On Tuesday, McDonald’s Corp. (MCD.N) reported 12.6% worldwide comparable sales growth in the first quarter, above Wall Street projections.
McDonald’s shares increased 1% in premarket trading as comparable sales rose 12.6% across all geographic regions. Refinitiv IBES data predicted an 8.54% worldwide gain.
The Chicago-based corporation began publicly trading restaurant quarterly financial reporting. Investors predict solid sales but will watch for signs that customers will keep dining out as recessionary pressure grows throughout the year.
Subway reported increased global comparable sales and guest visits on Monday.
In the three months ending March 31, McDonald’s sales rose 4% to about $5.9 billion, according to an earnings announcement. However, However, Refinitiv data predicted a 1.4% dip to $5.587 billion.
Net income grew to $1.8 billion or $2.45 per share from $1.1 billion or $1.48 a year earlier.
McDonald’s is cutting hundreds of U.S. jobs and shutting offices. In addition, the results statement reported $180 million in pre-tax restructuring expenses.
It’s adding saucier Big Macs and softer toasted buns.
Meal deals and celebrity partnerships like Cardi B and Offset have also increased.
It was previously reported that low-income consumers visited more often but spent less.
McDonald’s menu pricing rose 10% last year, like other businesses. However, McDonald’s remains cheaper than other eateries.
According to Numerator, McDonald’s spent $7.77 on each trip in the 12 months ending March 31, less than Burger King (QSR.TO), Wendy’s (WEN.O), and most other fast-food chains.
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