McDonald’s takes advantage of higher menu prices

The fast-food chain saw its turnover increase by 11% in the first quarter, to 5.7 billion dollars.

McDonald’s beat expectations in the first quarter thanks in part to price increases for its menus and despite $127 million in costs related to the suspension of its activities in Russia.

The fast-food chain saw its turnover increase by 11% over the period, to 5.7 billion dollars.

Its sales rose 3.5% in the United States, its largest market, supported by “strategic price increases on the menu”, advertising campaigns highlighting the products at the heart of the brand such as hamburgers and growth in online sales thanks in particular to the loyalty program implemented last year.

Sales up in France

Like many other American companies, the group is notably facing rising costs for raw materials such as chicken and beef. In a tight labor market, McDonald’s also increased its wages a little.

Abroad, sales increased even more with differences depending on Covid restrictions.

They have particularly progressed, for example, in France and the United Kingdom, but have declined in China, a country subject to drastic confinements.

The company’s net profit fell 28% to $1.1 billion.

The group, which has closed or suspended restaurants in Ukraine since the end of February and in Russia since mid-March, has notably spent $27 million to continue to pay its employees and its rents and to support its suppliers.

He also paid $100 million for products “that are likely to be phased out” due to restaurant closures.

McDonald’s has also set aside $500 million to settle a tax dispute, the details of which it does not give.

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