McDonald’s Co has seen boosted sales recently as a result of their new customer loyalty program.
Christopher Kempczinski, CEO of the company, announced during an April 28 call “In our top six markets, digital sales, which include mobile app, kiosks and delivery, made up more than 30% of system-wide sales in the first quarter. This equates to nearly 60% growth over the past year.”
“We did over $2 billion of digital sales in the US alone in the first quarter. One of the biggest drivers of our digital adoption is our global loyalty program, MyMcDonald’s Rewards. It’s helping us better meet our customers’ needs as we build more authentic and personal relationships.”
Global sales for the company ended the first quarter with a sales increase of 12% versus the first quarter of 2021. Of this, 3.5% came from the US markets. Kevin Ozan, McDonald’s CFO, stated in the report call “Higher average check, driven by strategic price increases, continued to be a significant growth driver and strong marketing campaigns across loyalty, value bundles, and our Crispy Chicken Sandwich delivered incremental sales and continued to drive digital adoption.”
“In the UK, our customers can now order delivery directly on the McDonald’s app. We plan to expand that capability to the US, Canada and Australia later this year.” Kempczinski announced. “This will let us better control the delivery experience for our most loyal customers and to learn from the data they share, ultimately about how we create more seamless, memorable and personalized experiences.”
In international markets store sales increased by some 20%. The company made a net income of $1.10 billion in this quarter, about $0.44 billion under last year’s first quarter. However, revenues rose by some 11% due to pricing being 8% higher than last year.
“As expected, our company operating margins were hampered by significant commodity and labor inflation,” Ozan said. “Given macroeconomic conditions, we expect these elevated inflationary pressures to continue throughout this year.”
McDonald’s share price rose 2.9% between April 28th and 29th, starting the year off with a strong first quarter.
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