McDonald’s earnings in focus as menu price hikes stall, testing margins

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Investors will likely focus on McDonald's ability to maintain profit margins even as its slows the pace of menu price hikes amid easing inflation and a pullback in restaurant traffic.

shares moved higher in pre-market trading ahead of the world's biggest restaurant chain's third quarter earnings prior to the opening bell.

That dynamic could be changing course of the final months of the year and beyond, however, with easing inflation and a resilient economy providing wider choices for restaurant-goers beyond its 13,400 U.S. locations. Chief Financial Officer Ian Borden also told investors in July that menu prices would likely fall over the back half of the year, in-line with softer inflation prospects.

 

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