Fast-food giant McDonald’s posted sales at same-stores that were better than had been expected for its third quarter, as promotions and offerings of fresh food attracted more clients to purchase.
The national cold beverage promotion at McDonald’s offers its soft drinks for just $1, and its latest sandwiches called Signature Crafted at prices from $5 to $7 apiece.
The McPick 2 combo, which allows customers to purchase two items from the menu for $5, also was seen as boosting its sales during the most recent three-month period.
The same-sales number is very encouraging and the important thing is even with impact from the hurricanes during the quarter, said one Wall Street industry analyst, citing that new initiatives that the company implemented were working.
In September, one analyst warned that McDonald’s could have been hurt by the two hurricanes that hit the U.S. mainland and he issued a weaker sales forecast for the company than did Wall Street at that time.
However, on Tuesday McDonald’s proved its promotions had been able to offset the different negative impacts during the quarter including the two hurricanes.
McDonald’s posted earnings of $1.76 per share, compared to $1.77 forecasted by analysts.
Revenue at the Golden Arches reached $5.8 billion compared to an estimate of just over $5.7 billion.
Sales at same-stores in the U.S. were up 4.1% which was better than an expected climb of 3.6%.
Shares of McDonald’s were up over 1% during trading before the opening bell following the news.
CEO at McDonald’s Steve Easterbrook said the company was serving more people, more often through offering food that was great tasting at good value with excellent service and hospitality that is expected from McDonald’s.
Net income at McDonald’s increased to just over $1.88 billion equal to $2.32 a share compared to last year during the same quarter of $1.28 billion equal to $1.50 a share. Excluding one-off charges earnings per share were the previously mentioned $1.76.
While same-store sales were up 4.1%, those at global locations jumped by 6% during the quarter.
Total revenue was just over $5.75 billion, which as 10% down from the same period one year ago, due to charges that were related to its refranchising initiative.
During the just ended quarter, McDonald’s ended the refranchising of businesses in Hong Kong and China, completing 4,000 locations over one year before schedule, said CFO Kevin Ozan.
As of the close of business on Monday, shares of McDonald’s were up over 34% during 2017.