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McDONALD'S ANNOUNCES $500 MILLION PREFERRED STOCK ISSUANCE AND COMMON STOCK BUYBACK

 McDONALD'S ANNOUNCES $500 MILLION PREFERRED
 STOCK ISSUANCE AND COMMON STOCK BUYBACK
 OAK BROOK, Ill., Nov., 12 /PRNewswire/ -- McDonald's Corporation (NYSE: MCD) announced today that it plans to issue up to $500 million of preferred stock and that its board of directors has authorized a common share repurchase program of up to $500 million within the next twelve months.
 Vice chairman and chief financial officer Jack M. Greenberg said, "We are taking advantage of historically attractive preferred dividend rates to reduce our cost of equity capital and improve return on equity for common shareholders, while maintaining a strong equity base to support the future growth of our worldwide business. We have repurchased $1.6 billion of our common stock over the past ten years and this action is consistent with our long-term commitment to provide common shareholders with outstanding returns."
 The proceeds from any issuance of preferred stock will be used to repurchase common stock and may be used to repay debt. Any preferred issue will likely have a fixed-rate dividend which will be determined at the time of sale based on market conditions and will likely be callable beginning five years from the date of issuance.
 Merrill Lynch & Co., Salomon Brothers Inc, Goldman Sachs & Co., Lehman Brothers, J.P. Morgan Securities Inc., Morgan Stanley & Co. Incorporated and PaineWebber Incorporated have been named in the registration statement as principal underwriters for the preferred stock.
 A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This shall not constitute an offer to sell or the solicitation of an offer to buy. There shall not be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
 After the registration statement relating to the preferred stock becomes effective, a prospectus may be obtained by request to:
 McDonald's Shareholder Services Center, McDonald's Corporation, Kroc Drive, Oak Brook, IL 60521.
 McDonald's is the world's leading foodservice organization, with more than 12,700 restaurants in 62 countries. About 80 percent of McDonald's restaurant businesses are locally owned and operated by independent entrepreneurs.
 -0- 11/12/92
 /CONTACT: Sharon Vuinovich (investors), 708-575-3395; or Chuck Ebeling (media), 708-575-6150; both of McDonald's Corporation/
 (MCD) CO: McDonald's Corporation ST: Illinois IN: LEI SU:


KK -- CL008 -- 0148 11/12/92 11:48 EST
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Publication:PR Newswire
Date:Nov 12, 1992
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