CLAIM #38934 · McDonald’s Corporation (MCD) · 2022Q1 earnings call · Apr 28, 2022 · due Dec 31, 2022
“but the overall envelope will probably be relatively similar at this year in that $2.2 billion to $2.4 billion range.”
Kevin Ozan · CFO
In context
“t restaurant development is ramping up? And within that as well I know China is an asset-light market for you guys. If you could just comment on the 800 stores you previously planned to open there? Is that still on track, or is the COVID flareup you're seeing there weighing on that? Thank you. Kevin Ozan: Yes. So, let me start with the CapEx. The CapEx to your point we've said for this year it's $2.2 billion to $2.4 billion. I think we expect a relatively similar range for the next few years. The make-up of that $2.2 billion to $2.4 billion will be different to your point because -- we are -- we will be substantially complete with our remodeling in the US at the end of this year. So, more of the CapEx from a percentage standpoint and dollar standpoint will be on new units versus remodels, but the overall envelope will probably be relatively similar at this year in that $2.2 billion to $2.4 billion range. Regarding China, as you mentioned, we've indicated that right now we expect roughly 800 store openings this year. They opened about 250 or so in the first quarter. That's still on track, but we are keeping a close eye on that because of everything that's going on in China as you mentioned and we have two. There's been major lockdowns in some large cities certainly over the last couple of months that even continue today. That could impact openings this year one either from not being able to open or two from just our reevaluation of the timing of some openings. But right now we're still on plan with those 800, but we are keeping a close eye on everything going on in China. Mike Cieplak: Our next question is from Eric Gonzalez with KeyBanc. Eric Gonzalez: Hey thanks for the question. I think”
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SEC filings for MCD ↗ · Claim quote is verbatim from the 2022Q1 earnings call.