Adult Happy Meals, Other Promos Boosted McDonald's Sales In 4Q

Adult Happy Meals and other limited-time promotions boosted traffic at McDonald’s restaurants during the fourth quarter despite higher prices.

Photo Insert: Sales soared in October after McDonald’s launched adult Happy Meals featuring limited-edition toys designed by the streetwear brand Cactus Plant Flea Market.

But the company warned that inflation --- particularly in Europe -- will continue to weigh on its operations this year, Dee-Ann Durbin reported for the Associated Press (AP).

Global same-store sales __ or sales at stores open at least a year __ rose 12.6% in the October-December period, the Chicago company said Tuesday. That beat Wall Street expectations for an 8.8% increase, according to analysts polled by FactSet. US same-store sales rose 10.3%.

Sales soared in October after McDonald’s launched adult Happy Meals featuring limited-edition toys designed by the streetwear brand Cactus Plant Flea Market. Half of the toys for those meals were gone in the first four days of the promotion.

A “farewell tour” for the cult favorite McRib sandwich drew in more US customers in November and World Cup promotions fueled double-digit increases in delivery sales in McDonald’s ten largest markets.

“Our brand is clearly in the strongest position it’s been in years, attributable in part to our best-in-class marketing engine,” CEO Chris Kempczinski said Tuesday during a conference call with investors.

Fourth quarter revenue fell 1% to $5.9 billion, but that still beat analysts’ expectations for $5.7 billion. Overseas revenue was weaker because of the strong dollar; 60% of McDonald’s sales come from outside the US. Net income rose 16% to $1.9 billion, or $2.59 per share, topping profit projections by 13 cents.

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