McDonald’s is grinning thanks to Grimace
ByDEE-ANN DURBIN AP Business Writer
A McDonald's restaurant sign is shown in Pittsburgh on Saturday, April 23, 2022. McDonald's is reporting earnings on Thursday, July 27, 2023. (AP Photo/Gene J. Puskar)
The Associated Press
McDonald’s is grinning thanks to Grimace after a marketing campaign to celebrate the “birthday” of its big purple mascot went viral and contributed strong second quarter sales.
Global same-store sales, or sales at stores open at least a year, rose nearly 12% in the April-June period. That handily beat Wall Street’s forecast of a 9.4% increase, according to analysts polled by FactSet.
The Grimace campaign, which featured a limited-time purple milkshake, took on a life of its own after fans posted videos of themselves drinking the milkshake and then ending up on the ground in a messy pool of purple, or having some sort of paranormal experience. One TikTok video showing a teen drinking one in his car and then disappearing in a milkshake explosion. That video garnered more than 5 million “likes.”
Revenue rose 14% to $6.5 billion, the Chicago chain said Thursday. That was also ahead of analyst expectations for $6.3 billion.
Price hikes on some items in the U.S. did not dent customer traffic, the company said. Sales in the U.K., Germany and China were also strong.
Net income nearly doubled to $2.3 billion for the quarter. Excluding one-time items, the company earned $3.17 per share, which beat analysts forecasts of $2.78.
Among those one-time items was an $18 million charge for restructuring costs. McDonald’s laid off several hundred corporate workers in early April in an effort to speed up innovation and decision-making.
