- Tunisia incumbent Saied set to win presidential vote: exit polls
- 'Difficult day': Oct 7 commemorations begin with festival memorial
- Commemorations begin for anniversary of attack on Israel
- Tunisia voting ends as Saied eyes re-election with critics behind bars
- Drowned by hurricane, remote N.Carolina towns now struggle for water
- Two elephants die in flash flooding in northern Thailand
- Tunisia votes with Saied set for re-election
- Too hot by day, Dubai's floodlit beaches are packed at night
- A 'forgotten' valley in storm-hit North Carolina, desperate for help
- Italy targets climate activists in 'anti-Gandhi' demo clampdown
- US trade chief defends tariff hikes when paired with investment
- EU court blocks French ban on vegetable 'steak' labelling
- Meta AI turns pictures into videos with sound
- US dockworkers return to ports after three-day strike
- DR Congo to begin mpox vaccination campaign Saturday in east
- Meta must limit data use for targeted ads: EU court
- Oil extends gains, jobs report lifts Wall Street
- US hiring soars past expectations in sign of resilient market
- As EU targets Chinese cars, European rivals sputter
- Top EU court finds against FIFA in key transfer market ruling
- Oil extends gains, Hong Kong stocks resume rally
- 'A man provides': Ukrainian miners send families away as Russia advances
- EU states greenlight extra tariffs on EVs from China
- Hong Kong stocks resume rally, oil dips after Middle East-fuelled surge
- Crude stable after Israel-Iran surge, Hong Kong stocks resume gains
- Hera spacecraft to probe asteroid deflected by defence test
- US dockworkers to head back to work after tentative deal
- After Helene's destruction, North Carolina starts to rebuild
- Dockers end three-day strike at Montreal port
- What next for OpenAI after $157 billion bonanza?
- Israel-Hamas war causes 86-percent dive in Gaza GDP: IMF
- Milan's Morata moves house after Inter-fan town mayor 'violates' privacy
- 'Devastating' storm hits Augusta National but Masters will go on
- Relief in Brazil, Asia over delay to EU deforestation rules
- Oil prices jump, stocks fall on Middle East tensions
- Biden says 'discussing' possible Israeli strikes on Iran oil facilities
- Oil prices rise, stocks fall on Middle East tensions
- Oil rallies, stocks mostly retreat on Middle East tensions
- Phasing out teen smoking could save 1.2 mn lives: study
- 'Welcome relief': Asia producers hail EU deforestation law delay
- Japan PM slated to announce plans for 'happiness index'
- Turkish inflation falls less than expected in September at 49.4%
- Easing inflation lifts profit at UK supermarket Tesco
- Skiing calls on UN climate science to combat melting future
- China wine industry looks to breed climate resilience
- Tokyo rallies on weak yen, Hong Kong drops after surge
- Dutch airline KLM unveils 'firm' cost-cutting measures
- Carpe diem: the Costa Rican women turning fish into fashion
- Senegal looks to aquaculture as fish stocks dwindle
- Will AI one day win a Nobel Prize?
Strong McDonald's results showcase advantage amid inflation
McDonald's reported stronger-than-expected quarterly profits Thursday as executives pointed to signs it is drawing customers priced out of more expensive restaurants.
The fast-food chain, known for the Big Mac and its golden arches logo, scored a 9.5 percent jump in global comparable store sales as it benefitted from higher guest counts and "strategic" price increases.
While McDonald's has not seen significant trade down among its own consumers, the company is "benefitting from trade down" from more expensive restaurant categories, Chief Executive Chris Kempczinski said on a conference call with analysts.
Executives said the dynamics favor the brand.
"We actually think we've got pricing power right now," a McDonald's executive said on the conference call. "We're gaining share among low-income consumers and that goes back to the fact that we are positioned as the leading brand in terms of value for money and affordability."
Profits declined eight percent to $2 billion from the year-ago period, while revenues fell five percent to $5.9 billion, reflecting the chain's smaller footprint after the sale of McDonald's Russia business earlier this year.
McDonald's said it continued to face heavy cost pressures across its operations for food, paper and energy.
The company's base economic scenario calls for a "mild to moderate" recession in the United States and one that is "potentially a little deeper and longer in Europe."
"We're going to continue to have inflation into 2023, both food and paper as well as labor, but we like our position relative to competitor in terms of where we stand," Kempczinski said on a conference call.
In the United States, McDonald's raised prices 10 percent compared with the year-ago period, executives said on the call.
In Europe, the company plans to set up a program to provide financial support to franchise companies struggling with economic conditions, especially spiking energy prices.
The program will be akin to efforts set up early in Covid-19, when McDonald's established $1 billion in liquidity assistance to help franchisee companies facing financial stress.
Shares jumped 3.6 percent to $265.73 in afternoon trading.
J.Bondarev--CPN