Day 043 - 01 Nov 94 - Page 10

     
     1        spent on advertising by McDonald's Corporation in the
     2        United States, Mr. Green, can I ask you to explain how it
     3        is that the revenue which your company spends-----
     4
     5   MR. JUSTICE BELL:  In fact, if I have it right, it is pretty
     6        close, is it not, because one goes into the other in each
     7        case approximately 20 times, maybe a bit lower or a bit
     8        more -- just doing some mental arithmetic.
     9
    10   MR. MORRIS:  It is my understanding-----
    11
    12   MR. JUSTICE BELL:  You ask questions later, if you want to.  It
    13        may be the right or the wrong approach, but they appear
    14        about the same ratio, do they not?
    15
    16   MR. RAMPTON:  Do you want a calculator, Mr. Green?
    17        A.  Yes, that would be great. I have not done the
    18        arithmetic.
    19
    20   MR. MORRIS:  I presume the third column is the calculation
         which  is that Wendy's----
    22
    23   MR. JUSTICE BELL:  Just wait, Mr. Morris.  Mr. Rampton will ask
    24        the witness, if he wishes to.
    25
    26   THE WITNESS:  (Pause)  If you divide the 168 million by the
    27        1 billion 20 million, you get about 12 per cent of sales
    28        for Wendy's.
    29
    30   MR. RAMPTON:  Yes?
    31        A.  If you do the same in the United States for McDonald's
    32         -- the figure for US sales is incorrect.
    33
    34   Q.   I am coming to that.  But what figure do you get?
    35        A.  About 12.7 per cent for Wendy's.
    36
    37   Q.   What do you get for McDonald's?
    38        A.  Using the numbers that are on this sheet?
    39
    40   Q.   Using these numbers, yes.
         A.  All right.  That is about 736 million divided into
    42        3 billion 931.  That is about 18.4 per cent.
    43
    44   MR. JUSTICE BELL:  If you put 7.84 into 100, you end up with
    45        your 12.7; if you put 5.34 into 100, you end up with the
    46        figure Mr. Green has just given.
    47
    48   MR. RAMPTON:  Yes.  Mr. Green, I wish you to play librarian
    49        again.  Please can you extract from behind you pink
    50        volume III?  It should be called "McDonald's profile" or 
    51        something like that, is it? 
    52        A.  Yes. 
    53
    54   Q.   Turn to tab 5, where you will find the Annual Report of the
    55        Corporation for 1993.  The document we have just looked at
    56        gave McDonald's US sales as, I think, 3.9 billion for 1993,
    57        did it not?
    58        A.  I believe that is what it says.
    59
    60   Q.   If you turn to page 135 -- it should be written or stamped