Higher Prices Help McDonald’s Overcome Analyst Expectations
McDonald's (MCD:US) reported its financial results for the third quarter on Monday, which helped shares rally over 2%.
Consolidated operating income increased by 16% (13% in constant currencies) compared to the year-ago period.
"The macroeconomic environment is unfolding in line with our expectations for the year, and we continued to deliver convenience and value for our customers,” said the company’s CEO.
The company highlighted that U.S. comparable sales results benefited from strong average check growth driven by strategic menu price increases. The International Operated Markets segment's performance was driven by strong comparable sales in most markets, with notable strength in the U.K., Germany, and Canada.
McDonald’s said its comparable sales rose 8.8%, topping the analyst consensus by 100 basis points. Both U.S. and International sales were higher than expected.
Adjusted earnings per share were reported at $3.19, up from the $2.68 last year and $2.98 that analysts were expecting. Revenue climbed by 14% to $6.69 billion, again better than the expected $6.52 billion.
The company generated $3.21 billion in Q3 operating income.
The solid Q3 report comes just ten days after Senator Pete Ricketts disclosed he sold $100,000 - $250,000 worth of shares on September 21, when shares closed at $271.22.
Shares are trading around $263 apiece in early Monday trade.
