McDonald’s has exceeded market expectations in terms of both profit and revenue for the third quarter.
The company disclosed profits of $3.19 per share, 51 cents more than the corresponding quarter the previous year and surpassing the $3 forecast by Wall Street for this quarter. This marks the fifth consecutive quarter where the fast-food giant has outperformed consensus projections.
Regarding revenue, McDonald’s generated $6.69 billion, surpassing Wall Street’s projection of $6.58 billion.
Sales in established stores for the quarter expanded by 8.8 per cent, outstripping the anticipated 8 per cent increase. In the US, these sales grew by 8.1 per cent, buoyed by a hike in menu prices, outpacing the forecasted 7.5 per cent growth. The UK, Germany, and Canada prominently fueled the surge in international demand.
Despite increasing prices, customer demand remained robust. Concurrently, the firm realised cost savings by cutting its corporate staff numbers. Throughout the year, a net of 1,500 new stores were launched.
Chris Kempczinski, 55, the Chief Executive, commented: “The broader economic landscape is evolving in tandem with our forecasts for the year, and we persist in offering both convenience and value to our patrons.”
Kempczinski assumed the role of Chief Executive four years prior, succeeding Steve Easterbrook, 56, a Brit, who was compelled to vacate the role for breaching company rules due to an affair with a colleague.
Shares of McDonald’s ascended by 1.7 per cent, or $4.38, reaching $260.14 in initial Wall Street trades.