McDonald’s comparable-store sales feed on deliveries

CHICAGO (AP) — Surging demand for delivery is pushing comparable-store sales higher at McDonald’s, but it’s coming at a cost.

Quarterly earnings at the Chicago company were flat at $2.11 per share. Wall Street was looking for per-share earnings of $2.21, according to FactSet.

The company’s shares were down 4% in premarket trading Tuesday.

The burger giant said global sales rose 5.9% at restaurants open at least 13 months. That was better than the 5.4% increase analysts were expecting, according to a survey by FactSet. In the U.S., comp sales were up 4.8%.

Just over half of McDonald’s Corp. restaurants offer delivery and it’s dropping off orders to more than a million customers each day. The company partnered with DoorDash in the quarter to make deliveries in the U.S.

But it’s been costly to promote those efforts. McDonald’s is also undergoing expensive store renovations, in part to have dedicated delivery and mobile ordering spaces.

McDonald’s is also investing heavily in new technology to provide faster service. Last month, it acquired a Silicon Valley voice recognition startup called Apprente, with an eye toward using it to take orders at drive-thru windows. And earlier this year it bought Dynamic Yield, a startup that will help it provide customized recommendations at drivethru windows based on things like weather and restaurant traffic.

Third-quarter revenue was $5.4 billion, the company said Tuesday, just shy of Wall Street’s forecast of $5.49 billion.

Leave a Reply


World Health Organization (WHO) Launches Health for All Film Festival 2020

WHO is launching its first ever film festival on 16, 21 and 22 May 2020.…

Domingo won’t perform at Tokyo Olympics cultural events

TOKYO (AP) — The Tokyo Olympics organizing committee said Friday opera legend Placido Domingo has…

Residents of northeast Syria city pelt departing US troops

AKCAKALE, Turkey (AP) — Angry over the U.S. withdrawal, residents of a Kurdish-dominated Syrian city…

Mission Resolve Foundation Purchases Forklifts and Provides Forklift Training to NEMA Grand Bahama

FT. LAUDERDALE, Fla. (FNN NEWS) - Source: Mission Resolve Foundation // Mission Resolve Foundation purchased…

Ukraine reviews case into company that employed Biden son

ZHYTOMYR, Ukraine (AP) — Ukraine’s Prosecutor General said on Friday that his office is reviewing…

Court calls US “enhanced interrogation techniques” torture

SAN FRANCISCO (AP) — A federal court in San Francisco took the unusual step of…