McDonald’s Corp reported comparable sales and profit above market estimates on Tuesday, despite rising expenses, as the burger company benefited from consistent online demand, new menu launches, and higher prices.
The chain’s global same-store sales increased by nearly 10% in the second quarter, exceeding expectations of a 6.5 percent increase.
Nonetheless, the Chicago-based company said it is considering adding more discounted menu options because soaring inflation, particularly in Europe, is causing some lower-income consumers to ‘trade-down’ to cheaper items and purchase fewer large combination meals, Chief Financial Officer Kevin Ozan said during a conference call with investors.
To attract customers, McDonald’s provided online-only specials, which increased app downloads, as well as the introduction of new products such as Spicy Chicken McNuggets and Chocolatey Pretzel McFlurry.
In early trade, McDonald’s stock increased approximately 1.8 percent.
According to Ozan, U.S. sales increased 3.7 percent for the quarter, compared to projections of roughly 3 percent, driven by menu pricing hikes in the high single digits.