McDonald's (MCD) 30 Oct 232023 Q3 Earnings call transcript

Hello, and welcome to McDonald's Third Quarter 2023 Investor Conference Call. At the request of McDonald's Corporation, this conference is being recorded. [Operator Instructions]

I would now like to turn the conference over to Mr. Mike Cieplak, Investor Relations Officer for McDonald's Corporation. Mr. begin. may you Cieplak,

and call for Chief today and Ian Chris everyone, me Executive us. on Kempczinski; Borden. Officer, Financial the are Chief thank morning, joining you With Officer, Good President and

their statements forward-looking apply measures reconciliations of GAAP of as also comments corresponding those the reminder, are our along on a in earnings today's on X-K to today. release call the financial are available any mentioned our call on documents non-GAAP filing and Both with measures. website, As our

Following this [Operator we take Instructions] will prepared morning, remarks your questions.

other Just turn Chris. of one over piece I housekeeping today it before to

quarterly be more the our our time the year. December being on As is found our many Chris in you Events on section replay aware, leadership senior Investor where via joined of and headquarters McDonald's investor we'll for followed and recorded We'll how tune update Q&A on webcast host and be mindful of and of team to to on a ask on our for you website. update can that call X, conference for are also Wednesday, Ian on results priorities, event questions of focus December spend day. with Q&A Today's members and on on being priorities in today will Details strategic is current an our your XXXX in website. our strategic our the please by of that an call questions plenty time this be I session. provide with by the

Chris. to over it turn I'll now And

Mike, Thanks, morning. and good

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Ian. turn now to over it I'll

and Chris, morning. Thanks, good

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I annual touch want of of in to Directors by our proud up, This consecutive system with sharing Accelerating in dividend our in shareholders. commitment a marked meaningful on October. by forward early This we're demonstrates you strategy investor the Board and extremely long-term increase wrap for to growth our consecutive our the I marks our I Arches increase at to of update recent return delivering look dividend our more approved XX%, to XXth our confidence record and track and As December. increase. of cash shareholders, our the the second

going it I'm to to Chris. that, over turn with back And

Thanks, Ian.

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forward you to to over I in Q&A. Mike and December, look I'll for Chicago seeing this now hand it

[Operator Instructions]

JPMorgan. question first Ivankoe Our with is from John

Obviously, average and beyond value, sizes, driven increases just average call. And for the the I I increases wanted focus value ask, you the ticket pricing a much In which you. ticket big other on by customization, have on recent in focus sector, that what in words, across premiumization, to of price. guess, of context larger of really this

to what is there some would the as can Or that market in talk average and mean particular, where gains? we value, increases? to average gains transaction presumably ticket in be about ticket order you price do future So value, does intention bundled value, And an protected? sacrifice to future get to share

and Yes. mean, we're Thanks, convenience John. value business And it's think on food. built value, I great-tasting with always on focus at a McDonald's. I a

always we're to So keen value. on focus

the experienced than to choiceful how I news price experienced, and to think that have And tried executed affordability. on has be we've those continue the more increases. we the inflation we really over certainly on lead market disciplined we've is good year, given year, last that very the the

on money. in continue lead seen no value there. for We advantages our deterioration We've to

We are holding those up.

varies How we it by do market.

So how teams I pass-through on customer that to But at, they to are that you, market value. look great in job change the to the to indication each of It's about I all doing think the statement how value, every on individual an generalized great me can continue market really is wouldn't give you deliver value. we no they're right teams up striking which balance. major it. about we're a approach also we single at a delivering are pricing, seeing the against on acceptance customer terms And tell

from is Evercore. Our next Palmer question with David

in world. on love be the countries. how And the post-COVID these in a Thanks marketing does countries, big might recovery initiatives the more hear color there's bit speak, IOM X, IOM trends like the the value, out I'd so focus to settling for it on sound in to mobility big but

at good be back-to-school that. In maybe other way a words, to look might

a get you're what of expecting of should we type the be for tourism these summer, of the getting you boost comps markets. IOM past maybe sense As

So would exited color very environment these quarter, the helpful. in how consumer really markets, about be same-store type any trends seeing of you're the sales

I'll continue over David. to at be you more start to at a texture we seeing, any markets. business very Thanks, a Yes. well is level, our a that. great quarter, is perform seeing But We're all how hand on also this continuing satisfaction and We're it high in year overall. Ian pleased that there's seeing IOM performing. of X-year the to on then We're execution. increasing level stack, major give customer whether with our or IOM very to look you almost the scores high business

