In the third quarter McDonald’s same-store sales rose by nearly 5 percent, as their customers ate more McNuggets and Big Macs for the dinner, McDonald said on Thursday.
Many fast-food companies like McDonald’s have been recovering from Covid-19 quicker in comparison with the wider restaurant industry, special thanks to their drive-through and cheaper meals. The company reported a rise in its market share by more than 16 percent whose market value is $177 billion.
In the announcement, the stock rose by 1 percent in pre-market trading.
The company’s come back from Covid-19 is because of increased promotions and marketing. The rapper Travis Scott’s favorite meal was offered by the company, which caused the company to restrict certain ingredients mainly because of its popularity. $6 Meal of Scott included a quarter pounder with cheese and all of his favorite toppings on it, French fries with the barbeque sauce, and in cold drink the sprite. That specific deal achieved the highest same-store sales in nearly a decade also with an increase in its other menu item and an increase in sales in all the meal times. The company benefitted a lot from that deal.
Favorite deal of the singer J.Balvin was promoted this month which included big mac sandwich, medium fries with tasty ketchup, and Mcflurry in oreo flavor.
Its same-store sales growth was an increase by more people ordering. The company is also attracting more and more dinner consumers but as the statistics suggest the overall traffic remained negative.
In Markets other than its home markets, the company bounced back slower after seeing their sales declined in the previous quarter. Harsh restrictions due to Covid-19 made the restaurants to close their restaurant door completely and its locations internationally are less likely to have drive-thru lanes.
It’s international operating markets which include the United Kingdom and France reported a decline of 4.4 percent fall in its same-store sales.
And it’s international developmental licensed markets segment in which China and Brazil are included, their same-store sale fell by 10.1%. China and Latin America also showed a decline in their sales.
Same store sales for the quarter declined by 2.2% very much better than the 2nd quarter sales decline of 23.9%.
The company also mentioned that it is increasing its quarterly cash dividend by 3 percent to 1.29 per share.
On November 9, the company will present its full third-quarter sales and hold an investor event.