McDonald's Investors Can't Stomach Q3 Results
When McDonald’s Corp. (NYSE: MCD) released its third-quarter financial results before the markets opened on Tuesday, the golden arches posted $2.11 in earnings per share (EPS) and $5.43 billion in revenue. Consensus estimates had called for $2.21 in EPS and $5.49 billion in revenue, and in the same period of last year, the fast-food giant said it had EPS of $2.10 in $5.37 billion in revenue.
Consolidated revenues increased 1% (increased 3% in constant currencies), reflecting strong comparable sales. Consolidated operating income decreased 2%.
During the quarter, global comparable sales increased 5.9%, reflecting strong comparable sales across all segments. At the same time, systemwide sales increased by 5% (7% in constant currencies).
In the United States, first-quarter comparable sales rose 4.8%. The International operating segment, third-quarter comparable sales increased 5.6%, and the International Developmental Licensed segment, third-quarter comparable sales grew 8.1%.
Steve Easterbrook, McDonald’s president and CEO, commented:
Our third quarter performance was strong, and broad-based momentum continued with our 17th consecutive quarter of global comparable sales growth. Globally, our customers are rewarding our commitment of running better restaurants and executing our Velocity Growth Plan by visiting more often.
Shares of McDonald’s closed Monday at $209.85, within a 52-week range of $169.04 to $221.93. The consensus price target is $232.44. Following the announcement, the stock was down about 3% at $203.10 in early trading indications Tuesday.