U.S. restaurant chain McDonald’s (MCD) has reported third-quarter financial results that fell short of Wall Street’s expectations as a growing number of consumers pullback their spending.
The Chicago-based company known for its burgers and fries announced earnings per share (EPS) of $3.22 U.S., which was below the $3.33 U.S. expected among analysts.
Revenue in the quarter totaled $7.08 billion U.S., which was below the consensus estimate of $7.10 billion U.S. Sales were up 3% from a year earlier.
In McDonald’s earnings statement, CEO Chris Kempczinski said the company is operating in a “challenging environment” with consumers reigning in their discretionary spending.
Restaurant spending among low-income diners has become particularly difficult, he added.
The company’s same-store sales increased 3.6% during the third quarter, which was in line with Wall Street’s expectations.
Management noted that they are making efforts to attract budget-conscious consumers, bringing back the Snack Wrap for the first time in nine years at a price of $3.99 U.S.
And in September, the chain reintroduced “Extra Value Meals,” which it last promoted during the Covid-19 pandemic.
McDonald’s is the latest U.S. fast-food chain to report disappointing Q3 financial results. Last week, Chipotle Mexican Grill (CMG) reported poor numbers, sending its stock to a 52-week low.
MCD stock has gained 2% this year to trade at $299.21 U.S. per share.
