# McDonald’s sales soar on higher U.S. prices, newer menu items Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-10-27 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: McDonald's sees higher profits despite challenges Meta Description: McDonald's Corp saw notable increase in sales with celebrity-themed meals & higher prices despite labor shortages & COVID-19 setbacks URL: https://financedigest.com/mcdonalds-sales-soar-on-higher-u-s-prices-newer-menu-itemshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-10-27t113208z2lynxmpeh9q0o5rtroptp4mcdonald-s-corp-results-1736837513509-compressed.jpg) By Aishwarya Venugopal and Hilary Russ (Reuters) -Higher U.S. prices and celebrity-themed meals boosted quarterly comparable sales at McDonald’s Corp, though the [company struggled to keep](https://www.financedigest.com/in-listening-mode-new-bayer-ceo-keeps-open-mind-on-company-split.html "In listening mode, new Bayer CEO keeps ‘open mind’ on company split") restaurants open at full capacity amid labor shortages and COVID-19 outbreaks, it reported on Wednesday. U.S. same-store [sales grew 9.6% in the third quarter ended](https://www.financedigest.com/eu-approves-law-to-end-sales-of-new-co2-emitting-cars-by-2035.html "EU approves law to end sales of new CO2-emitting cars by 2035") Sept. 30, compared with estimates for 8.27%, [according to Refinitiv IBES data](https://www.financedigest.com/most-sales-and-marketing-teams-struggle-to-activate-data-in-their-organisation-according-to-new-international-study.html "Most Sales and Marketing teams struggle to activate data in their organisation, according to new international study"). Global comparable [sales also jumped](https://www.financedigest.com/indias-tata-motors-jumps-to-a-7-month-high-on-strong-q4-jlr-sales.html "India’s Tata Motors jumps to a 7-month high on strong Q4 JLR sales") 12.7% in the quarter versus estimates of 10.31% as international markets slowly recovered from the pandemic. [Shares in the world’s largest burger chain rose about 2.2% to $241.70 in late morning trading](https://www.financedigest.com/social-trading-is-the-new-way-that-gen-z-are-getting-their-share-of-the-pie.html "Social Trading is The New Way That Gen Z Are Getting Their Share of The Pie"). The U.S. labor shortage caused some locations to close early and lose speed of service, [Chief Executive Chris](https://www.financedigest.com/host-analytics-appoints-chris-labruna-as-chief-revenue-officer.html "Host Analytics Appoints Chris LaBruna as Chief Revenue Officer") Kempczinski said in an earnings call, adding problems were not “unsolvable. McDonald’s has had to push back some new restaurant [openings into early 2022 in part because global supply-chain problems made it difficult to get kitchen and tech](https://www.financedigest.com/jaguar-land-rover-opens-three-european-self-driving-tech-hubs.html "Jaguar Land Rover opens three European self-driving tech hubs") equipment. That caused new unit development in the United States and some international markets to be “down a little bit” from how many the company had expected to [open this year](https://www.financedigest.com/four-years-of-open-banking-2022-may-be-the-best-year-yet.html "Four years of Open Banking: 2022 may be the best year yet "), Kempczinski said. Seating areas [remained closed in about 20% of McDonald’s American locations – roughly 3,000 restaurants – in regions with high rates of COVID-19](https://www.financedigest.com/factbox-britain-scraps-all-remaining-covid-19-restrictions.html "Factbox-Britain scraps all remaining COVID-19 restrictions"). Even so, some pandemic-related [restrictions have eased](https://www.financedigest.com/europe-sees-travel-recovery-as-covid-restrictions-ease.html "Europe sees travel recovery as COVID restrictions ease"), luring more customers into restaurants. McDonald’s crispy chicken sandwich and latest celebrity partnership with rapper Saweetie also [boosted sales](https://www.financedigest.com/ikea-stores-owner-ingka-says-campaigns-help-boost-store-visits-and-sales.html "IKEA stores owner Ingka says campaigns help boost store visits and sales"). The Chicago-based company has also raised U.S. [prices about 6% versus 2020 to help cover rising](https://www.financedigest.com/oil-prices-rise-on-u-s-drawdown-chinese-fears-weigh.html "Oil prices rise on U.S. drawdown, Chinese fears weigh") commodity and labor costs. [Higher prices](https://www.financedigest.com/vhs-tapes-selling-for-46000-higher-than-original-price.html "VHS tapes selling for 46,000% higher than original price"), combined with larger order sizes, drove sales. Most restaurant chains, including Chipotle Mexican Grill Inc, are charging more on menus to protect their [margins against higher](https://www.financedigest.com/maserati-aims-at-driving-margins-higher-before-any-spin-off-talk.html "Maserati aims at driving margins higher before any spin-off talk") costs for everything from payroll to beef and chicken. McDonald’s forecast current-quarter U.S. comparable [sales to post](https://www.financedigest.com/uks-wetherspoon-posts-13-1-rise-in-sales-for-25-wk-period.html "UK’s Wetherspoon posts 13.1% rise in sales for 25-wk period") low double-digit growth on a two-year basis. The fast-food chain, which has been [seeking to grow sales](https://www.financedigest.com/exclusive-u-s-regulator-seeks-sale-of-silicon-valley-bank-signature-bank-portfolios-sources.html "Exclusive-U.S. regulator seeks sale of Silicon Valley Bank, Signature Bank portfolios-sources") digitally, launched a new loyalty program in the United States that now has over 21 million members enrolled, while also doubling down on advertising. Most of the company’s international markets also returned to sales growth, especially the UK, Canada and Japan, as coronavirus-related restrictions eased, while Australia and [China sales continued to be pressured by the resurgence](https://www.financedigest.com/618-shopping-festival-in-china-makes-a-resurgence.html "618 shopping festival in China makes a resurgence") of COVID-19 cases. Kempczinski said IBM Corp will acquire McD Tech Labs, which was created after McDonald’s 2019 acquisition of Apprente, an [artificial intelligence](https://www.financedigest.com/types-of-artificial-intelligence.html "artificial intelligence") company working on automating drive-thru orders. Net income rose 22% to $2.15 [billion and the company earned $2.76 per share](https://www.financedigest.com/novartis-launches-new-11-billion-share-buyback.html "Novartis launches new billion share buyback") on an adjusted basis, beating estimates of $2.46 per share. (Reporting by Aishwarya Venugopal in Bengaluru and Hilary Russ in New York; Editing by Shounak Dasgupta and Bernadette Baum) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---