McDonald’s topped Wall Street estimates for fourth-quarter global comparable sales and profit on Wednesday, as meal deals and strong marketing promotions pulled in budget-strapped U.S. diners and demand held firm in Australia and Britain.
Global same-store sales at the burger giant rose 5.7% in the three months ended December 31, outpacing analysts’ average estimate of a 3.7% increase, according to data compiled by LSEG. CEO Chris Kempczinski said on an earnings call that there was growing evidence that the Chicago-based company’s value strategy was working, with gains in low-income customer visits. McDonald’s last year began subsidising franchisees’ “extra value” meals, but those subsidies are tapering off. “We don’t subsidise pricing permanently,” Kempczinski said.
