McDonald's third-quarter results beat consensus forecast
McDonald's adjusted profit of $2.22 per share beats analysts’ average estimate of $1.91 per share
avatar
Staff or Guest writer for The Dog of Wall Street.
2020-11-09 13:48

McDonald's Corporation (MCD) announced better-than-expected earnings and revenue for the third quarter and increased its dividend.

The Chicago, Illinois-based fast-food giant posted a profit of $1.76 billion, or $2.35 per share for the quarter, higher than $1.61 billion, or $2.11 per share in the comparable period last year. On an adjusted basis, it earned $2.22 per share, up from $1.91 per share forecasted by analysts.

McDonald's third-quarter results beat consensus forecast

Revenue for the quarter came in at $5.42 billion, down from $5.50 billion in the same period last year, though surpassed analysts average estimate of $5.40 billion.

The company said that its global comparable sales slipped 2.2 percent, while analysts were looking for a decline of 2.6 percent. Comparatively, U.S. comparable sales rose 4.6 percent on year-over-year basis.

McDonald's lifted its quarterly dividend, payable on December 15, by 3 percent to $1.29.

Speaking on the results, McDonald's Chief Financial Officer Kevin Ozan said in a statement “around the world, comp sales continue to be driven by check growth from larger orders. This is particularly true with our drive-thru business, which continues to be one of our biggest areas of strength. In most markets, our drive-thru sales percentage peaked during the second quarter and remains elevated when compared to historical norms. This safe and convenient service channel has been especially appealing to customers during the pandemic.”

The company said nearly all its restaurants are operational, though its operating hours have been reduced in many countries by the local authorities due to the recent surge in Covid-19 cases.

McDonald's (NYSE: MCD) shares slightly moved down in the mid-day trading Monday despite beating analysts’ expectations for the quarter. Overall, MCD stock has performed well in the recent months considering the difficult operating situation around the globe. Its share price has jumped nearly 9 percent so far this year.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

positive
negative
Published On
2020-11-09 13:48

avatar
About the Author
Staff or Guest writer for The Dog of Wall Street.


buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

Levi Strauss' Bold Gambit: Is the Denim Icon's DTC Shift Enough to Weather the Storm?
Levi Strauss & Co. boasts a strong quarter with direct-to-consumer growth and innovative fashion, but can it navigate the choppy waters of the retail market?
By Alfonso | 4 months ago

Amazon's Bold Counterattack: Introducing the China-Direct Discount Section
As competition heats up, Amazon unveils a daring new strategy to offer unbeatable prices and direct shipping from China.
By Alfonso | 4 months ago

Tesla's Legal Challenges: Facing the Music on Autopilot Misrepresentation
Court ruling intensifies scrutiny on Tesla's self-driving claims.
By Alfonso | 5 months ago

Netflix's Ad-Supported Triumph: A New Era in Streaming
Surpassing 40 million users, Netflix’s ad-supported plan redefines the streaming landscape.
By Alfonso | 5 months ago

Tesla Stock (TSLA): Look Who's Back!
I’m cautiously optimistic but I’m at the point where I need to see it to believe it.
By Mike Sakuraba | 6 months ago

2 Earnings To Pay Attention to Next Week
Since big tech is the theme, you probably know what I have my eyes on for next week.
By Mike Sakuraba | 6 months ago

2 Stocks to Watch Below $10
Here are two stocks that are currently less trading in the single digits that I believe have some relative upside from their current prices.
By Mike Sakuraba | 6 months ago

Looking Ahead to Tesla's Earnings: What Can We Expect?
Is there any stock that has been more talked about than Tesla (NASDAQ: TSLA) as of late? It’s a company that is always in the spotlight but the stock is under some heavy scrutiny this year and deservedly so.
By Mike Sakuraba | 6 months ago