So feel good. overall, we

and Europe in In seen we've particular, more -- Europe. in certainly inflation

team the more over there business so sure any that it on we And give overall, not But I'll big value. to to performing, has terms laser-focused more of Ian probably even seeing had you change in quarter-to-quarter be it's but texture. give the how some deliver making great to

momentum across markets, are talked of there's majority obviously just at quarter yes, in despite, again, some tells which couple We growth those David, And grow Chris we've obviously, Chris environments I X.X%, I a in markets, of comps builds some got I IOM sales that a look us think to a to, the indication pretty we're fair that's market perspective. traffic the for had in consumer segment, the the bit if of maybe markets, which varied, share consistency of momentum traffic those the the of how a pressure. at or from underlying as large what that fundamental and to macro indication strong of is, and different you those mean, segment. mentioned. obviously, positive the across is of continuing which an think

just our we're continues plan heard I obviously see opening levels the think going to landscapes versus headwind across around down consumer resonate inflation do think strategic and good expectation consistently in macro well how top it in in continuing line our the speaks really consumers mean, Arches to Accelerating and a continue us. to in I and the around down or pricing to with line headwind, have remarks, to come we're continue that we're to moderation From as comes think that But spoken, that. we spot, you around the I a with business. that I

question David next Our with Baird. is Tarantino from

the question My is on cost side.

in of what think last outlook SG&A I had of that lowered given percentage any delays you through what time. it just your or system some least a sales I in front savings you the at a changed wondering, And that outlook? us of was guess investment coming matter on helpful. the could us Accelerating I you Is spending? give and versus context as would be Organizations

obviously. David, Ian,

about as And range the let G&A So of in give you be some there. the think try X.X%. to of as year, percentage so we color come we've expected down to beginning me of guidance in X.X%, updated to marginally. I our said it's we I X.X% at and mean, the a that say sales obviously, more

had I strong some year. results this we've think top line obviously, really

So obviously, that's the benefits. of element a partial

is business. of spend. And I think the spend timing I part the weighted of a just cycle within other kind mean, half back are we

I think standpoint. fourth pronounced quarterly quarter, more a from

we we get of spending as higher do level quarter. fourth So the a into expect

continue element But timing just how think to growth, we're I and kind those believe areas provide One that to of digital, continue for quarterly we invest. just going strong the continue to opportunities. call making, and there's kind last X is opportunities invest behind about where talked our on we're technology a we we I of investments are have to which of -- when

are we've track a I record strong got pretty those for business. think how delivering the investments in

global or last Organization. is up we got part over now the think perspective operational forward. good from drive areas our as area those for organization, efficiencies of investing X a We other go service we certainly sustainable around I we are opportunities. think believe of into stood spent of we're line can some And some months the of so of that at year which of kind there. sight And lot the things this behind business The the what business opportunities looking we as earlier Accelerating time we've an

kind of it, a to of little the those of organizational a the more ATO our focus and bringing kind of timing in first call around life. bit initiatives would spend I year more of half the of on what So changes

from with next Jeff Barclays. Bernstein question is Our

Just the I change was the there quarter. change trend wondering the fourth in I'm would talk a behavior, about U.S. was focused or in more pressure if U.S. benefit maybe that some . Otherwise, and I of no by areas, menu the think, pricing, driven in mentioned on from into consumer, trade-down there's you if just wondering in others. quarter the comp through was the any traffic. whether recently you strategic release, mention

So a if concern at maybe components, you I'm that of that U.S. U.S. lack wondering is just growth can the about components give whether 'XX, breakdown think comp comp. looking you of traffic those a within how

and to as Yes. that. as But rates, been specific Jeff. because answer, that the how the Thanks this. things else like facing anything to discriminating he pressures then Ian interest I'll pick about U.S., the they're consumer well up for has if is wants more question, And the all we've on talking price of

consumer. the up that on end is the lower-income you What seeing felt is pressure more

And and so that that negative an things which consumer, would is $XX,XXX the low-income one of that, from industry-wide is under, standpoint. was we industry say we saw

you negative continue year full slight basis, to If growth. relative have, traffic. our a out you we went QX. that, in We and about on dip slightly to the performance We traffic had in zoom think

up is of because if we in strongly. us a that expected We you were on the look our lapping. traffic at X-year But what quarter, stack

just to and industry of that offering and on feeling disciplined the keep because eye need to continue value, we're that under a $XX,XXX close pressure I we're consumer hopefully, as there well think to sure that So pricing. stays on make the but going they're

just -- certainly just of texture just add bit commentary, because the to quarter. which really think the I the hit headlines, is important but Chris' a build in I'll a Maybe maybe

