McDonald’s stock increased in the US due to growing promotional activities during 2nd quarter sales 2019
McDonald is one of the leading foodservice retailers with 36,000 restaurants in more than 100 countries across the world. The company is focusing on several key creativities such as menu innovation, investments in digital, delivery expansion, and others. In recent times, the fast food chain saw a strong sales growth. Various promotional activities and store upgradation increased sales and revenue of McDonald’s in the US during the 2nd quarter of 2019. The company raised 2.3% share in premarket trading. To stay dominant in a highly competitive restaurant market.
According to reports, McDonald’s net income US$ 1.52 billion in the 2nd quarter, US$ 1.97 per share. Increased from US$ 1.50 billion or US$ 1.90 per share as compared to the 2nd quarter of 2018. The stock has a market value of more than US$ 165 billion is up by 20% so far this year. McDonald’s announced plans to spend around US$ 1 billion in 2019 for improving and renovating its stores in the US. The company is focused on upgrading on-demand order kiosks and other technological upgradations.
In 2019, the McDonald’s is halfway to its goal of renovating nearly 2,000 restaurants. As a part of the technological up-gradation plan. McDonald’s is acquiring or partnering with machine learning company. The McDonald’s is focusing on expanding its footprint by partnering with Uber Eats, Door Dash, and others. The McDonald’s is forecasting its distribution business to register a revenue of more than US$ 4 billion. In Spain, delivery registered for over 10% of sales at stores that offer the service. During the fiscal year 2019, McDonald’s said that its product costs are high for its five countries such as Germany, Australia, France, UK, and Canada. The revenue for McDonald’s is driven through its expansion plan in Australia in July 2019. The McDonald’s plans to have more than 8,000 drive thrus in the US in the next two weeks.