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McDonald’s gets a big boost from higher prices, celebrities and chicken

The company said Wednesday that in the three months ending on September 30, sales at global restaurants open at least 13 months jumped 12.7% compared to the same period last year. Total revenue jumped about 14% to $6.2 billion in the quarter.

Higher ingredient and labor costs, among other things, have prompted restaurants to raise prices. But so far, many customers aren’t blinking. McDonald’s reported that transactions -— or the number of orders being placed — were positive in the quarter compared to last year, and that order sizes have been getting larger in the United States.
The McDonald's BTS meal set at a restaurant in Seoul, South Korea.
Chipotle (CMG), which has been raising its prices this year, also reported a sales spike in the third quarter.
McDonald’s (MCD) has been using its famous Orders program, a series of limited-edition meals that has featured partnerships with musical artists Saweetie, BTS, J Balvin and Travis Scott, to create buzz and entice customers. The Travis Scott meal, the first in the new platform, was so popular that it caused some locations to run out of some ingredients used in the meal after it launched last year.
The program has also prompted some copy-cat meals. Burger King and others have since announced their own celebrity partnerships.
McDonald’s chicken sandwiches, introduced early this year, have also helped. With the new sandwiches, the burger chain has jumped on a trend that has helped increase sales at rivals like Popeyes.

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