McDonald's customers remained loyal even as inflation forced the fast-food restaurant to raise menu prices.
McDonald’s reported $2.63 a share on sales of $5.9 billion over the first quarter, beating Wall Street’s expected earnings of $2.33 a share on revenue of $5.59 billion.
Looking ahead, the burger chain said it expects short-term inflationary pressures to continue in 2023, after temporarily closing its U.S. offices and beginning to cut corporate jobs in early April, the Wall Street Journal reported.
Still the stock is hovering near record levels and has gained 11% this year.
McDonald’s on Rideau Street in Ottawa. (Google Maps)
Comparable-store sales increased nearly 12.6% for the quarter, beating analysts’ estimates of 8.7%.
In an interview with FOX Business, Peter Klayman, VP of Business Strategy at Bottle Rocket, said "McDonald’s’ encouraging earnings are also a result of their investment in digital capabilities such as mobile ordering and loyalty programs."
"They’re now able to provide customers with more personalized and convenient ways to access food, offers and experiences which in turn increases their overall engagement and sales," he added. "With 40 million downloads of their app in the U.S. last year, more than the combined downloads of the second, third, and fourth brands, McDonald’s is well-positioned to gain market share as competition intensifies in the casual dining sector due to recession fears and inflation worries."