McDonald’s said demand for its new Crispy Chicken sandwich helped drive the strongest sales growth the fast-food giant has seen in more than a decade.
For the second quarter this year, the largest restaurant company in the world, surpassed its sales performance from two years ago, increasing sales by 57 percent to $5.9 billion in the second quarter ended June 30.
Global comparable sales were up 7 percent from 2019 while US comparable sales were up 15 percent over the same period or the strongest quarterly growth rate in 15 years, the company said on Wednesday.
McDonald’s per-share earnings of $2.37 were above analysts’ expectations of $2.11 per share.
“In the US the success of our Crispy Chicken Sandwich continued into the second quarter,” chief executive Chris Kempczinski, said on an earnings call with analysts. “We are borrowing from what has been successful in other markets like the spicy chicken sandwich, which launched in China 20 years ago,” he added.
Its latest celebrity-endorsed meal by Korean band, BTS Army, also contributed to the surge with Kempczinski describing it as “dynamite.”
McDonald’s digital sales increased by 70 percent or by nearly $8 billion compared to last year, as the company invests heavily in its digital capabilities, launching its first-ever rewards program this month, and pushes its app, which is “the most downloaded [quick service] app in the US,” Kempczinski said.
About 70 percent of the company’s US dining rooms have reopened and nearly 100 percent are expected to be open by Labor Day, barring any setbacks from the surging Delta variant, Kempczinski said on the call.
Labor issues in the US have somewhat abated the company said, especially in the states where the federal unemployment benefits have ended early.
Job applications are up, the CEO said, adding “I do think that there is evidence that as the federal stimulus rolls off, that you’ll see an improvement in the application rate,” he said.