NEW YORK: McDonald’s has topped Wall Street estimates for fourth-quarter global comparable sales and profit, as meal deals and strong marketing promotions pulled in budget-strapped US diners and demand held firm in Australia and Britain.
Global same-store sales at the largest US burger chain rose 5.7% in the three months ended Dec 31, outpacing analysts’ average estimate of a 3.7% increase, according to data compiled by LSEG.
McDonald’s has posted rising sales when many restaurant operators are struggling to retain traffic as consumers have tightened their belts.
Cheaper options have fared better than the rest. Taco Bell same-store sales rose 7% in the latest quarter and KFC sales grew 3%, parent company Yum Brands said last week.
Meanwhile, sales at the higher-priced Chipotle Mexican Grill declined 1.7%, the company reported earlier in February.
McDonald’s, which operated more than 43,400 restaurants worldwide at the end of 2024, earned US$3.12 per share on an adjusted basis, topping expectations of US$3.05.
In October, McDonald’s brought back its Monopoly tie-in after nearly a decade, followed by a slate of value offers in November including US$5 breakfast and US$8 meal options for lunch and dinner.
In December, the company added a holiday-themed Grinch meal as a limited-time draw.
“McDonald’s value leadership is working,” chief executive officer Chris Kempczinski said in a statement on Wednesday.
A faster rise in prices at restaurants compared to groceries in recent months, largely due to higher labour and utility costs, has also forced diners, particularly those in lower-income households, to cut back on eating out, intensifying competition among fast-food chains.
“MCD has to continue to grind away with marketing and value promotions that keep traffic positive and growing,” said Jim Sanderson, analyst at Northcoast Research.
Comparable sales in the United States, McDonald’s largest market, rose 6.8% in the October to December period, marking its third consecutive quarter of growth, compared with a 1.4% dip a year earlier, when an E. coli outbreak dented demand. — Reuters
