McDonald's Corp. (MCD) - Get Report reported weaker-than-expected third quarter earnings Tuesday and noted moderately disappointing comparable sales in the world's biggest restaurant group's domestic U.S. business.
McDonald's said adjusted earnings for the three months ending in September came in at $2.11 per share, essentially flat to the same period last year and missing the Street consensus forecast of $2.21 er share. Group revenues, McDonald's said, rose 1% to $5.4 billion, modestly shy of the $5.49 billion expected by analysts that follow the restaurant group.
Comparable global sales, however, rose 5.9% from last year, topping the consensus forecast of 5.5% billion, but slowing from the 6.2% pace recorded over the second quarter. U.S. comparable sales were up 4.8% compared to the 5.7% pace of the prior quarter, McDonald's said, while international sales were up 5.6%.
"Our third quarter performance was strong, and broad-based momentum continued with our 17th consecutive quarter of global comparable sales growth," said McDonald's President and Chief Executive Officer Steve Easterbrook. "Globally, our customers are rewarding our commitment of running better restaurants and executing our Velocity Growth Plan by visiting more often."
McDonald's shares were marked 3.6% lower at the start of trading following the earnings release to change hands at $202.69 each, a move that would trim the stock's year-to-date gain to around 14%.