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McDonald's says US sales on the mend as promotions draw diners back
Reuters • • business
Key Points:
- McDonald's shares rose 4.7% in early trading following positive updates on marketing efforts and promotional offers aimed at boosting customer traffic amid rising living costs.
- The company highlighted gains from entry-level meal deals and value promotions like a $2 breakfast sandwich and free fries with a $1 minimum purchase, which helped win back customers from rivals and convenience stores.
- Despite a 4.6% decline in customer visits during Q3, recent promotions such as Monopoly and Halloween-themed Boo Buckets have increased traffic, though still below last year’s levels.
- McDonald's new "NEXT" turnaround strategy focuses on simplifying operations, modernizing restaurants, and investing in employee training to improve efficiency, but tensions with franchisees over costs and control remain a challenge.
- The company reported a slight 0.2% decline in US comparable sales for Q3, missing expectations, while global comparable sales rose 1.5%, and adjusted earnings beat estimates at $3.57 per share.
