McDonald’s Corp.
MCD,
stock was up 1.5% Thursday after the fast-food giant’s second-quarter profit nearly doubled and beat analyst forecasts amid price increases.
The Chicago-based company said its profit for the three months ending June 30 jumped to $2.31 billion, or $3.15 a share, from $1.19 billion, or $1.60 a share in the year-ago quarter.
Adjusted profit rose to $3.17 a share from $2.55 a share, ahead of the analyst estimate of $2.78 a share.
Revenue increased by 14% to $6.5 billion, ahead of the analyst forecast of $6.3 billion.
“While global macroeconomic challenges persist, we continue to invest in our growth drivers and our brand to meet the customer needs of tomorrow,” said Chief Executive Chris Kempczinski.
In another strong metric, McDonald’s said its global same-store sales rose by 11.7%, well ahead of the analyst forecast of 6.4%.
The company’s comparable sales drew strength from “strategic menu price increases” as well as positive guest counts.
The company also cited “successful restaurant level execution, culturally relevant brand and marketing campaigns and continued digital and delivery growth” for its U.S. business.
Overseas, comparable sales growth was led by gains in the U.K. and Germany.
Wall Street analysts had been boosting their earnings targets for McDonald’s in anticipation of a strong quarter.
On March 1, analysts had expected McDonald’s to report a second-quarter profit of $2.87 a share, 10 cents below the estimate as of July 27.
Kempczinski said the company’s brand strength “has never been stronger” and cited “consistently strong execution” of its growth plans.
Prior to Thursday’s gains, McDonald’s stock was up 10.7% in 2023. The company is a component of the Dow Jones Industrial Average
DJIA,
which is up by 7.2% in 2023 as of Wednesday’s close.
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