McDonald’s sales soar on higher prices, newer menu items -Breaking
[ad_1]
© Reuters. FILE PHOTO – McDonald’s crispy chicken sandwiches and fries in New York are shown on March 30, 2021. REUTERS/Hilary Russ(Reuters) –McDonald’s Corp announced Wednesday quarterly U.S. Sales that exceeded Wall Street’s expectations. This was due to higher prices and larger orders, as well as new menu items like the crispy chicken burger.
In premarket trading, the shares of the company rose 3.3% to $243.30. The fast-food giant’s worldwide same-stores sales increased 12.7% during the third quarter ending Sept. 30. That compares with 10.31% growth, according to Refinitiv IBES statistics.
McDonald’s (NYSE) is gaining market share by opening more restaurants than ever before, despite pandemic restrictions being eased and new items like the chicken sandwich. It also launched its famous “Famous Orders” campaign featuring pop stars such as Sawetie and BTS from South Korea.
This company has long been trying to increase sales online and launched a loyalty program in America. They also doubled down on their advertising.
McDonald’s has reported positive results, in contrast with other restaurants like Domino’s Pizza (NYSE.) Inc or Burger King-owner Restaurant Brands International. Both of these chains flagged a slowdown because of the tight labor market.
McDonald’s and other fast food restaurants have had to increase their prices due to rising labor costs.
The reported quarter saw comparable sales at McDonald’s USA rise 9.6%. This was due to higher menu prices and more customers ordering more food.
As coronavirus restrictions were eased, most of the company’s international markets saw sales growth. However, Australia and China continued to face pressure due to the return of COVID-19.
McDonald’s Total Revenue grew 14% to $6.20Billion in the quarter reported, surpassing expectations of $6.03B.
The net income increased 22% to $2.15 trillion and adjusted earnings were $2.76 per share, exceeding estimates of $2.46 per shares.
Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this website’s data including quotes, charts, or buy/sell signal information. You should be aware of the potential risks and financial costs involved in trading the financial market. It is among the most dangerous investment options.
[ad_2]
