McDoland’s® Selects Candidate To Franchise 1,600 Restaurants in Latin AMERICA AND THE CARIBBEAN

Local Entrepreneur Chosen to Build Upon Strong Foundation and Lead Brand into the Future

McDonald’s Corporation today announced that it has reached an agreement that will result in the franchising of nearly 1,600 existing restaurants in Latin America and the Caribbean to a developmental license organization to be led by Woods Staton, CEO of RestCo Iberoamericana, Limited. The transaction is expected to be finalized in the next few months. Staton has been a valued member of the McDonald’s System for more than 20 years.

Investment in the Brand
Staton has assembled a respected group of investment partners to continue the positive business momentum in
J. Armario, W. Staton, and R. Alvarez
McDonald’s Latin America. Capital International is part of The Capital Group Companies and is one of the world’s leading investors in emerging markets. Its private equity team has invested over US$1billion in over 60 companies. Within Latin America, it currently has private equity investments in Mexico, Argentina and Brazil. Gavea Investimentos is one the largest independent investment managers in Brazil, with approximately US$4.5 billion currently under management. Gavea was founded by Arminio Fraga, a former governor of the Central Bank of Brazil. Lastly, DLJ South American Partners is a regionally-dedicated Private Equity fund sponsored by Credit Suisse. Their portfolio is primarily focused in Argentina, Brazil, and Chile, having invested US$650 million in several industries across the entire region.

McDonald’s Latin American Business – Healthy and Growing
McDonald’s Latin America has been revitalized over the last four years, achieving 42 consecutive months of positive comparable sales and 13 consecutive quarters of margin improvement. For the past three years, they have achieved double-digit comp sales gains, driving improvement in both company-operated and franchised margins. For first quarter 2007, the region continued its strong performance with a 14.7% comparable sales gain. And, in 2006, McDonald’s was recognized as the Best Company to Work for in Latin America by Great Place to Work Institute, Inc.

“Our great results are a testament to the collective focus on our Plan to Win and to the health of our business,” said Jose Armario, President of McDonald’s Latin America. “Woods is aligned with our Plan to Win and understands the strength of our three-legged stool of franchisees, employees, and suppliers. He’s passionate about our business and our customers and will no doubt build upon our four years of positive momentum.”