September 25, 2023

Digital Marketing Education

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McDonald’s developing new store format called CosMc’s

During the call this morning, he also discussed the possibility of rolling out some processes that are already in place in certain markets. For example, some stores in China use food lockers, where delivery people can pick up food from lockers without entering a busy store. 

McDonald’s second-quarter sales and profits surpassed analysts’ projections, a sign that it’s still attracting diners despite tighter household budgets and higher menu prices.

The key metric of comparable-store sales rose 11.7% in the quarter, besting the 9.4% average estimate compiled by Bloomberg. In the U.S., McDonald’s benefited from “strategic menu price increases” and an advance in guest counts. Earnings of $3.17 a share, excluding some items, also exceeded expectations.

Comparable sales in international markets also beat estimates, led by growth in the U.K., Germany and China.

McDonald’s results point to the appeal of the chain’s offerings during economic uncertainty, even as the company charges more for its burgers and fries. Its delivery service in the U.S. also grew, even though it’s more expensive than in-person dining and customers at other chains have pulled back.

In contrast with McDonald’s, fast-casual chain Chipotle Mexican Grill Inc. on Wednesday missed analysts’ estimates for same-store sales and revenue.

The Chicago-based burger chain also touted “culturally relevant brand and marketing campaigns” as growth drivers. In June, a promotion including a purple shake celebrating the birthday of McDonald’s character Grimace took the internet by storm.

McDonald’s said restructuring costs hurt earnings by 2 cents a share, or $18 million, before taxes. The company earlier this year announced a revamp that included the dismissal of hundreds of employees in a bid to reduce costs and accelerate decision-making, while also cutting the pay packages of some corporate staff. 

—Bloomberg News contributed to this report


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