McDonald’s Corporation, the world’s leading fast-food chain, has announced better-than-expected sales growth for the first quarter of 2023, fueled by a combination of higher prices and increased customer traffic. The company’s stock rose more than 2% following the news, marking a positive start to the year for the global brand.
McDonald’s reported earnings per share of $2.02, beating analysts’ expectations of $1.82. The company’s total revenue for the quarter was $5.1 billion, an increase of 8% compared to the same period last year. Global comparable sales were up 7.5%, with growth in all segments and regions.
The company attributed the sales growth to a combination of higher menu prices and increased customer traffic. McDonald’s raised menu prices by an average of 3% in the quarter, which helped to boost its revenue. The company also benefited from higher traffic, particularly in its drive-thru and delivery channels, as more customers turned to the convenience of fast food amid ongoing pandemic restrictions.
“McDonald’s has continued to build momentum with sustained strong comparable sales growth across all segments and markets,” said Chris Kempczinski, McDonald’s CEO. “Our modernization efforts, combined with our digital capabilities, have positioned us well to meet the evolving needs of our customers.”
McDonald’s has been investing heavily in technology and modernizing its restaurants to improve the customer experience. The company has rolled out digital kiosks for ordering and payment, mobile ordering and payment, and delivery through third-party platforms. It has also been renovating its restaurants to create a more modern and inviting atmosphere for customers.
The company’s efforts appear to be paying off, as more customers are choosing to dine at McDonald’s. The company reported that its mobile app has more than 30 million active users, and digital sales accounted for 22% of total sales in the quarter.
Looking ahead, McDonald’s is optimistic about its prospects for the rest of the year. The company expects to continue to benefit from its modernization efforts and the ongoing demand for convenience and value in the fast-food industry.
“Our strong first-quarter results give us confidence in our ability to execute against our strategic priorities and generate long-term value for our shareholders,” said Kempczinski. “We remain committed to investing in our business and delivering great-tasting food and a seamless, convenient customer experience.”
In conclusion, McDonald’s has delivered a strong start to the year, with better-than-expected sales growth driven by higher prices and increased customer traffic. The company’s modernization efforts and digital capabilities have positioned it well to meet the evolving needs of its customers and capitalize on the ongoing demand for convenience and value in the fast-food industry.
