McDonald’s posted third-quarter sales that beat expectations as US diners placed larger orders and absorbed higher menu prices, while international results were buoyed by fewer pandemic restrictions.
The fast-food chain posted comparable sales growth – a closely watched gauge of performance for restaurants – of 12.7 per cent in the quarter to September 30th. That’s above the nearly 10 per cent estimate from analysts. Comparable sales outpaced expectations in both the US and international markets, the company said Wednesday.
While the restaurant industry is struggling with rising wage and commodity costs on top of supply chain shortages and delays, McDonald’s is faring well thanks to its takeout and delivery focus.
International
McDonald’s said results were strong in Canada, France, Germany and particularly the UK. This was driven in part by fewer restaurant closures with the easing of Covid-19 restrictions. The company added that Latin America and Japan were strong performers.
Covid-related restrictions continue to weigh on McDonald’s in some regions, however. China posted negative comparable store sales due to a resurgence of the coronavirus, while Australia’s sales were muted because of restrictions to curb the virus’s spread. The pandemic has caused reduced store hours and closed dining rooms in some cases.
Investors will be listening closely during the company’s call for details on how the company plans to deal with a stubborn labour shortage in the US, which has been called out as an obstacle recently by rivals such as Popeyes Louisiana Kitchen, Chipotle Mexican Grill and Domino’s Pizza. – Bloomberg
