McDonald's and Coca-Cola shrug off challenges to beat sales expectations

McDonald’s reported comparable sales growth of 12.7% in the three months to the end of September.

McDonald’s has posted third-quarter sales that beat expectations as US diners placed larger orders and absorbed higher menu prices, while international results were buoyed by fewer pandemic restrictions.

The fast-food chain reported comparable sales growth — a closely watched gauge of performance for restaurants — of 12.7% in the three months to the end of September.

The performance came despite a range of challenges for the restaurant chain, from “restrictions driven by new Covid variants to supply chain pressures and labour shortages across industries”, said CEO Chris Kempczinski. 

“I’m confident in our ability to meet whatever challenges may confront us.” 

While the restaurant industry is struggling with rising wage and commodity costs on top of supply chain shortages and delays, McDonald’s is faring well thanks to its takeout and delivery focus. A new chicken sandwich and loyalty programme, along with menu price hikes, helped in McDonald’s home market, where the chain has more than 13,000 locations.

Strong results

McDonald’s said results were strong in Canada, France, Germany, and particularly the UK. This was driven, in part, by fewer restaurant closures with the easing of Covid-19 restrictions. The company added that Latin America and Japan were strong performers.

Elsewhere, Coca-Cola also reported quarterly sales and profit that exceeded Wall Street’s expectations and raised its full-year outlook, sending shares higher.

Third-quarter organic revenue, which excludes the impact of items such as currency and acquisitions, was up 14%. Adjusted earnings of 65 cents a share outpaced expectations.

Coca-Cola said it sees organic revenue growth in a range of 13% to 14% for the full year, an increase to the bottom end of its guidance issued in July.

• Bloomberg