McDonald's Corporation · NYSE:MCD
McDonald's — Investor Day (December 2023)
13 slides from McDonald's's investor day presentation, Dec 6, 2023
Slide 1: Financial Outlook
23 Reimagine Our Future Investor Update 2023 Reimagine Our Future Investor Update 2023 Reimagine Our Future Investor Update 20 Financial Outlook December 6, 2023
Slide 2: Over the past decade, we've meaningfully evolved our business model
Financial Outlook 02 Over the past decade, we’ve meaningfully evolved our business model 80% franchised in 2013 95% franchised today Investor Update December 6, 2023
Slide 3: And our business has grown significantly
Financial Outlook 03 And our business has grown significantly Comparable Sales Margin Dollars Adjusted Operating Margin +30% ~90% ~43% ~47% 2023** growth compared of restaurant 2019* to 2019 margin dollars through franchised margins *Consolidated operating margin was 43% for the year ended 2019. Exc
Slide 4: There are three critical areas of investment for the next few years
Financial Outlook 04 There are three critical areas of investment for the next few years Investor Update December 6, 2023
Slide 5: 50K Restaurants by 2027
Financial Outlook 05 50K Restaurants We expect to accelerate net new unit growth to just over 4 percent growth in 2024 and up to by 2027 5 percent growth in 2027 ant Openings New Restaurant Openings New Restaurant Openings New Restaurant O ~900 Restaurant Openings in the U.S. 2027 Run Rate of ~1,000
Slide 6: Capital Expenditures
Financial Outlook 06 Capital We expect capital expenditures to gradually increase over time as we accelerate new Expenditures restaurant openings in the U.S. and IOM segments ant Openings New Restaurant Openings New Restaurant Openings New Restaurant O 2024 About $2.5B Imagery FPO Beyond 2024 Sequen
Slide 7: Sales from Expansion
Financial Outlook 07 Sales from We anticipate new unit development to be a more meaningful driver of growth Expansion moving forward ant Openings New Restaurant Openings New Restaurant Openings New Restaurant O 2024 Nearly 2% Systemwide Sales Growth Imagery Beyond 2024 FPO ~2.5% Systemwide Sales Gro
Slide 8: Our overall financial strength put us in the ideal position to invest
Financial Outlook 08 Our overall financial strength put us in the ideal position to invest in areas that will drive long-term growth 2024 G&A ~2.2% of Systemwide Sales Investor Update December 6, 2023
Slide 9: We've achieved leverage in our adjusted operating margin
Financial Outlook 09 We’ve achieved leverage in our adjusted operating margin and expect greater operating margin expansion 2019* 2023** 2024 Adjusted Adjusted Mid-to-High 40% Range Operating Margin Operating Margin Beyond 2024 ~43% ~47% Operating Margin Expansion *Consolidated operating margin was
Slide 10: Free Cash Flow
Financial Outlook 10 Free Cash Flow Free Cash Flow Dollars Grow sequentially each year We expect to maintain our strong free cash flow conversion Free Cash Flow Conversion % In the 90% range Investor Update Investor Update December 6, 2023
Slide 11: And our capital allocation priorities remain consistent
Financial Outlook 11 And our capital allocation priorities remain consistent Returning all remaining Investing in the business free cash flow over time to drive growth through dividends and share buybacks Imagery FPO Investor Update December 6, 2023 Investor Update December 6, 2023
Slide 12: Forward-looking statements
Financial Outlook 12 Forward-looking statements This presentation contains certain forward-looking statements, which reflect management’s expectations regarding future events and operating performance and speak only as of the date hereof. Generally speaking, any statement in this presentation not ba
Slide 13: Thank You
Financial Outlook 13 Thank You Investor Update December 6, 2023