McDonald's sales and profits continue to rise despite significant price hikes. Third-quarter sales were 14% higher than the previous year, with operating profit up 16% and earnings per share up 18%. The average price of McDonald's menu is no longer considered affordable compared to other fast-food options, yet this hasn't deterred customers, especially younger ones. Sales for the first nine months of the year increased by 11%, and operating profit saw a 30% rise from the previous period.
 
It's worth noting that the early part of the 2022 financial year was impacted by the pandemic. Despite this, the strategy of raising prices has been successful, evident in the 8.8% increase in like-for-like sales this quarter. Although footfall declined among modest households, the overall long-term trend is positive. Excluding the pandemic-related challenges, McDonald's has consistently achieved quarter-on-quarter growth, reaching sales levels comparable to seven years ago.
 
Moreover, the company's margins have significantly expanded, surprising many investors. McDonald's ability to raise prices without losing customers underscores its strong business model. As Warren Buffett highlighted, a company's pricing power reflects its quality, and McDonald's exemplifies this concept.
 
In terms of stock performance, McDonald's shares have traded within a stable range of x20 to x30 earnings over the past decade. Currently valued at x25 earnings, the stock price aligns closely with this historical average.