McDonald’s U.S. Sales Rise, Incentivized by Celebrity Promotions | Financial Buzz

McDonald’s U.S. Sales Rise, Incentivized by Celebrity Promotions

McDonald’s (NYSE: MCD) announced Thursday that U.S. same-store sales during the third quarter had risen approximately 5% as customers purchased items such as Big Macs and McNuggets for dinner throughout the pandemic. The stock rose 1% in premarket trading following the news. 

“Our third-quarter performance demonstrates the underlying resilience of the McDonald’s brand,” CEO Chris Kempczinski said in a press release.

The fast-food industry has bounced much quicker than others in the restaurant industry amid the ongoing coronavirus pandemic. With features such as drive-thrus and low cost meal options, McDonald’s stock has managed to rise 16% throughout the year. 

Several U.S. promotions and marketing incentives have aided in the company’s comeback. In september, Travis Scott, a famous rapper was offered a deal to promote his favorite meal causing an influx of customers. Similarly, this month, it will be offering another promotion featuring reggaeton star J.Balvin and his favorite meal which includes a Big Mac sandwich, medium french fries with ketchup and an Oreo McFlurry.

However, McDonald’s locations outside of its home market, are still slowly recovering after experiencing great sales deficits within the last quarter. With tougher restrictions, most of the chain’s international locations were forced to temporarily shut down. Furthermore, many international MscDonalds do not have drive-thru lanes for easy access. 

“While current year business results have been impacted by the Covid-19 pandemic, the pace of recovery paired with the Company’s strong financial position support this increase to the dividend while still giving the Company the ability to invest in the business,” McDonald’s said in a statement.