NEW YORK, United States (AFP) — McDonald’s feasted on a big jump in profits in the latest quarter, amid strong United States sales driven by a discounted soda promotion and a premium sandwich launch, the company reported Tuesday.
Net income for the quarter ending June 30 surged 28 percent, a $1.4 billion jump from the same period of 2016, and easily topping analyst expectations.
However, revenues dipped three percent to $6.0 billion, partly due to the strong dollar and the refranchising of restaurants.
Chief executive Steve Easterbrook, who was appointed in 2015 amid a lengthy slump at the fast-food giant, said the results showed progress following efforts to improve service and simplify the menu in its home market.
The US market accounts for about one-third of McDonald’s revenues.
“We’re building a better McDonald’s and more customers are noticing,” Easterbrook said.
“Our relentless commitment to running great restaurants and keeping the customer at the center of everything we do is generating broad-based strength and momentum across our entire business.”
Sales rose 3.9 percent in same-store US restaurants following a push to offer soft drinks in all sizes at just $1 and the launch of “Signature Crafted” sandwiches, which have applewood smoked bacon, Dijon sauce and other premium ingredients.
McDonald’s said sales also were strong in Britain, Canada, Germany and China.
Neil Saunders, managing director of GlobalData Retail, praised the results as a sign the fast-food giant has become “more entrepreneurial and nimble” compared with a few years ago.
“Although the measures may seem piecemeal, they are now part of a wider strategy to deepen McDonald’s relevance to modern diners,” Saunders said.
“The company has rightly recognized that a one-dimensional fast-food offering will no longer deliver growth.”
“It is stepping up its efforts in premium offerings, family dining occasions such as breakfast, quick snacking and coffee stops, and a host of other areas. We believe that, as a whole, these things give McDonald’s plenty of firepower for future growth.”
The company’s share price rose 3.4 percent to $157.03 in morning trading.
© Agence France-Presse
