McDonald’s reported better earnings and revenue than analysts’ estimates after raising prices in the United States and posting strong global sales growth.
However, the war in Ukraine and inflation in the company’s domestic market significantly affected its quarterly report, and CEO Chris Kempzinski revealed that the conflict has not yet affected consumer behavior in the rest of Europe, but on the other hand, some low-income American consumers have begun to reduce their orders or Going to buy cheaper meals. Read more [Closing McDonald’s Restaurants in Russia Causes Huge Losses].
McDonald’s earned $2.28 per share on an adjusted basis during the first quarter, beating analyst expectations of $2.17, and the fast-food chain raised $5.67 billion in revenue, beating expectations of $5.59 billion, pushing the company’s stock up 1% in pre-market trading. Opening of the markets.
McDonald’s said it spent $27 million on site rents, employee wages and supply costs in Russia and Ukraine after shutting down its business in both countries due to the war. Both Ukraine and Russia, which was reflected in the loss of 13 cents per share of their profits. Read more [+400 Companies Have Withdrawn From Russia and Some Are Stuck].
McDonald’s, like other companies in the restaurant industry, faced an increase in commodity prices and labor expenses, which prompted the company and its franchises to raise their prices, and Chief Financial Officer “Kevin Ozan” expects that inflation will continue to increase during 2022 in light of the surrounding economic conditions, knowing that Wall Street analysts They have been optimistic about the company’s stock lately. Read more [The Best Wall Street Analysts Are Interested in These Stocks].
It is worth noting that McDonald’s menu prices increased by 8% during the first quarter on an annual basis.