DH Latest NewsDH NEWSUSAustraliaLatest NewsNEWSInternationalBusiness

McDonald’s finishes well in 2021, but costs going up

McDonald’s closed 2021 on a high note, with more money spent by customers in the United States and fewer store closures in Europe due to coronavirus regulations.

The Chicago-based burger chain reported a 12.3 percent increase in global same-store sales or sales at restaurants open at least a year in the third quarter. This is higher than the 10.5 percent growth expected by Wall Street experts polled by FactSet.

Same-store sales increased 7.5 percent in the United States, as limited-time goods like as the McRib enticed customers despite higher menu prices. McDonald’s announced in the fall that prices in the United States would be 6 percent higher in 2021 than the previous year.

According to FactSet’s survey of industry analysts, revenue increased 13 percent to $6.01 billion, falling just short of Wall Street projections, with sales hampered by coronavirus limitations in Australia and China.

However, rising pricing and higher labour expenses continued to sting McDonald’s, reducing profits. The Chicago-based corporation posted adjusted earnings per share of $2.23, falling 11 cents short of Wall Street projections.

Last year, McDonald’s increased hourly compensation for 36,000 U.S. employees working in company-owned restaurants. Franchisees hold 93 percent of McDonald’s 40,000 locations worldwide, but McDonald’s owns thousands more.

Before the opening bell on Thursday, McDonald’s shares plunged 2 percent.


Post Your Comments

Back to top button