McDonald’s Corp. rose after the company reported comparable sales that beat global estimates, indicating the chain is winning ground in the fierce fight for fast-food market share.
- Total same-store sales climbed 4.2 per cent, even as McDonald’s home market slightly missed growth estimates.
Key Insights
- McDonald’s, which gets nearly two-thirds of revenue from overseas, said comparable sales in its international lead markets division that includes Australia and the U.K. topped estimates, rising 5.4 per cent. The high-growth segment, which includes China, also beat.
- Its low-cost strategy continues to pay off as diners flock to discounts in a fast-food race to the bottom. Its large size with 37,000 locations gives it a commodity-buying advantage, meaning the chain and its franchisees can afford to lower prices more than competitors.
- The recent push into delivery with Uber Eats also is helping sales domestically, though other rivals are starting to catch up on door-to-door service.
Market Reaction
- The shares rose as much as 2.6 per cent before the start of regular trading in New York amid a wider stock selloff. The stock was down 3.2 per cent this year through Monday’s close.
--With assistance from Vivian Li (Bloomberg Global Data)
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