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Though it missed global comparable sales projections, McDonald's Corporation (NYSE:MCD) crept up 1.05% in early trade Tuesday as investors concentrated on the company's rebound in the U.S. market. CEO Chris Kempczinski addressed the latest E. coli epidemic on the results call, attesting to its apparent containment. Following confirmation that beef was not the source of the contamination, he reassured investors by announcing the comeback of the popular Quarter Pounder burgers to the impacted locations in the next weeks.
Driven by great demand for the chain's value meals, a major highlight from the quarter was the revived strength in U.S. comparative sales. While the McCrispy chicken sandwich is slated to reach 70 cities by year-end, Kempczinski said the chain is hastening the introduction of the new Big Arch burger. Furthermore, in the Q1 of 2025 McDonald's intends to introduce a new value platform.
Though there were encouraging developments, Bank of America stayed wary of McDonald's since analyst Sara Senatore pointed out that the company's profit increases fell short of offsetting a lower top-line. "While MCD's 3Q results suggest those expense opportunities exist, they have not proved sufficient to offset softer topline and MCD margin reinvestment in value," she said.According to The Conference Board's most recent analysis, U.S. consumer confidence saw its
This article first appeared on GuruFocus.