McDonald’s Continues to Hurdle Food Inflation
McDonald’s (NYSE:MCD) net profit climbed 15% to $1.41 billion on higher global sales in the quarter ending June 30. During the same time period last year, the fast food giant brought in $1.23 billion. This is despite the fact that the cost of most of its ingredients (NYSE:RJA) has risen between 4% and 4.5% on an annual basis.
However, revenue in the U.S. grew the least globally, rising 4.5% while Europe led revenue growth with same-store sales increasing by 5.9%. The average for the rest of the world was 5.2%. Total revenue increased 16% from $5.95 billion a year ago to $6.91 billion.
Competitors to Watch During Earnings Season: The Wendy’s Company (NYSE:WEN), Yum! Brands (NYSE:YUM), Jack in the Box (NASDAQ:JACK), Starbucks (NASDAQ:SBUX), Chipotle Mexican Grill (NYSE:CMG), Sonic (NASDAQ:SONC), and Panera (NASDAQ:PNRA).