McDonald's beats expectations, budget menus boost sales amid gas worries
McDonald's just dropped its latest earnings and beat expectations, with profits and sales both coming in higher than predicted.
The company credits its success to wallet-friendly options like the Under $3 Menu and fun movie tie-in meals (think The Super Mario Galaxy Movie and KPop Demon Hunters).
Still, CEO Chris Kempczinski flagged that rising gas prices might make things tougher for low-income customers, a group McDonald's relies on.
Same-store sales up 3.8%, US 3.9%
Sales at existing locations went up 3.8% (and 3.9% in the U.S.), as people spent more per visit.
To keep folks coming in despite inflation, McDonald's rolled out new premium items like the Big Arch Burger, sometimes priced as high as $13 depending on where you are.
Even with some economic headwinds, Kempczinski says he's optimistic about keeping growth going by focusing on what they can control and adapting to what customers need right now.