McDonald's Earnings Top Expectations
October 21 2016 - 8:54AM
Dow Jones News
By Anne Steele
McDonald's Corp. reported better-than-expected earnings and
solid growth in same-restaurant sales for the September quarter,
helped in part by the continued popularity of its all-day breakfast
and the introduction of new chicken nuggets.
Shares in the company, down 13% over the past three months,
added 3.5% to $114.41 in premarket trading.
Sales at existing restaurants rose 3.5% in the period, handily
beating the consensus estimate of 1.5% growth in a survey of
analysts by Consensus Metrix. In the U.S., comparable sales
increased 1.3%, just above the 1.2% growth anticipated by analysts.
All-day breakfast and the introduction of chicken nuggets with no
artificial preservatives helped power domestic sales, despite
"continued industry softness."
International sales, meanwhile, grew 3.3%, beating analysts'
views of 1.8%. Overseas sales were led by a "strong performance in
Japan," McDonald's said.
Since taking the helm last March, Chief Executive Steve
Easterbrook has moved to bolster the company's sales by paring down
its menu, offering more transparency about how its food is made and
launching all-day breakfast at many of its domestic restaurants.
That move initially fueled stronger growth and higher traffic, but
impact has since dwindled.
In all for the September quarter, McDonald's reported a profit
of $1.28 billion, down from $1.31 billion a year earlier. Per-share
earnings rose a dime to $1.50, boosted by a lower share count.
Foreign currency shaved 3 cents off the bottom line on a per-share
basis. Analysts had projected $1.48 in per-share earnings.
Revenue slipped 2.9% to $6.42 billion. Analysts were looking for
$6.28 billion.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
October 21, 2016 08:39 ET (12:39 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
McDonalds (NYSE:MCD)
Historical Stock Chart
From Aug 2024 to Sep 2024
McDonalds (NYSE:MCD)
Historical Stock Chart
From Sep 2023 to Sep 2024