NEW YORK: McDonald’s on Tuesday (Jan 31) reported a leap in fourth-quarter revenue following increased gross sales in most markets, scoring with customers fearful about inflation.
The fast-food big notched 12.6% comparable gross sales progress globally within the quarter ending Dec 31.
Excluding China, the place Covid-19 restrictions continued to depress gross sales, main markets together with america, Japan and Germany all loved stable progress.
“Total we’re nonetheless seeing the patron is resilient and it performs to our strengths as a system by way of being properly positioned on worth,” chief government Chris Kempczinski stated on a name with analysts.
However he stated the corporate should keep “even handed” by way of passing on increased working prices to customers.
Revenue in the course of the quarter was US$1.9 billion (RM8.1 billion), up 16% on the year-ago interval on a 1% dip in income to US$5.9 billion.
Price pressures remained particularly sharp in Europe, the place the corporate remains to be working by means of “peak” inflation, in distinction to america, the place value pressures on meals and paper supplies have abated considerably, stated chief monetary officer Ian Frederick Borden.
He stated costs in america rose about 10% over the course of 2022.
To help its companions, particularly in Europe, McDonald’s plans US$100 million to US$150 million in monetary assist in 2023 for franchisees, Borden stated.
Again in its residence market, McDonald’s plans to open about 400 eating places in 2023, the primary additions within the U.s.a. since 2014.
The brand new US eating places are “an indication of the boldness we have now” within the enterprise, stated Kempczinski, who added that the US enterprise has been boosted by increased digital and supply gross sales.
In all, McDonald’s plans 1,900 new shops globally, together with about 900 new spots in China.
Shares of McDonald’s fell 2% to US$265.54 in afternoon buying and selling.
Whereas McDonald’s outcomes topped analyst estimates, Briefing.com stated the chain’s “cautious commentary on macro-related pressures” seemingly dented investor enthusiasm. – AFP
