McDonald's third quarter sales boosted by higher prices

By AP News

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McDonald’s reported better-than-expected sales in the third quarter as it charged higher prices and drew in customers with its Camp McDonald’s promotion

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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Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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