“I think in 2023, we think our food and paper inflation is going to be kind of mid to high single digits.”

In context

“orking with your franchisees across the globe to address that? And then second, if you could talk about the quarter-to-date industry data, particularly in the U.S., it's been quite strong to start the year. Curious to know if some of the strength that McDonald's saw in the fourth quarter has carried over into the first quarter? Thank you. Ian F. Borden: Good morning Jon, let me start on that one. And maybe just to give a bit of texture to my answer, I'll talk about it in a couple of pieces. I'll start with the U.S. and then talk a little bit about IOM but maybe with a focus on Europe. I mean, I think in the U.S., we would say we're past the inflation peak and kind of heading on that downward slope. But certainly, we had high inflation, mid-teens in 2022 from a food and paper perspective. I think in 2023, we think our food and paper inflation is going to be kind of mid to high single digits. So still obviously very elevated from where it's been for a long time. And so in combination with that, you've also got energy prices that are up and interest rates and things like that, that are impacting us. I think if you move to IOM with a focus on Europe, I think we're still working through the peak period of inflation. I don't think we think inflation will -- in Europe we will start to ease probably until mid-2023. In fact, we'll see some markets in Europe with higher levels of inflation in 2023 than we saw in 2022. And so I would say, on an IOM basis for 2023, we probably expect food and paper inflation to be kind of in that mid-teens, not substantially lower than what we saw in 2022. So I think that gives you an indication of the level of the inflationary pressure. Of course, ene”