Strong US sales give McDonald’s a boost in Q4 – WFMZ Allentown


McDonald’s is back on track in the U.S. and other key markets but still seeing a sales drag from coronavirus restrictions in other parts of the world.

U.S. same-store sales jumped 5.5% in the October-December period, pumped up by new menu items like spicy Chicken McNuggets and a meal deal collaboration with Colombian singer J Balvin. For the full year, McDonald’s said U.S. same-store sales __ or sales at stores open at least a year __ were up less than 1%, their sixth consecutive year of growth.

But worldwide, same-store sales were down 1.3% for the quarter, reflecting store closures and limited operating hours in various markets across Europe, Latin America and Asia. For the full year, global same-store sales were down 7.7%, a bigger decline than the 7% drop Wall Street had forecast, according to analysts polled by FactSet.


McDonald’s President and CEO Chris Kempczinski said 2020 was the most difficult year in the company’s history.

“While a new year brings new hope, the issues and uncertainty that emerged last year persist,” Kempczinski said Thursday on a conference call with analysts.

McDonald’s is doing better than many competitors. Earlier this week, Starbucks said its global same-store sales fell 5% in the October-December period.

Drive-thru windows — available at nearly all U.S. stores and two-thirds of stores in its biggest European markets — kept customers coming despite lockdowns. McDonald’s also benefited from a push into delivery made before the pandemic began. The company said nearly 30,000 stores worldwide now offer delivery, and the U.S., Australia and Canada doubled their percent of delivery orders last year.

But it was more costly to operate in the pandemic. Over the last year, the company has deferred rent and royalties for franchisees and obtained hundreds of millions of masks for employees.

McDonald’s said marketing spending was higher than usual in the fourth quarter because of the launch of a new ad campaign, and it has given local franchisees $200 million more than initially planned this year to help their marketing efforts. The company also said it faced higher-than-expected costs to close underperforming restaurants, including around 200 in the U.S.

The fast food giant fell short of Wall Street’s earnings and sales expectations for the fourth quarter. Revenue fell 2% to $5.3 billion, below analysts’ forecast of $5.4 billion, according to FactSet.

Net income fell 12% to $1.4 billion. Adjusted for one-time items, the Chicago fast food giant earned $1.70 per share in the fourth quarter, short of Wall Street’s expectation of $1.77.

McDonald’s Corp. shares were flat at $208.28 in morning trading.

Kempczinski said U.S. sales this month have been elevated, likely because of a new round of government stimulus checks. International sales are still down, and will be until dining rooms reopen, he said.

But he said Australia, where sales have largely recovered, gives a good idea of post-pandemic demand. Mobile ordering, delivery and takeout remain elevated there, he said, and customers ordering through those channels tend to spend more per order.

McDonald’s will also continue to juice demand with new offerings. Next month, it introduces a long-awaited chicken sandwich in the U.S., its answer to hit products from Popeyes and Chick-fil-A.

The company also plans to roll out a new loyalty app, MyMcDonald’s, in six markets by the end of this year. It’s designed to make it easier to order and entice members with targeted dining offers.

If you know of local business openings or closings, please notify us here.

· PPL Corporation named Best Place to Work for LGBTQ equality on the Human Rights Campaign Foundation’s 2021 Corporate Equality Index. It’s the fifth consecutive year PPL has earned high marks on the national report

· GEICO has opened an office in the Broadcasting Square shopping center, 2733 Papermill Road, Suite X3, in Spring Township. Office hours are Mon.-Fri., 9 a.m.-7 p.m., and Saturday, 10 a.m.-6 p.m.

· Bimbo Bakeries USA has earned the EPA’s Energy Star certification for superior energy efficiency at 15 of its bakeries, including the one that produces Maier’s Bakery items in southwest Reading’s Oakbrook neighborhood.

· Giant to build new, bigger grocery store near current location on West Swamp Road (Route 313) in Doylestown. Construction is set to start mid-March with an anticipated opening date later this year.

· Peeps & Company store at the Promenade Shops of Saucon Valley to close for good

· ‌‌‌Historic Hotel Bethlehem General Manager Dennis J. Costello will retire at the end of January after a 15-year tenure.

· Altitude‌ ‌Marketing was‌ ‌named‌ ‌to the 2021 Chief Marketer 200 list (CM200), a spotlight on the best engagement and activation agencies in the United States. This is the second year in a row that Altitude was named to the list in the category of B2B Brand Engagement Agencies.

. Victaulic appoints Rick Bucher as CEO, succeeding John Malloy, effective Jan. 31, 2021

· Ben Franklin Technology Partners of Northeastern Pennsylvania has appointed Angelo J. Valletta as president and CEO, succeeding R. Chadwick Paul Jr., who will retire on March 31, 2021

· Valley Oral Surgery opens new location in Quakertown, at the practice of Dr. Mark Elstein, who has joined the Valley Oral Surgery team. The 1402 Broad St. office is the company’s fourth location.

· Tower Health opens new Family Medicine location at 3855 Penn Avenue in Sinking Spring

· Automotive News recently honored Gail Faulkner, longtime CEO of the Faulkner Automotive Group, as one of the Leading Women in the North American Auto Industry. The award is given every five years to the 100 most influential women in the North American automotive industry.

· Penske Logistics earns 2020 SmartWay Excellence Award from the U.S. Environmental Protection Agency

· Carroll Engineering Corporation, a full-service civil engineering firm, said Justin M. Coyle, Structural Department Manager, and John L. Koutsouros, Planning and Site Design Department Manager, have both been named its newest shareholders.

. Capital BlueCross to open health and wellness center in Allentown office building, at 1221 Hamilton Street. Renovations slated to be done by Feb. 2021

Dejar respuesta

Please enter your comment!
Please enter your name here