McDonald's Company News <b></b>

Oak Brook, Illinois--McDonald's Corp. reported its sixth consecutive earnings decline, hindered by weak sales and charges taken for an accounting change and the closure of some underperforming restaurants. The chain posted first-quarter net income of $253.1 million, compared with $378.3 million a year earlier. -Reuters

McDonald's Corp. chairman and chief executive Jack M. Greenberg forecasts a return to double-digit earnings growth for the company in 2003 and beyond but was not specific as to what earnings might be next year or just how soon he expected the company to regain bottom-line momentum after posting a decline in results last year. McDonald's has undertaken a major effort to improve service, sales and the bottom line of its domestic system. -Associated Press

McDonald's is planning to open an 11,500-square-foot, 160-seat restaurant in Columbus, Ohio, to test the concept of separate entertainment zones for children, teens and adults. For young children, there's a play area; for teens, a four-screen video game podium, game tables and a karaoke recording studio; for adults, a quiet area with soft seating. At the opposite end of the restaurant is a "McTreat" area with specialty coffees, smoothies and desserts. -United Press International

McDonald's Corp. has signed a non-binding letter of intent with Fazoli's, a Lexington, Kentucky-based Italian fast-food chain, to develop 20 to 30 Fazoli's in three U.S. markets. The company said the deal fits with McDonald's strategy to broaden the types of food it offers and the restaurants it operates, giving consumers a variety of dining experiences. -Crain's Chicago Business