For Aishwarya Venugopal and Hilary Rasiya
(Reuters) – McDonald’s reported on Wednesday that high US menu prices and celebrity-themed dining helped boost comparable quarterly sales higher than expected, despite the difficulty of keeping the restaurant fully open. Labor shortage and capacity due to the Covid-19 outbreak.
According to IBES Refinitiv data, US same-store sales rose 9.6% in the third quarter ended Sept. 30, compared to an estimate of 8.27% growth.
Comparable global sales grew 12.7% in the quarter, against estimates of 10.31% growth due to global markets recovering from the pandemic.
Labor shortages in the US have caused some sites to close early and slow service, chief executive Chris Kempczinski said, adding that the problems are not “failures”.
McDonald’s also raised prices in the US by about 6% through 2020 to help cover rising commodity and labor costs. The fast-food chain, which is looking to increase sales digitally, launched a new loyalty program in the US, doubling its advertising stakes.
Net income rose 22% to $2.15 billion, with earnings per share of $2.76 on an adjusted basis, beating estimates of $2.46 per share.