McDonald's Global Q4 Sales Beat Estimates as Value Strategy Shows Early Success

Deep News
Feb 12

McDonald's reported fourth-quarter global comparable sales and profits that exceeded Wall Street expectations on Wednesday, driven by meal deals and strong marketing promotions that attracted budget-conscious American diners, while demand in Australia and the United Kingdom remained robust. During the three months ended December 31, the burger giant's global same-store sales rose 5.7%, surpassing analysts' average estimate of 3.7%. McDonald's CEO Chris Kempczinski said during the earnings call that there is growing evidence that the Chicago-based company's value strategy is gaining traction, with visit frequency among lower-income customers increasing. McDonald's began subsidizing "value" meals for its franchisees last year, though those subsidies are now being gradually phased out. Kempczinski stated, "We will not subsidize pricing over the long term."

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