Investing.com — McDonald’s Corporation (NYSE:MCD) reported third-quarter earnings that surpassed analyst expectations, despite facing global headwinds including the ongoing conflict in the Middle East.
The fast-food giant’s revenue increased YoY, driven by growth in the U.S. market, while international segments experienced declines.
Shares were down 1.6% in pre-market Tuesday trade.
McDonald’s posted adjusted earnings per share of $3.23 for the quarter ended September 30, beating the analyst estimate of $3.20. Revenue rose 3% YoY (2% in constant currencies) to $6.87 billion, slightly above the consensus estimate of $6.82 billion.
Global comparable sales decreased 1.5%, with the U.S. market showing a modest 0.3% increase. The International Operated Markets segment saw a 2.1% decline, while the International Developmental Licensed Markets segment dropped 3.5%, primarily due to the impact of the war in the Middle East and negative comparable sales in China.
“We will stay laser-focused on providing an unparalleled experience with simple, everyday value and affordability that our consumers can count on as they continue to be mindful about their spending,” said Chairman and CEO Chris Kempczinski.
The company’s U.S. performance was attributed to average check growth, effective value and marketing campaigns, and continued digital and delivery growth. However, this was partly offset by slightly negative comparable guest counts.
McDonald’s also announced a 6% increase in its quarterly cash dividend to $1.77 per share, demonstrating confidence in its financial position despite global challenges.
The Q3 earnings report comes after the stock was hit by the the outbreak of E. Coli linked to McDonald’s burgers. According to CDC, the outbreak has spread to 13 states and infected 75 people.
“The true number of sick people in this outbreak is likely much higher than the number reported, and the outbreak may not be limited to the states with known illnesses,” the CDC said. “Of 61 people with information available, 22 have been hospitalized, and 2 people developed hemolytic uremic syndrome, a serious condition that can cause kidney failure.”
MCD shares are flat year-to-date.
