McDonald’s sales soar on Travis Scott meals

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It’s official: Demand for the Travis Scott meal gave a major boost to McDonald’s quarterly sales.

The fast-food giant said Thursday its comparable sales in the US rose 4.6 percent in the third quarter — sharply reversing the 8.7 percent decline they had suffered in the second quarter — and partly credited the unexpected success of the $6 meal it recently promoted with the Houston-born rapper.

That meal — a Quarter Pounder with Cheese, french fries and a Sprite — sparked temporary shortages of ingredients including fresh beef and chopped lettuce. It also helped drive McDonald’s highest US monthly sales in nearly a decade despite COVID-19 closures that have limited much of its business to drive-through and pickup orders.

On Thursday, an info-graphic on the company’s website said the Travis Scott promotion and its Spicy Chicken McNuggets, also introduced in September, were “strategic marketing investments” that helped fuel a double-digit surge in sales during the month.

The promotion ended Oct. 4,  but on Monday McDonald’s announced another deal with reggaeton artist J Balvin, who until Nov. 1 is promoting his favorite meal — a Big Mac, fries and ketchup and an Oreo McFlurry.

“Our third quarter performance demonstrates the underlying resilience of the McDonald’s brand,” Chief Executive Chris Kempczinski said in a statement. “Our unique strengths, including our unrivaled Drive Thru presence around the world, advanced delivery and digital capabilities, and marketing scale have become even more important during the pandemic.”

At the same time, the fast-food giant’s worldwide same-store sales declined by 2.2 percent, the company said, as many stores overseas were shut down due to the pandemic.

The company did not report profits on Thursday.

On Wednesday, McDonald’s said it’s adding three pastry items to its breakfast menu — blueberry muffins, apple fritters and cinnamon rolls — and said they will be available all day beginning Oct. 28. The snacks, McDonald’s first new pastries in eight years, are aimed at lifting breakfast sales, which have been sagging for more than a year.

McDonald’s shares were up 0.2 percent at $226.43 midday trading on Thursday.

A Global Asset Management Seoul Korea Magazine

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