McDonald's Corp. (NYSE:MCD) Q1 2019 Earnings Conference Call - Final Transcript

Apr 30, 2019 • 11:00 am ET


McDonald's Corp. (NYSE:MCD) Q1 2019 Earnings Conference Call - Final Transcript


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Hello, and welcome to McDonald's First Quarter 2019 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. Cieplak, you may begin.

Mike Cieplak

Good morning everyone and thank you for joining us. With me on the call this morning are President and Chief Executive Officer, Steve Easterbrook and Chief Financial Officer, Kevin Ozan. Today's conference call is being webcast live and is also being recorded for replay on our website.

Before I turn it over to Steve, I want to remind everyone that the forward-looking statements in our earnings release and 8-K filing also apply to our comments. Both documents are available on as are the reconciliations of any non-GAAP financial measures mentioned on today's call with their corresponding GAAP measures.

And now I'll turn it over to Steve.

Steve Easterbrook

We're off to a strong start for 2019. Our broad-based momentum around the world continues as we further execute on our Velocity Growth Plan. Global comparable sales increased 5.4% that's over $1 billion of growth across the system for the quarter. This marks our 15th consecutive quarter of positive global comp sales, despite some of the continuing macroeconomic uncertainties around the world. We also grew global guest counts for the quarter. In the US, we are pleased with our performance to start the year. The market continues to execute against the most ambitious plan in our history. Whilst we recognize we have a lot of hard work ahead of us, we are encouraged with our progress and improved franchisee cash flow to start the year. Our customer satisfaction scores are improving as more guests are able to enjoy McDonald's in our modernized experience the future restaurants. For the first time since we've begun our EOTF roll out, we are seeing a benefit to our overall US sales comp, where 2018 focus on considerable transformation and building a foundation for growth our 2019 focus is on operation execution in our restaurants and optimizing the experience for our customers.

Additionally, our international operated segment continues to show strong performance. Every market in the segment grew comparable sales for the quarter that continued success is built-in plans that have proven to be effective in delivering sustained growth by offering customers their favorite core menu food, drinks, compelling value offerings, a continued emphasis on running great restaurants and strong franchisee alignment. For example, the UK has now achieved a remarkable 13 consecutive years of comparable sales growth.

The market is focused on value, menu innovation and more delivery is resulting in balanced growth in both average check and guest counts, including record high guest counts for the month of March. We're also seeing strong performance in Australia. I visited Sydney and Melbourne last month and continue to be impressed with how the team is successfully driving growth across all day parts. The market has now grown in comparable sales for