McDonald’s Weaker On Covid Worries Despite Robust Growth



© Reuters.

By Dhirendra Tripathi

Investing.com – McDonald’s (NYSE:) stock fell 1% in Wednesday’s premarket trading — which was off the lows for the morning — as investors considered how the world’s biggest fast-food chain can continue its growth trajectory.

There has also been a resurgence of Covid cases because of a fast-spreading Delta variant, casting a shadow over major consumer companies. McDonald’s stock already has been trading near its 52-week high.

For now, McDonald’s is exceeding expectations. Total revenue for the recent quarter rose 57% to $5.88 billion as the world gorged on its new crispy chicken sandwich and a meal inspired by BTS, a South Korean boy band that is hugely popular among teenagers.

The Grammy-nominated pop band’s meal includes chicken McNuggets, fries and two dips.

Diluted earnings per share of $2.37 beat the expectation for $2.11.  

McDonald’s same-store sales rose by 41%. Sales exceeded the prepandemic levels of 2019 for the second straight quarter.

Besides chip and gadget manufacturers, fast food chains have been the biggest beneficiary of post-pandemic demand, as people return to restaurants in addition to keeping up online sales.

Sales in the U.S. rose 26% and were driven by price increases the company undertook to mitigate higher wages and raw material costs.

 

 

 

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