17 March 2011 – McDonald’s Corporation today announced the appointment of Cyril Ramaphosa as Developmental Licensee (DL) for South Africa. As the new DL, Mr. Ramaphosa will be responsible for the operation of McDonald’s restaurants in South Africa.

Mr. Ramaphosa, a South African businessman familiar with local dynamics and market conditions, will have a 20-year Master Franchise Agreement with McDonald’s. He will use capital and resources, including some financial backing from the Shanduka Group, to continue to build the McDonald’s brand, grow the South Africa business, and optimise results.

“We are excited about the new relationship between McDonald’s and Cyril Ramaphosa,” said Mr. Dave Murphy, Division President McDonalds Asia-Pacific, Middle East and Africa (APMEA). “We’re confident this structure will help us better serve our valued customers in South Africa. The market is award-winning within the McDonald’s system and has consistently produced positive results. Mr. Ramaphosa is the right person to continue that business momentum, and McDonald’s is committed to providing our ongoing support to this new venture.”

More than 50 of McDonald’s 117 markets operate under the DL model, which has existed for more than 20 years. Unlike a conventional McDonald’s franchisee, the DL owns all the assets in the market, which includes owning and/or leasing the real estate (restaurants/ and office buildings). There is no visible change in the operation of the restaurants to customers.

“It is an honour for me to have been awarded the Developmental Licence for the McDonald’s South Africa business,” said Mr. Ramaphosa. “We will focus on satisfying our customers, developing our people and maximizing business opportunities. This relationship will have a positive impact on jobs, shareholders and ultimately McDonald’s customers.”

McDonald’s South Africa Managing Director Mr. Greg Solomon added: “McDonald’s South Africa is a strong and robust business, and we’re confident in its future with Mr. Ramaphosa as its new owner. We have an unwavering focus on our strategic business goals and most importantly on our customers. For all of our customers in South Africa, it is hamburgers as usual; and for our employees, franchisees and suppliers, it is business as usual, with the benefits of accelerated expansion and responsible growth.”

The transaction is still subject to certain operational conditions being satisfied such as securing the necessary approval of the Competition Commission among other things.