McDonald's: McDonald's Crosses Profit Estimates

On Thursday, McDonald's Corp crossed its quarterly comparable sales and profit estimates, aided by higher menu prices and a surge in restaurant traffic. Photo Credit : On Thursday, McDonald's Corp crossed its quarterly comparable sales and profit estimates, aided by higher menu prices and a surge in restaurant traffic. The firm's shares surged 3.5 per cent to 265.69 dollars. To keep up with surging commodity and labour costs, McDonald's had raised prices of its burgers and fries. The firm's US menu prices rose over 10 per cent in the third quarter ended 30 September 30, against the previous year. Visits to the Chicago-based chain's US restaurants surged 6.2 per cent in September, going beyond the usual traffic to the broader quick-service restaurant space which rose just 0.8 per cent, as per the data from Placer.ai, a location analytics firm. The chain's global same-store sales increased 9.5 per cent in the quarter, against estimates for a 5.8 per cent surge, as per the IBES data from Refinitiv. McDonald's total revenue dropped 5 per cent to 5.87 billion dollars, due to the impact of a stronger US dollar, yet managed to beat estimates of 5.69 billion dollars. The firm's net income dropped 8 per cent to 1.98 billion dollars.