McDonald’s beats Q3 expectations as higher U.S. prices drove sales

By Akshay Kedari  Date: 2021-10-28

McDonald’s beats Q3 expectations as higher U.S. prices drove sales

McDonald's Corporation reported increased quarterly comparable sales owing to higher U.S. prices and celebrity-themed meals, however, the business struggled to maintain restaurants running at full capacity due to staffing shortages and the COVID-19 outbreak.

In the third quarter ended Sept. 30, same-store sales in the United States increased 9.6% as compared to projections of 8.27%. As overseas markets progressively recovered from the pandemic, global comparable sales also surged 12.7% in the quarter, compared to the estimated 10.31%.

The firm reported a 22% hike in income, amassing USD 2.15 billion, with adjusted earnings of USD 2.76 per share, more than expected USD 2.46 per share.

In an earnings call, Chief Executive Chris Kempczinski indicated that a labor shortage in the United States forced certain facilities to close early and reduce service speed, but difficulties were not unsolvable.

McDonald's postponed the opening of certain new restaurants until early 2022 owing to the global supply-chain issues that made it difficult to get the relevant kitchen and IT equipment. Kempczinski said this resulted in new unit development in the U.S. and lower than expected performance in overseas markets from what the business had intended to open this year.

In areas with a high incidence of COVID-19, nearly 20% of McDonald's American sites, roughly 3,000 restaurants, kept their seating areas closed.

However, several pandemic-related restrictions have been lifted, attracting more customers to restaurants. Moreover, McDonald's crispy chicken sandwich and its most recent celebrity collaboration with rapper Saweetie helped improve sales.

To cover offset increased product and labor expenses, the Chicago-based firm hiked pricing in the United States by nearly 6% as compared to 2020. The boost in sales can be credited to higher prices and increased order volumes.

The fast-food chain, which has been trying to increase digital sales, has introduced a new loyalty program in the United States that currently has over 21 million members. The company also increased its advertising budget to reach more people and drive sales.

Source Credit-

https://www.investing.com/news/stock-market-news/mcdonalds-sales-soar-on-higher-prices-newer-menu-items-2656965

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More

More News By Akshay Kedari

Twitch launches ‘Suspicious User Detection’ tool to track ban evaders

Twitch launches ‘Suspicious User Detection’ tool to track ban evaders

By Akshay Kedari

Twitch is reportedly stepping up its efforts to curtail harassment, with a new tool powered by machine learning to identify people who could be trying to avoid bans. It is the company’s most recent addition for dealing with issues like hate rai...

Thermo Fisher claims its tests can detect Omicron variant accurately

Thermo Fisher claims its tests can detect Omicron variant accurately

By Akshay Kedari

The emergence of the Omicron variant of coronavirus, which has forced some countries to once again seal off their borders, is being seen as a catalyst to prolonging the pandemic. The accurate detection of the variant is a major concern, however, Ther...

Motorway obtains unicorn status following a USD 190 Mn Series C funding

Motorway obtains unicorn status following a USD 190 Mn Series C funding

By Akshay Kedari

U.K-based secondhand car auction platform Motorway has reportedly secured USD 190 million in Series C funding round. This has allowed the startup to acquire a unicorn status, with a total valuation of more than USD 1 billion. The funding round was l...

Spotify found testing TikTok-style short vertical video feed in its app

Spotify found testing TikTok-style short vertical video feed in its app

By Akshay Kedari

Spotify is reportedly testing a TikTok-style vertical video feature in its popular music streaming app.  The option will allow users to scroll through the vertical music videos as well as either like them or skip them. Sources claimed that this...

General Motors to deliver Hummer electric pickups starting December

General Motors to deliver Hummer electric pickups starting December

By Akshay Kedari

Edition 1 model of Hummer pickup accounted for 80% of the total reservation. The EV pickup truck boasts a driving range of 329 miles. Automotive giant General Motors Co will reportedly start the delivery of its GMC hummer EV from December onward...