I think your larger question about the health of the brand, there are lots of different surveys. Ultimately for us, we have our own internal surveys and customer satisfaction with McDonald’s is strong. I think our brand clearly is resonating as you’ve seen in our marketing communication, the fact that we have a modernized restaurant estate, I think, has been huge for us in terms of improving customer perception of the brand. And so I feel very good about that. But for us, going forward, the opportunity for us to continue to make our brands more and more beloved is going to be on this digital opportunity. And as I mentioned in the opening comments there, digital gives us such an unlock to get more tailored in the experience, the offer, the products that we’re delivering to our customers.
So I think for us, if we can get there on digital, that’s going to be a big opportunity. And we’ve made a lot of progress. As you heard in the opening comments, about 35%, I think it’s 36% in Q4, were digital transactions. And by the way, half of those digital transactions are known digital transactions, where we know the customer. Imagine if that number — I’ll just use as one outlier, close to 90% of our transactions in China are digital transactions. And imagine if most of those are known transactions, you can start to imagine what that can mean for the brand in the long term. So I’m optimistic about where we’re at.
Mike Cieplak: Our next question is from David Tarantino with Baird.
David Tarantino: Hi, good morning. I had a question about the investments you’re making in the franchisee system. I think, Ian, you mentioned it was $100 million to $150 million for this year. I’m just wondering if you could elaborate on why that was necessary given the strength you’re seeing in the top line or the franchisees presumably are seeing in the top line and also some signs that maybe the cost environment has not been as bad as feared? And then maybe as part of that question, if you could just comment on where franchisee-level cash flows are today versus maybe where they were a year ago, that would be helpful? Thanks.
Ian F. Borden: Great. Good morning David, thanks for the question. Well, I think as you’ve heard, us and particularly me speak to, I think, particularly in Europe, we’re seeing some quite strong headwinds due to the levels of inflation on things like commodity costs, energy prices and, of course, labor. And I think the pace and scale of inflation mean that those headwinds are creating relatively significant levels of short-term impact to our margins and then, of course, to our franchisee cash flows. And I think one of the competitive advantages that we have as a global franchisor with our size, our scale, and our brand strength is that we’re able to provide that temporary and targeted support for our franchisees, which we always, of course, direct to where it’s most needed.
I mean I would use the UK as a bit of an example and Europe. I mean, I think — obviously, we’ve seen significant levels of food inflation, significant levels of energy inflation, even though energy maybe hasn’t gotten to the peak of where some were predicting because Europe’s had a warm or milder winter so far. I mean still significantly above where it was 12 to 18 months ago. And I think, again, just the pace and scale of that impact is creating quite a bit of pressure on margins and cash flow, as I said. And our size and scale, as I said, just allows us — puts us in a position to provide that support, direct it to where it’s most needed. I think, honestly, that’s nothing new for McDonald’s. I mean it occurs from time to time around the world when conditions warrant.
