McDonald’s sales in U.S. up for first time in 2 years
McDonald’s sales edged up at established U.S. locations during the third quarter, snapping a streak of about two years of quarterly declines.
The world’s la r ge st burger chain also said sales rose 4 percent on a global basis at established locations. In the U.S., the figure rose 0.9 percent, marking the first increase since the third quarter of 2013. The bump was the result of a higher average check, however, which offset a decline in traffic. That means McDonald’s still has a long way to go in fixing its business.
The company said it expects the sales figure to rise globally for the final three months of the year as well, including in the U.S.
Its shares jumped sharply and struck an all-time high in early trading.
McDonald’s attributed the U.S. sales uptick in the period to improved service and menu changes as it works on reversing declining customer visits. Tweaks to food preparation included toasting buns longer and searing burgers to make them juicier. For its Egg McMuffins, the company switched back to but- ter and regular English muffins, instead of margarine and whole grain muffins.
A new but t er mi l k chicken sandwich, which is positioned as a premium offering, is supposed to boost perceptions about food quality — and help fetch a little more money. The com- pany has also been simplifying its menu to speed up service and improve order accuracy.
“Customers are noticing the differences,” said CEO Steve Easterbrook, who took the helm in March.
In hopes of sparking a turnaround, Easterbrook is presiding over bigger changes too. Earlier this month, the company introduced “all-day breakfast” in the U.S., meaning people can get an Egg McMuffin whenever the craving strikes.
Easterbrook was reluctant to give details on the early performance for allday breakfast. But in his trips around the country, he said it seemed to be “cultish” among students.
McDonald’s said its operating income dipped during the quarter as a result of its pay hike and other benefits, but that the move would pay off with better service.