McDonald’s beats sales estimates thanks to more expensive menus

McDonald´s Corp beat comparable quarterly sales estimates on Thursday, thanks to rising menu prices and increased traffic at restaurants from customers tired of the inflation looking for cheap meals.

Shares of the company rose 2.2% to $262.30 in trading before the regular market open.

Like other fast-food chains, McDonald’s has been forced to raise the prices of its burgers and fries to cope with rising costs for staples, but its meals are still cheaper than what’s served. in restaurants, which means that demand remains strong even when the purchasing power of consumers is reduced.

Visits to the burger chain’s restaurants in the United States rose 6.2% in September, outpacing overall quick-service restaurants, which showed just a 0.8% increase, according to data from Placer.ai, an analytics firm. of location.

McDonald’s worldwide same-store sales rose 9.5% in the third quarter, ended Sept. 30, versus estimates for a 5.8% increase, according to IBES data from Refinitiv.

McDonald’s comparable sales in the United States, the company’s largest market, rose 6.1% in the quarter, thanks to higher prices.

The iconic burger Big Mac McDonald’s was selling for $5.15 in June, up from $4.93 a year earlier, according to The Economist magazine’s price index.

Analysts have pointed out that the decline in gasoline prices it also boosted US restaurant sales in the third quarter overall, after a slowdown in June.

However, McDonald’s total revenue fell 5% to $5.87 billion due to the impact of a stronger dollar. Still, it beat estimates of $5.69 billion.

The company’s net profit fell 8% to $1.98 billion, or $2.68 per share.