McDonald's is still killing it because of all-day breakfast

McDonald’s on Friday reported third-quarter sales that beat analysts’ estimates amid concern that the boost from all-day breakfast was fading.

The company said its comparable-store sales, or sales at locations open for at least one year, rose 3.5%, topping the forecast for 1.5% growth, according to data from Bloomberg.

In the second quarter, the company’s comparable-store sales growth slowed and missed analysts’ expectations.

After McDonald’s introduced all-day breakfast, some US franchisees predicted that the novelty of hash browns for lunch would quickly fade away. In September, McDonald’s improved its all-day breakfast menu, adding McGriddle sandwiches and making both McMuffin and biscuit sandwiches available at all restaurants.

The restaurant said the McPick 2 offering and the introduction of chicken McNuggets without artificial preservatives also helped sales during the quarter. Its shares rose 3% in premarket trading after the earnings announcement.

Like Yum Brands, McDonald’s pegged weak sales growth in China on protests surrounding the country’s lawsuit with the Philippines over the South China Sea.

McDonald’s reported revenue of $6.4 billion, topping the forecast for $6.3 billion. Its adjusted earnings per share excluding restructuring charges came out to $1.62, beating the forecast for $1.48. Those charges relate to the company’s plans announced in July to refranchise 4,000 restaurants by the end of 2018.

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