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The
burger chain's global same-store sales jumped nearly 10% in the
second quarter compared with expectation of a 6.5% rise.
Faced with higher labor and ingredients expenses, U.S.
restaurants have been raising prices of pizzas, burritos and
hamburgers.
Despite that sales have held up even as consumers grapple with
higher prices of gas and everyday essentials. With increasing
evidence of a pullback in consumer spending, Chief Executive
Chris Kempczinski said, "the operating environment across the
competitive landscape remains challenging."
To add customers, McDonald's introduced online-exclusive offers
that boosted its app downloads, while the launch of new
offerings, including Spicy Chicken McNuggets and Chocolatey
Pretzel McFlurry, has also helped.
Total expenses surged 25% to $4.01 billion in the second
quarter, weighing on net income, which nearly halved to $1.19
billion, or $1.60 per share.
The results included $1.2 billion of charges related to the sale
of its business in Russia. On an adjusted basis, earnings per
share of $2.55 exceeded estimates of $2.47, according to
Refinitiv data.
Total revenue fell 3% to $5.72 billion and missed expectations
of $5.81 billion, hit by weak demand in China due to COVID-19
resurgences and related government curbs.
(Reporting by Praveen Paramasivam in Bengaluru and Hilary Russ
in New York; Editing by Arun Koyyur)
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