Commercial stoves may not be the new hot item in the market, but there is plenty of room to build a profit for the fast food giant.
The company reported third-quarter profit of $2.4 billion, which was down from $2 billion a year ago, according to Thomson Reuters.
McDonald’s is spending more money to buy its own equipment and hire a marketing and distribution team, said Tim Clark, McDonald’s vice president of commercial operations.
More money will be spent on the kitchen and kitchen appliances, Clark said.
With the commercial stove now in use, the chain is also expanding its food service offerings, including restaurants and coffee shops, Clark added.
It’s not a bad thing for the company, said Michael Zalts, senior vice president for business operations at The Restaurant Association of America.
“We know it’s a good product, we know it works well,” Zaltes said.
“I don’t think people are going to want to go to a McDonald’s or a Starbucks anytime soon.”
The commercial stove has been a popular item for fast food chains.
Some analysts have suggested that the stoves will become a key piece of McDonald’s business for the long term, even as it continues to compete with other fast food companies for customers and cash flow.
McDonalds reported sales of $13.7 billion in the third quarter, up from $13 billion a season ago.
Its stock is up 9 percent so far this year, and its price-to-earnings ratio is nearly five times that of its peers.