McDonalds restaurant on London’s Oxford Street. Restaurants are only allowed to open for takeout orders during England’s second lockdown.
Dave Rushen | LightRocket | Getty Images
MC Donalds A quarterly profit was reported on Monday that exceeded analysts’ estimates. This was aided by promotions that encouraged US customers to return to their restaurants.
The company’s shares rose 5% in premarket trading amid a broader market rally.
The company reported, versus Wall Street’s expectations based on an analyst survey by Refinitiv:
- Earnings per share: $ 2.22, adjusted versus expected $ 1.90
- Revenue: $ 5.42 billion versus $ 5.4 billion expected
The fast food giant reported net earnings of $ 1.76 billion, or $ 2.35 per share, for the third quarter, compared to $ 1.61 billion or $ 2.11 per share a year earlier.
Excluding profits from the sale of its stake in McDonald’s Japan, the company made $ 2.22 per share, beating analysts polled by Refinitiv at $ 1.90 per share.
Net sales declined 2% to $ 5.42 billion, beating expectations of $ 5.4 billion.
The company’s worldwide sales in the same store decreased 2.2% in the quarter, driven by slower recovery in international markets. However, the U.S. saw sales growth of 4.6% in the same store, driven by a strong September that included rapper Travis Scott’s popular promotion and the launch of its limited-time spicy McNuggets.
McDonald’s expects there will be restrictions in various markets as long as the coronavirus pandemic continues. New restrictions, such as mandatory dining room closings, have started to hit some of the major international markets such as France, Germany, the UK and Canada in recent weeks.
The company will increase its quarterly cash dividend by 3% to $ 1.29 per share.
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