McDonald’s (MCD.N.) surpassed Wall Street forecasts for third-quarter sales and earnings on Monday. The company did so by introducing new products and continuing to attract customers who were having trouble paying for expensive food.
In premarket trading, the company’s shares increased by around 2% to $261. Additionally, it expanded its quarterly cash dividend by 10%.
Following the industry-wide price increase last year, the burger giant has maintained its meals as comparatively more inexpensive, which has helped fight the trend of inflation-hit consumers choosing to dine more at home and a reduction in foot traffic.
According to LSEG statistics, McDonald’s global comparable sales increased 8.8% in the quarter that ended on September 30, compared with analysts’ average prediction of a 7.36% increase.
McDonald’s introduced the Cheesy Jalapeno Bacon quarter-pounder in July and brought back the beloved Spicy Chicken McNuggets to menus in September, drawing on its history of menu upgrades.
UBS analysts had remarked that these things probably contributed to solid sales growth in the third quarter.
In the three months of the quarter, we witnessed a decline in total eating traffic, while July had a 7.3% increase at McDonald’s, according to data from Placer.ai.
The company’s foot traffic strength decreased during the next two months, falling 1.1% and 3.7%, respectively, although it was still higher than the general trends in the industry.
In the United States, comparable sales increased 8.1% during the quarter, above forecasts of 7.4% growth, partly due to more lavish average store spending.
In the meantime, same-store sales in McDonald’s overseas markets grew by 8.3%, slightly above the forecast growth of 8.03%. The total revenue for the quarter surpassed projections of $6.58 billion, rising 14% to $6.69 billion.
From $1.98 billion, or $2.68 per share, the previous year’s net income increased to $2.32 billion, or $3.17 per share. McDonald’s reported an adjusted profit per share of $3.19, comfortably above $3.00 in earnings per share projections.
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