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CNBC Exclusive: CNBC Transcript: McDonald’s CEO and President Steve Easterbrook Sits Down with CNBC’s Carl Quintanilla Today

WHEN: Today, Monday, June 4, 2018

WHERE: CNBC's "Squawk on the Street" – Live from McDonald's new Chicago headquarters

The following is the unofficial transcript of an EXCLUSIVE CNBC interview with McDonald's CEO and President Steve Easterbrook and CNBC's Carl Quintanilla on CNBC's "Squawk on the Street" (M-F 9AM - 11AM) today, Monday, June 4th. Following is a link to video from the interview on CNBC.com: https://www.cnbc.com/video/2018/06/04/mcdonalds-ceo-we-are-evolving-the-business-in-a-meaningful-way.html?play=1.

All references must be sourced to CNBC.

CARL QUINTANILLA: GOOD MORNING FROM CHICAGO, WHERE McDONALD'S IS OFFICIALLY OPENING A NEW CORPORATE HEADQUARTERS HERE, EVEN AS THEY'RE IN THE MIDST OF SOME BIG TRANSITIONS REGARDING THEIR MENU, REGARDING THEIR MARKETING, REGARDING STORE DESIGN, AND TECHNOLOGY. JOINING ME HERE AT THE CORPORATE HEADQUARTERS -- THE NEW CORPORATE HEADQUARTERS, STEVE EASTERBROOK IS THE CEO AND PRESIDENT OF McDONALD'S. IT'S GREAT TO SEE YOU, STEVE. GOOD MORNING.

STEVE EASTERBROOK: GREAT TO SEE YOU. GOOD MORNING.

QUINTANILLA: CONGRATULATIONS.

EASTERBROOK: WELL, THANK YOU. IT'S A FUN DAY. THANK YOU FOR MAKING THE TRIP. IT'S GOING TO BE A FUN DAY.

QUINTANILLA: YES. IT'S A BIG DAY. WHY IS THIS IMPORTANT TO THE COMPANY?

EASTERBROOK: WELL, I GUESS WE'VE TRIED TO EVOLVE THE BUSINESS IN A REALLY MEANINGFUL WAY THE LAST 2 OR 3 YEARS. AND I THOUGHT IT WAS REALLY IMPORTANT THAT FOR OUR PEOPLE THAT WE WERE POSITIONED OURSELVES IN AREAS WHERE OUR CUSTOMERS WERE, WHERE COMPETITION WAS, WHERE THE EMERGING TRENDS ARE COMING THROUGH IN SOCIETY. AND WE, YOU KNOW, WE HAVE A WONDERFUL RICH HERITAGE. AND WE WERE BASED OUT IN OAK BROOK, ON THE EDGE OF THE CITY FOR ABOUT THE LAST 40 SOMETHING YEARS. IT IT'S BEEN A WONDERFUL FACILITY FOR US BUT ACTUALLY IT WAS A LITTLE DETACHED FROM EVERYDAY LIFE. I THOUGHT IT WAS IMPORTANT THAT WE, MYSELF INCLUDED, WERE IN THE CUT AND THRUST. AND WE'RE IN THIS VIBRANT PART OF CHICAGO CALLED THE WEST LOOP AREA. WE COULD NOT BE BETTER PLACED TO BE COMPETITIVE IN THIS KIND OF MODERN, FAST-PACED WORLD.

QUINTANILLA: RIGHT. YOU LIKE TO SAY YOU WANT TO MAKE McDONALD'S A "MODERN, PROGRESSIVE BURGER COMPANY."

EASTERBROOK: RIGHT.

QUINTANILLA: AND THIS IS SORT OF A PIECE OF THAT.

EASTERBROOK: IT'S A PIECE OF IT. YEAH, ABSOLUTELY. I MEAN, IT'S CERTAINLY MUCH MORE THAN SYMBOLIC. 'CAUSE ACTUALLY, THIS IS SUCH AN ATTRACTIVE AREA OF THE CITY. AND IF YOU THINK ABOUT THE TRENDS THAT ARE GOING TO SHAPE OUR FUTURE, THE TALENT POOL IS GONNA HELP US WIN IN THOSE LITTLE BATTLES THAT GO ON IS LIKELY TO BE BASED DOWN THE CITY RATHER THAN BACK OUT IN THE SUBURBS. SO REALLY WE'RE TRYING TO POSITION OURSELVES FOR THE FUTURE. NOT JUST FOR TODAY BUT ACTUALLY FOR THE FUTURE. AND WE DON'T ALWAYS KNOW WHAT THOSE EMERGING TRENDS ARE GOING TO BE BUT I THINK THE TALENT POOL – THE YOUNGER TALENT POOL – IS LIKELY GOING TO BE MORE BASED AROUND HERE – IN THE CITY.

