Chicago, Illinois-headquartered McDonald’s Corporation has posted positive figures for the Q3 2023 period that ended on September 30. Revenue jumped 14% to $6.69 billion, beating Wall Street expectations of $6.56 billion. Net income increased 17% to $2.3 billion, or $3.17 per share. Digital systemwide sales in its top six markets hit nearly $9 billion (over 40% of systemwide sales).
“With global systemwide sales growth of 11%, our third quarter results reflect our position of strength as the industry leader,” said President and CEO Chris Kempczinski. “The macroeconomic environment is unfolding in line with our expectations for the year, and we continued to deliver convenience and value for our customers.”
As prices rise In coping with inflationary pressure, the fast food restaurant company passed on “strategic menu price increases” to customers in the United States, where it has 13,513 units. Elsewhere, the world’s most prolific quick service burger chain operates over 38,000 restaurants outside the USA.
In a post-earning call, Kempczinski stated: “Consumers continue to be more discriminating about what and where they spend…(but) we’re seeing really no change at all in terms of customer acceptance… on pricing.”
Global comparable sales rose 8.8%, reflecting strong results across all sectors, as detailed below:
• Receipts in the USA increased 8.1%
• The International Operated Markets segment advanced 8.3%, while the International Developmental Licensed Markets segment rose 10.5%
• Consolidated revenues increased 14% (11% in constant currencies).
• Systemwide sales advanced 11% (10% in constant currencies).
• Consolidated operating income increased 16% (13% in constant currencies) and included $26 million of pre-tax charges, primarily related to restructuring costs associated with the company’s internal effort to modernize ways of working
• Diluted earnings per share was $3.17, an increase of 18% (15% in constant currencies).
Comparable sales results in the United States benefited from strong average check growth driven by strategic menu price increases. Successful restaurant level execution, effective marketing campaigns and continued digital and delivery growth contributed to strong comparable sales results.
The International Operated Markets segment performance was driven by solid comparable sales in most countries, led by the United Kingdom, Germany and Canada. Meanwhile, on the International Developmental Licensed Markets front the quarter reflected strong comparable sales in all geographic regions.
