McDonald's Q3 Earnings Fail to Impress
Source: McDonald's.
McDonald's delivered third-quarter results ahead of the bell on Monday that were essentially in line with analyst expectations. The fast-food chain posted earnings per share of $1.52, slightly higher than the $1.51 analysts had predicted. Revenue climbed to $7.32 billion in the period, up 2.4% from $7.15 billion last year, but falling short of estimates for revenue of $7.34 billion.
For the quarter ended Sept. 30, McDonald's same-store-sales increased 0.9% globally . Comparable sales in the United States rose 0.7%, while Europe's comps increased just 0.2% in the third quarter.The company noted strong performance in the U.K. and Russia and solid results in France, partially offset by performance in Germany.
Meanwhile, sales at McDonald's stores open at least 12 months in Asia-Pacific, Middle East and Africa declined 1.4% in the quarter. The world's biggest restaurant chain by revenue cited weakness in China, Japan, and Australia due in part to "the ongoing challenging environment."
Looking forward, McDonald's expects fourth-quarter sales in stores open at least 13 months will be on par with the third quarter's 0.9% rise.
Despite a weak quarter, McDonald's continues to reward shareholders through dividends and share buybacks. In September, McDonald's increased its quarterly dividend payout by 5% to $0.81 per share. The company said it returned $1.3 billion to shareholders during its third quarter through dividends and share repurchases.
The stock opened lower on Monday.
-- Material from The Associated Press was used in this report.
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