The fast food chain was lifted in late 2022 by a continued influx of customers and increases in the price of its menus.
McDonald’s was lifted at the end of 2022 by a continued influx of customers to its restaurants and price increases on its menus, but warns that inflation continues to weigh on business. Same-store sales, the industry benchmark, rose 12.6% in the fourth quarter. In the US, its biggest market, they were driven by price increases and an increase in the number of customers. The group also attributes its progress to promotional operations, such as McRib pork sandwiches, as well as online and delivery sales.
For Neil Saunders of Global Data, the group is benefiting as the economy worsens from the arrival of customers who still want to go to a restaurant but at lower prices, who find it an affordable way to feed their families. it as a way of doing ita small pleasure in the face of a gloomy economic outlook“. The group “also has the meritto stand out with its promotional activities, he adds in a note.
Outside the US, McDonald’s held up particularly well in Germany, the UK, France, Japan and Brazil, helping to offset lower sales in China, where health restrictions remained in place. However, the company’s total revenue fell 1% in the fourth quarter to $5.9 billion due to currency effects. Excluding this element, it increased by 5%. Net profit increased by 16% to DKK 1.9 billion. For the year as a whole, like-for-like sales increased by 10.9%.
Sales stagnated at $23.2 billion, but rose 6% excluding currency effects. Net profit fell by 18% to 6.2 billion dollars, as the group in particular had to record a charge of 1.3 billion in connection with the sale of its activities in Russia.
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McDonald’s has also faced rising costs and for 2023, “we expect inflationary pressure to continue in the short term” said general manager Chris Kempczinski in the press release. He plans to focus on opening new restaurants. The action fell 1.8% in electronic trading before the opening of the New York Stock Exchange.
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