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

McDonald’s to leave Russia after 30 years amidst Ukraine’s invasion

McDonald’s to leave Russia after 30 years amidst Ukraine’s invasion

By Akshay Kedari

After Ukraine’s invasion, multinational fast-food giant McDonald's Corp. is reportedly planning to sell all its restaurants in Russia, pulling operations from the nation after 30 years. The world's biggest fast-food chain closed 847 ...

Berlin’s GetHenry bags USD 17.4 Mn seed funding for business expansion

Berlin’s GetHenry bags USD 17.4 Mn seed funding for business expansion

By Akshay Kedari

GetHenry, a Berlin-based company that offers couriers and logistics organizations electric last-mile delivery bikes, has reportedly raised USD 17.4 million seed round to grow its operations across Europe. The latest investment round was led by LocalG...

Ferrari to equip the upcoming Purosangue with its trademark V12 engine

Ferrari to equip the upcoming Purosangue with its trademark V12 engine

By Akshay Kedari

Italian luxury sports car manufacturer Ferrari S.p.A. will equip its much-awaited Purosangue SUV with a 12-cylinder engine, as it focused more on fuel-efficient models. Confirming the news, Ferrari Chief Executive Benedetto Vigna claimed that the com...

White House to spend USD 3 billion on EV battery manufacturing in U.S.

White House to spend USD 3 billion on EV battery manufacturing in U.S.

By Akshay Kedari

According to reliable sources, the Biden administration is planning to provide USD 3 billion in finance to reinforce EV battery manufacturing capabilities in the United States. The apparent funds will be issued by the Department of Energy from Presid...

Telefonica eyeing Israel’s high-tech sector to improve its portfolio

Telefonica eyeing Israel’s high-tech sector to improve its portfolio

By Akshay Kedari

Telefonica S.A. is planning to increase its investments in Israel’s high-tech sector this year, a senior official reported recently. The company, which is Europe’s third-largest telecommunications company, is also eyeing the country&rsquo...