McDonald’s Corporation (MCD) reported strong earnings, ahead of market estimates helped by higher prices, larger order sizes, and entry of new menu items. As pandemic-related restrictions eased and restaurants opened at full capacity, McDonald’s has been gaining market share from competitors by investing in new menu items. The fast-food giant increased menu prices by about 6% in comparison to last year to meet rising labor costs and food inflation.
U.S Comparable sales increased 9.6% for the third quarter, ended Sep 30. Global comparable sales also witnessed a rise of 12.7% in the quarter versus estimates of 10.31%. Its total revenue increased 14% to $6.20 billion beating expectations of $6.03 billion. Net income also jumped 22% to $2.15 billion and adjusted earnings per share of $2.76 were recorded, beating estimates of $2.46 per share.
Seating areas remained closed in about 20% of McDonald’s American locations, roughly around 3,000 restaurants in regions with high rates of COVID-19 cases. The majority of the company’s international markets also recorded sales growth, especially in Canada, the UK, and Japan, as pandemic restrictions eased, while China and Australia continued to be pressured by the resurgence of COVID-19 cases.
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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