McDonald’s U.S. quarterly same-store gross sales rise 4.6%, fueled by Travis Scott promotion
A employee cleans the ground in a McDonald’s restaurant within the Chicago Loop on March 19, 2020 in Chicago, Illinois.
Scott Olson | Getty Photographs
McDonald’s mentioned Thursday its U.S. same-store gross sales within the third quarter rose almost 5% as clients ate extra Large Macs and McNuggets for dinner.
Quick-food firms like McDonald’s have been recovering from the coronavirus pandemic quicker than the broader restaurant trade, because of their handy drive-thrus and low cost costs. Shares of McDonald’s, which has a market worth of $177 billion, have risen greater than 16% this yr.
The inventory rose 1% in premarket buying and selling on the announcement.
The chain’s U.S. comeback has been helped by its promotions and advertising. In September, it provided a deal on rapper Travis Scott’s favourite meal, inflicting the chain to limit sure elements as a result of its reputation. Scott’s $6 meal included 1 / 4 pounder with cheese and his favourite toppings, an order of french fries with barbeque sauce and a Sprite. With the assistance of that deal, September had the very best month-to-month same-store gross sales in almost a decade, with development throughout all meal instances.
This month, it is following up the promotion with the same deal that includes reggaeton singer J. Balvin’s order, which features a Large Mac sandwich, medium french fries with ketchup and an Oreo McFlurry.
Within the U.S., its same-store gross sales development was boosted by extra orders being made as a part of a gaggle, which drives up the worth of every test. It is also attracting extra dinner clients, however general visitors stays destructive.
Outdoors of its residence market, McDonald’s is bouncing again slower after seeing steeper gross sales declines within the prior quarter. Harsher lockdown restrictions meant lots of its eating places needed to shut their doorways solely, and its worldwide places are much less more likely to have drive-thru lanes.
Its worldwide operated markets section, which incorporates France and the UK, noticed same-store gross sales fall 4.4%. Australia reported optimistic same-store gross sales development, however Germany and Spain had been among the many markets that noticed declines.
Within the worldwide developmental licensed markets section, which incorporates China and Brazil, same-store gross sales shrank by 10.1%. Latin America and China dragged down same-store gross sales outcomes for the division.
Worldwide, same-store gross sales for the quarter shrank by 2.2%, significantly better than the second quarter’s 23.9% plunge.
McDonald’s additionally mentioned it’s growing its quarterly money dividend by 3% to $1.29 per share.
“Whereas present yr enterprise outcomes have been impacted by the Covid-19 pandemic, the tempo of restoration paired with the Firm’s robust monetary place help this improve to the dividend whereas nonetheless giving the Firm the flexibility to put money into the enterprise,” McDonald’s mentioned in an announcement.
McDonald’s will current its full third-quarter outcomes and maintain a digital investor occasion on Nov. 9.