Yahoo Finance Live checks out McDonald's as the fast-food chain reports a rise in same-store sales year-over-year.
DAVE BRIGGS: My play is less inspiring. It is McDonald's, who shares up on the heels of a solid Q3 earnings beat. Worldwide, the company's same store sales climbed 9.5%, handily beating estimates of 5.8%. Their CEO, Chris Kempczinski, saying business is strong, despite recessionary fears. Quote, "There is increasing uncertainty and unease about the economic environment."
The burger chain says it raised prices, on average, 10% in the third quarter and expects increased cost for food, materials, and labor through next year. And for the current quarter as well, promotions helping drive traffic this month. It's the adult Happy Meals. Half of those Cactus Plant Flea Market toys that were sold included sold out within days of its debut. Shares of McDonald's up over 3% on this news. They are recession-proof, it would appear.
SEANA SMITH: They seem to be, and that's what analysts are saying now in the wake of these results. They are starting to call McDonald's a recession-proof play. You mentioned the popularity of some of those adult Happy Meals toys. One was listed for $300,000 on eBay. I don't think they necessarily got--
SEANA SMITH: --that $300,000. But still, it shows that there is a lot of appetite for them. Some of them are going over $1,000. I don't think anyone necessarily would have expected that. Now they have the McBoo bucket that a lot of parents are very excited to get their kids so they can use it for trick or treating.
DAVE BRIGGS: Krispy Kreme coming up as well.
SEANA SMITH: Krispy Kreme coming up.
JOSH SCHAFER: The McRib.
SEANA SMITH: Lots of menu innovation.
DAVE BRIGGS: The McRib.
JOSH SCHAFER: The McRib coming back.
SEANA SMITH: The McRib.
DAVE BRIGGS: On Monday.
SEANA SMITH: And also, it's not just excitement here in the US. their international sales were over 8% and much better than expected during the quarter.
DAVE BRIGGS: Right, that was-- really stood out among the support, despite all the struggle there. And that's what tells you they really are recession-proof.
JOSH SCHAFER: Right, well, it makes sense, right? If people are going to kind of downgrade in terms of eating out and go and do something different, and they still need a quick meal, you're going to go to a place like McDonald's. And they're bringing innovation with the McRib. Are you a McRib fan?
DAVE BRIGGS: No.
JOSH SCHAFER: You?
SEANA SMITH: He's not even a Big Mac fan.
DAVE BRIGGS: No. The McRib, the texture.
SEANA SMITH: I've never tried a McRib. I'm not--
JOSH SCHAFER: Sounds like a taste test.
SEANA SMITH: I might be willing to try it. Maybe we should do a taste test. That could be good.
DAVE BRIGGS: You're off on Monday when they debut.
SEANA SMITH: So Tuesday.
DAVE BRIGGS: But Tuesday it is. Josh, good to have you here, brother.