QUINTANILLA: SPEAKING OF THE FUTURE, YOU HAVE THIS INITIATIVE. I GUESS INTERNALLY AT LEAST YOU CALL IT "THE EXPERIENCE OF THE FUTURE."

EASTERBROOK: THAT'S RIGHT.

QUINTANILLA: WHICH WE HAVE SOME VIDEO OF.

EASTERBROOK: OKAY.

QUINTANILLA: PEOPLE'S EXPERIENCE AT McDONALD'S IS ABOUT TO CHANGE, IF IT HASN'T CHANGED ALREADY.

EASTERBROOK: YEAH. IT'S A DRAMATIC CHANGE. IF YOU THINK ABOUT IT – ONLY TWO YEARS AGO IF YOU'RE A CUSTOMER, THERE WERE TWO WAYS YOU CAN GET SERVED AT McDONALD'S. YOU WALK IN TO THE FRONT COUNTER AND YOU LINE UP AND THEN YOU TAKE YOUR TRAY AND YOU FIND YOUR DRINK AND YOU FIND A TABLE. OR YOU GO THROUGH THE DRIVE THROUGH. WHERE AS NOW WE'RE INTRODUCING SO MANY OTHER OPTIONS FOR OUR CUSTOMERS. YOU KNOW THEY CAN NOW CHOOSE WHETHER THEY GO TO THE SELF-ORDER KIOSK. THEY CAN ORDER THROUGH MOBILE ORDER AND PAY. THEY CAN EVEN COME CURBSIDE AND WE'LL RUN IT OUT TO YOU IN THE CAR, AS WELL AS THE EXISTING TRADITIONAL WAYS. SO – AND YOU CAN PAY IN DIFFERENT WAYS AND YOU CAN CUSTOMIZE YOUR FOOD IN DIFFERENT WAYS. SO I THINK WE'RE TRYING TO ADD MUCH MORE CHOICE AND VARIETY. AND ALSO MODERNIZE THE REAL ESTATE, AS WELL. PARTICULARLY HERE IN THE U.S. IT GOT A LITTLE BIT TIRED LOOKING. PART OF THIS IS ALSO JUST HAVING A MUCH FRESHER AND MODERN, INVITING, WARM, ENGAGING RESTAURANT.

QUINTANILLA: TALK ABOUT THE KIOSKS SPECIFICALLY --

EASTERBROOK: OKAY, YEAH.

QUINTANILLA: BECAUSE THERE'S ALL KINDS OF METRICS SURROUNDING IT, REGARDING WHAT IT DOES TO AVERAGE CHECK. RIGHT? WHAT DOES TO THROUGHPUT -- SPEED.

EASTERBROOK: IT WORKS ON A NUMBER OF DIFFERENT FUNCTIONS. YOU'RE ABSOLUTELY RIGHT. I MEAN, FIRST OF ALL, IF CUSTOMERS COME IN, THEY NOW HAVE A CHOICE. THEY CAN EITHER GO TO THE FRONT COUNTER AS THEY ALWAYS HAVE DONE. IF PEOPLE WANT TO JUST DWELL -- HAVE A LITTLE BIT MORE TIME, THEY CAN GO TO THE SELF-ORDER KIOSK, THEY CAN BROWSE THROUGH THE MENU, THEY CAN START SELECTING AND THEY CAN SEE THE BROADER RANGES, PERHAPS, OR THEY MAY WANT TO CUSTOMIZE THE FOOD THEY'VE GOT. THEN YOU CAN ALSO PAY CLEARLY ON CREDIT OR DEBIT THERE AS WELL, AND YOU CAN THEN RECEIVE TABLE SERVICE. SO YOU CAN THEN JUST TAKE A LITTLE TENT CARD – A BLUETOOTH ENABLED TENT CARD -- AND TAKE IT TO THE TABLE AND WE'LL BRING YOUR FOOD OUT FOR YOU. SO WHAT WE ARE FINDING IS WHEN PEOPLE DWELL MORE, THEY TEND TO SELECT MORE. SO THERE IS A LITTLE BIT OF AN AVERAGE CHECK BOOST AS WELL THAT COMES WITH IT.

