McDonald’s Corp. (NYSE:MCD) reported third-quarter results showing global comparable sales up 3.6%, just above the 3.59% forecast from Bloomberg consensus, as cost-conscious consumers continued to flock to the chain’s value-driven offerings during a period of economic uncertainty.
In the U.S., comparable sales climbed 2.4%, ahead of the 2.14% estimate and up sharply from 0.3% in the same period last year. The performance reflects steady demand for McDonald’s promotional deals and bundled offers.
Fast-food chains including Domino’s Pizza and Yum Brands’ Taco Bell have intensified their focus on value-based meals to attract diners deterred by higher living costs. McDonald’s has led with promotions such as its $5 meal deal and “buy one, add one for $1” campaign, which CEO Chris Kempczinski said were key to keeping lower-income consumers engaged — a core part of the restaurant’s customer base.
On Wednesday, Kempczinski said the company’s sales growth was a “testament to our ability to deliver sustainable growth even in a challenging environment.” He added, “We’re fueling momentum by delivering everyday value and affordability, menu innovation, and compelling marketing that continue to bring customers through our doors.”
Operating income rose 5.3% year-over-year to $3.36 billion, though results were tempered by a $39 million pre-tax restructuring charge. Earnings per share came in at $3.18, while revenue increased 3% to $7.08 billion.
Despite the solid quarterly performance, McDonald’s shares traded lower in U.S. premarket trading, suggesting investors may be looking for signs of stronger growth heading into the final months of the year.