McDonald’s Corp. is seeing success with its digital endeavors.
The first half of 2021 saw approximately $8 billion in digital system-wide sales across McDonald’s Corp.’s top six markets, up 70% from the same period the previous year, according to president and CEO Christopher J. Kempczinski. The increase in revenue coincides with the reopening of more locations globally, and management is hopeful about the remainder of the year.
Mr. Kempczinski stated, “We know that the customer experience today reaches beyond the physical walls of our restaurants,” during a conference call on July 28 to go over financial results. To better serve our consumers who are linked to the digital world, we are speeding up the Arches. We have the most downloaded QSR app in the world to show you how connected we are to our consumers digitally.
McDonald’s reported a $3.8 billion net income for the first half of its fiscal 2021, which concluded on June 30, or $5 per share on common stock. This represents a significant increase over the $1.6 billion net income the firm reported for the same period the previous year, or $2.12 per share.
Excluding currency translation, first-half sales increased by 25% to $11 billion. Given that many areas had either halted or severely curtailed restaurant operations in the early stages of the epidemic, the spike in net income and sales was indicative of drastically different market conditions.
Net income for the second quarter was $2.2 billion, or $2.95 per share, which was a considerable increase over the same period last year when earnings were $484 million, or 65¢ per share.
Sales for the quarter increased 49% to $5.9 billion.
Chief financial officer Kevin M. Ozan stated, “Global comp sales were up 40% in the second quarter or 7% on a two-year basis.” “Our success has consistently shown our company’s resilience and broad-based strength. For the second straight quarter, we have exceeded 2019 sales levels, and we are currently doing so at a faster rate.
According to the corporation, comparable sales in the US grew by 15% over a two-year period, indicating ongoing momentum.
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“The decisions we’ve made over the last 18 months have contributed to our performance in the US,” Mr. Ozan stated. “With an underlying focus on operating great restaurants, this includes bold marketing initiatives, investing in the core menu, and strengthening our digital offerings.”
We continued to observe good average check growth in the second quarter as US customers started to venture out more, fueled by higher menu prices and larger order amounts. This has been strengthened by the expansion of digital and delivery platforms, a strong menu, and marketing initiatives.
Early in July, McDonald’s introduced the MyMcDonald’s Rewards app and loyalty program to the US market. The app has been accessed by over 22 million people, and over 12 The corporation reports that millions of people have signed up for the loyalty program.
Mr. Kempczinski stated, “This is just the beginning of McDonald’s digital customer journey.” “We’re providing customers many reasons to keep returning to McDonald’s as we make it easier for our staff to interact with them and as we build more seamless and personalized McDonald’s experiences. We’ll take advantage of our advantages in value and convenience, daypart and menu breadth, and—above all—our size and scale—by utilizing digital.