McDonald's Profit Sizzles (Update)
Updated from 9:33 a.m. EDT
McDonald's
(MCD) - Get Report
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.
|
var config = new Array(); config<BRACKET>"videoId"</BRACKET> = 1873026276; config<BRACKET>"playerTag"</BRACKET> = "TSCM Embedded Video Player"; config<BRACKET>"autoStart"</BRACKET> = false; config<BRACKET>"preloadBackColor"</BRACKET> = "#FFFFFF"; config<BRACKET>"useOverlayMenu"</BRACKET> = "false"; config<BRACKET>"width"</BRACKET> = 265; config<BRACKET>"height"</BRACKET> = 255; config<BRACKET>"playerId"</BRACKET> = 1243645856; createExperience(config, 8); |
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)
down about 4% at $19.38, and
Yum! Brands
(YUM) - Get Report
was down 2.2% at $27.22.