McDonald’s exceeded Q3 earnings expectations, driven by increased menu prices. Global systemwide sales, encompassing both company-owned and franchised outlets, rose by 11%, with same-store sales surpassing analyst projections at 8.8%. Revenue amounted to $6.69 billion, surpassing the anticipated $6.52 billion, and adjusted earnings per share surged by 19% to $3.19 compared to the prior year.

CEO and President Chris Kempczinski expressed that the company’s performance aligns with expectations in the current economic environment, attributing it to offering value and convenience to customers.

McDonald’s shares have experienced a nearly 3% decrease year-to-date. In the U.S., new marketing initiatives, increased menu prices, and growth in digital and delivery orders contributed to sales growth. Additionally, the company launched the ‘As Featured In Meal’ campaign, featuring meals seen in films, movies, or TV shows, to boost sales.

Low-income consumers in the U.S. contributed to a slight dip in traffic compared to the previous year in Q3. However, McDonald’s continues to attract middle and high-income consumers. It’s commonly believed among analysts that McDonald’s tends to experience higher customer traffic during periods of economic uncertainty, positioning it favorably to navigate demanding market conditions.

The company also reported a rise in digital sales, which accounted for 40% of total sales, totaling $9 billion across its six largest markets. The growth in digital presence offers substantial prospects for the brand, prompting competitors to strive to achieve a similar scale.

In summary, McDonald’s Q3 performance exceeded expectations, with strong sales and a focus on digital growth. The corporation intends to offer insights into its 2024 projections, including details about its drive-thru-exclusive venues, in an upcoming investor briefing scheduled for December 6.