McDonald's Profit Sizzles (Update)

Updated from 9:33 a.m. EDT

McDonald's (MCD Quote) exceeded expectations on the top and bottom line for the third quarter.

The fast-food restaurant giant reported third-quarter net income of $1.19 billion, or $1.05 a share, rising from $1.07 billion, or 89 cents a share, in the same quarter a year earlier. Results handily beat analysts' average forecast of 98 cents a share, according to Thomson Reuters.

Revenue rose 6% to $6.27 billion from $5.9 billion in the year-ago quarter, coming in ahead of Wall Street's average target of $6.18 billion.

Despite a global economic downturn, McDonald's said that every global market saw an increase in same-store sales. In the U.S., comparable sales rose 4.7%, while Europe saw an 8.2% increase in same-store sales. Asia/Pacific, Middle East and Africa's segment saw strength in the third quarter fueled by a 7.8% comparable sales rise.

"As we enter the final quarter of the year, October sales trends remain strong, and I am optimistic about McDonald's outlook," said CEO Jim Skinner in a statement. "McDonald's is a strong, stable global business and remains well positioned to generate long-term profitable growth for our system and our shareholders."

Shares of the Dow Jones Industrial Average component were up slightly at $55.15 in midday trading. McDonald's stock is down more than 6% for the year. Among its rivals, Burger King (BKC Quote) down about 4% at $19.38, and Yum! Brands (YUM Quote) was down 2.2% at $27.22.