- McDonald’s beat on both the top and bottom lines.
- The burger giant’s global same-store sales topped Street estimate and US same-store sales were in line with forcasts.
- Shares were set to open up 2%.
- Watch McDonald’s trade in real time here.
McDonald’s shares are gaining around Tuesday morning, up about 2%, after the burger giant posted third-quarter earnings that beat Wall Street estimates.
The fast-food chain on Tuesday posted quarterly earnings of $US2.10 per share, beating the $US1.99 that was expected by analysts, according to Bloomberg data. Revenue fell 6.6% to $US5.37 billion, but that was higher than the $US5.32 billion expected by Wall Street.
Meanwhile, McDonald said same store sales increased 2.4% in the US, driven by growth in average check resulting from both product mix shifts and menu price increases, matching analysts’ forecasts. Global comparable sales grew 4.2% versus a year ago, beating the 3.6% growth that was anticipated.
“We remain confident that our strategy will drive long-term, profitable growth,” CEO Steve Easterbrook said in a press release.
“In addition to achieving 13 consecutive quarters of positive global comparable sales, we have made substantial progress modernising restaurants around the world, enhancing hospitality and elevating the experience for the millions of customers we serve every day.”
The company said it returned $US1.7 billion to shareholders in the third quarter through share repurchases and dividends, and will increase its quarterly dividend by 15% to $US1.16 per share beginning in the fourth quarter.
McDonald’s was down 1.68% this year through Monday.
- BANK OF AMERICA: These 16 stocks are primed to smash investor expectations and beat the market as we enter the most crucial stretch of earnings season
Business Insider Emails & Alerts
Site highlights each day to your inbox.