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Wednesday, December 8, 2021

Despite higher prices, McDonald’s, Kraft Heinz and Coca-Cola are showing solid profits.

Consumers were oblivious to price increases from the world’s three largest food and beverage corporations, which helped boost their third-quarter profits.

Coca-Cola, McDonald’s and Kraft Heinz all reported better-than-expected quarterly profit on Wednesday, despite persisting global supply chain problems and pandemic restrictions in many parts of the world. The sheer scale of each business, as well as their ability to communicate price increases to consumers, seems to have helped them through this period of uncertainty.

“Global companies have huge advantages because of their scale,” said Mark Cohen, director of retail research at Columbia Business School, while noting that the unpredictable nature of the pandemic has made it difficult for these companies to be as flexible as they once were. we.

  • Coca-Cola reported net revenue of $ 10 billion in the three months ended September, up 16 percent from the same quarter last year. The number of boxes sold rose 6 percent, resulting in higher volume than in 2019, although the share of its restaurant and restaurant business did not recover to its 2019 level. The Delta variant of the coronavirus affected sales in several markets in August, the company said. In April, Chairman and CEO James Quincy announced that the beverage maker would raise prices to cope with rising raw material prices, although the company has yet to reveal specific details.

  • McDonald’s reported a 12.7% increase in sales over the same quarter last year, boosted by larger customer orders and higher menu prices in the United States, as well as fewer restaurant closings in Europe. The company expects to maintain 6 percent growth for customers in the United States this year to cover the increased labor and merchandise costs. The company says that nearly 80% of fast food chain restaurants in the United States have reopened, but the cut in hours and bandwidth continues to negatively impact its business. McDonald’s restaurants in China and Australia have been particularly hit by the pandemic.

  • Kraft Heinz said its net sales were down 1.8 percent for the quarter to $ 6.3 billion from the same period last year. The company’s sale of its walnut business to Hormel contributed in part to the decline. And in a sign of rising inflation, the company increased prices by 1.5 percent in its global restaurant and retail sectors. Kraft Heinz expects to enter the market next year, “completing a pricing plan that protects our profitability at current cost levels,” Paulo Basilio, the company’s chief financial officer, said during a conversation with investors.

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Americans are hitting the wallet as prices for food, gasoline and other consumer goods continue to rise. The rise in prices has put pressure on politicians in the White House and the Federal Reserve, who have said that the rise in prices is a temporary fad caused by an imbalance in supply and demand as the economy recovers.

World Nation News Deskhttps://www.worldnationnews.com
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