Higher prices and chicken sandwiches are helping boost McDonald’s sales. But the company’s earnings have disappointed Wall Street.

The fast-food chain on Thursday reported quarterly earnings and revenue, marking the fourth earning miss for the company in eight quarters, according to CNBC News.

  • The company’s earnings per share were $2.24, lower than the expected $2.34.
  • The revenue was $6.01 billion, lower than the expected $6.03 billion.
  • Sales from last year jumped 13.8%, the largest annual increase since the company started reporting comparable. In fact, McDonald’s said that its results “benefited from fewer restaurant closures and reduced Covid-related government restrictions compared with the prior year,” per CNN.
  • Operation costs also rose by 14% in the quarter, the product of higher wages to attract and retain workers. Commodity and labor inflation is expected to rise in the near term.

The jump in sales can be credited to higher menu prices, a growing loyalty program and promotional menu items like the McRib.

According to The New York Times, Chris Kempczinski, the chief executive and president of McDonald’s, deemed 2021 a “banner year for McDonald’s, despite the continued disruptions” of the pandemic.

This especially holds true when looking at digital sales for the year that surpassed $18 billion, accounting for 16% of global sales.

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According to CNBC, the company expects to spend $2.2 billion to $2.4 billion on capital expenditures in 2022 — half of which will go to opening more than 1,400 new restaurants.

  • Approximately 40% of capital expenditures will be used on U.S. business and modernizing existing restaurants.
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