Delivery and digital sales have supported McDonald's in recent years. | Photo: Shutterstock.
The company announced Monday that U.S. same-store sales increased 8.1% in the third quarter as the company's marketing and operational efforts helped boost digital and delivery sales.
Price increases also helped.
This was the 13th consecutive quarter of domestic growth in key indicators. The company has had only one negative quarter in its largest market since the fourth quarter of 2016.
Global same-store sales increased 8.8% in the quarter and 18.3% on a two-year cumulative basis, driven by strong restaurant performance in each of its major markets.
Digitalization is a big reason. McDonald's generates nearly $9 billion in digital sales in its six largest markets, generating more than 40% of its total system sales, the company said.
Domestically, McDonald's said its sales were driven by “solid average check growth driven by strategic menu price increases.” There was no talk about the traffic that has increased in recent quarters and helped drive sales.
Still, the company said it is seeing growth in digital and distribution. He also mentioned marketing programs, including the company's high-profile marketing deal with Season 2 of Marvel Studios' Loki.
The company's sales increased 14% to $6.7 billion. Net income increased 17% to $2.3 billion, or $3.17 per share. Earnings per share exceeded investors' expectations, according to the website Earnings Whispers.
McDonald's sales are growing primarily due to marketing and investments in digital and delivery. The company may be reaping some benefit from the tradedown as inflation tightens customers' wallet strings.
McDonald's has been warning of a recession for much of the past year. “The macroeconomic environment is evolving in line with our expectations for this year,” CEO Chris Kempczinski said in a statement. “And we continued to provide convenience and value to our customers.”
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