Tuesday, May 7, 2024

McDonald’s promotions lure diners despite higher menu prices and revenue jumps 14%



McDonald’s reported better-than-expected gross sales within the 3rd quarter as standard promotions introduced in consumers despite higher U.S. prices.

Global same-store gross sales — or gross sales at places open no less than a yr — rose 8.8% within the July-September length, the burger massive stated Monday. That was once forward of Wall Street’s forecast of an 8% build up, consistent with analysts polled through FactSet.

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In the U.S., same-store gross sales rose 8.1%. Price will increase have weighed on consumers. In July, McDonald’s stated consumers with annual earning of $45,000 or decrease are spending much less on every order. But the corporate additionally stated it was once seeing extra higher-income consumers in its shops, the ones going to McDonald’s now, relatively than spending cash at sit-down eating places.

McDonald’s raised prices on some menu pieces within the U.S. But it additionally drew consumers with promotions like a 50-cent double cheeseburger on National Cheeseburger Day in September. In the United Kingdom, the corporate introduced reductions during August, together with 60% off n 60% off Big Macs or Chicken McNuggets.

McDonald’s revenue rose 14% to $6.69 billion, forward of the $6.56 billion Wall Street forecast. McDonald’s internet revenue — which integrated a $26 million fee for a restructuring announced last spring — rose 17% to $2.3 billion.

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The Chicago corporate earned $3.17 in line with percentage for the quarter, additionally beating Wall Street’s forecast of $3.00.

Shares rose nearly 3% sooner than the outlet bell Monday.

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