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The Canadian press
Updated menu, celebrity partnerships, increased McDonald’s sales
McDonald’s sales in the United States surged in the third quarter with new menu items and celebrity collaborations grabbing attention. And the burger giant says more will come. In a virtual investor meeting on Monday, McDonald’s said a long-awaited chicken pickle sandwich – a response to competitors like Popeye’s and Chick-fil-A – will go on sale in the United States early next year. And the company is also developing its own plant-based burger, McPlant, which it will begin testing next year. The share of plant-based burger maker Beyond Meat plummeted 8% on that news. McDonald’s tested Beyond Meat meatballs in Canadian restaurants earlier this year, but ended the process in April. With new choices like spicy chicken nuggets and promotions of a meal with rapper Travis Scott, McDonald’s topped most of the third quarter projections. It wasn’t the same story outside the US, where sales between July and September failed to reach last year’s levels, and McDonald’s warned that a resurgence of coronavirus cases in key markets like France, Germany and the UK Kingdom could force the closure of the dining rooms. and other restrictions. “We are pleased with our recovery to date, but we also understand that there will inevitably be more starts and stops with the resurgence of the virus,” McDonald’s Chief Financial Officer Kevin Ozan said on a conference call with investors on Monday. Infections in the United States have also started to rise. But 95% of McDonald’s in the United States have drive-thru windows, which has allowed restaurants to continue operating even though less than 20% have opened their dining rooms. Globally, only 65% of McDonald’s have drive-thru windows. The Johns Hopkins University coronavirus tracker has reported over 50.2 million cases of COVID-19 globally as of Sunday. The United States, with around 4% of the world population, accounts for nearly a fifth of all reported cases. Sales at the same McDonald’s store – or at locations that have been open for at least a year – increased 4.6% in the United States. Customer traffic decreased, but when customers arrived, they spent more on larger group orders. Dinner was particularly strong, McDonald’s said, but other times of the day were also high. The meal with Scott promotion, introduced in September, was the first time McDonald’s had a celebrity name on its menu since a Michael Jordan-branded meal in 1992. For $ 6, customers could order their favorite meal Scott’s: a quarter pound, French fries and a Sprite. Scott’s Cactus Jack brand also designed clothes for McDonald’s employees. Ozan said there will be more celebrity ties to come. Last month, McDonald’s introduced a limited-time dining collaboration with Colombian singer J Balvin. McDonald’s also had a shift from the September introduction of the spicy McNuggets. It was the first time the company introduced a new style since McNuggets’ debut in 1983. In December, McDonald’s plans to bring back the McRib sandwich for a limited time. It’s the first time in eight years that McRib will be on US menus. Globally, sales from the same McDonald’s store fell 2.2% in the third quarter, with sales increases in Japan and Australia offset by declines in China, Europe and Latin America. However, it was significantly better than the company’s 24% decline in the second quarter. Net income for the third quarter increased 10% to $ 1.8 billion. Earnings, adjusted for one-off items, were $ 2.22 per share. This surpassed Wall Street expectations of $ 1.91 per share, according to analysts interviewed by FactSet. Revenues fell 2% to $ 5.4 billion. It was in line with expectations. Shares of the Chicago company slid nearly 2% in midday trading. Dee-Ann Durbin, The Associated Press
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