SUMMARY
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McDonald’s on Thursday, October 8, reported a jump in United States comparable sales in the 3rd quarter, offsetting declines in international markets amid strong demand for affordable food options in a weakened economy.
The fast-food giant said the US business benefited from larger group orders and improved dinner sales that made up for a drop in the number of customers.
McDonald’s also announced it was boosting its dividend.
The chain has said its US business was comparatively well positioned for the coronavirus pandemic because many of the restaurants have drive-through and pickup services, even if dining rooms are closed.
The company also has emphasized the affordability of its offerings amid elevated joblessness.
“Our 3rd quarter performance demonstrates the underlying resilience of the McDonald’s brand,” said chief executive Chris Kempczinski.
“Our unique strengths, including our unrivaled drive-thru presence around the world, advanced delivery and digital capabilities, and marketing scale have become even more important during the pandemic.”
US comparable sales rose 4.6% in the 3rd quarter compared with the year-ago period, a big improvement after the 19.2% drop in the 2nd quarter.
Global comparable sales declined 2.2% due to weakness in several large overseas markets, where sales dropped in China, in bigger European markets including France and Germany, and in Latin America.
But sales were strong in Australia and Japan.
McDonald’s lifted its quarterly dividend by 3% to $1.29 per share.
Kempczinski said the dividend hike “reflects our strong financial position and represents continued confidence in our ability to drive profitable growth and long-term shareholder value.”
McDonald’s share fell 0.4% to $225.57 in morning trading. – Rappler.com
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