Resolved, Shareholders request the preparation of a report, updated annually, disclosing: 1.            Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications. 2.            Payments by McDonald's used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient. 3.            Description of management's and the Board's decision-making process and oversight for making payments described in section 2 above. For purposes of this proposal, a "grassroots lobbying communication" is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of the communication to take action with respect to the legislation or regulation. "Indirect lobbying" is lobbying engaged in by a trade association or other organization of which McDonald's is a member.  Both "direct and indirect lobbying" and "grassroots lobbying communications" include efforts at the local, state and federal levels.  The report shall be presented to the Public Policy and Strategy Committee and posted on McDonald's website.  Supporting Statement  Full disclosure of McDonald's lobbying activities and expenditures is needed to assess whether McDonald's lobbying is consistent with its expressed goals and shareholder interests. McDonald's spent $27 million from 2010 - 2023 on federal lobbying. This does not include state lobbying, where McDonald's also lobbies, for example spending $5 million on lobbying California in 2023 and reportedly pushing its franchisees to lobby against a California fast-food labor law.1 McDonald's also lobbies abroad, spending between ?2,250,000 - 2,499,999 on lobbying in Europe for 2023.  Companies can give unlimited amounts to third party groups that spend millions on lobbying and undisclosed grassroots activity.2 McDonald's lists 14 trade associations receiving over $25,000 for 2024, including the Business Roundtable, International Franchise Association (IFA), National Restaurant Association (NRA) and Chamber of Commerce, which together sent $94 million on federal lobbying for 2023. critically fails to disclose its payments to trade associations and social welfare groups, or the amounts used for lobbying. The disclosure leaves out state trade associations like the Illinois Restaurant Association and Washington Hospitality Association, and all social welfare groups, like the Bay Area Council, Center Forward and US Global Leadership Coalition  McDonald's lack of disclosure presents reputational risks when its lobbying contradicts company public positions. For example, McDonald's stated in 2019 it would no longer participate in lobby efforts against minimum-wage hikes, yet the NRA and IF A have lobbied to block state wage laws3 and the NRA charged workers for a training class which also helped fund a nationwide lobbying campaign against raising the minimum wage.4 And McDonald's publicly supports taking action on climate change, yet the BRT filed an amicus brief opposing the Securities and Exchange Commission climate risk disclosure rules5 and the Chamber opposed the Paris climate accord. 1https://www.cnbc.com/2022/08/31/mcdonalds-us-head-says-califomia-fast-food-bill-unfairly-targets-big-chains-.html. 2https:/ /theintercept.com/2019 /0 8/06/b us iness-group-spend i ng-on-lob by ing-in-wash i ngton-is-at-least-double-whats-pub I ic ly­reported/. 3https://www.fastcompany.com/90819939/the-fast-food-industry-just-proved-how-easy-it-is-to-hijack-califomias-referendum­process. 4https://www.nytimes.com/2023/0l/17/us/politics/restaurant-workers-wages-lobbying.html. 5https ://www. eenew s. net/ arti cles/investo rs-q uesti on-bus i ness-ro un d tab I es-c Ii mate-rule-battle/.