EXHIBIT 12.
McDONALD’S CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| Dollars in millions | Years ended December 31, 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||
| Earnings available for fixed charges |
||||||||||||||||||||
| Income from continuing operations before provision for income taxes and cumulative effect of accounting changes |
$6,158.0 | $ | 3,572.1 | (1) | $ | 4,154.4 | (2) | $ | 3,660.2 | $ | 3,217.0 | (3) | ||||||||
| Minority interest expense in operating results of majority-owned subsidiaries, including fixed charges related to redeemable preferred stock, less equity in undistributed operating results of less than 50%-owned affiliates |
10.7 | 7.2 | 5.5 | 1.2 | 4.4 | |||||||||||||||
| Income tax provision (benefit) of 50%-owned affiliates included in income from continuing operations before provision for income taxes |
30.0 | 22.4 | 5.9 | (3.5 | ) | 13.1 | ||||||||||||||
| Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors* |
321.3 | 312.8 | 304.0 | 292.8 | 272.2 | |||||||||||||||
| Interest expense, amortization of debt discount and issuance costs, and depreciation of capitalized interest* |
556.8 | 442.7 | 437.4 | 392.2 | 394.2 | |||||||||||||||
| $7,076.8 | $ | 4,357.2 | $ | 4,907.2 | $ | 4,342.9 | $ | 3,900.9 | ||||||||||||
| Fixed charges |
||||||||||||||||||||
| Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors* |
$ 321.3 | $ | 312.8 | $ | 304.0 | $ | 292.8 | $ | 272.2 | |||||||||||
| Interest expense, amortization of debt discount and issuance costs, and fixed charges related to redeemable preferred stock* |
539.7 | 425.9 | 418.4 | 373.4 | 375.6 | |||||||||||||||
| Capitalized interest* |
12.5 | 7.0 | 5.5 | 5.0 | 4.1 | |||||||||||||||
| $ 873.5 | $ | 745.7 | $ | 727.9 | $ | 671.2 | $ | 651.9 | ||||||||||||
| Ratio of earnings to fixed charges |
8.10 | 5.84 | 6.74 | 6.47 | 5.98 | |||||||||||||||
| * | Includes amounts of the Registrant 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) | Includes pretax charges of $1.7 billion primarily related to impairment in connection with the Company’s sale of Latam to a developmental licensee. |
| (2) | Includes pretax charges of $134.2 million primarily related to impairment. |
| (3) | Includes pretax charges of $202.1 million consisting of $130.5 million related to impairment and $120.9 million related to the correction in the Company’s lease accounting practices and policies as well as a $49.3 million gain relating to the sale of the Company’s interest in a U.S. real estate partnership. |
91