Fast Food giant, McDonald’s (MCD) quarterly sales beat estimates despite inflationary pressure on consumers, the war in Ukraine, and COVID-19 lockdowns in China, assisted by menu price hikes and the introduction of a new loyalty program. Global comparable sales increased 11.8%, above estimates for an 8.2% gain. Total revenue increased 11% to $5.67 billion, exceeding expectations for $5.59 billion. The introduction of a digital loyalty program late last year, which now has 26 million members helped drive a 3.5% increase in first-quarter comparable sales in its biggest market, the United States.
After shutting restaurants in Russia, McDonald’s lost $100 million due to the likely disposal of inventory in its supply chain. McDonald’s comparable sales in international licensed markets increased by nearly 15%, despite renewed COVID-19 lockdowns in China that temporarily closed restaurants across the country. Excluding costs to support the company’s business in Russia and Ukraine as well as other one-time expenses, McDonald’s earned a profit of $2.28 per share, exceeding estimates of $2.17.
McDonald’s Corporation (MCD) is the leading global foodservice retailer with nearly 37,000 locations in over 100 countries. The Corporation operates and franchises McDonald’s restaurants in the US and across the globe with over 90% of its restaurants owned and operated by local, independent businessmen and women. To learn more about McDonald’s Corporation (MCD) and to track its progress please visit the Vista Partners McDonald’s Coverage Page.
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