Investing.com – McDonald’s stock (NYSE:MCD) rose nearly 3% Wednesday as the burger chain rode price hikes and new menu items to take its third-quarter sales and profits past analysts’ estimates.
The stock also got a boost from a 7% increase in quarterly cash dividend to $1.38 per share and a resumption of the share repurchase program.
McDonald’s is among thousands of companies forced to hike prices because of rising prices for farm and non-farm commodities, crude and metals. An increase in wages is also adding to costs.
Consumer excitement for its newly-launched Crispy Chicken Sandwich as well as its ‘Famous Orders’ campaign with South Korean boy band BTS and rapper Saweetie kept staff busy at its outlets, reopening at full capacity after a pandemic-induced hiatus.
Comparable sales for McDonald's in the U.S. rose close to 10%, higher than expected. The company attributed this partly to higher menu prices and customers buying more items per order.
Sales through digital channels grew too, benefiting from the launch of the company's first loyalty program — MyMcDonald’s Rewards.
Consolidated revenue rose 14% to $6.20 billion. Net income rose 22% to $2.15 billion, boosted by $106 million of gains related to the sale of McDonald's Japan stock.