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FAST FOOD GIANT McDonald’s sales have jumped 12.6% globally in the first quarter of this year compared to 2022, even as customers showed caution toward ‘added costs’.
Sales rose 12.6% compared to the January-March period last year, well above the 8.7% increase that was forecast on Wall Street.
Restaurant traffic for the chain grew despite increases in prices.
CEO Chris Kempczinski said the company is starting to see resistance to price increases in many markets. Customers may not add fries to an order, for example, and delivery orders have slowed as customers rethink the additional cost.
“It’s a reminder that we need to stay very disciplined on pricing,” Kempczinski told a conference call with investors today.
“The customer certainly is dealing with some of the stress and pressures on that.”
A lower demand in early 2022 due to continued Covid-19 restrictions in parts of the world like China helped the growth in sales this year.
Marketing campaigns, like a McSpicy chicken sandwich promotion with a streetwear brand in China, and a Valentine’s Day meal promotion in the US with rappers Offset and Cardi B, also boosted the chain’s performance.
However, the company has also had to account for higher prices for food, paper and workers.
Chief financial officer Ian Borden said inflation is on a downward trend in the US but remains elevated. In Europe, the company expects double-digit percentage inflation to continue for the rest of this year.
“Europe is working through the eye of the storm,” Borden saidsaid.
McDonald’s is hoping improvements to its menu will continue to drive traffic this year. The company announced this month that US restaurants will switch to softer buns and meltier cheese and change their grill settings to make their burgers juicier.
The changes have already rolled out some other markets, including Australia and Canada, where they have improved customer taste scores, according to the company.
Revenue rose 4% to nearly $5.9 billion US dollars in the first quarter, which also topped analyst projections of $5.6 billion dollars.
Despite the super-sized results, McDonald’s laid off several hundred corporate workers earlier this month in an effort to speed up innovation and decision-making.
McDonald’s recorded a restructuring charge of $180 million dollars during the first quarter to account for severance payments and the closure of some regional offices.
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All of a sudden I just got a mad craving for a Mickey D’s. Big Mac and Fries. I haven’t set foot in the door of the place in over 6 years. Funny thing that.
@Fuji Hakayito: that’s how they get you lol
@Fuji Hakayito: fat people getting fatter
@James Rowan: Do you think McDonalds is culpable for the obesity problem? Interesting..
@Fuji Hakayito: don’t forget the milkshake :-)
@Elvis: I wouldn’t go near what I call the MacHock ;). Lets just say I had a friend who worked in a fast food establishment.
Never got the fascination with McDonald’s.
@Brian Boru: Supermacs is nicer imo.
No surprise, an increase in profits, an increase in weight/volume. Have a gander at the bloated fatties, mostly female, all around us. mcdonalds, the reincarnation of tobacco companies & the quiet damage they do. Sad but true.
I’ve never felt the better for a McDs feed.
@honey badger: go on you deserve it after your badgering and dog piling TheQueenofHibernia with the lads on that Sudanese article…you must have worked up a fierce hunger…all those insults flung around and put downs must have worked up a sweat attacking one woman by 6 lads…enjoy ; )
Mc Tasteless.
@william slevin. I gather you missed the deleted comments which provoked the responses they received.
Unless you didn’t, which is less encouraging.
Here’s a white knight badge. Hope it fits. :)
@honey badger:”@william slevin. I gather you missed the deleted comments which provoked the responses they received.
Unless you didn’t, which is less encouraging.
Here’s a white knight badge. Hope it fits. :)”
I’ve seen enough of her comments that their only offence to globalist…white Knight knighting lol that’s a change from tricia g calling me a misogynist lol you sure you guys don’t wanna take a poll on what you’s want to call me XD
I bet you feel like the big man though dog piling a woman with the lads….yea? What ever the disagreement it didn’t take so many I’d you to deal with one woman big man…lol its quite disturbing to see such behaviour tolerated by thejournal.ie who in a heart beat delete comments to suppress the truth and control the narrative…I guess that’s the purpose you serve on here an enforcer of the establishment narrative for thejournal.ie eh?
@William slevin: My apologies William, I genuinely can’t fathom whatever it is you’re saying here. Globalists, enforcers, truth suppressers, controlling the narrative…
Does your next hot take involve chemtrails or lizard people? Lol
Ffs.
@William slevin: “to suppress the truth and control the narrative…” LOL
@TheQueenofHibernia: You’ll be banned soon enough. I’m happy to wait and wave you off. I’ll also do my bit by reporting any more racist dogwhistles too!
It’ll be fun. :)
Money Badger: yes dear. You do that. You appear more than a little irate. I suppose you are still suffering from belly ache after stuffing yourself with all those Burgers.
@William slevin: ‘it didn’t take so many I’d you to deal with one woman big man’
What on earth does the fact she’s a woman have to do with it? Is having a few men argue with you online supposed to be intimidating or something? Especially the ones who won’t show their faces?
@honey badger: Chemtrails are real honey badger, read a book ffs
So the cost of paper has hit them? Maybe they should stop making fried altogether!
#MAC CRACK
@Stephen McGrath: & I’m lovin it lol
Megan ward:”@William slevin: ‘it didn’t take so many I’d you to deal with one woman big man’
What on earth does the fact she’s a woman have to do with it? Is having a few men argue with you online supposed to be intimidating or something? Especially the ones who won’t show their faces?”
It’s about common decency of being a man and not being a coward like these lads…including this one…if you don’t understand that then you’ve been deprived of good men in your life…
1. Dog piling is never right…2. Dog piling is only made worse when it’s a group of cowardly men ganging up on a one woman thinking their hard men….made even worse when it’s online….so much more pathetic…
But then you want to stand by that kind of a man…
@honey badger:”@TheQueenofHibernia: You’ll be banned soon enough. I’m happy to wait and wave you off. I’ll also do my bit by reporting any more racist dogwhistles too!
It’ll be fun. :)”
Being Banned is not quite as bad as you think it is ; )
have your say