I we in basis share I mean, our think QSR an market that quarter. the would traffic maintained the on be headline overall

I beef chicken to see the continue think of in and being share strong really gains X the kind category. of elements we key both

a and from both little which we're consumers, alternatives more that the We middle- or Jeff, what to continue benefiting bit, share levels. and gain income kind those out, to you expensive certainly speaks from segment higher-income the trade-down partly of within is with called that

We the quarters. competitive talked consumer a was But Chris comparable, pretty I been for the traffic quarter in last couple marketplace. industry held headline is about, that lower-income the as in as with of share it the has down the think

down that. so result comparable And traffic of was our marginally a as

think just want our this line performance and I what -- which through you've think, highlight, I as for comp to strength I I remain announced top the quarter. think seen, would just overall industry-leading, And our we've of sales,

basis. to And of life together, over on couple scale us got our our working strengths we've that's digital I individual platform years. got which coming been combination fully that's think last We've of a that's a estate. more strategic We've to on allowing interact the a really modernized at with coming consumers a much

in with resonating think culturally marketing really way a our consumers. more elevated been is relevant execution, Our has I and which

talked position I experience we're We value is just -- is we're money we've know affordability. earlier, think And got know about We we Chris to outstanding better better the staffed. the for customers. delivering call on leading a really execution know we this delivering. then And our whole specific as business, and system and U.S. out, for a

macro And that, I we think result that as so headwinds believe a we these of continue navigate. an having as position obviously into lean kind in we're of continue advantaged to to all certainly of to we be

Eric is from with KeyBanc. next Our question Gonzalez

pricing on you expand Thanks if And for wondering discussion. the the could comment I'm on traffic.

in to you the digits you the for quarter, year. be double last expected think pricing I said

what price little that whether early that last bit look would in more So what maybe for XXXX, normalized you years. the you fourth might seen a can be be on we give on to us we've what imply should that comment expect an quarter. can And than the perhaps you few for expect

Eric, it's Ian.

bit pricing. U.S. the obviously, because context little me depending obviously, markets, varies pricing let And about individual to across marketplace. specific is talk the So a the this on in

just in the I business XX%. over think will as to pricing average continue quarter, level about be certainly our U.S. believe full for the talked that last I year

the our is rate I terms in X, think has quarters, a average of number come time now started the and is what we increase. quarter of of in this pricing down in see level that did first to

speaks to line as expect we've And we down. to spoken the of coming that starting think that I come of to with how inflation come kind is fact, in down. inflation to pricing before, course, down is

business comes who our as years couple really recommendations We've to, how to pricing they I we've that last talked before, franchisees, a has lot their business, think of obviously obviously effort and including in about continued advisers capability take third-party our our have over analytical make put U.S. our in to of from make I own the disciplined pricing. think, the decisions. pricing who data been

fact way position price getting cost in pressures, elevated affordability back And that, has we've of we and for of that maintain I though to fact to that from that result been and increases. obviously have that pricing that to minimized elevated inflationary had maximize that a think execute both speaks value even money those in continue able flow-through the a customer the and the we're resistance the we as the levels leadership on the

capability I with kind the to we've position would deliver norms, historical to flow-through I been think in that be our and to continues which the line And with able of say pricing. speaks

So think talked we've again, I moderation. about

will look to kind of I down forward. come think of continues inflation if as that we part be pricing

Dennis from is UBS. question next with Geiger Our

about thinking U.S. more just momentum how to share ask the maintaining you're gains wanted that underlying bit and in I on a

most cetera. traffic that about think sort place and drivers some year of you the thoughts XDs, you of ready arrival, into Chris, latest you're of burger, in these the on speaking across the beyond? next best some even key the on to sales impactful opportunities value, operational and unpack execution can et As

look I'd some to because Well, the year guess how lot X I next we that the for start the Great. thanks a and you question. got with to at drive of seeing outlook the in planned that continue things I we've get about specific forward see business. December for into more we'll to

do December marketing, Each core what still would Arches more about menu growth we the think those. a still each and on that be the Accelerating runway Again, strategy, that there's I the lot we lot XDs, more we'll say, But we broadly, think in is strategy, it. our can X. that of underneath of pillars, a of our has specific

