McDonald’s posts strong Q3 earnings boosted by drive-thru sales
The world’s largest burger chain McDonald’s (NYSE: MCD) reported better-than-expected third-quarter financial results on Monday. The strong Q3 results boosted by the drive-thru and online sales as more customers using the drive-thru and delivery options.
- Earnings per share: $2.22 vs. $1.90 expected
- Revenue: $5.42 billion vs. $5.4 billion expected
The fast-food giant revealed a 2% decline in its global comparable-store sales during the last quarter while the same-store sales in the U.S. up 4.6% in Q3. On the other hand, the net income was $1.8 billion, up 10% year-over-year.
McDonald’s says it has shaved 30 seconds off of the average drive-thru time since 2018; its future plans hinge on reducing those times even further. Nearly 95 per cent of McDonald’s 14,000 US restaurants have a drive-thru.
“This is particularly true with our drive-thru business, which continues to be one of our biggest areas of strength,” McDonald’s Chief Financial Officer Kevin Ozan said.
McDonald’s has more than 39,000 restaurants worldwide and 13,800 in the U.S. McDonald’s recently reopened around 2,000 dining rooms; the company temporarily closed thousands of their indoor dining options due to the coronavirus pandemic. The company also announced new plant-based burger and new Crispy Chicken Sandwich both will be arriving in early 2021.
$MCD shares climbed more than 3% on Monday during the pre-market trading after the results announced but the stock retreated back to lower before the closing.