McDonald’s reported better-than-expected sales in the third quarter, as popular promotions brought in customers despite higher U.S. prices
ByDEE-ANN DURBIN AP business writer
October 30, 2023, 7:05 AM
FILE – An exit sign is shown at a McDonald’s restaurant in Pittsburgh, April 23, 2022. McDonald’s reports earnings on Monday Oct. 30, 2023. (AP Photo/Gene J. Puskar, File)
The Associated Press
McDonald’s reported better-than-expected sales in the third quarter as popular promotions brought in customers despite higher U.S. prices.
Global same-store sales — or sales at locations open at least a year — rose 8.8% in the July-September period, the burger giant said Monday. That was ahead of Wall Street’s forecast of an 8% increase, according to analysts polled by FactSet.
In the U.S., same-store sales rose 8.1%. Price increases have weighed on customers. In July, McDonald’s said customers with annual incomes of $45,000 or lower are spending less on each order. But the company also said it was seeing more higher-income customers in its stores, those going to McDonald’s now, rather than spending money at sit-down restaurants.
McDonald’s raised prices on some menu items in the U.S. But it also drew customers with promotions like a 50-cent double cheeseburger on National Cheeseburger Day in September. In the United Kingdom, the company offered discounts throughout August, including 60% off n 60% off Big Macs or Chicken McNuggets.
McDonald’s revenue rose 14% to $6.69 billion, ahead of the $6.56 billion Wall Street forecast. McDonald’s net income — which included a $26 million charge for a restructuring announced last spring — rose 17% to $2.3 billion.
The Chicago company earned $3.17 per share for the quarter, also beating Wall Street’s forecast of $3.00.
Shares rose almost 3% before the opening bell Monday.
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