Shares in the world’s biggest burger chain defied a major sell-off in US markets before the opening bell on Tuesday, rising more than 2 per cent.
The company earned US$1.64 billion (A$2.32 billion), or US$2.10 per share. That’s 12 US cents better than industry analysts had projected, according to a survey by Zacks Investment Research.
Revenue of US$5.37 billion, though down from the same period last year, also beat expectations. The company has been turning company-owned restaurants into franchises, which pulls on its revenue numbers.
“In addition to achieving 13 consecutive quarters of positive global comparable sales, we have made substantial progress modernising restaurants around the world, enhancing hospitality and elevating the experience for the millions of customers we serve every day,” Steve Easterbrook, McDonald’s president and CEO, said in a statement.
“We remain confident that our strategy will drive long-term, profitable growth,” Easterbrook said.
Neil Saunders, the managing director of GlobalData Retail, said putting to one side the decline in revenue, which is a function of McDonald’s transferring company-owned restaurants into franchises, this is a reasonable set of results for the burger giant.
“Overall comparable sales growth is solid, with both the US and international divisions contributing to the uplifts,” Saunders said.
Same-store sales for McDonald’s Corp rose 2.4 per cent, which was shy of most estimates, but overlooked by investors in early trading.
Shares are still down 3 per cent this year, but have risen almost 5 per cent in the just-ended quarter.