By
Tolu Ajiboye
June 14th, 2023
McDonald’s same-store sales climbed 9.6% from a year before as demand bounced back in its home market.
American fast-food company McDonald’s (NYSE: MCD) has reported better-than-expected quarterly earnings for its Q3. The quarterly earnings surpassed earlier predictions by analysts as the company’s international sales rebounded. McDonald’s global markets began to pull in profits as governments worldwide relaxed Covid-19 restrictions.
McDonald’s Q3 2021 Report
According to the quarterly earnings report, McDonald’s said its adjusted earnings per share was $2.76 in Q3, up from Wall Street’s expectation of $2.46. Also, revenue was $6.2 billion in the quarter, vs. $6.04 billion predicted by analysts.
The fast-food company revealed that its fiscal Q3 net income was $2.15 billion or $2.86 per share. The reported revenue is about a $1 billion increase from $1.76 billion year on year. In addition, McDonald’s earned $2.76 per share excluding strategic gains, surpassing analysts’ expectations of $2.46. Further exceeding prediction, net sales jumped 14% to $6.2 billion, over expectations of $6.04 billion. Additionally, same-store sales globally rose 12.7% from the previous year and 10.2% on a two-year basis.
McDonald’s same-store sales climbed 9.6% from a year before as demand bounced back in its home market. And on a two-year basis, same-store sales jumped 14.6%. According to the food chain, its strong performance was due to its new chicken sandwich, a famous orders promotion with rapper Saweetie, and other menu items. McDonald’s further attributed its performance to its marketing promotions.
McDonald’s Rebounds as Covid-19 Restrictions Ease
Also, the fast-food company said its internationally operated market segments saw their same-store sales increase 13.9% from a year ago and 8.9% on a two-year basis. McDonald’s international developments licensed markets segments surged 16.7% and added that it improved 4.9% on a two-year basis.
The CEO and president of the international fast-food giant Chris Kempczinski commented:
“Our third quarter results are a testament to our paralleled scale and agility. Our global comparable sales increased 10% over 2019, which was delivered across an omnichannel experience that is focused on meeting the needs of our customers. We continue to execute our strategic growth plan and run great restaurants so that we can drive long-term, sustainable growth for all of our stakeholders.”
McDonald’s is one of the few companies that has managed to overcome the negative effect of the global health crisis. Its rivals, including Burger King, operating under Resturant Brands International Inc. (NYSE: QSR), are still battling losses. Earlier this week, Burger King said its US same-store sales declined 1.6% in Q3.
MCD stock is currently trading at $243.35, a 2.98% rise over its previous close of $236.42. The company increased 13.12% over the past year and advanced further by 13.18% in its year-to-date record. In the last three months, Mcdonald’s has also grown 0.45%. On the other hand, MCD lost 0.58% in the last month. However, the food chain has been increasing in the last five days, gaining 1.31%.