QUINTANILLA: INTERESTING. AND THIS IS GOING TO BE IN ALL U.S. RESTAURANTS?

EASTERBOOK: YEAH SO WE'VE UNDERTAKEN A DRAMATIC PROGRAM HERE IN THE U.S. I MEAN, WE'RE SLIGHTLY MORE ADVANCED IN SOME OF OUR INTERNATIONAL MARKETS: UK, CANADA, AUSTRALIA, FULLY ROLLED OUT. FRANCE ALMOST. AND GERMANY IS AROUND HALFWAY. U.S. IS A LITTLE BIT BEHIND THAT SO WE'RE ACTUALLY GOING TO BE TRANSFORMING 1,000 RESTAURANTS PER QUARTER.

QUINTANILLA: LIKE 10 OR 11 A DAY.

EASTERBROOK: SO -- I MEAN, THE SCALE OF THIS PROJECT IS REMARKABLE. I MEAN, THE PROJECT MANAGEMENT THAT'S REQUIRED AROUND THIS IS IMMENSE. AND SO EXACTLY RIGHT. SO IT'S A THOUSAND PER QUARTER FOR THE NEXT EIGHT OR NINE QUARTERS, AND THAT WILL GET US PRETTY WELL CAUGHT UP IN THE U.S. BUT AS YOU SAY, TEN RESTAURANTS PER DAY ARE OPENING UP IN LOCAL COMMUNITIES, LOCAL COMMUNITIES ARE WAKING UP TO A DRAMATICALLY TRANSFORMED McDONALD'S.

QUINTANILLA: SO YOU MENTIONED YOU'RE A LITTLE BIT AHEAD OF THIS IN OTHER MARKETS, WHICH IS WHAT PEOPLE WERE LOOKING UP ON THE Q1 AND UPSIDE SURPRISE ON INTERNATIONAL Q1 COMPS, THINKING IS THIS WHAT THE U.S. IS IN FOR IF IT WORKS SIMILARLY?

EASTERBROOK: NO, EVERYONE IS TRYING TO READ ACROSS, AND I UNDERSTAND THAT. AND THAT'S WHAT GIVES US CONFIDENCE HERE IN THE U.S. I MEAN OUR LEADERSHIP TEAM, OUR OWNER/OPERATORS ARE SEEING THE SUCCESS OF THIS ELSEWHERE IN THE WORLD. I'M NOT GOING TO PROMISE ON THAT ABSOLUTE CARRIER ACROSS THE RESULTS. BUT WE DO KNOW THAT IT HELPS GROW THE BUSINESS. CUSTOMERS COME BACK MORE OFTEN THEY STAY A LITTLE LONGER AND THEY'RE JUST MORE ENGAGED WITH US AS A BUSINESS AND AS A BRAND. SO WE KNOW IT'S THE RIGHT ROUTE TO GO DOWN. AND THAT'S WHY WE'RE ACCELERATING SO HARD, BECAUSE WE CAN'T GET THERE QUICK ENOUGH IN THE U.S. IT'S EXCITING FOR US.

QUINTANILLA: I WANT TO GIVE JIM A MINUTE TO ASK QUESTIONS IN A SECOND. REALLY QUICK THOUGH, ON THE CONSUMER --

EASTERBROOK: RIGHT.

QUINTANILLA: HOW ARE THEY FEELING? YOU GOT 3.8% UNEMPLOYMENT. 17-YEAR LOW. YOU GOT GAS PRICES AND INTEREST RATES, AS WELL.

EASTERBROOK: YEAH, I THINK AS WE WERE ENTERING THE YEAR WE THOUGHT THERE WOULD BE AN UPTICK IN CONSUMER CONFIDENCE GENERALLY. FULLER EMPLOYMENT IS ALWAYS A GOOD THING. WAGE INFLATION IS BENEFITTING, YOU KNOW, PEOPLE'S POCKETS. AND, YOU KNOW, ALSO, PROBABLY THE TRICKLE THROUGH FROM TAX REFORM AS WELL, WE THOUGHT COULD ULTIMATELY HELP US AS WELL. I GUESS ON THE FLIP SIDE NOW WE'RE SEEING INTEREST RATES INCREASE A LITTLE BIT, AS WELL. AND GAS PRICES. YOU KNOW, WHEN THEY FILL UP THEIR CAR, IT JUST COSTS THEM A FEW MORE DOLLARS. SO I THINK AT THE MOMENT, I THINK, UNCERTAIN. THERE'S NOT A NEGATIVE FEEL BUT NOR ARE THEY BOISTEROUSLY OUT THERE – BOISTEROUSLY OUT THERE SPENDING EITHER.