And the is are to pretty And lot opportunities you be business the our going then side now difficult of competitors scale. to amass a scale we the think that that digital about is this what's for on on some quite if honestly, opens to match. side up broadly, think, right significant starting digital building happening more we're

roughly X U.S. down, still They're X We're really about seconds times the the growth but service in anyone a than along continue quarter. we've in more think, which the I in are so our which great digital bigger take else anybody when satisfaction else; the presence, U.S. the you in slightly seconds U.S.; the And got. our we're strong in on is our consumer physical than scores; with with that, down down presence, to having strong restaurants than less seeing execution, year. that position full

situation this in is mean, build, bit that you're environment to we've of done Dennis, the small just estate. I on I one are be I and I'll that I the and imagine competitors do some underestimate a those fully pressured wouldn't years, of estate. fully flows that some couple last and we've cash things in over But mean, rates. of this. that -- just record of modernized higher a got interest today, broken trying modernized an the our today -- a like Maybe of

got about, more headwind this that volatility. think grow. and some of been investments we macro Chris we've kind into head fundamentally as to made of that that's have modernized And platform significant critically important As we've I a the talked continues digital

is, said the strong Yes, up as that the franchisee cash able just position. this thought, the U.S. business, being thing well up a our which triggered need one Ian in a in in franchisees flow to year, quarter. be drive were is we to And

for flow-through of to inflation paper on having as we're for franchisees food continue absorb So the the seeing challenging, to the a labor us, franchisees I think business the our if much that side drive imagine, just it side. as It's good quite fortunately And to both more despite goes would through. as flow seeing well are not to sentiment. and bit on you

new another that's into that as So gives year. the us we head thing confidence

is question Lauren next from Deutsche Our with Bank. Silberman

about Can seeing discounting your regarding you just And environment? I environment. talk change might So the want promotional up to the how in the industry? you're uptick if competitive weaker? on the what commentary Any in value follow to across approach consumer the gets

related, greater dayparts? different I or dayparts, -- same-store on competitive competitive guess certain in activity sales then And across any any color

in in that with quarter the seeing overall standpoint I'll consumer, Ian particular under, is overall, everybody daypart seeing I low-income would of the to the say make to of $XX,XXX think about let's traffic they particularly, what sure earlier, is competitive that the which terms was is, I this and question. from landscape, I'll talked take But and competitive there consumer. are the instance value business, in speak part that the Yes, call looking we're that I down. And specifically let the you're

step-up of but competitors, There that. on would by to nothing beyond is we looking promotional say prudent. Nothing what is is a that that we're in alarming some activity be some I'd seeing our say

going continue we're just it. So monitor to to

hotter, doing not consumers through food. better-tasting through are are is of We But It also industry. getting service It execution, which that think times. that leadership, maintain goes our value experience, going the customer to need things true we're got, to we've beyond goes got that great rest price. and I the which estate, we leadership. go faster, do It we're which on to hospitality. something doing Improved value. modernized value faster means we've into maintaining better a we're And do just lots to a our what seeing through delivering across focused incorporates of

perception, in go all the seeing is So value why our things perception into up pressures. we're hold some those value these of which despite industry

there, I is So attention to certainly, big paying don't that. but everybody any foresee changes

talk specific bit the let I'll For little Ian that about a dayparts, more.

the is the context, as using all just specific I'm build the U.S. maybe across the -- performance business. and the on in dayparts And consistent -- again, dayparts. I on Lauren, the we've had strong pretty

daypart that think I we there's out So strong performance. would I where call seeing aren't don't one

call those a breakfast little a bit there's competitors of, to bit we're further I do But routine, probably we've of return-to-office more just kind behind performance more category. a there. kind return-to-work I'll again, it, in think, are who've daypart coming recovery of pressure in see seen as continuing good as that of the some been and to life in

with just in call only would speak the, pretty a international us there international morning daypart, on pairing. I the Breakfast part important of it, some is value. lens value, a maybe a Maybe some would place, other coffee in you've I that a and is McMuffin bit our made heard out have to call where put this And offer adjustments is is markets which one important team and Canada, of build, an coffee of a pretty Canada is was in that the daypart. to

delivering part customers for of are going need And make markets as And continues sure our our are we're what front-foot relevant so to us. evolve. to make what to as Chris they it's what fundamental about, so is expect are value we to the continue model, I talked they and sure looking our to context proactively and a to continue value, business listen from we're our but think going obviously it strategic that to and adjusting consumers

Our from question Brian next is Bittner with Oppenheimer.

