McDonald’s sees FY23 operating margin about 45%

Excluding restructuring charges related to Accelerating the Organization, adjusted operating margin is expected to be about 46%. The company expects net restaurant unit expansion will contribute about 1.5% to 2023 Systemwide sales growth, in constant currencies. The company expects full year 2023 selling, general and administrative expenses of about 2.2% to 2.3% of Systemwide sales. Based on current interest and foreign currency exchange rates, the company expects interest expense for the full year 2023 to increase between 10% and 12%, driven by higher average debt balances and higher average interest rates.The company expects the effective income tax rate for the full year 2023 to be in the 19% to 21% range. Some volatility may result in a quarterly tax rate outside of the annual range. The company expects 2023 capital expenditures to be between $2.2 and $2.4 billion, about half of which will be directed towards new restaurant unit expansion across the U.S. and International Operated Markets. Globally, the company expects to open about 1,900 restaurants. The company will open more than 400 restaurants in the U.S. and International Operated Markets segments, and developmental licensees and affiliates will contribute capital towards about 1,500 restaurant openings in their respective markets. The company expects about 1,500 net restaurant additions in 2023. The company expects to achieve a free cash flow conversion rate greater than 90%.