McDonald’s Corp. may report its eighth straight quarter of profit growth, the longest streak in 13 years, as beverages such as frozen strawberry lemonade combat rising costs that are making hamburgers less profitable.
The world’s largest restaurant chain is expected to say tomorrow that profit rose to $1.28 a share and revenue climbed to $6.65 billion, the average of analysts’ estimates compiled by Bloomberg.
McDonald’s is the most successful of fast-food restaurants trying to replicate the high-margin beverage sales of Starbucks Corp. (SBUX), said Steve West, a Stifel Nicolaus & Co. analyst. As meat costs rise, McDonald’s has advertised its McCafe drinks, which contribute as much as 80 percent of their price to profit, compared with about 60 percent from hamburgers, he said.