10:06 AM, Oct 22, 2019 — McDonald’s (MCD) shares slid after the fast-food giant reported third-quarter revenue and earnings that missed expectations while comparable sales edged past views.
The Chicago-based company’s revenue in the quarter rose to $5.43 billion from $5.37 billion in the prior-year period, below the consensus compiled by Capital IQ for $5.47 billion. Per-share earnings on a diluted basis rose a penny from last year on a GAAP basis to $2.11, below the Street’s view for $2.22.
Global comparable sales rose 5.9%, above the Street’s view for 5.5%.
McDonald’s shares were 2.7% lower in early trading.
“Our third-quarter performance was strong, and broad-based momentum continued with our 17th consecutive quarter of global comparable-sales growth,” said Chief Executive Steve Easterbrook. “Globally, our customers are rewarding our commitment of running better restaurants and executing our Velocity Growth Plan by visiting more often.”
Sales at company-operated restaurants slid 4% from last year to $2.42 billion while revenues from franchised restaurants rose 5% to $3.01 billion.
International operating comparable sales rose 5.6% while the US gained 4.8%. The international developmental licensed segment comparable sales popped 8.1%.
Companies: McDonald’s Corporation
Price: 204.19 Price Change: -5.66 Percent Change: -2.70