June 14, 2021

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McDonald’s (MCD) Q3 2020 earnings top estimates

2 min read

McDonalds restaurant in Londons Oxford Street. Restaurants are only allowed to open for takeaway orders during the Englands second lockdown.

Dave Rushen | LightRocket | Getty Images

McDonald’s on Monday reported quarterly earnings that topped analysts’ estimates, helped by promotions that drove U.S. customers to return to its restaurants.

Shares of the company rose 5% in premarket trading amid a broader market rally.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $2.22, adjusted, vs. $1.90 expected
  • Revenue: $5.42 billion vs. $5.4 billion expected

The fast-food giant reported fiscal third-quarter net income of $1.76 billion, or $2.35 per share, up from $1.61 billion, or $2.11 per share, a year earlier.

Excluding gains from the sale of its shares of McDonald’s Japan and other items, the company earned $2.22 cents per share, topping the $1.90 per share expected by analysts surveyed by Refinitiv.

Net sales dropped 2% to $5.42 billion, beating expectations of $5.4 billion. 

The company’s global same-store sales fell 2.2% in the quarter, dragged down by slower recovery of its international markets. But the United States reported same-stores sales growth of 4.6%, fueled by a strong September that included its popular promotion with rapper Travis Scott and the launch of its limited-time spicy McNuggets.

McDonald’s said that it expects to deal with restrictions in various markets as long the coronavirus pandemic continues. New restrictions, like mandatory dining room closures, have begun hitting some of its key international markets, like France, Germany, the United Kingdom and Canada in recent weeks.

The company will increase its quarterly cash dividend by 3% to $1.29 per share.

Read the full earnings report here.

This is breaking news. Please check back for updates.

2020-11-09 07:09:41

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