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CLAIM #39022 · McDonald’s Corporation (MCD) · 2023Q1 earnings call · Apr 25, 2023 · due Dec 31, 2023

So I think certainly, you can kind of see a path forward where operating margin could come up a little bit from where our guidance is today if we continue to see that strong top line result over the course of the rest of the year, but there are several ifs there.

Ian Borden · CFO

PENDING
graded after results covering Dec 31, 2023 are reported

In context

-loaded and certainly believe as we get into the back half of the year, we'll start to see inflation moderate down but still really elevated in Europe. So I think if you go back to operating margin for the first quarter, we finished at 46% on the back of that really strong top line. And I think as we've said pretty consistently in the past, we certainly continue to expect that if we can drive strong top line growth, we should get leverage on operating margin from a percentage perspective as we go forward. Certainly, don't necessarily believe that will be necessarily linear. And I think there's a lot of headwinds for us to continue to work through both from an inflationary standpoint, but just as Chris talked about earlier, just from that macro uncertainty that we know we need to navigate. So I think certainly, you can kind of see a path forward where operating margin could come up a little bit from where our guidance is today if we continue to see that strong top line result over the course of the rest of the year, but there are several ifs there. And I think there's just a lot of headwinds for us to navigate that we remain cautious on. Mike Cieplak: Our next question is from David Tarantino with Baird. David Tarantino: Hi, good morning. Ian, just a clarification on your margin guidance. I just want to make sure I'm clear. The 45% you call out for the EBIT margin guidance, is that a GAAP or a non-GAAP number? And the reason I ask is Q1 typically is your seasonal low quarter for operating margins. So I just want to make sure we all understand that. And then secondly, Chris, I guess your comments about some of the consumer behavior you're seeing change with respect to items for order and otherwise, I wanted to understand that a little bit better. Are you starting to see that emerge as you exit the first quarter and enter the second q

Verify independently

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