McDonald's Sales Zoom Despite Staffing Issue

Global sales and profit for McDonald's Corp. surged past Wall Street targets on Wednesday as restaurants reopened despite staffing shortages and consumers lapped up a wildly popular celebrity meal inspired by South Korean pop band BTS, Reuters reported.

The fast-food chain also raised its guidance for fiscal 2021, saying a slightly quicker than expected recovery should lead to global system-wide sales growth in the mid-to high-teens versus mid-teens previously.

Same-store sales for the world's biggest fast-food chain jumped 40.5% in the second quarter and exceeded the pre-pandemic levels of 2019 for the second straight quarter. Analysts were expecting a 39.81% rise.

Shares were down more than 2.5% as McDonald's still sees business uncertainty due to pandemic-related stops and starts in markets around the world, especially as the Delta variant spreads.

Even so, "people are venturing out and establishing new routines," chief executive officer Chris Kempczinski said during a call with analysts. Finding enough staff to power restaurants is also still "challenging" amid a wide labor shortage in the United States and Europe, he said.

That has slowed US drive-through service times by 3 seconds, but applications are increasing in US states that ended federal stimulus benefits, and wages are up about 5%, he said. Currently, about 70% of McDonald's US dining rooms are open, but Kempczinski said nearly all should be open by the Labor Day holiday in September.

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