McDonald's Q3 Profit Rises, Tops View

(RTTNews) - McDonald's Corp. (MCD) reported a profit for the third-quarter that increased about 10 percent from last year, reflecting stronger operating performance in the U.S. due to higher sales-driven restaurant margins, partly offset by sales performance declines in the International Operated Markets and International Developmental Licensed Markets segments as a result of COVID-19. Total revenues for the third-quarter decreased 2 percent. Quarterly global comparable sales declined 2.2 percent.

The fast-food giant reported that its third-quarter net income rose about 10 percent to $1.76 billion from last year's $1.61 billion, with earnings per share improving to $2.35 from $2.11 in the previous year.

The latest-quarter results included $139 million of pre-tax strategic gains or $0.13 per share, related to the sale of McDonald's Japan stock, which reduced the company's ownership by about 3 percent.

Excluding $0.13 per share of strategic gains related to the sale of McDonald's Japan stock, earnings per share was $2.22 for the quarter, an increase of 5 percent or 4 percent in constant currencies. Analysts polled by Thomson Reuters expected the company to report earnings of $1.90 per share. Analysts' estimates typically exclude special items.

Total revenues for the third-quarter declined 2 percent to $5.42 billion from $5.50 billion in the previous year. Analysts expected revenues of $5.40 billion for the third-quarter.

Global comparable sales for the third-quarter declined 2.2 percent, compared to an increase of 5.9 percent last year.

U.S. comparable sales for the third-quarter increased 4.6 percent compared to an increase of 4.8 percent in the previous year.

In International Developmental Licensed Markets & Corporate, quarterly comparable sale were down 10.1 percent. This compared to an increase of 8.1 percent in the prior year. Comparable sales results were impacted by negative comparable sales in Latin America and China, partly offset by strong positive comparable sales in Japan.

In Monday pre-market trade, MCD was trading at $227.80, up $11.21 or 5.18 percent.