Updated from 9:26 a.m. EDT
SAN FRANCISCO --
bumped up its third-quarter profits with strong sales of breakfast and beverage menu items, as well as expansion overseas.
The fast-food chain posted results in line with its recent guidance, with profits rising to $1.07 billion, or 89 cents a share, from $843.4 million, or 68 cents a share, a year earlier.
Earnings from continuing operations, which exclude results from the recently sold Boston Market chain, were 83 cents a share, matching Thomson Financial's average analyst estimate.
The earnings, though, were ahead of Wall Street's original targets for the quarter. Analysts took their forecasts higher after McDonald's said last week that it expected EPS from continuing operations of 83 cents. At the time, analysts were looking for a profit of 77 cents a share.
McDonald's reported third-quarter revenue of $5.9 billion, compared with $5.5 billion the prior year. Same-store sales, or sales at stores open at least a year, jumped 6.9%.
In the U.S., same-store sales increased 5.1% in the quarter, helped by McDonald's heavy push of its breakfast business, as well as its coffee. The company has sought to elevate its coffee offerings to compete with brands like
Some of that sales growth was offset by higher costs for certain commodities like dairy and chicken, as well as increasing labor costs due to the recent minimum wage hike.
In Europe, same-store sales rose 6.5%. The company saw a particularly strong performance in France, along with Russia, where all of McDonald's restaurants are company-operated rather than franchised.
In Asia, same-store sales leaped by 11.4%, the highest growth in the region in 10 years. Much of that growth stemmed from success in China, the company said.
The quarter is just latest in a string of solid performances by McDonald's. Its stock is trading near all-time highs, and the company recently increased its dividend by 50%.
The company has so far been spared from larger economic issues that have hampered many other consumer-focused sellers. McDonald's has even jacked up its menu prices by 3.5% this year.
Nonetheless, Chief Operating Officer Ralph Alvarez said in a conference call Friday that the company is conscious of economic concerns, placing a heavier emphasis on its dollar-menu items as a result.
Shares for McDonald's were trading at $56.76 Friday afternoon, down 3 cents.