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CLAIM #39017 · McDonald’s Corporation (MCD) · 2023Q1 earnings call · Apr 25, 2023 · due Dec 31, 2023

when you have a strong top line and you're working your way through inflation, you can be pretty confident, you can be very confident that you're going to get back to the cash flow growth that our system expects.

Chris Kempczinski · CEO

CANNOT_DETERMINE
versus commitment · official band 5 percent
Committed
you're going to get back to the cash flow growth that our system expects
Reported
our free cash flow conversion was in the 90% range for the year

In context

n and discipline. I think that's what drives the consistency in our performance. Chris Kempczinski: The only thing I would add is, certainly, one of the things that gives our system confidence is the top line performance because there's an understanding that what we're dealing with right now from an inflation standpoint that, that is going to improve. Certainly, our expectation is it's going to improve as the year unfolds. And so when you have this kind of strong top line momentum and you're working your way through inflation, ultimately, you start to see the benefits of that. And one of the things that we're seeing in the U.S., the U.S. has slipped back to being cash flow positive for our franchisees in quarter 1. 2022 was more challenging for them from a cash flow standpoint. But again, when you have a strong top line and you're working your way through inflation, you can be pretty confident, you can be very confident that you're going to get back to the cash flow growth that our system expects. And so we feel good about that sort of message is what keeps the system aligned for the long-term. Mike Cieplak: Our next question is from Brian Harbour with Morgan Stanley. Brian Harbour: Good morning, thank you. Chris, you spent quite a bit of time talking about just some of the organizational changes and ways of working. How is that -- how will that be visible? Or how should we assess the success of that for those of us that are kind of looking at it externally? And then I guess just more specifically, as we think about SG&A expense, it seems like some of the costs that have come off with the employment changes will be reallocated to other things. Could you comment on just where that will be going as we think about 2023? Chris Kempczinski: Sure. Well, from an overall how do you assess

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SEC filings for MCD · Claim quote is verbatim from the 2023Q1 earnings call.