Shares of McDonald's Corp. (MCD) jumped 3.2% in premarket trading on Monday, reaching a one-month high. The fast-food restaurant giant announced third-quarter profit and revenue that exceeded expectations.

Strong financial performance

In the third quarter, net income increased to $2.32 billion, or $3.17 per share, compared to $1.98 billion, or $2.68 per share, in the same period last year. Adjusted earnings per share came in at $3.19, surpassing the FactSet consensus of $3.00.

Revenue experienced a robust growth of 14%, reaching $6.69 billion, higher than the FactSet consensus of $6.56 billion. McDonald's also outperformed expectations in terms of same-store sales growth, which rose by 8.8% instead of the projected 8.0%.

Strong performance in the U.S.

McDonald's achieved impressive results in its home market as well. Same-store sales in the U.S. increased by 8.1%, surpassing the expected growth rate of 7.5%. This growth was primarily driven by higher menu prices.

Positive outlook

Chief Executive Chris Kempczinski expressed satisfaction with the company's performance, stating, "The macroeconomic environment is unfolding in line with our expectations for the year, and we continued to deliver convenience and value for our customers."

Stock performance

Despite the recent strong performance, McDonald's stock has faced challenges in the past three months, declining by 13.0%. In comparison, the Dow Jones Industrial Average (DJIA) has experienced an 8.6% loss during the same period.

Low-Volatility Stock Funds: A Closer Look

Vodafone Group PLC to Sell Part of Spanish Arm in $5.3B Deal

Leave A Reply

Your email address will not be published. Required fields are marked *