McDonald’s US same-store sales increase by 0.3% in Q3 2024 as value deals gain traction

USA – The world’s largest fast-food chain, McDonald’s has recorded a 0.3% increase in same-store sales in Q3 2024 for its US outlets, according to the company’s most recent earnings release.

McDonald’s saw a notable increase in same-store sales in the recent quarter, a strong turnaround from the previous quarter’s 2.2% decline, which marked its first US same-store sales drop since 2020.

This quarter’s sales growth was supported by a higher average check size, though partially offset by lower guest counts.

The company attributed the improvement to value-focused campaigns, core menu promotions, enhanced restaurant execution, and continued growth in digital and delivery channels.

McDonald’s Chairman and CEO Chris Kempczinski noted during the earnings call that industry-wide traffic remains pressured as consumers, especially from lower-income households, are opting to dine at home more frequently.

He added that while a challenging environment was expected for 2024, the company’s year-to-date performance has not met internal expectations.

To drive traffic and sales, McDonald’s launched a national value platform, replacing its prior localized value promotions.

The US$5 Meal Deal, introduced at the end of Q2 2024, resulted in positive traffic in the initial days following its launch and remained available for the remainder of the year.

McDonald’s CFO Ian Borden stated that the brand’s U.S. division surpassed the QSR industry in both same-store sales and guest counts this quarter, with its guest count advantage over competitors reaching its highest point since Q1 2023.

He attributed these gains to marketing initiatives like the Collector’s Edition campaign, which ran in August and showcased collectible cups featuring iconic brand imagery, as well as collaborations with Coca-Cola, Mattel, Universal, and Sanrio.

This campaign reportedly boosted average check sizes during its two-week run before selling out.

Regarding the US$5 Meal Deal, Borden explained that the company had three goals: to improve consumer perceptions around value and affordability, connect with individual customers, particularly from lower-income segments, and increase guest counts to support both immediate and long-term business health.

He noted that the US$5 Meal Deal achieved these objectives, drawing customers back consistently, maintaining an average check above US$10, and generating profitability for franchisees.

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