McDonald’s earnings dip on higher technology costs

NEW YORK (AFP) – McDonald’s reported a dip in third-quarter earnings yesterday, missing expectations as increased spending on technology hit the company’s performance despite higher sales.Profits dipped 1.8 per cent from the year-ago period to USD1.6 billion. Revenues edged up 1.1 per cent to USD5.4 billion.

The fast-food giant notched a healthy 5.9 per cent increase in global comparable sales, including a solid rise in the United States (US). The company also cited Britain and France as strong markets. But profits were pressured by increased spending in technology and research and development.

McDonald’s has invested heavily in home-delivery and mobile pay initiatives in recent years and in 2019 has unveiled a number of acquisitions to boost its drive-through operation.

In September, McDonald’s announced the purchase of Apprente, a Silicon-Valley startup focussed that builds voice-based systems for multi-accent and multi-item conversational ordering. The technology is expected to speed McDonald’s Drive Thru ordering process.