On Friday, McDonald's Corporation (NYSE:MCD) announced its earnings report for the the third quarter ended September 30, 2016. Heartened by the company’s new all-day breakfast and chicken McNuggets with no artificial preservatives, McDonald’s Q3 earnings top estimates.
According to the release, revenue dropped 2.9% to $6.42 billion, which was due to refranchising and surpassed analysts’ estimates of $6.28 billion. Sales at existing restaurants increased 3.5%, topping estimates of 1.5% by Consensus Metrix. Comparable sales in the United States rose 1.3%, which also beat expectation of 1.2% growth. In addition, international sales were up 3.3%, beating analysts’ estimates of 1.8% contributed by the strong performance in Japan.
As for the earnings, McDonald’s announced profits of $1.28 billion, dropping from $1.31 billion in the same period last year. Earnings per share increased to $1.5 per share, beating estimates of $1.48 per share. The company explained that earnings per share was influenced by the restructuring charge and currency headwinds, at the same time, lower share count has positive effect on earnings. Diluted earnings per share increased 7% to $1.5 per share, and excluding certain charges, diluted earnings per share rose 16%.
“We are putting the customer at the center of everything we do and are directing our resources towards those innovations and investments that will strengthen our ability to deliver a better McDonald's experience over time,” said Steve Easterbrook, the McDonald's CEO, in a statement. “Looking ahead, we are focused on growing global comparable sales and serving more customers while being mindful of the near-term challenges in several markets.”
Boosted by the satisfying results, shares of McDonald’s increased in morning trading Friday after steady drop in the past weeks.