McDonald's promotions lure diners despite higher menu prices and revenue jumps 14%

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McDonald’s said Monday it’s pumping the brakes on higher prices and focusing more on value meals after seeing a drop-off in visits by some customers

McDonald's said it's pumping the brakes on higher prices and focusing more on value meals after seeing a drop-off in visits by some customers.

The burger giant reported better-than-expected sales in the third quarter Monday. Global same-store sales — or sales at locations open at least a year — rose 8.8% in the July-September period. That was ahead of Wall Street's forecast of an 8% increase, according to analysts polled by FactSet.

But price increases have weighed on customers. McDonald's said its U.S. traffic fell slightly in the third quarter as it saw fewer visits from customers with annual incomes of $45,000 or less.

Chief Financial Officer Ian Borden said the company did increase U.S. prices in the third quarter but at a lower rate. McDonald's expects its U.S. prices will increase just over 10% for the full year, he said.

“Inflation is starting to come down and we expect pricing to come down,” Borden said during a conference call with investors.

But the company also plans to focus on deals. This month, it launched “Free Fries Friday,” offering free medium fries to U.S. customers every Friday until the end of the year if they spend at least $1.

Those kinds of deals have resonated in Europe, where customer spending has been even more pressured this year. The McSmart menu, launched earlier this year in Germany, lets customers build their own small value meals. CEO Chris Kempczinski said the deal helped Germany notch its tenth straight quarter of double-digit sales growth in the July-September period.

In the United Kingdom, the company offered discounts throughout August,