A employee cleans the ground in a McDonald’s restaurant within the Chicago Loop on March 19, 2020 in Chicago, Illinois.
Scott Olson | Getty Photographs
McDonald’s stated Thursday its U.S. same-store gross sales within the third quarter rose practically 5% as clients ate extra Massive Macs and McNuggets for dinner.
Quick-food firms like McDonald’s have been recovering from the coronavirus pandemic quicker than the broader restaurant business, due to their handy drive-thrus and low-cost costs. Shares of McDonald’s, which has a market worth of $175 billion, have risen greater than 14% this yr.
The chain’s U.S. comeback has been helped by its promotions and advertising and marketing. In September, it provided a deal on rapper Travis Scott’s favourite meal, inflicting the chain to restrict certain ingredients due to its popularity. With the assistance of that deal, September had the best month-to-month same-store gross sales in practically a decade, with development throughout all meal instances.
This month, it is following up the promotion with an analogous deal that includes reggaeton singer J. Balvin’s order.
Within the U.S., its same-store gross sales development was boosted by extra orders being made as a part of a gaggle, which drives up the worth of every verify. It is also attracting extra dinner clients, however total site visitors stays unfavourable.
Outdoors of its residence market, McDonald’s is bouncing again slower after seeing steeper gross sales declines within the prior quarter. Harsher lockdown restrictions meant a lot of its eating places needed to shut their doorways completely, and its worldwide places are much less more likely to have drive-thru lanes.
Its worldwide operated markets section, which incorporates France and the UK, noticed same-store gross sales fall 4.4%. Australia reported optimistic same-store gross sales development, however Germany and Spain have been among the many markets that noticed declines.
Within the worldwide developmental licensed markets section, which incorporates China and Brazil, same-store gross sales shrank by 10.1%. Latin America and China dragged down same-store gross sales outcomes for the division.
Worldwide, same-store gross sales for the quarter shrank by 2.2%, significantly better than the second quarter’s 23.9% plunge.
McDonald’s additionally stated it’s rising its quarterly money dividend by 3% to $1.29 per share.
“Whereas present yr enterprise outcomes have been impacted by the Covid-19 pandemic, the tempo of restoration paired with the Firm’s robust monetary place help this improve to the dividend whereas nonetheless giving the Firm the power to put money into the enterprise,” McDonald’s stated in an announcement.
McDonald’s will current its full third-quarter outcomes and maintain a digital investor occasion on Nov. 9.