McDonald’s third quarter sales boosted by higher prices
McDonald’s reported strong sales in the third quarter as it raised prices and used offers on its app to draw in customers
Global same-store sales, or sales at locations open at least a year, rose 9.5% in the July-September period. That was well ahead of the 5.8% increase Wall Street was expecting, according to analysts polled by FactSet.
U.S. same-store sales rose 6%. McDonald’s said Camp McDonald’s, which offered deals, merchandise and streaming concerts within the McDonald’s app, drove customer visits.
McDonald’s said in July that U.S. price increases in the 8% to 9% range would likely continue through the remainder of the year as it offsets higher costs. McDonald’s expects food and paper costs to be up between 12% and 14% this year, while its labor costs are up 10%.
Revenue fell 5% to $5.87 billion, but that was better than the $5.7 billion that industry analysts had expected. Overseas revenue was weaker because of the strong dollar.
Net income fell 8% to $1.98 billion, or $2.68 per share, a dime better than Wall Street projections.
Shares of the Chicago burger giant rose more than 3% before the opening bell Thursday.
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