McDonald's shows loyalty pays - Reuters

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The logo of McDonald's is seen at its restaurant in Hong Kong, China August 27, 2021.

NEW YORK, Oct 27 (Reuters Breakingviews) - Super-sized. McDonald’s (MCD.N) is catering to both investors and customers. The $177 billion fast-food chain on Wednesday said comparable sales increased almost 13% in the three months to Sept. 30, well ahead of the 10% forecast by analysts, according to Refinitiv data read more . It’s not just a post-pandemic bounce. Revenue for the period was $6.2 billion, 14% higher than in the same quarter in 2019, before Covid-19 restrictions kicked in.

McDonald’s isn’t immune to labor shortages or inflation, but it has passed on the cost to undeterred customers. Chief Executive Chris Kempczinski said the company’s loyalty program increased the number of times people visited its golden arches. In the United States, McDonald’s sold them more burgers and nuggets each time, even at higher prices. That makes up for rising U.S. wages and commodity prices. McDonald’s shares were up 2.5% by lunchtime in New York.

McDonald’s isn’t sitting back either: It’s partnering with IBM (IBM.N) to improve automated ordering at drive-thru locations. Making it easier for customers to get their fix of fries and milkshakes will keep the momentum going. (By Amanda Gomez)

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Editing by Peter Thal Larsen and Sharon Lam

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

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McDonald's shows loyalty pays - Reuters
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