QUINTANILLA: BUT DEFINITELY SHORT OF YOUR EXPECTATIONS GOING INTO THE YEAR?

EASTERBROOK: YEAH, I THOUGHT THERE'D BE A LITTLE BIT MORE OF A TAIL WIND. WE THOUGHT THERE WOULD BE LITTLE BIT MORE OF A BENEFIT IN THE BUSINESS. BUT, YOU KNOW, IT'S -- IT'D HAVE ONLY BEEN 1 OR 2% GROWTH ANYWAY. SO I MEAN, WE'LL JUST FOR THAT. WE'RE IN A MARKET SHARE FIGHT. AND WE'RE FIGHTING FOR CUSTOMERS AGGRESSIVELY.

QUINTANILLA: SPEAKING OF ALL OF THAT, JIM, I WANT TO GIVE YOU A CHANCE TO GET IN, TOO.

JIM CRAMER: YEAH, STEVE, I'M CONCERNED. YOU KNOW, I'M A McDONALD'S GUY THROUGH AND THROUGH, AS IS MY WIFE. BUT THIS WEEKEND WE SAID, "YOU KNOW, LET'S JUST TRY THE OTHER GUYS. LET'S GO TO SMASHBURGER." WE WAITED 15 MINUTES -- NOTHING. THEN WE SAID LET'S GO TO WENDY'S. WENT AND TRIED THE BACONATER. 15 MINUTES. IF YOU GIVE US ALL THIS CHOICE, STEVE, ARE WE GONNA HAVE TO WAIT THIS LONG? BECAUSE 15 MINUTES IS TOO LONG FOR FAST FOOD.

EASTERBROOK: OF COURSE I'TS TOO LONG, JIM. YEAH, I MEAN, PART OF WHAT WE'RE TRYING TO DO IS ACTUALLY PROVIDE MORE WAYS THAT CUSTOMERS CAN ORDER SO WE CAN ACTUALLY SERVE CUSTOMERS QUICKER. SO YEAH, IF YOU CAN SEPARATE IT -- INSTEAD OF HAVING TO LINE UP AT THE FRONT COUNTER AND EVERYONE CAN BE IN ONE LINE, YOU CAN GO TO THE SELF-ORDER KIOSK, FOR EXAMPLE, SELF YOURSELF AND WE'LL BRING IT OUT. AND THEN MEANWHILE WE CAN SAME TIME STILL SERVE THE FRONT COUNTER CUSTOMERS. SO, YOU KNOW, WE HAVE A – SOMETHING CALLED AN INNOVATION CENTER HERE WHERE WE MODEL ALL THE CHANGES WE DO, WE RUN OUR MENUS AND ALMOST LIKE A REAL TIME CUSTOMER APPROACH THROUGH IT TO MAKE SURE THAT WE DON'T END UP WITH THOSE LITTLE BOTTLE NECKS THAT FRUSTRATE CUSTOMERS.

CRAMER: OKAY. THAT'S IMPORTANT. NOW THE OTHER THING IS I WENT TO McDONALD'S TWO WEEKS AGO. STEVE – THERE'S ALL THESE PEOPLE – I DID DRIVE THROUGH. THERE'S ALWAYS PEOPLE WHO SAY, "I DON'T – WHAT'S A 3? WHAT'S A 2?" THEY DON'T KNOW HOW TO ORDER. I KNOW HOW TO ORDER. WHEN AM I GOING TO CUT IN FRONT OF THESE PEOPLE? I AM NOT GOING TO STAY BEHIND THESE PEOPLE WHO DON'T KNOW HOW TO ORDER!

