CLAIM #38918 · McDonald’s Corporation (MCD) · 2021Q4 earnings call · Jan 27, 2022 · due Dec 31, 2022
“As you go into this year, we are expecting that there is going to continue to be pressure on wages.”
Chris Kempczinski · CEO
In context
“point. We went up probably a tick higher as the year progressed on that in McOpCos. And our franchisees similarly saw inflation, call it, in the mid-teens from a labor standpoint. One of the things that we also did though, and I think Joe and the U.S. team did a lot of good work with our franchisees on this, is talking about our employee value proposition, and beyond wages, other things that we can be doing to make sure that we've got the best proposition to get people in our restaurants. Things like paid time off, Archways and what we do around tuition reimbursement. And just a focus on making sure the reward and recognition is there. All of those things cumulatively, wages, focus on the employee value proposition and just engaging with the crew is what allowed us to make the progress. As you go into this year, we are expecting that there is going to continue to be pressure on wages. Certainly, as we're thinking about our pricing, we're thinking about how do we put pricing that can anticipate that, but I'll let Kevin tell you more on that. Kevin Ozan: Yes. So to Chris' point, we had kind of this onetime, if you will, adjustments or concerted effort to adjust people's wages. Right now, there isn't a specific plan to have a onetime event like that in 2022. But what we do need to do is continue to make sure that our folks are being paid at a similar level compared to industry, as the intent was last year. So that will continue to have some pressure, but we won't have kind of the onetime big bang, if you will. From a pricing perspective, in the U.S. in 2021, consistent with what I had been saying kind of for the first 9 months, we ended up with pricing for the year a lit”
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SEC filings for MCD ↗ · Claim quote is verbatim from the 2021Q4 earnings call.