McDonald’s is reporting stronger-than-expected sales in the third quarter, boosted by larger orders and higher prices on the menu.
FILE - A McDonald's sign is shown in Philadelphia, Monday, April 26, 2021. McDonald’s reported stronger-than-expected sales in the third quarter, boosted by larger orders and higher prices on the menu. Revenue jumped 14% to $6.2 billion in the July-September period, the Chicago burger giant said Wednesday, Oct. 27, 2021. That beat Wall Street’s forecast of $6 billion, according to analysts polled by FactSet.
The company said U.S. prices were up 6% over the prior year in the July-September period to cover rising wages and higher costs for commodities likeand paper. So far, customers are taking that increase in stride, McDonald's Chief Financial Officer Kevin Ozan said in a conference call with investors. To attract workers in a tight labor market, McDonald's U.S. franchisees raised wages 10% this year while company-run stores have increased pay 15%, McDonald's President and CEO Chris Kempczinski said. That has helped the company stay competitive, Kempczinksi said.
In Australia, stay-at-home orders closed half of McDonald's dining rooms during the quarter but delivery orders reached a record high. Kempczinski said that even when markets reopen, delivery demand remains elevated; the company doesn't break out its percentage of delivery orders, but Kempczinksi said they have grown by “billions and billions” over the last few years.
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