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Investing.com - McDonald’s posted an expansion in worldwide sales in the third quarter that was slightly better than expectations, as an era of broad economic uncertainty pushed budget-conscious customers to the burger chain’s meal deals and promotions.
Global comparable sales growth of 3.6% in the third quarter, compared to Bloomberg consensus estimates of 3.59%. Demand was solid in the U.S., where same-store sales increased by 2.4%, versus 0.3% a year ago and expectations of 2.14%.
Fast-food businesses like McDonald’s and rivals Domino’s Pizza and Taco Bell-parent Yum Brands have been focusing on offering value-based meals in a bid to offset a hit to demand for dining out. Last year, McDonald’s introduced a series of promotions, including a $5 menu deal and a buy-one, add-one for $1 offer, with CEO Chris Kempczinski highlighting the need for the restaurant to entice lower-income consumers who are more common visitors than middle- or higher-income individuals.
On Wednesday, Kempczinski said the comparable sales result was a "testament to our ability to deliver sustainable growth even in a challenging environment."
“We’re fueling momentum by delivering everyday value and affordability, menu innovation, and compelling marketing that continue to bring customers through our doors,” he added.
Operating income grew by 5.3% versus a year ago to $3.36 billion, as returns were hit by a pre-tax charge of $39 million primarily related to restructuring expenses.
Earnings per share stood at $3.18, while revenue rose by 3% to $7.08 billion.
Shares of McDonald’s were lower in premarket U.S. trading.