Fast food king McDonald’s Corporation (NYSE:MCD) today posted much better than expected third quarter earnings results, driven by strong comparable sales growth in its global locations.
The Oak Brook, IL-based company reported Q3 earnings of $1.62 per share, easily beating Wall Street’s $1.48 per share estimate. Revenue fell 2.9% to $6.42 billion, but still exceeded analysts’ view of $6.28 billion.
Global comparable sales surged 3.5% in the latest period, blowing away estimates of 1.5%. Comps rose 1.3% in the U.S., 3.3% in International Lead, 1.5% in High Growth, and 10.1% in Foundational markets. Comparable sales are considered a key indicator of a restaurant’s performance, since they measure only the yearly change in sales for locations open at least 12 months.
MCD commented via press release:
“Customers today are more informed and demand greater choice and variety when they dine out. That’s why we’re evolving the McDonald’s experience to provide more high quality, affordable food and beverage options and convenient solutions for customers on the go,” said McDonald’s President and Chief Executive Officer Steve Easterbrook. “Our third quarter results, including our fifth consecutive quarter of positive comparable sales across all segments as well as improved restaurant profitability, are a testament to the progress we are making to satisfy the needs of today’s dynamic customers.”
McDonald’s shares rose $3.84 (+3.47%) to $114.41 in premarket trading Friday. Prior to today’s report, MCD had fallen 6.41% year-to-date, versus a 4.91% gain in the benchmark S&P 500 index during the same period.