McDonald’s 3Q23 beats market expectations
- McDonald’s reported 3Q23 earnings are ahead of market expectations on stronger than expected same-store sales growth.
- Strong strategic price increases continue to fuel growth in US markets, while traffic remains robust in the international markets
- McDonald’s is scheduled to host an Investor Update on 6th of Dec on its development plans ahead
McDonald’s (McD’s) released 3Q23 results, above market expectations, thanks to stronger than expected same-store sales growth. McDonald’s global comparable sales rose 8.8%, reflecting strong growth across all segments, including US (+8.1%) which was fueled by price increases, International Operated Markets (+8.3%), and International Developmental Licensed Market (+10.5%). Consolidated revenue rose 14% y-o-y, or 11% in constant currencies. Operating income rose 16% y-o-y, or 13% in constant currencies. Diluted EPS rose 18% y-o-y to US$3.17/sh or 15% in constant currencies.
US comparable sales rose 8.1% y-o-y in 3Q23, benefited from strategic price increases, while traffic fell. The Company attributed the growth was also driven by marketing campaigns, digital and delivery orders. International Operated Markets, and International Developmental Licensed Market both reported growths of 8.3% and 10.5% y-o-y respectively, driven by decent traffic growth in UK, Germany, and Canada. McD’s is scheduled to provide an Investor Update on 6th of Dec to explain further on its development plans ahead.