Exhibit 10(j)
                                March 20, 2001


Mr. Donald R. Keough
DMK International
200 Galleria Parkway
Suite 970
Atlanta, GA 30339

Dear Don:

     This letter will acknowledge your agreement to retire as a member of the
Board of Directors pursuant to the retirement policy for Directors, and to serve
as a Senior Director of McDonald's Corporation, effective immediately following
the Company's 2001 Annual Meeting of Shareholders, scheduled to be held on May
17, 2001.

     As you know, your service as a Senior Director shall be at the pleasure of
the Board on the following terms and conditions:

     .  Senior Directors may attend Board meetings and meetings of Committees
        upon which they served at the time of their retirement as Directors, but
        shall not have the right to vote at any such meeting.

     .  Senior Directors shall be designated annually for a one-year term, but
        may not serve more than two such one-year terms.

     .  Senior Directors shall be compensated in the same manner as Directors,
        except that Senior Directors shall not be compensated for attending
        Committee meetings.

 .  Senior Directors shall be expressly indemnified by resolution of the Board of
   Directors under the provisions of the Company's By-Laws.

 .  On behalf of the Board of Directors, we thank you for your willingness to
   continue to share your advise and counsel with the Board and McDonald's
   management.

                                    Sincerely,


                                    /s/ Donald G. Lubin
                                    Donald G. Lubin
                                    Chairman, Nominating and Corporate
                                    Governance Committee

                                    /s/ Jack M. Greenberg
                                    Jack M. Greenberg
                                    Chairman and Chief Executive Officer

Accepted as of March 21, 2001

/s/ Donald R. Keough
Donald R. Keough