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McDonald’s reported that U.S. sales surged during the first quarter driven in part by rising prices across the industry.
Sales at stores that were open at least a year increased 3.5% in the January-March period, even in the midst of an “increasingly complex and uncertain operating environment,” according to McDonald’s CEO Chris Kempczinski.
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The fast-food giant attributed this success to “strategic menu price increases” along with “strong marketing promotions featuring the core menu and growth in digital channels.”
A McDonald’s employee in Eden Prairie, Minn. (iStock / iStock)
The company also said that it continued to benefit from the launch of its loyalty program, MyMcDonald’s Rewards, which launched last year.
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The strength in the U.S. and other markets has helped the company offset negative same-store sales in its China market, which is facing COVID-19 resurgences and related government restrictions, as well as troubles in its Russia market.
McDonald’s decided to halt operations in Russia in early March due to Moscow’s invasion of Ukraine.
A customer walks past a statue of Ronald McDonald on display outside a McDonald’s restaurant in Beijing on July 31, 2014. (AP Photo/Andy Wong, File / AP Newsroom)
The company projected that it would cost around $50 million per month, or about 5 to 6 cents per share, to temporarily suspend its operations and close its restaurants.
McDonald’s owns approximately 84% of its 847 Russia locations and 100% of its 108 Ukraine locations. Russia and Ukraine combined represented approximately 2% of the company’s systemwide sales.
FOX Business’ Lucas Manfredi contributed to this report.