EASTERBROOK: JIM, YOU NEED TO DOWNLOAD THE APP, PUT YOUR FAVORITES INTO IT, WE HAVE A GEOFENCE OF 300 FEET AROUND EVERY RESTAURANT. ONCE YOU BREAKTHROUGH THE GEOFENCE, IT WILL RECOGNIZE YOU, YOU SAY, "I'M READY TO ORDER," AND THEN THEY'LL SAY DO YOU WANT TO COME IN THE STORE TO SELECT, DO YOU WANT TO COME THROUGH THE DRIVE THROUGH, OR DO YOU WANT CURB SIDE PICK UP? SO, YOU TAKE CONTROL OF THAT, JIM. WE APPRECIATE YOUR BUSINESS. AND WE'RE READY TO SERVE YOU IN ANY WAY YOU WANT. AND YOU CAN SKIP THE LINE.

CRAMER: THIS IS WHY THIS STOCK GOES HIGHER THANK YOU. THANK YOU. THIS IS WHAT PEOPLE CARE ABOUT MORE THAN ANYTHING AND YOU KNOW THAT. THEY DON'T WANT TO WAIT AND IN THE DRIVE THROUGH THEY DON'T WANT TO BE DRIVE BEHIND PEOPLE WHO HONESTLY COULDN'T EVEN -- DON'T KNOW HOW TO SPEAK INTO A SPEAKER!

EASTERBROOK: JIM, IT'S A NUTS AND BOLTS BUISNESS. THIS IS A NUTS AND BOLTS BUSINESS. WE SERVE A LOT OF CUSTOMERS AND IT'S THE LITTLE DETAILS -- IT'S THE LITTLE ATTENTION TO DETAILS THAT REALLY MAKE THE DIFFERENCE. BECAUSE WHILST WE CAN GET EXCITED ABOUT OUR BIG PLANS, CUSTOMERS DON'T CARE ABOUT THAT. THEY JUST WANT TO GET THEIR FOOD HOT AND FRESH, FRIENDLY SERVICE, AND A FAIR VALUE. AND THAT'S WHAT WE'RE FOCUSSING ON.

QUINTANILLA: SO YOU'VE GOT CUSTOMER BEHAVIOR AND THE ENGINEERING, OBVIOUSLY, IS ONE THING --

EASTERBROOK: RIGHT.

QUINTANILLA: I'VE TO ASK YOU ABOUT TRADE, RIGHT? I MEAN, WE WERE SAYING ON "SQUAWK BOX" – THE PRIOR PROGRAM THIS MORNING - HOW AMERICAN THE ARCHES ARE, WHAT A POWERFUL SYMBOL IT IS AROUND THE GLOBE. YET YOU'VE GOT THE FRENCH FINANCE MINISTER SAYING THIS MEETING LAST WEEK WAS MORE LIKE G6 + 1 RATHER THAN A G7.

EASTERBROOK: NO I MEAN, I THINK THE GEOPOLITICAL SENSITIVITIES ARE HEIGHTENED ALL AROUND THE WORLD AT THE MOMENT. AND I MEAN, PART OF THE WAY WE STRUCTURE OURSELVES IS WE ALWAY HAVE LOCAL MANAGEMENT RUN THE LOCAL COUNTRIES. AND I THINK THAT HELPS JUST LOCALIZE US AS A BRAND. BECAUSE RATHER THAN JUST BEING SEEN AS A DOMINANT GLOBAL BEHEMOTH, WE WANT TO BE THE LOCAL McDONALD'S. WE WANT TO BE TO THE FRENCH McDONALD'S AND WE WANT TO BE THE CHINESE McDONALD' S OR THE U.S. McDONALD'S. SO IN TERMS OF TRADE OTHERWISE, IN TERMS OF TARIFFS AND SOME OF THE THINGS LIKE THAT, WE'RE NOT HUGELY EXPOSED TO IT BECAUSE LARGELY MOST OF OUR BASKET OF GOODS WE BUY IN COUNTRY. YOU KNOW, CERTAINLY OUR FOOD BASKET IS TYPICALLY LOCALLY SOURCED. CERTAIN ITEMS LIKE COFFEE BEANS AND HAPPY MEAL TOYS WE DO HAVE TO TRADE THOSE AROUND THE WORLD, SO YOU KNOW, WE'RE KEEPING AN EYE ON WHAT THAT MEANS IF THERE ARE TARIFFS. BUT AT THE MOMENT, WE DON'T FEEL SIGNIFICANTLY EXPOSED.

QUINTANILLA: YOU THINK FEARS ABOUT IT, THOUGH, ARE LIMITING THE STOCK, AT LEAST?

