Retail

McDonald’s Misses Q3 Earnings Estimates Amid Delivery Push

As the quick-service restaurant (QSR) company aims to bring in more diners, McDonald’s is reaching for price increases and deals. It used promotions, offerings and menu price increases to bolster sales, while renovated stores are also contributing to more visits as and sales, as The Wall Street Journal reported.

McDonald’s had earnings per share of $2.11 in Q3 and $5.4 billion in sales. Analysts polled by FactSet had forecast $2.21 in earnings per share, adjusting for one-time items along with sales of $5.5 billion. The chain said same-store sales increased 5.9 percent worldwide in Q3, which was higher than the 5.4 percent analysts had expected.

McDonald’s President and Chief Executive Officer Steve Easterbrook said in an announcement, “Our third-quarter performance was strong, and broad-based momentum continued with our 17th consecutive quarter of global comparable sales growth. Globally, our customers are rewarding our commitment of running better restaurants and executing our Velocity Growth Plan by visiting more often.”

The company has also been growing its delivery program as it looks to reach $4 billion in worldwide delivery sales this year, according to a CNBC report. It now has delivery partnerships with Grubhub, DoorDash and Uber Eats. Its delivery offering is reportedly popular with overseas diners.

The earnings news comes as McDonald’s recently announced an agreement to acquire Apprente to grow its presence in the Bay Area and integrate teams with advanced technology skills into its business. The company also said the Apprente team will become the founding member of a new integrated group called McD Tech Labs, it was noted at the time.

CEO Easterbrook said in the announcement, “Building our technology infrastructure and digital capabilities are fundamental to our Velocity Growth Plan and enable us to meet rising expectations from our customers, while making it simpler and even more enjoyable for crew members to serve guests.”

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