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McDonald’s third quarter sales boosted by higher prices

FILE – An exit sign is shown at a McDonald’s restaurant in Pittsburgh on Saturday, April 23, 2022. McDonald’s reported better-than-expected sales in the third quarter, Thursday, Oct. 27, 2022, as it charged higher prices and drew in customers with its Camp McDonald’s promotion. (AP Photo/Gene J. Puskar, File)

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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