McDonald’s has beat analysts’ consensus estimates across the board with its third-quarter financial results.
The quick service restaurant chain has announced earnings per share (EPS) of $3.23 U.S. compared to $3.20 U.S. that was forecast on Wall Street.
Revenue in the July through September period totaled $6.87 billion U.S., which was also ahead of expectations that called for $6.82 billion U.S. Sales were up 3% from a year ago.
The company also said that it has reversed a same-store sales decline in America that had weighed down its financial results in recent quarters.
However, the chain’s global same-store sales declined 1.5% during the quarter, which was worse than the 0.6% decrease expected on Wall Street.
U.S. same-store sales rose 0.3%, reversing last quarter’s same-store sales decline. Management credited a $5 U.S. value meal launched in late June for the increase in U.S. sales.
The third-quarter print comes a week after McDonald’s reported an E. coli outbreak in 13 U.S. states that’s been linked to the company’s Quarter Pounder hamburgers.
Looking ahead, McDonald’s said it’s unclear how the E. coli outbreak will impact its U.S. sales in the current fourth quarter.
Foot traffic to U.S. locations dropped 10% in the three days immediately following the Centers for Disease Control and Prevention (CDC) announcing the E. coli outbreak tied to McDonald’s.
The stock of McDonald’s fell 10% on news of the E. coli outbreak and is flat on the year (down 0.08%) and trading at $296.79 U.S. per share.
The E. coli outbreak now appears to be contained and McDonald’s is once again selling Quarter Pounders at all of its U.S. locations.
