“We are confident we can get back to consistent expansion of US margins as we lap the first year of the contract.”

In context

“overlap, we would expect revenue to be flat to down 2% in the first half, up 4% to 8% in the back half. And from a profit perspective, I had mentioned that it's a tale of two cities. In terms of halves of the year, the second half of the year, we'd expect profit to grow about 20% to 30%. So Q1 will be the biggest challenge because we're lapping from a volume comp perspective and a full contract. But on a full-year basis, we're looking at OP margin 10% to 10.6%. I think you can expect the second half of the year to be 11% to 12% in that range and you can back into the first half. In terms of your question of backing out the $1 billion in cost, that $1 billion will be a cost-benefit in 2024. But I think we've said in the past, Amit, it would take twelve months to digest the new labor cost. We are confident we can get back to consistent expansion of US margins as we lap the first year of the contract. That'll be a combination of pricing and productivity. So, net-net, it's really lapping that contract and then you start to get the benefits. As Carol said, some of those benefits would accrue over to 2025 as well. Amit Mehrotra: And are we done there on the $1 billion or is there like there's $55 billion in total cost? I mean, are we just getting started or like what's the actual opportunity there beyond the $1 billion? Brian Newman: So Carol talked about the differences between the Nando and Kate, the operating cost and what we're talking about management headcount. If you bifurcate the two, I think you're going to hear more at the Investor Day through things like network of the future, how we go after additional headcount in that area. But this would be about a 14% reduction in that 85,”