McDonald's keeps gaining
McDonald's keeps gaining
It's not a big surprise that McDonald's first-quarter earnings beat Street estimates on Apr. 22. The fast-food chain is expected to thrive in a recessionary economy where diners are looking to cut costs.
But surprisingly, the gains aren't necessarily coming from the cheapest items on its menu—the $1 specials. More important, says CEO James A. Skinner, McDonald's is doing a good job stealing business from higher-priced competitors such as Starbucks and selling those customers higher-margin items, such as espresso-based coffees and Snack Wraps, that are seen as comparative bargains.
For the quarter ended Mar. 31, McDonald's reported income of $979.5 million, or 87¢ a share, compared with $946.1 million, or 81¢ a year earlier.
But surprisingly, the gains aren't necessarily coming from the cheapest items on its menu—the $1 specials. More important, says CEO James A. Skinner, McDonald's is doing a good job stealing business from higher-priced competitors such as Starbucks and selling those customers higher-margin items, such as espresso-based coffees and Snack Wraps, that are seen as comparative bargains.
For the quarter ended Mar. 31, McDonald's reported income of $979.5 million, or 87¢ a share, compared with $946.1 million, or 81¢ a year earlier.
Like to receive news like this by email? Join and Subscribe!
Join Our Telegram Channel for regular updates!
Highlighted Company
Sponsored Content
Sponsored Content
Sponsored Content
Sponsored Content
Sponsored Content