member] | Net Investment Hedging Relationships
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion)	0.2	0.0
Interest Rate Contract [Member] | Derivatives in Cash Flow Hedging Relationships
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion)	(0.5)	(0.2)
Gain (Loss) Recognized in Accumulated OCI (Effective Portion)	0.0	0.0
Other Foreign Currency Denominated Debt [Member] | Net Investment Hedging Relationships
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion)	0.0	0.0
Gain (Loss) Recognized in Accumulated OCI (Effective Portion)	399.7	(978.1)
Nonoperating Income (Expense) [Member] | Foreign Exchange [Member] | Derivatives Not Designated as Hedging Instruments
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) recognized in income, net	11.8	(18.5)
Selling, General and Administrative Expenses [Member] | Equity [Member] | Derivatives Not Designated as Hedging Instruments
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) recognized in income, net	$ (8.6)	$ 50.9

v3.10.0.1

(Financial Instruments and Hedging Activities - Additional Information) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Cumulative deferred hedging gain (loss), after tax, included in accumulated other comprehensive income	$ 23.8
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, notional amount	727.7
Intercompany Debt [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Foreign currency denominated debt designated to hedge investments in certain foreign subsidiaries and affiliates	4,000.0
Debt [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Foreign currency denominated debt designated to hedge investments in certain foreign subsidiaries and affiliates	11,700.0
Interest Rate Risk [Member] | Fair Value Hedging [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative instruments, gain (loss) recognized in income, net	(16.2)
Increase (Decrease) in Fair Value of Interest Rate Fair Value Hedging Instruments	$ (22.3)
Royalty Arrangement [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Period covered by hedge	18 months
Derivative, notional amount	$ 809.5

v3.10.0.1

Segment Information (Segment and Geographic Information) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Total revenues	$ 5,353.9	$ 6,049.7	$ 10,492.8	$ 11,725.6
Operating Income	2,262.3	2,295.1	4,405.4	4,329.1
United States
Segment Reporting Information [Line Items]
Total revenues	1,961.2	2,048.4	3,828.4	3,977.4
Operating Income	999.2	1,072.9	1,997.2	2,020.8
International Lead Markets
Segment Reporting Information [Line Items]
Total revenues	1,930.9	1,813.2	3,808.4	3,456.7
Operating Income	889.9	776.0	1,699.6	1,442.6
High Growth Markets
Segment Reporting Information [Line Items]
Total revenues	1,014.0	1,679.2	1,986.2	3,216.4
Operating Income	282.7	349.5	517.0	650.2
Foundational Markets and Corporate
Segment Reporting Information [Line Items]
Total revenues	447.8	508.9	869.8	1,075.1
Operating Income	$ 90.5	$ 96.7	$ 191.6	$ 215.5

This regulatory filing also includes additional resources:
mcd-0630201810q.pdf