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McDonald’s beats revenue estimates on U.S. drive-thru demand


© Reuters. The logo of a McDonald’s Corp restaurant is seen in Los Angeles

(Reuters) – McDonald’s Corp (N:) beat third-quarter revenue estimates on Monday, as customers in the United States ordered its hamburgers and fries in drive-thru outlets and on delivery apps to avoid dining out during the COVID-19 pandemic.

The company’s limited-time promotional deal with rapper Travis Scott, which caused shortages of some ingredients, also boosted sales.

However, the world’s largest burger chain said business was being pressured in key markets outside the United States including France, Germany and the United Kingdom by new lockdown restrictions due to a spike in virus cases.

Even before the new restrictions, McDonald’s overseas sales recovery had been sluggish compared to the United States, where its huge number of drive-thru lanes gave it an edge over rivals for customers looking for restaurant food without the risks of dining out.

Nearly 95% of McDonald’s 14,000 U.S. restaurants have a drive-thru.

McDonald’s total revenue fell about 2% to $5.42 billion in the three months ended Sept. 30, largely recovering from the over 30% drop posted in the second quarter.

Analysts on average had estimated revenue of $5.40 billion, according to IBES data from Refinitiv.

Net income rose 10% to $1.76 billion, helped by gains from the sale of a part of McDonald’s stake in its Japanese affiliate.

Excluding those gains, the company earned $2.22 per share.

McDonald’s reiterated previously reported quarterly same-store sales figures of a 4.6% rise in the United States and a 10.1% fall in international licensed markets.

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