McDonald’s Second-Quarter Sales Outpace Wall Street Estimates

(Bloomberg) -- McDonald’s Corp. posted sales that topped analysts’ estimates as U.S. diners proved willing to pay higher prices and international markets saw fewer pandemic-related closures.

Comparable-store sales rose almost 41% globally from a year earlier, outpacing the 39% gain that analysts expected. By the same measure, McDonald’s also beat Wall Street projections in the U.S. and its international markets.

The results underscore how McDonald’s has emerged from the pandemic stronger, underpinned by drive-thru orders, carryout and, increasingly, delivery. McDonald’s said that online and mobile orders in its top six markets climbed 70% year-to-date, showing that the Chicago-based company’s investment in the area appears to be paying off.

In the U.S., where McDonald’s has nearly 14,000 locations, sales were helped by a new chicken sandwich. Revenue was boosted by “strong average check growth driven by larger order size and menu price increases,” the company said in a statement Wednesday. A new “celebrity” meal offering, chosen this time by the South Korean boy band BTS, fueled results across the globe.

Sales overall rose 57% to $5.89 billion in the quarter, while adjusted earnings increased to $2.37 a share, exceeded analysts’ projections of $2.11.

The company may face a new round of Covid-related restrictions, however, as cases once again climb in much of the world, fueled by the contagious delta variant.

McDonald’s executives will speak on an earnings call with analysts at 8:30 a.m. New York time. Investors will be listening closely for further details on expenses as restaurants face a wave higher costs for labor, food and materials.

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