(Reuters) -McDonald’s Corp reported quarterly comparable sales above market expectations on Tuesday, benefiting from steady online demand, new product launches and higher prices.
Faced with higher labor and ingredients expenses, U.S. restaurants have been raising prices of pizzas, burritos and hamburgers.
Net income declined 46% to $1.19 billion, or $1.60 per share, as expenses soared. The company’s shares were down 1.3% in premarket trading.
Despite that sales have held up so far even as consumers grapple with higher prices of gas and everyday essentials.
“Nonetheless, the operating environment across the competitive landscape remains challenging,” Chief Executive Chris Kempczinski said in a statement.
The burger chain’s global same-store sales increased nearly 10% in the second quarter, compared with estimates for a 6.5% rise, according to Refinitiv data.
(Reporting by Praveen Paramasivam in Bengaluru and Hilary Russ in New York; Editing by Arun Koyyur)
