McDonald’s Reports Strong Drive-Thru, Delivery Business In Q3
McDonald’s Corp. reported on Monday (Nov. 9) as part of its Q3 earnings that its comparable sales continued to improve throughout the world, fueled by positive 4.6 percent comparable sales in the United States.
McDonald’s Chief Financial Officer Kevin Ozan said on a call with analysts that comp sales around the world continue to be fueled by check growth from larger orders. “This is particularly true with our drive-thru business, which continues to be one of our biggest areas of strength,” he said.
Ozan noted that the company’s drive-thru sales percentage peaked during Q2 in most markets, and that remains elevated in contrast to historical norms.
“This safe and convenient service channel has been especially appealing to customers during the pandemic. Similarly, delivery sales have also increased meaningfully across substantially all of our major markets,” Ozan noted.
In the U.S., comparable sales were positive during the quarter, fueled by formidable average check growth from bigger group orders in addition to strong performance at dinner.
The quick-service restaurant (QSR) chain’s strategic marketing investments and resulting promotional activity fueled low double-digit comparable sales for September, with the inclusion of positive comparable sales throughout the day.
In international operated markets, comparable sales results improved during the quarter. Government rules and consumer sentiment affected the cadence of pandemic recovery.
Comparable sales differed throughout markets, with the restaurant company reporting negative comparable sales in the United Kingdom, Germany, Spain and France that were partially offset by Australia’s positive comparable sales.
McDonald’s started Q3 with almost all of its eateries throughout the world open for business, but the company reported many cases of government limitations on operating hours, restricted dine-in capacity in many nations and forced dining room closures in some instances.
The company said the limitations affect most of its essential markets beyond the United States, with the inclusion of Germany, France, the United Kingdom and Canada. It anticipates some limitations in different markets for the duration of the coronavirus pandemic.
As for its overall results, McDonald’s reported $2.22 in diluted earnings per share, excluding strategic gains on $5.42 billion in revenue. The results exceeded expectations of $1.90 earnings per share on $5.4 billion in revenue.