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McDonald’s Snack Wraps Return: McDonald’s saw a boost in third-quarter sales, helped by the popular return of its Snack Wraps.
The fast-food giant said sales at restaurants open for at least a year climbed 3.6% between July and September.
That result came in just above Wall Street’s expectation of a 3.5% increase, based on estimates compiled by FactSet.
McDonald’s said Wednesday that U.S. same-store sales rose 2.4% in the third quarter.
The increase came as customers flocked back for the long-awaited return of Snack Wraps, which reappeared on U.S. menus in July after nearly a decade.
According to data from Placer.ai, visits to McDonald’s restaurants jumped 15% above average on the day the fan favorite made its comeback.
McDonald’s rolled out new Extra Value Meals across the U.S. in early September in an effort to win back customers put off by higher menu prices.
The promotion featured limited-time offers such as an $8 Big Mac meal and a $5 Sausage McMuffin meal available in most areas.
However, data from Placer.ai indicated that the deal generated less foot traffic than the 50-cent double cheeseburger special McDonald’s ran on September 18 to mark National Cheeseburger Day, which proved far more popular with customers.
McDonald’s reported on Wednesday that its third-quarter revenue rose 3% to $7.08 billion, matching Wall Street expectations. The Chicago-based company said net income increased 1% to $2.28 billion for the period.
After accounting for one-time expenses, including $39 million in restructuring charges, adjusted earnings stood at $3.22 per share — just shy of the $3.33 per share projected by analysts.
McDonald’s stock showed little movement in premarket trading following the announcement.
McDonald’s heavier spending on promotions and marketing in the third quarter likely played a role in its earnings miss.
Industry analysts say value perception has become more important to consumers as worries about the economy prompt many to dine out less often.
Similar trends were seen across the restaurant sector, with fast-casual chains such as Cava and Chipotle posting weaker-than-expected quarterly results and noting that younger customers are cutting back on spending.
Taco Bell outperformed much of the restaurant industry in the third quarter, posting solid growth fueled by its focus on value.
Parent company Yum Brands said Tuesday that Taco Bell’s same-store sales climbed 7% during the quarter, driven largely by budget-friendly items such as the $3 Grilled Steak Burrito.
“We’re not seeing consumer pullback in the Taco Bell business,” said Yum Brands CEO Chris Turner. “The U.S. consumer is cautious but remains incredibly resilient.”
Turner noted that the chain also attracted more young customers and families to its restaurants during the quarter.
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