EASTERBROOK: I DON'T THINK SO. I THINK, I MEAN, WE'VE HAD NOW 11 QUARTERS OF GROWTH, TOP LINE GROWTH. AND THE MARKETS REACTED VERY GENEROUSLY TO US OVER THE LAST THREE YEARS. AND I THINK THE REALITY IS IF WE KEEP DRIVING THE GROWTH AND TAKING CARE OF THE COST SIDE OF THINGS AND, YOU KNOW, THERE WILL END UP BEING WINNERS AND LOSERS IN THE MARKET SHARE BATTLE. AND IF WE KEEP POSITIONS OURSELVES ON THE WINNING SIDE OF THAT, I THINK THE MARKET WILL REACT ACCORDINGLY.

QUINTANILLA: EVERY MORNING WE COME IN HERE, WE LOOK AT ITALY, SPAIN, ARGENTINA, TURKEY, RIGHT? -- BRAZIL. WHETHER IT'S 4X DISRUPTION OR POLITICAL DISRUPTION OR SUPPLY CHAIN DISRUPTION. DOES THAT IMPACT DEMAND? HAVE YOU FELT IT?

EASTERBROOK: YES. IN CERTAIN MARKETS, ABSOLUTELY YOU DO. I MEAN, INTERESTINGLY, WE'RE TRENDING WELL IN ITALY AT THE MOMENT BUT WE'VE GOT A GREAT MANAGEMENT TEAM IN THERE AND THE OWNER/OPERATORS ARE EXCITED AND THEY'RE INVESTIGATING IN EXPERIENCING THE FUTURE AND THAT'S REALLY HELPING A LOT. THINGS LIKE DELIVERY INITIATIVES HELP DRIVE GROWTH. THERE ARE CERTAIN ECONOMISTS AND CLEARLY WE'RE NOT IMMUNE FROM IT SO -- IT STRUCK ME A LITTLE BIT. AND WE'RE NOT AS STRONG AS WE WANT TO BE IN RUSSIA. WE'RE STRUGGLING A LITTLE BIT IN SOUTH KOREA AT THE MOMENT. SO THERE ARE LITTLE POCKETS WE KEEP AN EYE ON. BUT IT'S ACTUALLY THE MOST SIGNIFICANT MARKETS THAT MAKE UP THE MAJORITY OF OUR BUSINESS ARE PRETTY SOLID ECONOMIES AND PRETTY SOLID BUSINESSES THERE. SO, YOU KNOW, WE FEEL WE'RE SOMEWHAT SAFE GUARDED FROM THAT.

QUINTANILLA: HERE IN THE U.S., I WONDER IF FREIGHT OR OIL ARE STRESSING THE SUPPLY CHAIN, TOO.

EASTERBROOK: IT'S NOT A BIG DEAL FOR US. I MEAN, IT'S A LITTLE – OBVIOUSLY THERE'S A COST --. BUT BECAUSE WE HAVE SUCH HIGH VOLUMES, KIND OF THE FUEL COSTS IN TERMS OF PART OF OUR SUPPLY CHAIN IS MANAGEABLE, FOR SURE. AND, OF COURSE, YOU KNOW, WE'RE THE LONGEST ESTABLISHED SUPPLY CHAIN WE HAVE. WE CAN BUY FUTURES ON THIS STUFF AS WELL. SO AGAIN, SO YOU CAN HELP MANAGE THE COST FLUCTUATIONS. THE PIECE ABOUT FUEL THAT MATTERS MOST IS TO OUR CUSTOMERS. YOU KNOW, THAT'S WHY WE'RE SENSITIVE TO IT. BECAUSE IF THEY'VE GOT $5 OR $10 LESS IN THEIR POCKET, SOMETHING'S GOTTA GIVE. WE DON'T WANT IT TO BE A VISIT TO McDONALD'S OR THEY MAY JUST WANT TO TIGHTEN THE PURSE STRINGS A BIT.

QUINTANILLA: THIS MORNING AMERICAN AIRLINES WARNED OF FARE HIKES IF OIL PRICES STAY HIGH. IS THERE A NATIONAL AVERAGE AT WHICH YOU WOULD GET MORE CONCERNED?

