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.
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.
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