Share
Getting your Trinity Audio player ready...
|
Adult Happy Meals and other limited-time promotions boosted traffic at McDonald’s restaurants during the fourth quarter despite higher prices.
Global same-store sales __ or sales at stores open at least a year __ rose 12.6% in the October-December period, the Chicago company said Tuesday. That beat Wall Street expectations for an 8.8% increase, according to analysts polled by FactSet. U.S. same-store sales rose 10.3%.
Sales soared in October after McDonald’s launched adult Happy Meals featuring limited-edition toys designed by the streetwear brand Cactus Plant Flea Market. Half of the toys for those meals were gone in the first four days of the promotion, CEO Chris Kempczinski said earlier.
A “farewell tour” for the cult favorite McRib sandwich drew in more customers in November.
Strong sales at home helped overcome weakness in China, where stores were impacted by government COVID-19 restrictions.
Fourth quarter revenue fell 1% to $5.9 billion, but that still beat analysts expectations for $5.7 billion. Overseas revenue was weaker because of the strong dollar; 60% of McDonald’s sales come from outside the U.S.
Net income rose 16% to $1.9 billion, or $2.59 per share, topping profit projections by 13 cents.
McDonald’s shares rose slightly in premarket trading.
Kempczinski said in a prepared statement that higher inflation will continue to pressure the company this year. The company had said it expects food and paper costs to be up 12% to 14% in 2022, while its labor costs would rise 10%.
In early January, the company announced a corporate restructuring designed to improve efficiency and accelerate new restaurant openings. McDonald’s said the plan will likely include corporate layoffs; it told employees it would share more details by April 3.
RELATED TOPICS:
Texas Walmart Shooter Who Killed 23 Avoids Death Penalty by Pleading Guilty
1 hour ago
Chevron Announces First Oil at Ballymore Project in US Gulf
2 hours ago
Fresno Barbershop Shooting Leaves Man Dead, Two Others Injured
3 hours ago
Vance, Modi Welcome Significant Progress on India-US Trade Deal
3 hours ago
White House Denies Report It Is Searching for New Defense Secretary
3 hours ago
Israeli Spy Chief Hands Court Scathing Rebuke of Netanyahu Bid to Sack Him
3 hours ago
Valley Crime Stoppers’ Most Wanted Person of the Day: Satbir Singh
4 hours ago
Tesla Settles Wrongful Death Lawsuit Claiming Sudden Acceleration in Ohio Crash
3 minutes ago
Categories


Tesla Settles Wrongful Death Lawsuit Claiming Sudden Acceleration in Ohio Crash

Special Interests Pour More Than Half a Billion Into CA Lobbying

Texas Walmart Shooter Who Killed 23 Avoids Death Penalty by Pleading Guilty

Chevron Announces First Oil at Ballymore Project in US Gulf

Fresno Barbershop Shooting Leaves Man Dead, Two Others Injured

Vance, Modi Welcome Significant Progress on India-US Trade Deal
