McDonald’s reports higher-than-expected sales in Q3 as popular promotions bring in customers despite higher prices in the U.S.
The burger giant announced that global same-store sales, which includes locations open for at least a year, increased by 8.8% during the July-September period, surpassing Wall Street’s forecast of an 8% rise according to analysts surveyed by FactSet.
In the U.S., same-store sales rose by 8.1%, despite the impact of increased prices on customers. In July, McDonald’s stated that customers with annual incomes of $45,000 or lower were spending less on each order. However, the company also noted an increase in higher-income customers who are now choosing McDonald’s over expensive sit-down restaurants.
While McDonald’s raised prices for some menu items in the U.S., it successfully attracted customers through promotions such as a 50-cent double cheeseburger on National Cheeseburger Day in September. The company also offered discounts throughout August in the United Kingdom, including a 60% off deal on Big Macs or Chicken McNuggets.
McDonald’s revenue surged by 14% to $6.69 billion, exceeding Wall Street’s forecast of $6.56 billion. Despite a $26 million charge for a restructuring announced last spring, the company’s net income rose by 17% to $2.3 billion.
The Chicago-based company achieved earnings of $3.17 per share for the quarter, outperforming Wall Street’s projected $3.00.
Shares of McDonald’s rose by nearly 3% prior to the market opening on Monday.
