NEW YORK – McDonald’s is suffering from rising prices and rising labor costs. the the company reported increase menu prices by about 6% last year.
The Burger chain reported that same-store sales increased 13.8% over the past year, which marked “the highest annual comparable sales ever in the United States” during a call to the results on Thursday.
But earnings of $2.23 a share fell short of Wall Street expectations of 11 cents a share higher.
According to McDonald’s, The Golden Arches says growth was driven in part by “strong menu and marketing promotions” for items like the McRib and Crispy Chicken Sandwich, which attracted customers even with menu prices. higher.
The company also said comparable store sales benefited from its loyalty program.
McDonalds menu tips
Last year, McDonald’s raised the hourly wages of 36,000 U.S. employees at its company-owned restaurants. Franchisees own 93% of the 40,000 McDonald’s restaurants worldwide, but several thousand stores are owned by McDonald’s.
McDonald’s says it expects higher food and paper costs to persist in the first half of this year.
Shortages have also been a problem for the company.
McDonald’s Japan said it began limiting sales of medium and large fries earlier in January due to supply constraints.
In August, the company warned its restaurants to limit bag orders as demand grew and they feared they might run out.
The Associated Press and Fox Business contributed to this report.