some there it to? this cost maybe pricing? expansion time strong Or quarter simply or to forward? for against indication they easing expanded of point the good Was a stabilization franchise was potential as moving driver food modestly, but What this? turning store-level biggest could to margins well. U.S., point maybe for else margin relates margins, U.S. X the As in of restaurant first And inflation still in years, this be albeit company-owned anything your restaurant a it even perhaps was the the

Brian, consistent both yes, question. roughly U.S. what pretty been in quarter would we the expect the margin with year you for XXXX, think on the at say I X to look thanks landed if margins, percent, company-operated be company-operated where in IOM, restaurant XXXX. -- we've we line and I Look, full in in

I is helping. we've strong had sales think this that view which Obviously, hasn't year, changed. really performance

strong way obviously in the talk me continue about very what a strong that dollar is going you've as heard through business as focused work seeing line think to improved of on. before, only really you to the performance, top that line I in basis we're sales. of that, be strong and percentage And we're of confident, deliver top able sustainably higher addition we're we're growth to able kind we're grow do the And performance. obviously And that's the inflation to periods continue to to from on see margin to restaurant those the back obviously

in no for got full to really good So we've change position But I this with business. we what year. I like we think the the expect across year feel the we're think a momentum

seen benefit franchisees, that of thing sizes these experiencing that just also though side, I add we've think gains but McOpCo I would even down. is something other is that The And we're they're the are part is roster on growing. with the turnover it's seeing

in turnover a seeing prior we're year. pretty has restaurants, as and the we're nice expanding significantly even -- team we're done down really levels our sizes roster So McOpCo job, from

with of all -- has that what benefits associated it. And of

less execution. have also improved you course, have training, you Of but

year. one that's out franchisees, roster think extend we're also that is I significantly. seeing, are So to are thing franchisees' up sizes up Applications last that to versus

think, the turn do as having of seeing this I labor question On having terms side that. the the of fully in U.S., So definitely turnover restaurants lower is about to positive to staffed in result turning? we're and something there a our a

from Stanley. Harbour question is Morgan with next Our Brian

comments wondering side, the just on check on you but versus had IOM if component. traffic within the same-store kind of any U.S. sales, and sort of IDL commented You

wages that pricing will seeing presumably I if you just the had within take your California might franchisees and sense also go then U.S., to a roughly curious offset And be much much how how for was that. up

Yes. cover can and you what then Ian specifically laid of just question, California out, IOM. around I'll the the rest cover

that, point I to we know our work does to wage the higher this mentioned franchisees you I franchisees. wages, worked productivity. exactly to going recent passage what through the noted, that say around be and pricing. some that can going California the with need as to Certainly, going through how things going But going at California, don't think a around to there do to be much teams legislation be of impact to looking our for that's be of to with There's is is there and also its there's be of that pricing. are way there element going

in hit. what the How short plays in but mitigation California. will to that the know cash hit there Tough of out, that exactly term of to a efforts, all will be because will franchisee certainly be of hit a there flow some be

the two so use minimize accelerate our and along as this, those to that's growth because franchisees our Longer some this to us of term, flow. position with growth for share gain we're an an about a in best let's term any is the believe than impact is weather our we've of combination opportunity going is position. our to impact talking our this way accelerating better long to in to opportunity We actually been We're all And is what competitors competitors. in on better cash a hit an in mitigation, this franchisee with California.

Ian let on rest that your questions cover me California, on the IOM. of have With just

consistency seen broad pretty we've are which the to deliver the to of which the obviously me you try -- would today, and headline results let business. so Arches based of say about the mean, is what that IOM strategy of and consistency think Accelerating the I just our a back the seeing, and obviously for I talked the bit momentum we're really on earlier is which across consistent comp continues kind goes I And give really I strong. I you've think quarter, texture Brian, numbers think IDL.

markets the a if We recovered think markets. still XXX-plus to would XXXX. where one kind France more of are that think in of I I look there in hasn't are bit couple headwinds IEO spoke little was in I But about with IOM, mean, certainly dealing that those course, call. back be a X always the of of there sector markets, when France others. you than maybe on it mean, quarter are I at

a higher consumer unrest. obviously is have all but social I you I summer, we going the mean, of the as we then generally in I on, been which higher saw taking consistent in marketplace, the think level everything inflation, sentiment, worked And across France, rates. interest through with that's think markets, share

saw some violent social You of unrest. coming activity of that kind out

kind think all of I consumer that's demand. dampened

difficult that clarity So deliver and environment. across we focused we're to having even our in I think what team the strong France continue consistently on to in need more to on performance continue consistent But that really going good really, really is business to broadly very, do, very we're and with. speaking, pleased

is Our Tower Citi. from next with Jon question

December. a and to question. you or your your Ian, ruling in NLRB the this clarification be to might a influence of range ahead? could the in think gain business of own property thoughts gain that curious you set just size recent fourth the potential in how then on believe, of I'm First years the And implemented, I provide the that's second, And the industry quarter? then