EASTERBROOK: NO. NO, REALLY. IT REALLY DOESN'T INFLUENCE US. I MEAN, AGAIN, THE OTHER THING WE SEE SOMETIMES IS SOME OF OUR RESTAURANTS NEXT DOOR TO OIL STATIONS. YOU KNOW, SOMETIMES, YOU KNOW, IF FEWER PEOPLE ARE FILLING UP, WE CAN SOMETIMES SEE SOME OF THOSE DEMAND THERE EASE UP A LITTLE BIT. SO NO, WHEN WE KIND OF DOUBLE CLICK ON IT. IT ISN'T CARRYING THROUGH TO OUR BUSINESS IN ANY GREAT WAY, SHAPE, OR FORM.

QUINTANILLA: SOME OF YOUR COMPETITORS HAD DRAMATIC EPISODES OF LATE. STARBUCKS SHUTTING DOWN THEIR RESTAURANTS FOR A DAY FOR ANTI-BIAS TRAINING.

EASTERBROOK: YEAH.

QUINTANILLA: I MEAN, YOUR BATHROOM POLICY SORT OF FACED THE SAME QUESTIONS IN TERMS OF WHAT IS ABUSE OF THE THIRD PLACE. HOW DO YOU THINK ABOUT THAT?

EASTERBROOK: EVERY BUSINESS IS UNDER GREATER SCRUTINY THAN ANY TIME BEFORE AND, YOU KNOW, SOCIAL MEDIA ALLOWS THAT TO HAPPEN AND ALSO PUBLIC EXPECTATIONS OF HOW BIG COMPANIES BEHAVE ARE HEIGHTENED, AND THAT'S FAIR ENOUGH. I MEAN, FOR US – FIRST OF ALL, LET ME BE CLEAR, WE HAVE ABSOLUTELY NO TOLERANCE AT ALL OF ANY SORT OF HARASSMENT OR ANY SORT DISCRIMINATION RIGHT ACROSS McDONALD'S. BUT YOU KNOW, ONE OF THE BENEFITS WE DO HAVE IS OUR LOCAL MANAGERS, OUR LOCAL OWNER/OPERATORS, THEY KNOW HOW TO TAKE CARE OF THE CUSTOMERS. WE JUST WANT TO BE A WARM AND INVITING RESTAURANT. WE DON'T WANT ANYTHING MORE COMPLICATED. WE VALUE DIVERSITY AND INCLUSION. SO EVERYONE IS WELCOME AT McDONALD'S.

QUINTANILLA: NORTH KOREA, THERE HAVE BEEN SOME REPORTS THAT THEY WOULD LIKE A McDONALD'S. SHOULD THEY GET ONE?

EASTERBROOK: WELL, I'VE HEARD THE REPORT, AS WELL. BUT, I'VE GOT TO SAY, I MEAN, WE ARE IN 120 COUNTRIES. SO WE'RE IN THE MAJORITY OF THE COUNTRIES IN THE WORLD. AND, ACTUALLY, MOST RECENTLY WE OPENED IN KAZAKHSTAN. SO THAT WAS THE ONLY MARKET THAT OPENED DURING MY TENURE AS WELL. AND THAT WAS FUN. AND OPENING IN A NEW COUNTRY IS A LOT OF FUN. I'VE GOT TO SAY NORTH KOREA IS NOT PART OF OUR DISCUSSIONS RIGHT YET. BUT YOU NEVER SAY NEVER.

QUINTANILLA: PLASTIC STRAWS, REALLY QUICK, HAS BEEN A BIT OF AN ISSUE BECAUSE THERE WAS A SHAREHOLDER PROPOSAL THAT FAILED.

EASTERBROOK: THAT'S RIGHT.

QUINTANILLA: I THINK YOU RECOMMENDED AGAINST IT, BUT MEANWHILE MIAMI, SEATTLE, UK, MAYBE CALIFORNIA NOW.

EASTERBROOK: YEAH. I THINK, THE WHOLE TOPIC OF WHAT THEY CALL SINGLE-USE PLASTICS IS ON EVERYONE'S RADAR. AND THERE WAS A NATURAL HISTORY PROGRAM THAT ACTUALLY CAME OUT IN THE UK. THAT STARTED TO HIGHLIGHT THE ISSUE WITH PLASTICS IN THE OCEANS. AND IT REALLY CAPTURED PEOPLE'S ATTENTIONS. UNDERSTANDABLY. I MEAN, WE'VE MADE OUR COMMITMENTS ABOUT WASTE RECYCLING. EITHER TO REUSE OR TO RECYCLE. BUT THERE ISN'T CURRENTLY A VIABLE ALTERNATIVE THAT'S NONPLASTIC AT THE MOMENT.

