McDonald's posts better-than-expected third-quarter comparable sales

Investing.com - McDonald’s has posted better-than-expected growth in third-quarter comparable sales, as the burger giant pursues a value push aimed to entice lower-income customers reining in restaurant spending.

Group-wide comparable sales increased by 1.5% during the period, outpacing Bloomberg consensus estimates. The pace of growth a year earlier was 3.6%.

Sales in the U.S., McDonald’s largest market, declined by 0.2%, although the drop was shallower than expectations for a fall of 0.47%. Last year, the figure ticked up by 2.4%.

In a statement, CEO Chris Kempczinski said the company was "encouraged by improvement" in the U.S. as the quarter progressed following its "intervention on value." The slight dip in U.S. comparable sales was linked to a decrease in guest visits, but these were largely offset by positive check growth, McDonald’s noted.

The Big Mac-maker has been rolling out promotional strategies, such as a buy-one-add-one deal and loyalty programs, to bring in more lower-income consumers -- a major customer base that has been grappling with cost-of-living pressures from elevated prices for items like gasoline and food.

Bolstering U.S. performance has been a central focus for McDonald’s. Earlier this year, the business appointed Skye Anderson to lead the unit, replacing the division’s former head Joe Erlinger.

Overall adjusted earnings per share stood at $3.57, up from $3.22 a year ago and above expectations of $3.40. Revenue rose by 1.1% year-on-year to $7.16 billion, compared to estimates of $7.29 billion.

Shares of McDonald’s gained more than 2% in premarket U.S. trading on Wednesday.

Original Article

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