McDonald's posted third quarter earnings that beat expectations as the world's biggest fast food chain reported strong worldwide same-store sales.
For the three months ended 30 September, net income rose 18% to $2.15bn (£1.57bn) from $1.76bn in the same period in 2020 on a 14% increase in revenue to $6.2bn from $5.42bn a year earlier.
On a per-share basis, diluted non-GAAP earnings per share (EPS) rose 24% to $2.76 from $2.22 last year.
Analysts were expecting adjusted EPS of $2.46 per share on revenue of $6.05bn, according to FactSet.
Shares up 2%
As at 11:16 am EDT (UTC-5) shares were up 2% at $241.83.
"Our global comparable sales increased 10% over 2019, which was delivered across an omnichannel experience that is focussed on meeting the needs of our customers," McDonald’s president and CEO Chris Kempczinski said in a press release.
"We continue to execute our strategic growth plan and run great restaurants so that we can drive long-term, sustainable growth for all of our stakeholders," Kempczinski said.
Global comparable sales increased 12.7% reflecting positive comparable sales across all of the company's international segments with comparable sales in the US up 9.6% driven by larger order sizes and menu price increases.
International sales up 13.9%
Comparable sales at International Operated Markets was up 13.9% led by very strong positive comparable sales in the UK. This segment also saw positive comparable sales in Canada, France and Germany driven by strong operating performance and significantly fewer restaurant closures with the easing of Covid-19 restrictions.
"Our US-based franchisees have never been better positioned to weather the labour and inflation pressures while still investing in growth," CFO Kevin Ozan said on a conference call.
Ozan added that US comparable sales growth momentum was continuing into the fourth quarter.
The Great Resignation
McDonald's executives also commented on current staffing challenges, known as "The Great Resignation".
"It's a very challenging staffing environment in the US, a little less so in Europe but still challenging," CEO Chris Kempczinski said on the call.
"In the US we are seeing wage inflation and our franchisees are increasing wages. It's very challenging right now in the market to see the talent that you need. It is putting pressure on operating hours and speed of service," Kempczinski added.
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