Dow bursts higher after US economy grows stronger than expected – CNN - Stock Region News

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Thursday, October 27, 2022

Dow bursts higher after US economy grows stronger than expected – CNN

A McDonald's restaurant in San Rafael, California, in February. 

Sales at US McDonald’s stores open at least 13 months jumped 6.1% in the three months ending on September 30. Thank price hikes.

The company said in a statement Thursday that “strategic menu price increases” helped boost sales. Ads focused on the brand’s core menu and strength in delivery orders, among other things, also helped. Recently, the burger chain has been using promotions like its celebrity meals and adult Happy Meals to create buzz without launching new menu items that complicate orders.

McDonald’s is one of the many companies that has been raising its prices this year without scaring too many customers away.

Over the summer, McDonald’s CEO Chris Kempczinski noted that “even though we’re pushing through pricing, the consumer is tolerating it well.”

It wasn’t all good news for McDonald’s in the third quarter, however. Consolidated revenues fell 5%.

The company said that the results were “negatively impacted by foreign currency translation,” pointing to the strong US dollar to explain the decline. In constant currencies it said consolidated revenues were up 2%.

Still, investors were pleased with the results. Shares popped nearly 3% before the market opened Thursday.

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