Oct 30 Reuters McDonald39;s beat Wall Street estimates for quarterly results on Monday, powered by new launches, promotions and demand for its more affordable burgers and fries from diners struggling with stillhigh prices of food and essentials.

Shares opened 2 higher but pared some gains after the burger giant flagged a hit to franchisee cash flow in California, where minimum wages for restaurant workers are set to rise to 20 per hour next year.

McDonald39;s size and scale have helped keep its meals relatively cheaper even after an industrywide hike in prices last year, helping counter the trend of inflationhit consumers eating more at home and a broader decline in footfall.

The company has also rolled out to other regions its smaller, more affordable meal bundles featuring its core menu items after testing them in markets such as Germany.

Consumers continue to be more discriminating about what and where they spend…but we39;re seeing really no change at all in terms of customer acceptance… on pricing, CEO Chris Kempczinski said on a postearnings call.

McDonald39;s posted traffic growth among lowerincome consumers even as industrywide footfall declined, Kempczinski said.

Drawing on its history of menu enhancements, the company launched the Cheesy Jalapeno Bacon quarter pounder in July and brought back the fanfavorite Spicy Chicken McNuggets to menus in September.

Despite a lukewarm response, we see a solid MCD setup into 2024, Wells Fargo analyst Zachary…