Yahoo Finance McDonald's reports strong sales, teases new breakfast offerings
McDonald’s (MCD) reported third-quarter financial results that beat on both the top and bottom lines.
Global comp sales grew by 4.2%, which was above the expected 3.7% growth.
“In addition to achieving 13 consecutive quarters of positive global comparable sales, we have made substantial progress modernizing restaurants around the world, enhancing hospitality and elevating the experience for the millions of customers we serve every day. We remain confident that our strategy will drive long-term, profitable growth,” McDonald’s President and CEO Steve Easterbrook said in a statement.
The burger giant, however, reported that domestic same-store sales growth came in softer than expected at 2.4%, which was just shy of the 2.5% estimated.
Looking forward, both President and CEO Steve Easterbrook and CFO Kevin Ozan explained that the company would be focusing on breakfast to drive US sales higher.
“Breakfast remains an opportunity and in September we expanded our $1, $2, $3 menu offerings by introducing $1 any-sized coffee, as well as adopting two customer-favorite breakfast sandwiches at the $1 price point. Soon we’ll introduce new breakfast menu items inspired by our customers,” Ozan said on the earnings conference call on Tuesday.
When specifically asked about breakfast by KeyBanc analyst Eric Gonzalez, Easterbrook responded, “It’s very competitive out there for breakfast…but we also haven’t had much new breakfast for a little while, and you’ll see some new food news in the fourth quarter this year, which I know the team are excited about. And so am I. So it continues to be a battle ground.”
McDonald’s reported $2.10 earnings per share versus the $1.99 earnings per share estimated by analysts polled by Bloomberg.
Revenue came in better-than-expected at $5.37 billion versus Wall Street’s $5.29 billion expectation.
McDonald’s soared more than 6% on Tuesday for its best day since October 22, 2015.
Heidi Chung is a reporter for Yahoo Finance. Follow her on Twitter: @heidi_chung.
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