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McDonald's beats revenue estimates on US drive-thru demand

REUTERS: McDonald's Corp beat third-quarter revenue estimates on Monday, as customers in the United States ordered its hamburgers and fries in drive-thru outlets and on delivery apps to avoid dining out during the COVID-19 pandemic.

The company's limited-time promotional deal with rapper Travis Scott, which caused shortages of some ingredients, also boosted sales.

However, the world's largest burger chain said business was being pressured in key markets outside the United States including France, Germany and the United Kingdom by new lockdown restrictions due to a spike in virus cases.

Even before the new restrictions, McDonald's overseas sales recovery had been sluggish compared to the United States, where its huge number of drive-thru lanes gave it an edge over rivals for customers looking for restaurant food without the risks of dining out.

Nearly 95per cent of McDonald's 14,000 U.S. restaurants have a drive-thru.

McDonald's total revenue fell about 2per cent to US$5.42 billion in the three months ended Sept. 30, largely recovering from the over 30per cent drop posted in the second quarter.

Analysts on average had estimated revenue of US$5.40 billion, according to IBES data from Refinitiv.

Net income rose 10per cent to US$1.76 billion, helped by gains from the sale of a part of McDonald's stake in its Japanese affiliate.

Excluding those gains, the company earned US$2.22 per share.

McDonald's reiterated previously reported quarterly same-store sales figures of a 4.6per cent rise in the United States and a 10.1per cent fall in international licensed markets.

(Reporting by Uday Sampath in Bengaluru; Editing by Sriraj Kalluvila)

Source: Reuters


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