Higher menu prices and customer visits boosted McDonald’s Corp. quarterly profit and sales above Wall Street estimates on Tuesday, but shares fell when the burger chain warned inflation will weigh on margins in 2023.
“Overall, the consumer, whether it’s in Europe or the U.S., is actually holding up better than … what I would have expected a year ago or 6 months ago,” Chief Executive Officer Chris Kempczinski said during a call with investors, Reuters reported.
Shares of the burger chain fell about 2.6 percent to $263.84 in U.S. trading, after gaining about 6 percent in the last 12 months. Investors are watching bellwethers like McDonald’s for any signs its customers are paring back spending. Consumer demand is key to determining whether the Federal Reserve’s monetary tightening will help cool the U.S. economy without causing a recession….