McDonald’s sales rose last quarter, thanks to value and marketing
The fast-food giant’s U.S. same-store sales rose 3.9% in the first quarter, as the company cited its value, menu innovation and marketing.
“And it’s in our commitment to going three-for-three that sets McDonald’s apart. Our value leadership, breakthrough marketing and menu innovation continue to serve up what customers want.”
McDonald’s same-store sales rose 3.9% in the U.S. last quarter, the company said on Thursday, as value and marketing efforts proved effective with the brand’s customers.
The Chicago-based fast-food giant said that its U.S. results were driven by positive average check growth.
It is the fourth straight positive domestic same-store sales result for McDonald’s and comes despite a difficult economic backdrop, driven by high gas prices and low consumer confidence.
Same-store sales also increased internationally, in most major markets and geographic regions. Same-store sales in its International Operated Markets, featuring major markets like Canada and Australia, increased 3.9% while the metric rose 3.4% in its International Developmental Licensed Markets.
Revenues at the company increased 4% to $6.5 billion. Net income rose 1% to $2 billion, or $2.78 per share. Both revenue and earnings beat Wall Street’s expectations, according to the website Earnings Whispers.
McDonald’s loyalty program also continued to drive sales. Over the past 12 months, members of My McDonalds’ Rewards spent $38 billion at the company’s restaurants in its 70 markets in which the program is in place. They spent $9 billion last quarter.
Chris Kempczinski, McDonald’s CEO, said in a statement that the company’s performance in the quarter “shows how we executed with discipline, proving that we can drive results even in a challenging environment.”
“And it’s in our commitment to going three-for-three that sets McDonald’s apart. Our value leadership, breakthrough marketing and menu innovation continue to serve up what customers want.”
Value has been a big push for the company in the past couple of years. McDonald’s lowered prices on its bundled Extra Value Meals last year in a bid to lure more customer traffic. It also has its McValue Menu, which combines national, digital and local offers.
The company last month changed one of its major deals on that menu, adding a new $3 and Under menu that features lower prices on items like the McDouble and the McChicken.
McDonald’s also added a large new burger, the Big Arch, in March. The burger, featuring two half-pound patties, is the biggest burger the chain has promoted in the U.S. and is aimed at heavy fast-food users.
McDonald’s at the end of the quarter also aadded a K-Pop Demon Hunters meal in collaboration with Netflix.
