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McDonald's sales top forecasts after promotions push

Tuesday, October 24, 2017 - 01:16

One-dollar drinks and the McPick 2 for $5 deal helped McDonald's bigger-than-expected jump in quarterly U.S. comparable sales. Roselle Chen reports.

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One-dollar drinks and the McPick 2 for $5 deal helped McDonald's beat Wall Street expectations in the third quarter. U.S. same-store sales rose more than expected. Global comparable sales topped forecasts as well. McDonald's has been working on reversing lower traffic at its U.S. restaurants, where it gets most of its profit. It added new items to its menu, such as the fresh beef Quarter Pounder and Signature Sriracha sandwich. It also started mobile ordering and delivery. Decision Economics' Cary Leahy: (SOUNDBITE) CARY LEAHEY, SENIOR ADVISER, CHIEF U.S. ECONOMIST, DECISION ECONOMICS (ENGLISH ) SAYING: "Do not underestimate the ability of well-capitalized franchises to do well. I mean, they can put money to bear that a lot of other small time guys just can't do starting out. I mean, someone with only 100 shops across the country just can't do it what McDonald's did. If McDonald's wants to fix a problem, they can bring in an unbelievable amount of human and financial capital to bear, and that's what they're doing right now." McDonald's has been under pressure from chains, like Chipotle and Panera Bread, to give its customers more options. Its rivals, Wendy's and Burger King, have also been improving their offers. McDonald's shares, which had risen four percent this month, were up in early trading on Tuesday.

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McDonald's sales top forecasts after promotions push

Tuesday, October 24, 2017 - 01:16