Ian. it's Jon,

and the take me Let on first one, I'll NLRB. to turn over then the it Chris

which property expect is the segment, be we million. $XX our about to On gain that in IOM

what this occurring business to case and is very be think these make, talk quarter certainly these that the us just and sometimes high-value where of a it get probably that's for heard to is I an X you've what a expecting we've we're expect we using This going example than different kind properties is that we're good -- before, today. individual in think don't we are often, was that. on I decision highest that. use best but of

the you expect, ownership on the going object last ruling, we week's NLRB small I And business as think it's strongly to the mean, undermine to NLRB ruling. U.S. in would We Yes.

we wealth about innovation. for something If be American that And great the really model, it's not think this franchise women. supported, attacked. you business it, and to minorities underrepresented created needs think a It's particularly thousands, is

we coming expect be out contested contested our to to courts. the going Congress. And And example to agency in this contested. in yet be mind, it's going another It's so overreach be D.C. in of going of is It's

as resolution you to ruling. continuing fact, a pass indicated, Senate may seek to to is they're opposition the has, have an which In this already seen going

We're So who to oppose going it. McDonald's it. support certainly others opposes

in it everybody. is How think plays throughout McDonald's out that's time, this I going and the shown a field affect to so win. else, long level as say, tend to to playing time, we as we've is same there's all everybody it's tough level something And as but on

to pass, large, than NLRB affect withstand going the it. and it's positioned even writ we're to ruling were else better And we if industry this anybody think so to

is next Andy Our question Barish with Jefferies. from

us for subsidies much IOM how to $XXX the a gears to far? Can million up of in you million moment. shifting Just has roughly $XXX give shown so

pricing the on level question, margin margin but mean, in XX% the of kind XX% restaurant then realizing this be longer-term I used thoughts about business to margins today. business. And IOM, more Any back in this related Obviously to company-owned to segment?

it's Andy, Ian.

what the headline $XXX think subsidies, line So I to said on consistently the million to would I guess for year, $XXX the we've be in we expect spend million. with

that. I line the you'd in year with in this where that to at expect we're And say I tracking is on think what so would us point be

why certainly obviously And of we've back would kind periods many this strong if I to go to see able margins drive able we're through reason mean, that been always longer-term inflation be I you to We've to over had as in line get had time. over don't margins, history, of that terms back growth. our top any mean, continue I time. think higher different we've XX-year of work I

have us I we've got about consumer. results. have going that's that in to our talk us continue to do we We and better see stay how we're sure, you've we feel momentum And heard a disciplined in really the allowing to mean, most. as make capability today, we're as industry-leading lot you I think we also than -- analytical that to of data capability, pricing

you we that as expect going let talk to you in at business. on what those an continue. that's to scale, invest certainly to flow fully and continue industry-leading kind advantages, platforms we continue advantaged about, as you momentum, you structural we modernized whether build able think to have how in can and that's as others are versus And of digital And if heard through I look you're margins of the be the obviously, and forward Chris position to ability the those estate, kind

time for have with We Sandler. Piper more Mullan Brian one question,

to you've a the Just imagine this Texas. on unit more U.S. on Can thus early about specific had at Investor comment Any the a the role more level, in question far? hear perhaps the location to takeaway-only I expect development might growth? just play learnings U.S. But do future potential in formats new have we you Day. you meaningful high

we a more lot in to more bit right, assess test together December talk actually get down will the and have little when about continuing you're about we X. that this, this, Texas. follow on we a So We're

restaurants to footprint that think going I be that smaller are have for a you room. can there to certainly is dining say an opportunity us have that don't

a think development But bit We majority think bulk from still vast traditional there's restaurants. a I opportunity that we see traditional of those. of the our the some see of for be restaurants. will will standpoint, is for opportunity quite That it. that development You of the

big December is see, the around talk edges, of more about that X. smaller might we'll idea but some which again, You the something traditional is formats, the restaurants on

today. call Thank joining. Okay. completes for everyone, Thank you, That our Thanks, Ian. Chris. you,

McDonald's Corporation Investor Call. concludes This

You and have great may disconnect, now day. a