Business

10/31/2023, 9:00 AM

McDonald's Records Sales Increase through Price Hikes

McDonald's exceeded expectations in the third quarter with surprisingly strong growth.

The fast-food corporation McDonald's reported surprisingly strong figures for the third quarter. With a turnover of nearly 6.7 billion US dollars (6.3 billion euros), the company recorded a growth of 14 percent compared to the previous year. On a comparable basis, the revenue increase is even 8.8 percent. This development exceeds the expectations of analysts, who on average had predicted a plus of 7.8 percent. The burger chain benefited from price increases and successful advertising campaigns.

Although the company has seen solid growth this year, the third quarter was the weakest so far. The management had already warned in July of potential challenges due to high inflation and rising interest rates. Nevertheless, McDonald's was able to record a net profit of around 2.3 billion dollars, compared to just under 2 billion the previous year. However, the increase was somewhat dampened by restructuring costs.

The result per share, adjusted for special effects, increased by 19 percent to $3.19, thereby also exceeding market forecasts. This reflects the successful performance of the company and shows potential for further growth. It is therefore not surprising that McDonald's shares rose temporarily by 1.26 percent to $258.98 on the NYSE.

With these strong results in the third quarter, McDonald's demonstrates its resilience and its ability to adapt to changing market conditions. However, the corporation remains cautious and is monitoring the impacts of inflation and interest rates on its business. It remains to be seen how these factors will affect the company's growth in the future. Nevertheless, McDonald's has once again proven that, thanks to a strong market position and effective strategies, it can operate successfully even in challenging times.

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