Arcos Dorados Holdings, the company that owns the master franchise of the McDonalds fast food restaurant chain in 20 countries in Latin America and the Caribbean, had a great performance in the third quarter of 2022.
The world’s largest McDonald’s franchisee in sales volume and number of restaurants, achieved extraordinary numbers thanks to the fact that McDonald’s, like other fast food chains, is capturing consumers who can’t afford more expensive restaurants.
Also, their income grows from the increase in menu prices.
In this way, more sales and more expensive prices set up an ideal scenario for the brand.
Arcos Dorados Holdings announced this Wednesday, November 16, earnings in the third quarter of 22 cents per share, in contrast to 12 cents the previous year. This is a growth of 83.3 percent year-on-year.
Analysts polled by Capital IQ had expected 12 cents on the dollar.
Total consolidated income for the quarter that ended on September 30, meanwhile, amounted to 921 million dollars, when a year ago Arcos Dorados had raised 726 million dollars.
In this case, the advance is 26.8 percent.
Market analysts had expected a much lower number: $895 million.
In this context, the shares of the Latin American franchise of McDonald’s grew 3.5 percent in the premarket operations of the New York Stock Exchange.
Price increases at McDonald’s around the world, including Arcos Dorados restaurants
Price increases are being recorded in all markets where McDonald’s has a presence.
In July 2022, for example, an emblematic case occurred in the most famous fast food chain in the world: the price of the classic cheeseburger increased for the first time in 14 years in all outlets in the United Kingdom.
Since that month, the cheeseburger has cost £1.19, instead of £0.99.
The 20 percent increase surprised the British, accustomed to the previous value that remained unchanged for 14 years.
The brand also applied increases in breakfasts, meals with additional value, chicken nuggets and coffee.
The cause is the inflationary crisis that has plagued the world since the pandemic emerged, but especially since the war between Ukraine and Russia that has skyrocketed the cost of raw materials.
At the beginning of November, Restaurant Brands International it also reported quarterly profit and revenue that far exceeded previous expectations.
The explanation is based on the best sales of its two most important brands, Burger King and Tim Hortons.
Now read:
The crisis does not affect Walmart, which bills more due to inflation and higher demand
Like Twitter, Meta and Amazon, the Chinese Tencent also applies massive layoffs
Like McDonalds, Burger King also sells more with the crisis