McDonald’s sales edge up for first time in 2 years
New York — McDonald’s sales edged up at established U.S. locations during the third quarter, snapping a streak of about two years of quarterly declines.
The world’s largest burger chain also said sales rose 4 percent on a global basis at established locations. In the U.S., the figure rose 0.9 percent. The last time the figure rose in the U.S. was for the third quarter of 2013.
In the year ago period, the figure had declined 3.3 percent in the U.S., as customer visits declined.
McDonald’s is trying to spark a turnaround under CEO Steve Easterbrook, who took over in March. Earlier this month, the chain introduced “all-day breakfast,” which lets people order items like the Egg McMuffin whenever they want. Previously, breakfast was cut off at 10:30 a.m. in most places.
The chain has also said it is looking to replace its Dollar Menu. McDonald’s has moved away from the popular menu, which was introduced in 2002, as costs for ingredients like beef and cheese have climbed and made it more difficult for franchisees to make money.
In the meantime, McDonald’s is also making other nips and tucks, like toasting its buns longer and searing burgers to lock in more flavor. Easterbrook has said he wants to transform McDonald’s into a “modern, progressive burger company.”
Easterbrook expects comparable sales to be positive for the fourth quarter in all segments. In the U.S., the fourth quarter would reflect the beginnings of the all-day breakfast rollout.
For the quarter, McDonald’s Corp. earned $1.31 billion, or $1.40 per share, topping the $1.27 per share analysts expected.
Revenue was $6.62 billion, also above the $6.41 Wall Street expected, according to Factset.
Shares jumped nearly 7 percent to $109.40.