This cross currency swap which McDonald’s using takes effect when the swap in the following several situation are more effective

This cross currency swap which McDonald’s using takes effect when the swap in the following several situation are more effective. For instance, McDonald’s trying to lock up the payment cost over the seven years agreement, to avoid the increasing cost of the pound sterling in the future, and lock the dollar value. Moreover, based on the swap agreement there are a notional principal at the end of the swap which that will effectively hedged against the changes value of currency and protect parent company in connection with the future rising cost in pound sterling and also prevent the dollar value depreciate during some unanticipated event.