QUINTANILLA: AT SCALE, YOU MEAN?

EASTERBROOK: AT SCALE. AT THE SCALE WE NEED. I WON'T BORE YOU WITH THE STATS BUT WHEN YOU HAVE 60 MILLION CUSTOMERS A DAY, YOU NEED A LOT OF STRAWS. SO BUT WE'RE WORKING AND WE WILL CONTINUING TO EXPLORE, BECAUSE WE'RE TRYING TO CONTRIBUTE BACK IN ANY WAY WE CAN TO SOCIETY, WHETHER IT'S THROUGH TRAINING OF OUR PEOPLE OR THROUGH ENVIRONMENTAL STANDARDS. WE'RE THE ONLY RESTAURANT BUSINESS THAT'S SIGNED UP TO THE PARIS CLIMATE ACCORD AROUND REDUCING GAS EMISSIONS. SO WHATEVER WE CAN DO AROUND WASTE AND RECYCLING IS A VISIBLE PART OF OUR BUSINESS. AND WE KNOW CUSTOMERS WOULD RESPOND WELL TO ANY SOLUTION WE CAN BRING.

QUINTANILLA: FINALLY, IS IT NICE TO HAVE A PRESIDENT WHO AT LEAST REPORTEDLY LOVES McDONALD'S?

EASTERBROOK: WE LOVE EVERY CUSTOMER. WE LOVE EVERY CUSTOMER. SO HE'S VERY WELCOME, AS WELL. I SENSE HE'S A REGULAR CUSTOMER, AS WELL. I HAVEN'T SEEN HIM IN THE RESTAURANTS BUT SEEMINGLY -- MAYBE HE'S HOME DELIVERY. MAYBE –

QUINTANILLA: HE HAS THE MOBILE APP.

EASTERBROOK: HE'S ON THE UBER EATS AT THE MOMENT.

QUINTANILLA: CONGRATULATIONS ON THE HEADQUARTERS. BIG UNVEILING TODAY.

EASTERBROOK: THANK YOU. YEAH.

QUINTANILLA: AND CUSTOMERS WILL BE LOOKING FOR THE CHANGES TO THEIR NEIGHBORHOOD RESTAURANT I IMAGINE IN THE FUTURE.

EASTERBROOK: RIGHT, YEAH. WELL, I THINK, FIRST OF ALL, HERE IS A LITTLE BIT OF FUN. I THINK YOU'VE HAD A CHANCE TO TASTE IT. WE THOUGHT WE WOULD DO SOMETHING DIFFERENT HERE BECAUSE THIS IS A ONE OF A KIND RESTAURANT. AND WE'RE ON A VERY FASHIONABLE STREET FOR RESTAURANTS SO WE WANTED TO DEMONSTRATE WE CAN HAVE A LITTLE TWIST, A LITTLE SENSE OF HUMOR, AND SOMETHING THAT WILL PIQUE PEOPLE'S INTEREST. SO WE'VE BROUGHT THE INTERNATIONAL MENU IN. I THINK YOU'VE HAD THE CHANCE TO TRY SOME OF THE SPICY CHICKEN – MY FAVORITE. THERE'S ALSO SALADS FROM FRANCE, DESERTS FROM LATIN AMERICA, WE'VE GOT LOADED FRIES, AND I'VE GOT TO TELL YOU, THEY'RE SELLING PRETTY WELL.

QUINTANILLA: I WOULD IMAGINE SO. STEVE, THANK YOU SO MUCH.

EASTERBROOK: ABSOLUTE PLEASURE. THANK YOU.

QUINTANILLA: GREAT SEEING YOU, STEVE EASTERBROOK –

EASTERBROOK: REALLY ENJOYED IT.

QUINTANILLA: McDONALD'S. GUYS, IF YOU'RE EVER IN CHICAGO, THE RESTAURANT HERE AT HEADQUARTERS, YOU CAN GET MENU ITEMS FROM ALL AROUND THE WORLD SO KEEP THAT IN MIND ON YOUR NEXT TRIP. BACK TO YOU.

For more information contact:

Jennifer Dauble
CNBC
t: 201.735.4721
m: 201.615.2787
e: jennifer.dauble@nbcuni.com

Emma Martin
CNBC
t: 201.735.4713
m: 551.275.6221
e: emma.martin@nbcuni.com

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