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CLAIM #38955 · McDonald’s Corporation (MCD) · 2022Q2 earnings call · Jul 26, 2022 · due Dec 31, 2022

And three, different than the US, we don't see that moderating. Their increases will actually likely be higher in the third and fourth quarter than they were in the first and second quarter.

Kevin Ozan · CFO

PENDING
graded after results covering Dec 31, 2022 are reported

In context

. And then we expect to see it to moderate some in the fourth quarter. Obviously, that's based on what we know today. That's on food and paper. On the labor side, we're probably seeing a little over 10% labor inflation right now. Part of that is, we had strategic wage rate increases in our company-operated restaurants kind of mid last year. So, we won't start lapping those until the second half of the year. So more of that inflation was hit in the first half of the year than the second. To your point on the international side, right now, the range is probably similar on average, the 12% to 14% for the year, but a couple of things there. One, we're probably at the higher end of that range on the international side. Two, there's probably a wider range of scenarios like Chris talked about. And three, different than the US, we don't see that moderating. Their increases will actually likely be higher in the third and fourth quarter than they were in the first and second quarter. So, to your point, Europe is getting hit harder on the inflation, certainly on the food and paper. The other thing I would just say, it certainly varies by country. You have some countries that are getting hit dramatically by energy prices based on kind of Russian oil, etcetera. And so, it really is a country-by-country dynamic. But in general, the international side will get hit a little bit harder than the US and it will last a little bit longer later in the year than the US right now. Chris Kempczinski: Yes. To answer your second question in terms of what I think are the biggest priorities over the next few years, if I use our MCD framework under Accelerating the Arches and start with the M, I think we have an opportunity to continue to improve on the marketing front and just get more

Verify independently

SEC filings for MCD · Claim quote is verbatim from the 2022Q2 earnings call.