Certain McDonald's menu items, including the McRib and Adult Happy Meals helped feed the Chicago-based fast food giant's sales in Q4.
Global same-store sales - or sales at stores open at least a year - rose 12.6% in the October-December period, the Chicago company said Tuesday. That beat Wall Street expectations for an 8.8% increase, according to analysts polled by FactSet. U.S. same-store sales rose 10.3%.
Sales soared in October after McDonald's launched adult Happy Meals featuring limited-edition toys designed by the streetwear brand Cactus Plant Flea Market. Half of the toys for those meals were gone in the first four days of the promotion, CEO Chris Kempczinski said earlier.Strong sales at home helped overcome weakness in China, where stores were impacted by government COVID-19 restrictions.
Fourth quarter revenue fell 1% to $5.9 billion, but that still beat analysts expectations for $5.7 billion. Overseas revenue was weaker because of the strong dollar; 60% of McDonald's sales come from outside the U.S.McDonald's shares rose slightly in premarket trading. Kempczinski said in a prepared statement that higher inflation will continue to pressure the company this year. The company had said it expects food and paper costs to be up 12% to 14% in 2022, while its labor costs would rise 10%.
In early January, the company announced a corporate restructuring designed to improve efficiency and accelerate new restaurant openings. McDonald's said the plan will likely include corporate layoffs; it told employees it would share more details by April 3.Copyright © 2023 by The Associated Press. All Rights Reserved.
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