CLAIM #38879 · McDonald’s Corporation (MCD) · 2021Q3 earnings call · Oct 27, 2021 · due Dec 31, 2022
“And then going into next year from a food and paper cost perspective, we would expect our cost to be up relatively in line with the industry right now. That expectation is roughly mid-single digits.”
Kevin Ozan · CFO
In context
“putting some pressure. We haven't seen, I’ll say, any more resistant to our price increases than we've seen historically. So that the 6% has been pretty well received by customers. We do certainly have a very big focus to make sure that we are balancing cost pressures and being able to cover those with making sure that our value perceptions by customers continue to be favorable. And we are continuing to see those surveys and scores from a value favorability perspective still positive from customers. So, we'll continue to keep an eye on it from a commodity perspective. Commodities were up roughly 2% or so through the first nine months, but we expect for the full year for those to be up roughly 3.5% to 4%, which will put a little bit of additional pressure on the fourth quarter, obviously. And then going into next year from a food and paper cost perspective, we would expect our cost to be up relatively in line with the industry right now. That expectation is roughly mid-single digits. And so, we will continue to keep an eye both on the cost side and the pricing side. Both we and our franchisees over the last couple of years have been using a third-party for pricing advisory services, if you will, using a pretty deep consumer-based research approach. And so, we have, I think, more science built into our pricing decisions that take into account market conditions, competitive factors, et cetera. So, like I said, we'll keep a close eye on cost and pricing, but right now, so far, it's been received okay by customers. Operator: Our next question is from Jared Garber with Goldman Sachs. Jared Garber : Great. Thanks so much for the question. I wanted to shift the topic a little bit over to the unit growth side of the equation. And if you can give us an update on what you're s”
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SEC filings for MCD ↗ · Claim quote is verbatim from the 2021Q3 earnings call.