CLAIM #38957 · McDonald’s Corporation (MCD) · 2022Q2 earnings call · Jul 26, 2022 · due Dec 31, 2022
“We do still expect net unit growth in the US this year for the first time in several years, but it's certainly not an access to capital, as you mentioned.”
Kevin Ozan · CFO
In context
“ghtly lower into the previous range. Is that because of challenges in the supply chain, and we hear about constraints around equipment or labor and staffing. It doesn't seem like it's an access to capital issue given the multiples that are historically high. And then also on the guidance, you talked about mid-40s operating margin, again, also slightly higher than the prior. Is it a function of mix? Like less company-operated or better topline? Because again, we're seeing costs coming very high. So, just trying to understand those relatively minor changes, please? Kevin Ozan: Yes. Thanks Sara. Let me take a shot at both of those. On the unit growth in the US, you're right, it's come down a little bit. that's mainly due to timing. Some permitting is taking a little bit longer in some areas. We do still expect net unit growth in the US this year for the first time in several years, but it's certainly not an access to capital, as you mentioned. It really is just a timing thing. And we are finding that openings are taking a little bit longer between some supply chain challenges and some permitting just timeframes. I think there's a backload making just getting through all the government processes take a little longer. On operating margin, we upped that guidance a little bit right after the Russia announcement. It really is a function primarily of selling our Russia business. The Russia business, as you know, was primarily company-owned and actually had an operating margin below our global average. So, by taking them out now actually helped improve the operating margin. So, it is just a function of mix in the near-term. We do still believe that longer term, there's leverage to be gained both in operating margin and specifically on”
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SEC filings for MCD ↗ · Claim quote is verbatim from the 2022Q2 earnings call.