McDonald’s has reported strong global sales growth of 12.6% across each of its market segments in the first quarter to 31 March 2023.
However, growth in its International Operated Markets (IOM) segment, which includes the UK, saw slower growth in the first quarter of 2023, than in Q1 2022, when like-for-like growth was 20.4% up on the prior year.
McDonald’s said growth in its IOM segment in the first quarter was driven by strong comparable sales across its big five markets, which includes the UK.
Digital systemwide sales in its top six markets now represent almost 40% of McDonald’s systemwide sales, at nearly $7.5bn for the quarter.
Overall systemwide sales increased by 9% (13% in constant currencies, while revenue was up 4%, including currency translations, to $5.9bn for Q1, compared to $5.7bn. Net income for the quarter was $1.8bn, up from $1.1bn in Q1 2022.
Speaking on an investor call following the publication of McDonald’s Corporation’s Q1 2023 results, McDonald’s president and chief executive Chris Kempczinski said the global fast food chain’s results reflected strong consumer demand for the brand, that it was experiencing around the world.
He said it was clear that its Accelerating the Arches strategy was working and that guest counts had grown in every segment, with consistency a standout trend in the latest trading update.
Kempczinski also commented on the changes the business was making to its way of working, to enable McDonald’s to move forward at a faster pace.
The three key changes comprise moving to a horizontal way of working, working in a very standardised way and implementing best practice across the business – “we don’t need every market to invent its own lightbulb, so to speak” – and to make strategic investments in digitising its system.
Ian Borden, EVP and chief financial offer, referenced the success of the UK’s Raise Your Arches marketing campaign, which was rolled out to more 30 other markets and drove “remarkable” engagement with customers and brand affinity across the globe.
“This is an example of how one singular idea can drive impact when shared across our markets,” he said.
Borden said that despite the economic uncertainty that may persists the business was well positioned with the well unique strength and scale of the McDonald’s system, and that the Corporation was confident about long-term growth for its system as well as its shareholders.
